The URL can be used to link to this page

Home My WebLink About1996-1997 Comprehensive Annual Financial Report (Entire Document) CITY OF MOUNTAIN VIEW, CALIFORNIA COMPREHENSIVE> ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 1997 . ... <, ... ~. CITY OF MOUNTAIN VIEW, CALIFORNIA ~ Comprehensive Annual Financial Report For the year ended June 30, 1997 ~ fjW,.-..-." ~._", ~ DEPARTMENT OF FINANCE AND ADMINISTRATIVE SERVICES - Robert F. Locke, Finance and Administrative Services Director Patty J. Kong, Assistant Finance and Administrative Services Director Shelley A. Webb, Accounting Officer ~ ~ .. ~~ - #lJlIIIt .... - - .. - .. CITY OF MOUNTAIN VIEW, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 1997 .. .. .. .. TABLE OF CONTENTS .. .. EXHIBITS .. INTRODUCTORY SECTION - Letter of Transmittal................................................................................................................ 1 Directory of City Officials........................................................................................................ 2 Organiza tion Chart.................................................................................................................. 3 Certificate of Achievement for Excellence in Financial Reporting............................... 4 Certificate of Award for Outstanding Financial Reporting............................................. 5 .. - .. .. .. PAGES .. FINANCIAL SECTION .. Independent A udi tors' Report.............................................................................................. 1 .. .. General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups......................................................................................................... 2-5 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - All Governmental Fund Types................................................................................................................. 6-7 Combined Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General and Budgeted Special Revenue and Capital Projects Funds .................................................................. 8-10 Combined Statement of Revenues, Expenses and Changes in Retained Earnings - All Proprietary Fund Types.................................................................................................................. 12 Combined Statement of Cash Flows - All Proprietary Fund Types...................................................................................... 13 - - - .. - .. - .. - - - Notes to General Purpose Financial Statements..................................................15-45 .. Supplementary Information: Employee Retirement Plan Historical Trend Information................................48-49 - - - - -1- .. .. - IiIiitI ~ ;\ii4>:,,"'I .... ~ lUIiiI ~ ~ .. -~j<i ..... ~ - ~ ... - IiIiitI ~ - - - - - Combining, Individual Fund and Account Group Statements and Schedules: General Fund: Com para tive Balance Sheets......................................................................................... 52 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual.......................................... 53 Special Revenue Funds: Combining Balance Sheet - All Funds ..................................................................56-57 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - All Funds..................................58-59 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) - Budget and Actual - All Budgeted Funds .....................................................................60-65 Debt Service Funds: Combining Balance Sheet - All Funds ..................................................................68-69 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Funds ................................................... 70-71 Capital Projects Funds: Combining Balance Sheet - All Funds .................................................................. 74-75 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - All Funds ................................................... 76-77 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - All Budgeted Funds.. ......... .......... ....... ....... ......... ..................... ...... .... ................ ...78-79 Enterprise Funds: Combining Balance Sheet - All Funds ..................................................................82-83 Combining Statement of Revenues, Expenses and Changes in Retained Earnings - All Funds ....................................................84-85 Combining Statement of Cash Flows - All Funds .............................................. 86-87 Internal Service Funds: Combining Balance Sheet - All Funds ........,......................................................... 90-91 Combining Statement of Revenues, Expenses and Changes in Retained Earnings - All Funds .................................................... 92-93 Combining Statement of Cash Flows - All Funds .............................................. 94-95 Agency Funds: Combining Balance Sheet - All Funds .................................................................. 98-99 Combining Statement of Changes in Assets and Liabilities - All Funds ...... .......... ......... ....... .......... ......... .... ......... ........................... ............ .....100-101 -11- - .. - General Fixed Assets Account Group: Comparative Schedule of General Fixed Assets by Source................................... 104 Schedule of Changes in General Fixed Assets by Function and Activity ...............................................................;........................105 Schedule of General Fixed Assets by Function and Activity............................................................................................................... 106 .. - .. - - STATISTICAL SECTION (Unaudited) - Data for Last Ten Fiscal Years: General Government Expenditures by Function............................................. 108-109 General Revenues by Source ................................................................................110-111 Appropriations Limit .............................................................................................112-113 Property Tax Levies and Collections ...................................................................114-115 Assessed and Estimated Actual Value of Taxable Property .............................................................................................................. .116-117 Property Tax Rates - Direct and Overlapping Governments ........... ..........................................................................................118-119 Special Assessment Billings and Collections ........................................................... 121 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita.................................................................... 122-123 Ratio of Annual Debt Service for General Bonded Debt to General Governmental Expenditures............................................................. 125 Property Value, Construction and Bank Deposits ...........................................126-127 Demographic Sta tis tics.................................................................................................. 128 - - .. - . - .. - . - .. - Other: Computation of Legal Debt Margin............................................................................ 129 Schedule of Direct and Overlapping Bonded Debt ................................................. 130 Top Ten Property Owners ............................................................................................131 Miscellaneous Statistical Data.......................................................... .................... 132-133 Sched ule of Insurance in Force ............................................................................134-135 Surety Bonds of Principal Officers .............................................................................. 136 - - - - - - MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY.............137-157 - MOUNTAIN VIEW REVITALIZATION AUTHORITY......................................159-183 - - - - - - - - -111- - - I I I I I I I I I I I I I I I I I I I Exhibit 1 CITY OF MOUNTAIN VIEW Finance and Administrative Services Department 500 Castro Street. Post Office Box 7540 . Mountain View, California 94039-7540 .415-903-6316. FAX 415-903-6576 October 10, 1997 Honorable Mayor, City Council and Citizens of Mountain View: The Comprehensive Annual Financial Report of the City of Mountain View (City) for the fiscal year ended June 30, 1997 is hereby submitted. Responsibility for both the accuracy and completeness of the data, as well as fairness of the presentation, including all disclosures, rests with City management. To the best of our knowledge and belief, the information contained in this report is accurate in all material respects and reported in a manner that presents fairly the financial position and results of operations of the various funds, account groups and component units of the City. All disclosures necessary to enable the reader to gain an understanding of the City's financial condition have been included. The Comprehensive Annual Financial Report includes all funds and account groups of the City and is presented in five sections: . Introductory; . Financial; · Statistical; . The Mountain View Shoreline Regional Park Community; and . The Mountain View Revitalization Authority. The Introductory section contains a letter of transmittal, a directory of principal offi- cials and an organizational chart of the City. The Financial section contains the general purpose financial statements, notes to the financial statements, the combin- ing and individual fund and account group financial statements and schedules, as well as the independent auditors' report on these financial statements and sched- ules. The Statistical section includes selected financial and demographic informa- tion, generally presented on a multi-year basis. In accordance with legal require- ments, separate independent auditors' reports are presented with each of the finan- cial statements of the Mountain View Shoreline Regional Park Community and the Mountain View Revitalization Authority, two blended component units of the City. In addition, the independent auditors' report on compliance is included for the Mountain View Revitalization Authority. Recycled Paper Honorable Mayor and City Council and Citizens of Mountain View October 10, 1997 Page 2 The City is required to undergo an annual audit of its Federal award programs in conformance with the provisions of the Single Audit Act of 1984 and the U.S. Office of Management and Budget Circular A-133, "Audits of Institutions of Higher Education and Other Nonprofit Organizations." Information related to the single audit, including a schedule of Federal financial assistance, auditors' reports on the internal control structure, and compliance with applicable laws and regulations, are included in a separate single audit report filed with the City's cognizant agency. The financial reporting entity includes all funds and account groups of the primary government (i.e., the City) as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. The City provides the following full range of municipal services which are reflected in this report: . Community safety activities (Police and Fire); . Community services (Library, Parks, Recreation, Performing Arts and Golf Course); . Community development activities (Community Development and Public Works); and . General administrative and financial activities. The report also includes financial information regarding City-provided water, wastewater and solid waste utility enterprise activities. In addition to general government activities, the City Council exercises control through appointment of the governing boards and approval of the budget of the Mountain View Shoreline Regional Park Community, Mountain View Revitalization Authority, and the City of Mountain View Capital Improvements Financing Authority. (There is no legal requirement for a separate component unit report for this agency.) Therefore, these agencies are included in the reporting entity. 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. I I I I I I I I I I I I I o I I I I I - ~ ~io.f""" Honorable Mayor and City Council and Citizens of Mountain View October 10, 1997 Page 3 ECONOMIC CONDITION AND OUTLOOK """ Located in the Silicon Valley, the City is home to many electronics and high- technology-related companies. The revenue base is diversified between industries and also has a large commercial/retail component. Positive financial trends have continued during Fiscal Year 1996-97. While the City does not have the resources to fund all identified needs, our financial condition is stable and is much more posi- tive than a few years ago. The continued growth in the State and regional economy, in conjunction with the City's economic development initiatives, has resulted in a substantially stronger City financial condition. Revenues in total are 20 percent over the last fiscal year. ~,,-'tl ~ ~".;' - iBiiIIf '~ .... ,~ - - - - - This revenue growth is sufficient to meet current conditions as well as allow some service enhancements in high-priority areas. The adopted Fiscal Year 1997-98 budget allows for service enhancements while not jeopardizing the City's future financial well-being. The City has adopted a balanced budget for the 1997-98 fiscal year. We believe the City is taking the necessary combination of expenditure controls and revenue enhancements to maintain the quality of services to the community in a financially responsible manner. The voters of California passed Proposition 218 in the November election amending the State Constitution to further limit property-related fees, assessments and taxes. Because the City does not have any lighting and landscape districts and only one minor maintenance assessment district, the initiative has not had any financial impact. Depending on court interpretations, other fees may have to be adjusted or restructured; however, it is felt the initiative will not have a material effect on the financial conditions on the City in the foreseeable future. MAJOR INITIATIVES In Fiscal Year 1996-97, the City Council and staff initiated or completed projects that will provide better services to the citizens and the local business community and generally improve the quality of life. These programs include: . Issued debt as a funding source and proceeded with construction of the new Library. · Began implementation of the community policing philosophy and related strategies. · Continued efforts in the development of youth initiatives. - Honorable Mayor and City Council and Citizens of Mountain View October 10, 1997 Page 4 - - - - - . Completed and dedicated Charleston Park in conjunction with the Silicon Graphics Charleston Road project. - - . Processed plans and coordinated the development of the GTE site/Whisman Station project (517 new residential units). - - . Completed negotiations for a second long-term lease with Silicon Graphics, Inc. (SGI) for City-owned property. - - . Initiated the development of performance measurements for City departments. - .. The financing for the new Library was completed by the issuance of Community debt for the purchase of land from the City. Proceeds from the land sale were used for construction of the new Library building. Construction on the new Library building commenced in May 1996. The new facility will be 60,000 square feet and is scheduled to open October 25, 1997. . - - - . This year, the Polic~ Department began implementing a new philosophy called "Community-Oriented Policing" which is designed to create a closer relationship between citizens and Police Officers. - - - In December 1996, the City Council approved the first phase of a Youth Action Plan which will serve as a blueprint for delivery of youth services in our community. The City also held the first Mayor's Youth Conference last October. The conference was attended by 250 students, along with representatives from social service agencies, local businesses, churches and government organizations. .. - - - Through an innovative joint public/private partnership, the City and SGI dedicated Charleston Park in October 1996. The park is a seven-acre park with five acres provided by the City and two acres by SGI. ... - - Two new residential developments on land next to the GTE campus at Whisman Road and Central Expressway will include public parks and will be built around the future Whisman Light Rail Station. Residents in these new transit-oriented neigh- borhoods will be able to board at the Whisman Light Rail Station and ride the light rail anywhere along the line. - - - - The City completed negotiations with SGI to lease approximately 25 acres of City- owned land in the North Bayshore Area. This parcel will provide for approximately 550,000 square feet of research and development space. - - - - - - - WIMii """ .,. - """" ~ -...... ~. - ~ - - '.'lllM - - .. -- - ',~ .... - - Honorable Mayor and City Council and Citizens of Mountain View October 10, 1997 Page 5 One of the City's management goals for Fiscal Year 1996-97 was to begin the devel- opment of a performance measurement system. In January 1997, management staff received training in the development of Performance Measurements. Initial Performance Measurements are included in the City's Fiscal Year 1997-98 Adopted Budget. This will be an iterative process for staff over the next couple of years to develop meaningful measures. FINANCIAL INFORMATION Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: . The cost of the control should not exceed the benefits likely to be derived; and . The valuation of costs and benefits requires estimates and judgments by management. Single Audit As a recipient of Federal and State financial assistance, the City is also responsible for ensuring that an adequate internal control structure is in place to ensure and docu- ment compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by management of the City. As part of the City's single audit, described earlier, tests were made of the City's internal control structure and of its compliance with applicable laws and regula- tions, including those related to Federal financial assistance programs. Although this testing was not sufficient to support an opinion on the City's internal control system or its compliance with laws and regulations related to Federal financial assistance programs, the audit for the fiscal year ended June 30, 1997 disclosed no material internal control weaknesses or violations of laws and regulations. Budgeting Controls In addition, the City maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual - Honorable Mayor and City Council and Citizens of Mountain View October 10, 1997 Page 6 .. - .. - appropriated budget adopted by the City Council. Activities of the General Fund, certain Special Revenue Funds and certain Capital Project Funds are included in the annually adopted budget. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount) is at the departmental level within each fund. The City also maintains an encumbrance accounting system as one method of maintaining budgetary control that sets aside annual amounts for varying reasons (e.g., contracts, purchase orders, etc.). Outstanding encumbrances at year end are reappropriated as part of the following year's budget. - - - - .. - - Debt Service Funds are budgeted by adoption of the indenture provisions for the life of the debt and/ or are budgeted annually in the fund obligated for such payments. - - Each year, the City adopts a Five-Year Capital Improvement Program but only funds the first year of the program. General capital improvements are budgeted on a project rather than annual basis, and appropriations continue until project comple- tion. Budgetary control for these general capital improvements is exercised at the project level. .. - .. .. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. As with the financial section, all dollar amounts presented in the remainder of this letter are expressed in thousands. .. .. - General Government Functions and General Fund Balance .. - Revenues-The following schedule presents a summary of revenues for the fiscal year ended June 30, 1997 reporting the City's Governmental Fund Types (General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds) and the increase (decrease) in relation to prior year amounts (dollars in thousands): .. - WI Increase Percentage (Decrease) of Percentage from Increase Revenues Amount of Total 1995-96 (Decrease) Taxes $52,712 53.0% 3,599 7.3% Licenses, permits and fees 5,046 5.1% 968 23.7% Fines and forfeitures 144 0.1% (5) (3.4%) Use of money and property 13,188 13.3% 2,768 26.6% Intergovernmental revenues 6,333 6.4% (315) (4.7% ) Charges for services 11,073 11.1% 2,239 25.3% Other 11.003 11.0% 7.358 201.9% TOTAL REVENUES $99,499 100.0% 16,612 20.0% - IIlIII - - - IIlIII - ... ... - - .. - ~ ',~. .'" .... .- ~ W'''''' tfIIMijirit ,~ ~ .... ,ifiIIII#!t - ~ ~ '>;;~ ~ .... Honorable Mayor and City Council and Citizens of Mountain View October 10, 1997 Page 7 On a governmental fund type basis, tax revenues represent the largest revenue source for the City. Due to the City's strong retail and corporate presence, sales tax is the General Fund's single largest source of revenue. Sales tax revenue has increased as the economy continues to grow. Total property tax revenues have also increased as a result of new development and the economy. The effect has been an overall increase in Taxes of $3.6 million. The increase in Licenses, Permits and Fees revenue is a result of continued demand for development activity within the City. Another major source of revenue is Use of Money and Property. This is a combina- tion of interest earnings on invested funds and rents and leases. This revenue source is influenced by the combination of interest rates and the amount of funds available for investment. The average portfolio yield for Fiscal Year 1996-97 was 5.94 percent compared to 5.98 percent for Fiscal Year 1995-96. Interest earnings were significantly higher as a result of an increased portfolio balance. The City increased its fund balance $27 million over the prior year. In addition, the increase in rents and leases is a result of a second lease with SGI for a portion of the Crittenden site. The revenue increase in the Charges for Services category is a result of increased development activity within the City and a full year of operations of Shoreline Golf Links. Other Revenues has increased primarily as a result of one-time revenues received. During Fiscal Year 1996-97, the City received $6.7 million as the prepayment of minimum rent from Shoreline Amphitheatre Partners and a credit for a PERS surplus in our account of approximately $488,000. Overall revenues have increased by 20.0 percent over the prior year. Revenues are projected by management to remain stable for Fiscal Year 1997-98 over prior year adopted revenues. - Honorable Mayor and City Council and Citizens of Mountain View October 10, 1997 Page 8 - - .. - Expenditures-The following schedule presents a summary of expenditures for the fiscal year ended June 30, 1997 reporting the City's Governmental Fund Types (General Fund, Special Revenue Funds, Debt Service Funds and Capital Project Funds) and the increase (decrease) in relation to prior year amounts (dollars in thousands): - - .. - ... Increase Percentage (Decrease) of Percentage from Increase Expenditures Amount of Total 1995-96 (Decrease ) Current: General Government $10,876 11.7% (835) (7.1 %) Public Safety 19,337 20.8% 618 3.3% Public Works 5,562 6.0% 272 5.1% Community Development 3,594 3.8% 318 9.7% Culture and Recreation 12,770 13.7% (4,348) (25.4%) Capital Outlay 28,210 30.3% 13,461 91.3% Debt Service: Principal Repayment 5,007 5.4% 672 15.5% Interest and Fiscal Charges 7,166 7.7% 502 7.5% Debt Issuance Cost 555 --.J2& % 240 76.2% TOTAL EXPENDITURES $93,077 100.0% 10,900 13.3% The decrease in General Government is primarily a result of the reserve established in Fiscal Year 1995-96 related to the Orange County Investment Pool. - - - .. - .. - .. - - - .. - .. - The Public Safety expenditures increase over the prior year primarily relates to new positions (seven permanent, four temporary) added to the Police Department to implement the Community-Oriented Policing program. .. - - The increases in Public Works and Community Development are for new positions and increased contract costs required to handle the increase in construction activity within the City. - - - The decrease in Culture and Recreation is a result of amounts included in Fiscal Year 1995-96 related to the City assuming direct management of operations and maintenance of Shoreline Golf Links. There was a one-time expenditure in the prior year of $5.1 million for the settlement and acquisition of the golf course. This - - ...... - ,*"W4' - .. - \WIWl Honorable Mayor and City Council and Citizens of Mountain View October 10, 1997 Page 9 - is offset by a full year of operations for the golf course versus a partial year in the prior year. Expenditures for Capital Outlay can fluctuate from year-to-year, depending on the number and size of projects in process. The increase in Capital Outlay from the prior year is primarily related to the construction of the new Library. The Increase in Debt Service expenditures are related to the issuance of new debt and the early retirement of existing debt during the fiscal year. See further discus- sion under the Debt Administration section of this letter. General Fund ,*,,'-"" The fund balance of the General Fund increas~d by $10.5 million from the prior year and is at a level of approximately 122 percent of the Fiscal Year 1996-97 General Fund operating budget. The $10.5 million increase provides the City with the resources necessary to fund various reserves. Enterprise Operations The retained earnings of the City's Enterprise operations (Water, Wastewater and Solid Waste) has increased by approximately $3.3 million from the prior year and is at approximately $51.5 million. .;;l!' An average rate increase of 5 percent was implemented for the Water Enterprise Fund to assist in the funding for improvements to the City's water storage and distribution capacity. An average rate increase of 3 percent was implemented for the Wastewater and Solid Waste Enterprise Funds for the 1996-97 fiscal year as a result of an increase in costs to provide these services. .... The Water and Wastewater Enterprise Fund generated sufficient revenues in Fiscal Year 1996-97 to pay operating and capital outlay requirements. The Solid Waste Enterprise Fund ended the fiscal year with a net loss of approximately $564,000. This amount was absorbed in retained earnings accumulated in prior years. All Enterprise Funds maintain reserves for emergencies, plant and equipment replace- ment and rate stabilization in unreserved retained earnings. The Solid Waste Fund also maintains a reserve for the Financial Assurance Mechanism, a pledge of revenues for postclosure maintenance of two of the City's former landfill sites. "'- - - .~ ,- - i.iiiwI - Honorable Mayor and City Council and Citizens of Mountain View October 10, 1997 Page 10 .. - .. - Pension Trust Fund Operations - - The City is a member of the Public Employees Retirement System (PERS). PERS sets the contribution rates for each represented and nonrepresented group in the City. For Fiscal Year 1996-97, the employer contribution rates were: .. - - Group Rate (%) - Police and Fire (Public Safety) All Others 9.441 4.727 .. - The excess of assets over pension benefit obligation as of June 30, 1995 (the most recent year for which information is available) was approximately $12.5 million. - - Debt Administration .. As of June 30, 1997, the City had various debt obligations outstanding. These obliga- tions are comprised of (dollars in thousands): - - - ~ Principal Outstanding - - Revenue and Tax Allocation Bonds Special Assessment Debt Certificates of Participation (COPs) $116,187 $4,826 $8,975 - - During Fiscal Year 1996-97, the Community issued 1996 Series A Tax Allocation Bonds to fund the acquisition of certain land from the City and to fund road, sewer and other public improvements in the community. The City issued Limited Obligation Improvement Bonds during the 1996-97 fiscal year on behalf of certain property owners to fund certain infrastructure improvements to benefit the prop- ertyowners. Also, during the year, the City called the outstanding 1986 Slurry Wall Certificates of Participation. - - .. - .. - Cash Management Policies and Practices - Cash temporarily idle during the year is invested in a variety of securities, including obligations of the U.S. Treasury, agencies and instrumentalities, commercial paper, medium-term notes, municipal bonds of the City or its component units and the State of California Local Agency Investment Fund (LAIF). The maturities of the investments generally range from 30 days to 5 years, with the exception of commer- cial paper which typically matures between one and seven days. The average matur- - - - - - ... - - - - - :li.'llk4 - .."" - Honorable Mayor and City Council and Citizens of Mountain View October 10, 1997 Page 11 ity of the portfolio was 2 years as of June 3D, 1997. Money held available for day-to- day operations is invested in LAIF or short-term commercial paper. The average portfolio yield for the fiscal year was 5.94 percent with a duration of 1.78 years as of June 3D, 1997. - The City's policy is to minimize credit and market risks while maintaining a market rate of return on its portfolio. All of the City's investments subject to categorization are classified in custodial risk Category 1 as defined by the Governmental Accounting Standards Board Statement No.3. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. .~~'" 1Ifkt. ~ll' .'4 ~ - ~ - ... - - - ~ - .... .. Risk Management The City has accrued amounts for all known general liability and Workers' Compensation claims considered to be probable loss contingencies as of June 3D, 1997. In addition, estimated amounts for claims incurred but not reported have been accrued. OTHER INFORMATION Independent Audit The City Charter requires that the City's general purpose financial statements be annually audited by independent Certified Public Accountants. The accounting firm of KPMG Peat Marwick LLP performed the audit for Fiscal Year 1996-97. The auditors' report on the general purpose financial statements is included in the financial section of this report. In addition, the auditors' reports on the component units included in the City's Comprehensive Annual Financial Report are incorpo- rated in those individual sections of the report. The auditors' reports related specifi- cally to the single audit are included in the separate single audit document. Awards For the seventh consecutive year, 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 3D, 1996. For the 13th year, the City received a certificate of award for outstanding financial reporting from the California Society of Municipal Finance Officers (CSMFO) for the fiscal year ended June 3D, 1996. - Honorable Mayor and City Council and Citizens of Mountain View October la, 1997 Page 12 - - - - - Both awards are valid for a one-year period only. We believe that our current Comprehensive Annual Financial Report continues to meet both programs' requirements and will be submitted to the GFOA and the CSMFO to determine its eligibility for certificates. - - - .. Acknowled gments - 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 Patty Kong, Assistant Finance and Administrative Services Director, and Shelley Webb, Accounting Officer. Every individual deserves recog- nition and thanks for their commitment to the City and their profession. We would also like to thank the City Manager and members of the City Council for their support in managing the financial operations of the City in a responsible manner. IiIIIIlI - .. - - Sincerely, Y1wJ~f1L- - .. - Robert F. Locke Finance and Administrative Services Director .. - RFL/PJK/FIN 546-10-06-97L~ .. - ... - .. - ... - - - IoIIIt - - - .... - ... - l~ ..... .. - ..... THIS PAGE INTENTIONALLY LEFT BLANK "':41 - .... ~-";.r. ~, ~ ..... <~ il>W - - .~.~ ~ ... - - Exhibit 2 .. - .. City of Mountain View, California - - Directory of City Officials - .. - City Council .. Joseph S. Kleitman, Mayor - Ralph Faravelli, Vice Mayor Mario Ambra Patricia Figueroa Nancy Noe Rosemary Stasek Mary Lou Zoglin .. - .. - .. City Staff - - Kevin C. Duggan, City Manager Nadine P. Levin, Assistant City Manager Michael D. Martello, City Attorney. Katherine B. Koliopoulos, City Clerk Robert F. Locke, Finance and Administrative Services Director Kathy Farrar, Employee Services Director Elaine Costello, Community Development Director Larry Janda, Public Works Director David A. Muela, Community Services Director Susan Ozubko, Library Services Director Hugh G. Holden, Fire Chief Michael R. Maehler, Police Chief Cathy R. Lazarus, Public Services Director - - - - - .. - .. - IlIIif - - - - - ..... - """ - .. ti... .. ..... lI6iW ~ _w ~'... tI'!t,;,,1 ~ ~ - jl;'~! - - ~ - ~,>ii - ,...,.. - - (,:;Q !JJfI/lIIl - z o ~ ~ N ~ Z < ~ o ~ z ~ ~ ~ ~ > o l? ~ ~ ~ U C/) Z W N i= <3 ~ W :> Z ~ Z :::> o ~ ...J o Z :::> o o >- C o OZZ ZOO <(~Ci5 C/)w~ ::.:::o:~ o:o~ ~WO 0:0 C/)Z zzQ <(OC/) ~-C/) :::>~~ ::c...J~ Wo 0:0 ...J ~ Z ZCiO wz- ~_C/) ZZC/) OZ~ 0:::S~ -a..0 ~ 0 W o 0: <( o m >- 0: <( 0: m ::i r--------------------- I I ___.J >- I-C/) -W Zo :::>- ~> ~o: OW oC/) >- W Z 0: o ~ >- ___, C I 0 I I I I I I I I I I L_________________ -"f I I I I I I I I I I I I I I I I I I I I I L._ ---., I I I I I I I I I I 0: f2 is :::> <( >- I- <3 ::.::: 0: W ...J o >- I- <3 0: W ~ Z <( ~ >- c o W o ::i o a.. WC/) Ww bg ...J> a.. 0: ~w wC/) W 0> z- <(~~ WO:O 01-- ZC/)> <(Zo: Z_w _~C/) LLO <( W 0: u: >-1- I-m z~ :::>a.. ~O ~...J OW o[ij o >-C/) o:W <(g 0:> mO: -W ...JC/) Exhibit 3 o Z <( ~ ~ o o LL o W Z ::i C/) W o :> 0: W C/) LL LL ~ C/) 0: W Ci <( Z <( ~ >- I- <3 >- m o W I- Z 6 a.. a.. <( ODD o W I- o W ...J W ...J <3 Z :::> o o >- m o W I- Z o a.. a.. <( >= w l:.I:: Q) CIl E (j;i= .o..!. E ~ Q)a.. ~- I:: "0 Q) ..... I:: tll tll ~ E ~ "0 Cii Q)1::a..CIl .otll"06 EI::I:::;:::: Q) .2 tll .w E CIl Q) 0 = .!!1 E a.. U E.- >. 5EI-;">:: 00= ::l OOtI~ oeo oC') r-- '<t 0 0 (\JmU) LO en ...J ~ f2 Z o E C/) o a.. co (J) r.:.. (J) (J) ,- 0: <( W >- ...J <( o C/) u: .9 '6 ::l <( ~ (3 CIl tll CIl Q) > (j; CIl o C3 Q) ..... is CIl Q) U .~ Q) C/) Q) > ~ ..... Vi .c oE "0 <( "0 I:: tll Q) U I:: tll I:: u: . 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, 1996 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. ~?fr fJfh-/~ Executive Director - - Exhibit 4 - IIIlt - - - - - - - - -, - - - - .. - - - - - - - - - IiIIfij - - - - - - - - - - - Exhibit 5 - {"~". liiiiliif .S> - ~ \0 :::: -~ l::- 0\ ~ ~ ~"l::i tA ;:.. ~ ~ ~ ~ ~ ..::::: & 0\ .~ ... ..::::: I:l., ..... 0\ ~ ~ ~ .... III ~ ~ ~ :: X ~ .~ ~t: ..... ~ ~ ... <:l ::: ~.,,"" .~ ..:::::& ~ .~ ... ~ ..::::: III ~ > ::';S .~ tl.o..::::: ~ ~ .s -!: ~ .....::::: ::: <:l :: ~ .~ ~ "0 C &:: ... <:l ~ N ~ ;: .5 ~ - ~ ~ - .:: ~ .~ :: .... .s 5 ~ \J ~ ~ ~ ~ ~ ~ ..... '" t-..... ::: -= 5 ~ ~ VJ ~ ...... 'l::l ~ c::l\ .::: ~ ~ 0 ::: .... c::l\ ~ .~ ~ .... ~ tiiiII 0 ...... ;: ::: .~ .~ ~ :::: - ~ "0 ... <:l ..; ~ ~ ~ ...... ~ ~ ~ ~ ~ ~ .~ N ~ ~ ...... ::: ~ .~ ~ = ~ tl.o ~ ... u ~ ~ ~ '" .5 ::: ~ rI.l t;.o ~ ~ ~ .""" ~ ~ ::: ... ~ ...... ~ .S: ~ ;... ~ ~ - ~ ~ '" ::: ~ .::: ~ :::: ;S ~ ~~ ~ .... ~ .~ U .~ ~ ...~ ~ ~ ~.S \J ::: ~ ,sl ~ a .~ ~ ~ ~ ...... - ~ N :: -l:l \J ::: ~ ~ 0 ~Ill ,~ .~ ::: 5 ~ ~ .S ~ ~ .~ t:; .s ~- ~ ~ l) <:l .~ ~ '" '" !~ ~ III ::: ~ ... ~ .\J ... ::: ~ ~ .:::~ ~ 'l::l_ ~ III ~ ~ :::: :::: '" ::: - ~ .la ::: X .la ~ ,~ 0 ~~ ~ .... S, .5 - .~ - .la .::: ~ ,~ - ~; - .. .. - .. .. ... - - - THIS PAGE INTENTIONALLY LEFT BLANK .. .. - - .. .. .. - .. - - - w .. - - .. .. - - - - IliIIII - - - - - .. I nr-1fj["'1 KPMGJ Peat Marwick LLP I 50 West San Fernando Street San Jose, CA 95113 I Independent Auditors' Report I City Council City of Mountain View, California: I I We have audited the accompanying general purpose financial statements of the City of Mountain View, California, (the City) as of and for the year ended June 30, 1997, as listed in the foregoing table of contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. I We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion,the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Mountain View, California, as of June 30, 1997, and the results of its operations and cash flows of its Proprietary Fund Types for the year then ended in conformity with generally accepted accounting principles. The accompanying supplementary information reflecting employee retirement plan historical trend information is not a required part of the basic general purpose financial statements but is a disclosure required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and do not express an opinion on it. Our audit was made for the purpose of forming an opinion on the basic general purpose financial statements taken as a whole. The supplementary data listed in the foregoing table of contents as "Combining, Individual Fund and Account Group Statements and Schedules" is presented for purposes of additional analysis and is not a required part of the basic general purpose financial statements of the City. Such information has been subjected to the auditing procedures applied in the audit of the basic general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic general purpose financial statements taken as a whole. The financial information listed in the foregoing table of contents as "Statistical Section" is presented for purposes of additional analysis and is not a required part of the basic general purpose financial statements of the City. This information has not been audited by us and, accordingly, we express no opinion on such information. I I I I I I I I I I October 10, 1997 KfmG- f11~ L.("f I I IIII M,mbo,F..mo' KPMGlme'IldllOoal I CITY OF MOIINTAIN VIEW CALIFORNIA COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1997 (Dollars in Thousands) GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS ASSETS AND OTHER DEBITS: Cash and investments (Note 2) $ 41,830 10,313 1,654 55,074 Restricted cash and investments (Note 2) 0 10,833 24,334 9,940 Receivables: Accounts (net of allowances) 467 85 0 0 Special assessments 0 0 4,150 0 Interest 884 630 0 76 Notes 1,600 2,869 0 0 Taxes 5,123 941 0 0 Due from other governments (Note 14) 1,403 789 0 0 Due from other funds (Nole 4) 7,220 0 0 0 Inventory 125 87 0 0 Deposits and prepaid costs 17 42 0 0 Advances to other funds (Note 4) 17,782 5,100 0 0 Fixed assets (proprietary funds are net of accumulated depreciation) (Notes 3 and 7) 0 0 0 0 Amount available in debt service fund 0 0 0 0 Amount to be provided for retirement of: General long-term debt 0 0 0 0 Compensated absences obligation 0 0 0 0 Landfill containment obligation 0 0 0 0 TOTAL ASSETS AND OTHER DEBITS $ 76,451 31,689 30,138 65,090 I I I I I I I I I I I I I I I I I 2 I !WIIl'JIW - ~ ."" ~ PROPRIETARY FIDUCIARY ACCOUNT GROUPS ~ FUND TYPES FUND TYPE GENERAL GENERAL TOTALS ENTER - INTERNAL FIXED LONG-TERM (Memorandum Only) - PRISE SERVICE AGENCY ASSETS OBLIGA nONS 1997 1996 ~ 20,000 18,490 30,955 0 0 178,316 147,594 0 73 123 0 0 45,303 45,610 ....''"' 5,345 0 0 0 0 5,897 5,793 0 0 0 0 0 4,150 4,077 597 266 0 0 0 2,453 2,119 0 0 0 0 0 4,469 3,898 0 0 0 0 0 6,064 4,119 1,020 316 0 0 0 3,528 3,585 frilo-.,:.; 0 0 0 0 0 7,220 5,530 96 0 0 0 0 308 307 0 0 0 0 0 59 55 13,528 0 0 0 0 36,410 33,855 25,198 37 0 193,607 0 218,842 189,122 0 0 0 0 26,017 26,017 26,966 0 0 0 0 103,971 103,971 85,718 0 0 0 0 3,256 3,256 3,315 0 0 0 0 47,038 47,038 49,587 65,784 19,182 31,078 193,607 180,282 693,301 611,250 (Continued) i4lA.. ',~ - - - """"" - - 3 .. - .. CITY OF MOUNTAIN VIEW. CALIFORNIA COMBINED BALANCE SHEET (Continued) ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1997 (Dollars in Thousands) GOVERNMENTAL FUND TYPES SPECIAL DEBT CAPITAL GENERAL REVENUE SERVICE PROJECTS LIABILITIES: Accounts payable and accrued costs $ 1,163 217 18 4,657 Accrued landfill containment costs (Notes 5 and 15) 0 0 0 4,430 Accrued compensated absences (Note 5) 310 0 0 0 Accrued self-insurance claims (Note 11) 0 0 0 0 Deferred compensation (Notes 2 and 10) 0 0 0 0 Due to other governments 477 0 0 0 Due to other funds (Note 4) 0 0 0 7,220 Refundable deposits 765 20 0 0 Deferred revenue 25 77 4,103 0 Advances from other funds (Note 4) 7,515 22,882 0 6,013 Revenue and Tax Allocation bonds (Note 5) 0 0 0 0 Special assessment debt with governmental commitment (Note 5) 0 0 0 0 Certificates of participation (Note 5) 0 0 0 0 Total liabilities 10,255 23,196 4,121 22,320 FUND EQUITY AND OTHER CREDITS: Contributed capital 0 0 0 0 Investment in general fixed assets 0 0 0 0 Retained earnings (Note 13): Reserved 0 0 0 0 Unreserved 0 0 0 0 Total retained earnings 0 0 0 0 Fund balances (Note 13): Reserved 22,529 21,419 26,0 I 7 29,612 Unreserved 43,667 (12,926) 0 13,158 Total fund balances 66,196 8,493 26,017 42,770 Total fund equity and other credits 66,196 8,493 26,017 42,770 TOTAL LIABILITIES, FUND EQUITY AND OTHER CREDITS $ 76,45 I 31,689 30,138 65,090 See accompanying notes to general purpose financial statements. - - - .. - .. - .. ... - - - - - - . - - - .. - - - .. .. ... - - - - - ... - - - 4 .. 4Il!li\'!IJ ... ~ WH PROPRIETARY FIDUCIARY ACCOUNT GROUPS FUND TYPES FUND TYPE GENERAL GENERAL TOTALS ENTER - INTERNAL FIXED LONG-TERM (Memorandum Only) ..... PRISE SERVICE AGENCY ASSETS OBLIGATIONS 1997 1996 1,194 159 2,259 0 0 9,667 7,811 - 0 0 0 0 47,038 51,468 59,637 467 78 0 0 3,256 4, III 4,088 0 3,841 0 0 0 3,841 3,841 .... 0 0 28,819 0 0 28,819 23,460 0 0 0 0 0 477 715 0 0 0 0 0 7,220 5,530 175 0 0 0 0 960 519 0 0 0 0 0 4,205 4,230 0 0 0 0 0 36,410 33,855 0 0 0 0 116,187 116,187 97,492 ~;.", 0 0 0 0 4,826 4,826 4,941 0 0 0 0 8,975 8,975 1 0 ,251 1,836 4,078 31,078 0 180,282 277,166 256,370 12,415 0 0 0 0 12,415 12,415 '~- 0 0 0 193,607 0 193,607 165,454 ..... 1,816 316 0 0 0 2,132 2,189 49,717 14,788 0 0 0 64,505 58,377 51,533 15,104 0 0 0 66,637 60,566 ~ 0 0 0 0 0 99,577 89,342 0 0 0 0 0 43,899 27,103 0 0 0 0 0 143,476 116,445 ~ 63,948 15,104 0 193,607 0 416,135 354,880 ~ 65,784 19,182 31,078 193,607 180,282 693,301 611 ,250 :.... ,... ..... - ..... - .. 5 - - - COMBINED STATEMENT OF REVENUES, EXPENDITURES - AND CHANGES IN FUND BALANCES IIlII ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) - SPECIAL DEBT CAPITAL .... GENERAL REVENUE SERVICE PROJECTS - REVENUES: Taxes $ 36,314 15,571 827 0 .. Licenses, permits and fees 4,586 460 0 0 - Fines and forfeitures 144 0 0 0 Use of money and property 7,884 3,013 1,450 841 .. Intergovernmental revenues 3,370 1,995 0 968 Charges for services 8,296 2,777 0 0 - Other 8,171 839 0 1,993 .. Total revenues 68,765 24,655 2,277 3,802 - EXPENDITURES: .. Current: General government 8,157 2,719 0 0 - Public safety 19,279 58 0 0 - Public works 5,562 0 0 0 Community development 2,886 708 0 0 - Culture and recreation 9,996 2,774 0 0 Capital outlay 776 129 0 27,305 .. Debt service: - Principal repayment 0 0 5,007 0 Interest and fiscal charges 286 0 6,880 0 - Debt issuance costs 0 0 0 555 - Total expenditures 46,942 6,388 11,887 27,860 - EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 21,823 18,267 (9,610) (24,058) - - OTHER FINANCING SOURCES (USES): Operating transfers in 17,491 684 8,661 42,907 - Operating transfers out (30,251 ) (16,018) 0 (25,976) .. Sales of general fixed assets 1,438 0 0 0 Tax allocation bond proceeds 0 0 0 21,112 ... Special assessment bond proceeds 0 0 0 561 Proceeds of refunding certificates of participation 0 0 0 0 .. Payment of refunded bond escrow agent 0 0 0 0 Total other financing sources (uses) (11,322) (15,334) 8,661 38,604 - EXCESS (DEFICIENCY) OF REVENUES .. AND OTHER FINANCING SOURCES - OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 10,501 2,933 (949) 14,546 ... - BEGINNING FUND BALANCES 55,695 5,560 26,966 28,224 .. ENDING FUND BALANCES $ 66,196 8,493 26,017 42,770 - See accompanying notes to general purpose financial statements. - ... 6 .. -!AIIIi\'!l' ..... i.... - - TOTALS (Memorandum Only) ~ 1997 1996 52,712 49,113 5,046 4,078 144 149 ~ 13,188 10,420 6,333 6,648 11,073 8,834 .. 11,003 3,645 99,499 82,887 -,if. 10,876 11,711 19,337 18,719 5,562 5,290 3,594 3,276 12,770 17,118 28,210 14,749 5,007 4,335 :1r.i;...l:ii 7,166 6,664 555 315 93,077 82,177 6,422 710 69,743 20,300 tQ. (72,245) (21,681 ) 1,438 987 21,112 0 561 0 0 9,097 0 (9,472) ,"'"" 20,609 (769) ,,*,~ ,.,. ..... 27,031 (59) ,.... 116,445 116,504 - ~ 143,476 116,445 - ~ .. 7 - .. CITY OF MOUNTAIN VIEW CALIFORNIA - .. COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL AND BUDGETED SPECIAL REVENUE AND CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) ... GENERAL FUND - FAVORABLE (UNF A V) .. BUDGET ACTUAL VARIANCE - REVENUES: Taxes $ 32,297 36,314 4,017 .. Licenses, permits and fees 4,209 4,586 377 Fines and forfeitures 183 144 (39) - Use of money and property 5,748 7,884 2,136 Intergovernmental revenues 3,120 3,370 250 .. Charges for services 7,623 8,296 673 Other 477 8,171 7,694 - Total revenues 53,657 68,765 15,108 - EXPENDITURES: .. Current: City Council 189 171 18 . City Clerk 376 351 25 City Attorney 1,390 1,007 383 - City Manager 2,504 1,174 1,330 .. Employee services 4,001 1,156 2,845 Finance and administrative services 4,697 4,298 399 .. Community development 3,189 2,886 303 Public works 2,235 2,151 84 .. Community services 7,463 7,087 376 Library services 2,914 2,909 5 - Fire 8,836 8,255 581 .. Police 11,607 11,024 583 Public services 3,637 3,411 226 .. Capital outlay 1,132 776 356 Debt service: .. Interest and fiscal charges 286 286 0 Total expenditures 54,456 46,942 7,514 - EXCESS (DEFICIENCY) OF REVENUES ... OVER (UNDER) EXPENDITURES (799) 21,823 22,622 .. OTHER FINANCING SOURCES (USES): Operating transfers in 17,249 17,491 242 .. Operating transfers out (30,261 ) (30,251 ) 10 Sales of general fixed assets 1,000 1,438 438 - Total other financing sources (uses) (12,012) (11,322) 690 - EXCESS (DEFICIENCY) OF REVENUES - AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES ..... AND OTHER FINANCING USES (12,811) 10,501 23,312 - BEGINNING FUND BALANCES 55,695 55,695 0 IoiIII ENDING FUND BALANCES $ 42,884 66,196 23,312 - .. - 8 .. ,.. ~ ..... ~i BUDGETED SPECIAL BUDGETED CAPITAL REVENUE FUNDS PROJECTS FUNDS FAVORABLE FAVORABLE ~. (UNF A V) (UNF A V) BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE - 15,288 15,571 283 0 0 0 358 460 102 0 0 0 0 0 0 0 0 0 1,780 3,010 1,230 50 66 16 ~ 1,308 1,345 37 0 0 0 2,624 2,777 153 0 0 0 120 837 717 452 1,116 664 21,478 24,000 2,522 502 1,182 680 ...... ~~ 0 0 0 0 0 0 0 0 0 0 0 0 185 85 100 0 0 0 1,127 838 289 0 0 0 .~ 0 0 0 0 0 0 1,801 1,796 5 0 0 0 394 273 121 0 0 0 0 0 0 0 0 0 3,280 2,774 506 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 ~ 0 0 0 0 0 0 0 0 0 0 0 0 114 108 6 0 0 0 0 0 0 0 0 0 6,901 5,874 1,027 1 0 1 -- 14,577 18,126 3,549 501 1,182 681 ~ 190 676 486 52 95 43 ( 16,808) (16,010) 798 (123) (43) 80 -- 0 0 0 0 0 0 (16,618) (15,334) 1,284 (71) 52 123 'iMM - - (2,041 ) 2,792 4,833 430 1,234 804 ... 3,445 3,445 0 368 368 0 - 1,404 6,237 4,833 798 1,602 804 1IIJifII'lII! - (Continued) ... - 9 - - CITY OF MOUNTAIN VIEW CALIFORNIA - COMBINED STATEMENT OF REVENUES, EXPENDITURES AND - CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (Continued) GENERAL AND BUDGETED SPECIAL REVENUE AND CAPITAL PROJECTS FUNDS - YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) ... TOTALS (Memorandum Only) - FAVORABLE (UNF A V) - BUDGET ACTUAL VARIANCE REVENUES: - Taxes $ 47,585 51,885 4,300 - Licenses, permits and fees 4,567 5,046 479 Fines and forfeitures 183 144 (39) - Use of money and property 7,578 10,960 3,382 Intergovernmental revenues 4,428 4,715 287 . Charges for services 10,247 11,073 826 Other 1,049 10,124 9,075 - Total revenues 75,637 93,947 18,310 . EXPENDITURES: Current: - City Council 189 171 18 . City Clerk 376 351 25 City Attorney 1,575 1,092 483 - City Manager 3,631 2,012 1,619 Employee services 4,001 1,156 2,845 . Finance and administrative services 6,498 6,094 404 Community development 3,583 3,159 424 - Public works 2,235 2,151 84 - Community services 10,744 9,861 883 Library services 2,914 2,909 5 - Fire 8,836 8,255 581 Police 11,607 11,024 583 - Public services 3,637 3,411 226 Capital outlay 1,246 884 362 .. Debt service: - Interest and fiscal charges 286 286 0 Total expenditures 61,358 52,816 8,542 .... EXCESS (DEFICIENCY) OF REVENUES .- OVER (UNDER) EXPENDITURES 14,279 41,131 26,852 OTHER FINANCING SOURCES (USES): .. Operating transfers in 17,491 18,262 771 - Operating transfers out (47,192) (46,304) 888 Sales of general fixed assets 1,000 1,438 438 - Total other financing sources (uses) (28,701) (26,604) 2,097 .. EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES - OVER (UNDER) EXPENDITURES - AND OTHER FINANCING USES (14,422) 14,527 28,949 - BEGINNING FUND BALANCES 59,508 59,508 0 .... ENDING FUND BALANCES $ 45,086 74,035 28,949 - See accompanying notes to general purpose financial statements. .. - 10 - .'!fiMI - - ;ti/;j~ ... ~ THIS PAGE INTENTIONALLY LEFT BLANK k;;t;H: - ~ ... '~ ~ ~ Mwil .,"""", '~ ".. - - - - - 11 11IIII .. CITY OF MOUNTAIN VIEW. CALIFORNIA COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) TOTALS ENTER- INTERNAL (Memorandum Only) PRISE SERVICE 1997 1996 OPERA TING REVENUES: Charges for sales and services $ 28,572 1,247 29,819 27,653 Other 628 1,819 2,447 2,184 Total operating revenues 29,200 3,066 32,266 29,837 OPERA TING EXPENSES: Salaries and related expenses 4,797 689 5,486 5,322 Cost of sales and services 14,253 0 14,253 13,398 Self-funded insurance 0 1,907 1,907 1,551 General and administrative 6,370 2,352 8,722 10,476 Depreciation 1,282 11 1,293 1,198 Total operating expenses 26,702 4,959 31,661 31,945 OPERA TING INCOME (LOSS) 2,498 (1,893) 605 (2,108) NONOPERATING REVENUES: Interest income 1,993 971 2,964 2,956 INCOME (LOSS) BEFORE OPERA TING TRANSFERS 4,491 (922) 3,569 848 OPERATING TRANSFERS: Operating transfers in 294 4,661 4,955 3,464 Operating transfers out (1,453) (1,000) (2,453) (2,083) Net operating transfers (1,159) 3,661 2,502 1,381 NET INCOME 3,332 2,739 6,071 2,229 BEGINNING RETAINED EARNINGS 48,201 12,365 60,566 58,337 ENDING RETAINED EARNINGS $ 51,533 15,104 66,637 60,566 See accompanying notes to general purpose financial statements. 11IIII .. 11IIII .. 11IIII - - .. 11IIII .. - .. 11IIII .. - . 11IIII .. 11IIII .. 11IIII .. - .. 11IIII .. 11IIII .. - .. - .... - ... - 12 - .... CITY OF MOUNTAIN VIEW. CALIFORNIA - COMBINED STATEMENT OF CASH FLOWS ... ALL PROPRIETARY FUND TYPES .... YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) TOTALS - ENTER- INTERNAL (Memorandum Only) PRISE SERVICE 1997 1996 - CASH FLOWS FROM OPERATING ACTIVITIES: Operating income (loss) $ 2,498 (1,893) 605 (2, I 08) .... Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: - Depreciation 1,282 11 1,293 1,198 .... Changes in operating assets and liabilities: Accounts receivable (388) 5 (383) (1,038) Due from other governments 16 6 22 1,757 Inventory 16 0 16 5 .. Accounts payable and accrued costs 29 (29) 0 110 Accrued compensated absences 59 6 65 47 Refundable deposits 7 0 7 13 - Net cash provided by (used for) operating activities 3,519 (1,894) 1,625 (16) CASH FLOWS FROM NONCAPIT AL lii* FINANCING ACTIVITIES: Collections from other funds 294 4,661 4,955 3,464 Payments to other funds (1,453) (1,000) (2,453) (2,083) ~:il Advances to other funds (2,900) 0 (2,900) 0 Repayment of advances to other funds 154 0 154 145 Net cash provided by (used for) non capital ~ financing activities (3,905) 3,661 (244) 1,526 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: ... Construction and acquisition of capital assets (2,842) (18) (2,860) (1,230) Advances to other funds for construction in progress (3,550) 0 (3,550) (3,814) Refunds from other funds for construction in progress 3,157 0 3,157 2,359 .. Net cash provided by (used for) capital and related financing activities (3,235) (18) (3,253) (2,685) ,';QlIlIJ iIliIaIl CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 2,044 950 2,994 2,642 ,- CASH AND CASH EQUIVALENTS: .... INCREASE (DECREASE) (1,577) 2,699 1,122 1,467 - BEGINNING BALANCES 21,577 15,864 37,441 35,974 .. ENDING BALANCES $ 20,000 18,563 38,563 37,441 - See accompanying notes to general purpose financial statements. - - .. WII!I .. 13 - - - .. .. .. - .. ... THIS PAGE INTENTIONALLY LEFT BLANK - - .. - - .. .. .... .. .. - - .. .. .. - .. .. .. .. II1II ... .. .. - - IIlII - 14 .. ~ - ~. .... CITY OF MOUNTAIN VIEW. CALIFORNIA ... NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1997 ~,;I" 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Reporting Entity - The City of Mountain View, California (City) was originally incorporated in 1902. In 1952, the people of the City adopted a City Charter under which it currently operates. The City maintains a Council- Manager form of government and provides the following services: public safety (police and fire), public works and utilities, community development, community and leisure services, and administration and support services. f&c"" As required by generally accepted accounting principles, the City's general purpose financial statements include the City and its component units, entities for which the City is considered to be financially accountable. A primary government is financially accountable if it appoints a voting majority of a component unit's governing body, and is able to impose its will on the component unit, or if there is a potential for the component unit to provide specific financial benefits to, or impose specific financial burdens on, the primary government. A primary government may also be financially accountable if a component unit is fiscally dependent on the primary government regardless of whether the component unit has a separately elected governing board, a governing board appointed by a higher level of government or a jointly appointed board. ~ Ii#-;-.,. Blended component units, although legally separate entities, are, in substance, part of the City's operations, and so data from these units are combined with data of the City. The City identified no component units which should be discretely presented. Each blended component unit has a June 30 year-end. ~ · Blended Component Units: ~ ~ Mountain View Shoreline Regional Park Community (Community) was created for the purpose of developing approximately 1,550 acres of bayfront lands. The Community serves the citizens of the City, and the governing board of the Community is comprised of the City's elected council. .~ - - ~ Mountain View Revitalization Authority (Authority) was formed to provide an improved physical, social and economic environment in a designated redevelopment area of the City. The Authority serves the citizens of the City, and the governing board of the Authority is comprised of the City's elected council. - .~ - .,. - 15 - - - - City of Mountain View Capital Improvements Financing Authority (Financing Authority) was created in order to issue bonds and advance refund the City's lease obligation under the 1988 City Hall Certificates of Participation and certain tax allocation bonds of the Community. The governing board of the Financing Authority is comprised of the City's elected council. The Financing Authority is reported as a Debt Service Fund. - - - - - Complete component unit financial statements for the Community and Authority are included in the City's Comprehensive Annual Financial Report. - - .. Description of Funds and Account Groups - The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Govern- ment resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the general purpose financial statements, into categories as follows: - .. - ... - .. - . Governmental Fund Types: .. General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. - - - Special Revenue Funds are used to account for proceeds of specific revenue sources (other than major capital projects) which are designated to finance particular functions or activities of the City's government. - - .. - Debt Service Funds are used to account for the accumulation of financial resources for, and the payment of, general long-term debt principal, interest and related costs. - - Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital projects (other than those financed by proprietary funds), including landfill containment projects. - - - - - ... ~ - 16 ... .... ~~- . Proprietary Fund Types: ~"'.. Enterprise Funds are used to account for operations: (a) that are financed and operated in a manner similar to that of a private business enterprise - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other depart- ments or agencies of the City on a cost-reimbursement basis. . Fiduciary Fund Type: ~ Agency Funds are used to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments and/or other funds. Agency Funds are custodial in nature and do not present results of operations or have a measure- ment focus. . Account Groups: General Fixed Assets Account Group - Fixed assets used in Govern- mental Fund Type operations are accounted for in the General Fixed Assets Account Group rather than in the governmental funds. Fixed assets are generally stated at cost or estimated historical cost. No depreciation has been charged against general fixed assets. - General Long-Term Obligations Account Group - Long-term liabil- ities, including vacation and sick leave liabilities and landfill containment costs, expected to be financed from Governmental Fund Types are accounted for in the General Long-Term Obligations Account Group rather than in the Governmental Fund Types. - ~ Basis of Accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the general purpose financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. - ~ - ~ - .. 17 - - - . Governmental Fund Types and Agency Funds are accounted for using the modified accrual basis of accounting. Revenues are recorded as received, or accrued, if they are both measurable and available to finance expendi- tures of the current period. Revenues considered susceptible to accrual include property taxes, sales taxes, transient occupancy taxes, utility users taxes, gas tax, interest, grants earned, special assessments and certain other intergovernmental revenues. Fines, permits and parking meter revenues are not susceptible to accrual because, generally, they are not measurable until received. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt which are recorded when paid. - - - - - .. - .. . Proprietary Fund Types are accounted for using the accrual basis of accounting wherein revenues, unbilled or billed, are recognized in the accounting period in which they are earned and expenses are recognized in the period liabilities are incurred. For its proprietary-type activities, the City has elected under Governmental Accounting Standards Board (GASB) Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Activities That Use Proprietary Fund Accounting, to apply all applicable GASB pronounce- ments as well as any applicable pronouncements of the Financial Accounting Standards Board, the Accounting Principles Board or any Accounting Research Bulletins issued on or before November 3D, 1989, unless these pronouncements conflict with or contradict GASB pronouncements. - - - - - - . - .. - Measurement Focus - The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All Governmental Fund Types are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet, with the exception of advances to and from other funds, and certain other receivables which are long-term in nature. Operating statements of these funds present increases (Le., revenues and other financing sources) and decreases (Le., expenditures and other financing uses) in net current assets. .. - - - .. - - All Proprietary Fund Types are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the balance sheet. Fund equity (Le., net total assets) is segregated into contributed capital and retained earnings components. Proprietary Fund Type operating statements present increases (i.e., revenues) and decreases (Le., expenses) in net total assets. - .. - ... - Agency Funds are purely custodial in nature (Le., assets equal liabilities) and thus do not focus on the measurement of operations. - - ..... - 18 .. - - - 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 Deferred Assessment Fund, Grants Fund and Police Asset Forfeiture Fund. - Debt Service Funds are budgeted by adoption of the indenture provisions for the life of the debt and/or are budgeted annually in the fund obligated for such payments. iifti<"" The Storm Drain Construction and Recreation Construction 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. iliIV'.",' 5""" 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 general purpose financial statements prepared in accordance with generally accepted accounting principles. ~ Budgeted revenue amounts represent the original budget modified by adjustments authorized during the year. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year and reappropriated amounts for prior-year encumbrances. The 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 year as needed. ...... ~ ~ - - .~ - -- - 19 - - - The actual results of budgeted Special Revenue and Capital Projects Funds are reconciled to the actual results for all Special Revenue and Capital Projects Funds as follows (in thousands): - - - Special Revenue Funds Capital Projects Funds - .. - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses: Budgeted funds - net Non-budgeted funds - net ... - $2,792 141 1,234 13.312 - - Excess (deficiency) of revenues and other financing sources over (under) expenditures and other financing uses - all funds .. - $2,933 14,546 .. Encumbrance Accounting under which purchase orders, contracts, and other commitments for the expenditure of resources are recorded in order to reserve that portion of the applicable appropriation, is utilized in the Governmental Fund Types. Encumbrances outstanding at year-end are reported as reser- vations of fund balances since they do not constitute expenditures or liabilities. Such encumbrances are automatically reappropriated for inclusion in the following year's budget. - . - - - .. Cash and Investments are pooled by the City for investment purposes except Deferred Compensation Fund (Agency Fund) investments and funds restricted under provisions of bond indentures which are managed by an administrator. Investments are stated at cost or amortized cost, except for Deferred Compensation Fund investments which are stated at market value. Interest earnings on pooled cash and investments are allocated monthly based on the average daily cash balance of each fund. Interest earnings attributable to funds in Capital Projects are allocated proportionately to the original funding sources. "Cash and cash equivalents," as shown on the accompanying combined statement of cash flows, includes each fund type's portion of the City's pooled cash and investments. - - - .. .. .. - ... 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 an expenditure at the time individual inventory items are consumed. Inventories of the 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 a fund balance reserve which indicates - - - - - .. - 20 .. - .. ~ - '~ that they do not constitute "available spendable resources" even though they are a component of net current assets. Inventories of the Enterprise Funds consist principally of materials and supplies for utility operations and are expensed as such inventories are consumed. ... Fixed Assets are valued at historical cost or at estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their esti- mated fair market value on the date donated. Public domain ("infrastructure") general fixed assets, such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are not capitalized. ~ Governmental Fund Type fixed assets are recorded as expenditures and such assets are capitalized in the General Fixed Assets Account Group. ~ Proprietary Fund Type fixed asset purchases are capitalized. Depreciation is charged as an expense against operations over the estimated useful lives of the assets using the straight-line method. Accumulated depreciation is reported on the Proprietary Fund Type's balance sheet. The estimated useful lives are as follows: ..... ~ Buildings Imp rove men ts Machinery and equipment 25 to 100 years 5 to 50 years 3 to 10 years ..... Property Tax Levy. Collection and Maximum Rates - The State's Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed 1 percent of its assessed value unless an additional amount has been approved by voters. .. Assessed value is calculated at 100 percent of market value as defined by Article XIII A and may be increased by no more than 2 percent per year unless there is new construction on the property or the property is sold or transferred. The State Legislature has determined the method of distribution of receipts from the 1 percent tax levy among the counties, cities, school districts and other districts. ..... ,~ - ~ ... .. "..., - - .. 21 .. - - Santa Clara County (County) assesses properties, bills and collects property taxes on behalf of the City as follows: .. .. Secured Unsecured - Lien dates Levy dates Due dates - Delinquent as of January 1 July 1 50% on November 1 50% on February 1 December 10 (for November) April 10 (for February) January 1 July 1 Upon receipt of billing August 31 - - - - The term "unsecured" refers to taxes on property not secured by liens on real property. - - In Fiscal Year 1993-94, the County adopted the Teeter Plan whereby the County remits to the City the full tax levy due. - - - Property taxes levied are recorded as revenue in the fiscal year of levy. .. Pension Costs are funded currently as determined each July 1 by an actuary (see _ Note 8). .. Compensated Absences representing vacation, sick leave pay and related costs of Governmental Fund Types that are expected to be liquidated with expendable available financial resources are reported as an expenditure and a fund liability of the governmental fund that will pay them. Amounts not expected to be liquidated with expendable available financial resources are reported as an obligation in the General Long-Term Obligations Account Group. Vacation, sick leave pay and related costs are accrued when incurred in Proprietary Fund Types and reported as a fund liability. The City uses the termination payment method for the calculation of compensated absences. - - - .. .. - .. Insurance Programs - The City has a self-insured retention (SIR) for the first $1 million of any general liability claim occurrence with excess liability coverage through an insurance pool for the next $9 million and an additional $10 million covered by insurance (see Note 11). The City has a SIR for the first $250,000 in workers compensation claims with statutory excess insurance and has a SIR for unemployment claims whereby it reimburses the State based on actual cost. Claims for long-term disability are covered by insurance. The City offers a SIR for the first $50,000 per employee, annual aggregate of approxi- mately $500,000 with excess insurance, in addition to other fully insured plans for employees' health benefits. .. .. - ... - ... - Estimated liabilities are recorded for claims in cases where such amounts are reasonably determinable and where the liability is likely for incurred but not - - - - 22 ... .~ .. ~ - iUt reported (IBNR) 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. ~ 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 expenses of such funds and operating revenues of the various self- insurance funds. The activities of the self-insurance programs are recorded in the Internal Service Funds. ~-;~ Special Assessment Debt - The City is considered to be "obligated in some manner," as defined by GASB Statement No.6, Accounting and Financial Reporting for Special Assessments, for its special assessment debt. The County collects special assessments with property taxes on behalf of the City. The County is obligated to foreclose on properties on which owners have failed to pay installments of assessments as they fall due and the City honors deficiencies to the extent that lien foreclosure proceeds are insufficient. Special assessment debt has been included in the City's General Long-Term Obligations Account Group (see Note 5) and special assessment transactions are included in the Debt Service Funds to reflect the individual special assessment fund activities. .~ ~ ~ Use of Estimates - The accompanying general purpose financial statements have been prepared on the modified accrual and/or accrual basis of accounting in accordance with generally accepted accounting principles. This 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 expenditures/expenses during the reporting period. Actual results could differ from those estimates. ~ .. Comparative Data - Comparative total data for the prior year have been pre- sented in the accompanying general purpose financial statements in order to provide an understanding of changes in the City's financial position and results of operations. However, comparative data (i.e., presentation of prior year totals by fund type) have not been presented in each of the general purpose financial statements since their inclusion would make the statements unduly complex and difficult to read. Certain items in the Fiscal Year 1995-96 financial state- ments have been reclassified to conform to the Fiscal Year 1996-97 presentation. ~ .... - ..~ - ~ - 23 ... - - "Totals (Memorandum Only)" Information - Total columns on the accompanying general purpose financial statements captioned "Totals (Memorandum Only)" do not represent consolidated financial information, are not necessary for a fair presentation of the financial information, but are presented as additional analytical data. Interfund eliminations have not been made in the aggregation of this data. - ... .. - .. 2. CASH AND INVESTMENTS - The City maintains a cash and investment pool that is available for use by all funds except for funds restricted under provisions of debt indentures and the Deferred Compensation Fund (Agency Fund). Each fund type's portion of the pool, including cash and investments held separately by several of the City's funds, is shown on the accompanying combined balance sheet as "Cash and investments" or "Restricted cash and investments." .. - .. - .. Deposits - As of June 30, 1997, the carrying amount of the City's demand deposits was $2,981,000, and the corresponding bank balance was $3,576,000. The difference is due to outstanding checks of $811,000, deposits in transit of $203,000 and petty cash of $13,000. Of the bank balance, $180,000 was insured by the Federal Depository Insurance Corporation and $3,396,000 was uninsured. The uninsured deposits are with financial institutions which are legally required to collateralize government deposits. The collateral is held by the financial institution's agent, not in the City's name, based upon the market value of the pledged collateral, at a rate of at least 110 percent of the deposits if government securities are used as collateral and of at least 150 percent of the deposits if first trust deed mortgages are used. - .. - .. - .. - .. Investments - State statutes and the City's investment policy authorize the City to invest in 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 or LAIF). - .. - .. ... ... ... ... - - - - - - - 24 - - ~ The City's investments are categorized, as defined by GASB Statement No.3, Deposits with Financial Institutions, Investments (including Repurchase Agreements), and Reverse Repurchase Agreements, below to give an indication of the level of custodial risk assumed by the City as of June 30, 1997. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty or its trust department or agent but not in the City's name. ." ..... ~>l! Category 123 (in thousands) Fair Market/ Carrying Contract Amount Value (in thousands) lI'.fi- u.s. Government securities U.S. Government agencies Commercial paper Municipal bonds $ 99,166 48,772 9,665 23,498 ~'" Total categorized $181,101 99,166 98,986 48,772 48,772 9,665 9,665 23 ,498 25 .792 181,101 183,254 Deferred compensation trustee pool California Local Agency Investment Fund (LAIF) Mutual funds Total investments 28,819 28,819 10,455 10,455 263 263 220,638 222,791 2.981 2.981 $223,619 225,772 .;; City's demand deposits Total Cash and Investments - The Deferred Compensation Fund invests funds at the discretion of participating employees. Such investments are not subject to statutes relating to the City's investment policy (see Note 10). - - .~ - ,~ - 25 - - - 3. GENERAL FIXED ASSETS AND PROPRIETARY FUND TYPE PROPERTY, PLANT, AND EQUIPMENT - - A summary of changes in general fixed assets follows (in thousands): Balance Balance July 1, June 30, 1996 Additions Deletions 1997 Land $ 55,460 14,332 60 69,732 Buildings 70,152 70,152 Improvements other than buildings 20,491 1,410 21,901 Machinery and equipment 11,365 1,439 429 12,375 Construction in progress 7.986 12.927 1.466 19.447 Total General Fixed Assets $165,454 30,108 1,955 193,607 ..... - - .. .. .. .. - .. - 1M! Construction in progress is composed of the following (in thousands): .. Expended to Project June 30, Committed Au thoriza tion 1997 Balance New Library Project $22,102 14,166 7,936 North Bayshore Improvements 3,000 1,953 1,047 Information Systems Long-Range Plan 1,370 1,119 251 Crittenden Lane and Utility Improvements 1,313 81 1,232 Shoreline Golf Parking & Circulation 880 861 19 Other Projects 2.994 1.267 1.727 Total Construction in Progress $31,659 19,447 12,212 1M! - .. - .. .. .. - .. - - - - - - - .. - - - 26 - ~ 8iii ,~ - A summary of Proprietary Fund Type property, plant, and equipment as of June 30, 1997 follows (in thousands): ~ Enterprise Internal Service $Ml:M Land Buildings Improvements other than buildings Machinery and equipment Construction in progress $ 220 8,932 33,421 1,632 3.042 199 ~ '-& Total Property, Plant and Equipment 47,247 199 Less accumulated depreciation (22.049) (162) Net Property, Plant and Equipment $25,198 37 ~ A summary of Enterprise Funds construction in progress as of June 30, 1997 follows (in thousands): 1:w.<r Water Mains and Extensions Pumps and Wells Water Improvements Other Projects Expended to Project June 30, Committed Authorization 1997 Balance $4,455 2,315 2,140 3,007 187 2,820 1,336 396 940 257 144 113 .... -*'I ~ Total Construction in Progress $9,055 3,042 6,013 ...... - ~ - - ~ - IfI!JJI!!l!!! - 27 4. INTERFUND RECEIVABLES/PAYABLES Due to/due from other funds as of June 30, 1997 follows (in thousands): RECEIV ABLE FUND PAYABLE FUND General Capital Projects Funds: Shoreline Community Capital Projects Advances to/advances from other funds as of June 30, 1997 follows (in thousands): RECEIV ABLE FUND PAYABLE FUND General Revitalization Authority (a) Shoreline Regional Park Community (a) Special Revenue Shoreline Golf Links (a) Enterprise: Water General Capital Projects (b) Waste Water General Fund General Capital Projects (b) (a) Special Revenue Fund (b) Capital Projects Fund 28 - - - - - - - .. - $7,220 .. - - - .. - $ 2,006 15.776 .. - $17,782 - $5,100 .. .. - $ 5,130 - .. 7,515 883 .. - .. $13,528 - - - - - ... - - - - - .. - ~ .. 5. LONG-TERM OBLIGATIONS ..., Long-term debt as of June 30, 1997 follows (in thousands): Authorized Outstanding Interest and as of "'- Type of Indebtedness Maturity Rates Issued Tune 30.1997 Revenue and Tax j;;*i<~ Allocation Bonds(a) Shoreline Regional Park Community: 1992 Tax Allocation Refunding Bonds 2016 4.0 - 6.5% $28,229 23,914 1993 Tax Allocation Bonds 2018 3.1 - 5.75% 25,465 23,725 1996 Tax Allocation Bonds 2021 4.0 - 5.6% 21,750 21,750 ~ Capital Improvements Financing Authority: 1992 Revenue Bonds 2016 4.0 - 6.5% 56,478 46.798 w,~~ Total revenue and tax allocation bonds 116.187 ~ Special Assessment Debt with Governmental 1997 - Commitment(b) 2022 4.1 - 11.5% 18,439 4.826 Certificates of Participation ~ Revitalization Authority: 1995 Refunding (a) 2016 4.0 - 6.0% 9,175 8.975 - Total long-term debt $129,988 MIll Debt service payments are generally made from the following sources: ,~ .. (a) Transfers from the General Fund and property taxes transferred from the Special Revenue Funds to the Debt Service Funds (see Note 7). ~ (b) Special assessment revenues recorded in the Special Assessment Debt .. Service Fund. ~ ... .. ~ .. 29 - - - The following is a summary of activity for Fiscal Year 1996-97 long-term - obligations (in thousands): - Revenue Total - and Tax Special Certif. Long- Compen- Landfill Allocation Assmt. of Term sated Contain- - Bonds Debt Partie. Debt Absences ment - Balances, - July 1, 1996 ... as previously reported $ 97,492 4,941 10,251 112,684 3,315 3,306 .. Retroactive - adjustment to landfill contain- - ment obligation 46.281 - Balances, .. July 1, 1996 as restated $ 97,492 4,941 10,251 112,684 3,315 49,587 - Decrease in .. compensated - absences -net (59) - Decrease in - landfill containment (2,549) .. Debt issued 21,750 561 22,311 - Debt retired (3.055) (676) (1.276) (5.00Z) - - Balances, June 30, 1997 $116,187 4,826 8,975 129,988 3,256 47,038 .. .. In August 1996, the Community issued $21.75 million in 1996 Series A Tax Allocation Bonds (1996 Series A Bonds). Proceeds totaling $21.1 million, net of - original issue discount of $638,000, are being used to fund the acquisition of - certain land from the City and to fund road, water, sewer and other public improvements along certain roadways. The 1996 Series A Bonds are secured by - a pledge of tax revenues from the Community. The 1996 Series A Bonds were - issued at an average interest rate of 5.78 percent with a final maturity date of 2021. - - - - - - - 30 ... .. ~ - In October 1996, the City issued Limited Obligation Improvement Bonds (Improvement Bonds), Centre/Church/EI Ranchito/Bay Assessment District (District), on behalf of the property owners of the District in the amount of $561,000. The Improvement Bonds were issued to fund certain infrastructure improvements to benefit the property owners of the District. The Improvement Bonds are secured by liens on the property in the District. The Improvement Bonds were issued at an average interest rate of 6.32 percent with a final maturity date of 2022. ~ - ~ .. ~":'~ During Fiscal Year 1996-97, the City called the 1986 Slurry Wall Certificates of Participation (the Certificates) in the amount of $1,024,000 in accordance with the terms and conditions of the Certificates. The City and the Community had entered into a lease agreement whereby the Community leased the slurry wall to the City. Upon repayment of the Certificates, the lease agreement for the slurry wall between the City and the Community terminated, and title to the property reverted to the City. ~"'" ~ For a discussion of the Landfill Containment Obligation and retroactive adjustment, see Note 15. - Annual debt service requirements to maturity for long-term debt, including interest payments of $100,752,000 follows (in thousands): - Special Revenue Assessment Fiscal Year and Tax Debt with Ending Alloca tion Governmental Certificates of June 30, Bonds Commitment Participation Total 1998 $ 10,001 838 756 11,595 1999 10,006 731 755 11,492 2000 10,003 776 753 11,532 2001 9,992 630 754 11,376 2002 9,981 590 755 11,326 Thereafter 158,600 3,612 11.207 173.419 Total $208,583 7,177 14,980 230,740 .~ _iW ~ - ~ There are a number of limitations, covenants and restrictions contained in the various bond indentures. The City is in compliance with all limitations, covenants and restrictions. .... .;t~ .. .flI'I!, .. .~ .. 31 - .. - 6. DEBT DEFEASANCE - In a prior year, the City defeased a Certificate of Participation bond issue by creating a separate irrevocable trust fund. New debt was issued and the proceeds were used to purchase u.s. Government securities which were placed in the trust. fund. The investments and fixed earnings from the investments will be sufficient to fully service the defeased debt until such debt is called or matures. For financial reporting purposes, the trust fund is excluded from the City's general purpose financial statements, and the debt is removed as a liability of the City's General Long-Term Obligations Account Group. As of June 30, 1997, the amount of defeased debt outstanding but removed from the General Long-Term Obligations Account Group totaled $24,825,000. - - - .. - - - - 7. LEASING ARRANGEMENTS .. Capital Improvements Financing Authority .. - During Fiscal Year 1991-92, the Financing Authority was created and issued bonds in order to advance refund the City's lease obligation under the 1988 City Hall Certificates of Participation. The City transferred ownership of the City Hall site and improvements to the Financing Authority and then entered into a 24-year lease for such property with the Financing Authority. The Financing Authority assigned base lease payments to a trustee for the benefit of the owners of the 1992 Revenue Bonds. The lease payments are scheduled to be sufficient, in both time and amount, to pay the principal and interest on the 1992 Revenue Bonds when due. When the bonds are repaid and the lease expires, ownership of the property will revert back to the City. .. - - - .. - .. Revitalization Authority - .. The City transferred ownership of the Police/Fire Building to the Authority and then entered into a 20-year lease for such property with the Authority. Simultaneously, the Authority entered into an indebtedness agreement whereby the Authority pledges tax increment revenue in amounts equal to the lease payments. The City has assigned the indebtedness payments to a trustee for the benefit of the owners of the 1995 COPs. The indebtedness payments are scheduled to be sufficient, in both time and amount, to pay the principal and interest on the 1995 COPs when due. To the extent the indebtedness payments are not sufficient to pay the principal and interest on the 1995 COPs, the City is obligated to make lease payments sufficient to satisfy the principal and interest payments on the 1995 COPs when due. When the 1995 COPs are repaid and the lease expires, ownership of the property will revert back to the City. ... .. - .. - .. - .. - .... - .. - 32 - - -- - .. Pursuant to the aforementioned lease agreements, the City is obligated to make future minimum annual payments. Such payments are intended to fund related debt service requirements (see Note 5). Future minimum annual payments due from the City to the Financing Authority and Revitalization Authority under the aforementioned leases follows (in thousands): ~.. Fiscal Year Ending City Police/Fire June 30. Hall Bldg. Total 1998 $ 2,150 756 2,906 1999 2,146 755 2,901 2000 2,147 753 2,900 2001 2,142 754 2,896 2002 2,143 755 2,898 Thereafter 29.919 11.207 41.126 Total $40,647 14,980 55,627 w',lJ - A summary of leased fixed assets included in the General Fixed Assets Account Group follows (in thousands): Fixed Assets Cost -':"'f City Hall $42,011 Police/Fire Bldg. 5.394 Total $47A05 ~ ~ ~ '~ ~ 'ftIIl!t - 33 - - - Shoreline Amphitheatre Partners - In Fiscal Year 1985-86, the City and the 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 Community. This lease provides for the rental of City land underneath the Shoreline Amphitheatre. The lease payments include a minimum lease payment and a portion equal to a per- centage of gross receipts, including concession revenues, of Shoreline Amphitheatre operations. In Fiscal Year 1996-97, the SAP paid all future minimum lease payments in advance as permitted in the lease agreement. These payments totaled approximately $6.7 million and are reported as "Other Revenue" of the General Fund in the accompanying General Purpose Financial Statements. - .. - - - .. - .. - Silicon Graphics, Inc. .. In Fiscal Year 1994-95, 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 Community upon which SGI has constructed a 500,000 square foot corporate campus. - .. - - In Fiscal Year 1996-97, the City, as lessor, entered into another 55-year lease with SGI. This lease provides for the rental of City land located within the Community upon which SGI is to construct a 556,000 square foot research and development facility. - .. ... The future minimum lease payments due to the City under the aforemen- tioned leases follow (in thousands): - ... Fiscal Year Ending June 30, - - - 1998 1999 2000 2001 2002 Thereafter $ 3,233 3,363 3,497 3,637 3,783 178,215 ... - - - - Total $195,728 - - ~ - """ - 34 .. - ,~ ~'1 .~ Wv'JJ. "';;--0-+' ~~ ~"'<& 11:1'i''''4 - .... -~ - ~ ~ -- ... iW ,,,.. - 8. EMPLOYEE RETIREMENT PLAN Plan Description All permanent employees are required to participate in the Public Employees' Retirement Fund (Fund) of the State's Public Employees Retirement System. 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 governmental 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 (non-safety employees). These benefit provisions and all other requirements are established by State Statute and City ordinance. Pursuant to actuarially determined contribution requirements, the City con- tributed to the Fund 9.441 percent of payroll for public safety personnel and 4.727 percent for other covered employees. The City's covered payroll for employees participating in the Fund for the year ended June 30, 1997 was $30,890,000. The City's payroll for all employees was $33,810,000 in Fiscal Year 1996-97. The City, due to a collective bargaining agreement and Council action, also has a legal obligation to contribute an additional 9 percent and 7 percent of payroll on behalf of certain safety and non-safety employees, respectively. As a result of subsequent collective bargaining agreements and Council action, Fire and Police Safety employees contribute 6 percent and 3 percent, respectively, of their gross pay with the City contributing the balance of 3 percent and 6 percent, respectively. Funding Status and Progress The "pension benefit obligation" is determined for each participating employer by the Fund's actuary and is a standardized disclosure measure that results from applying actuarial assumptions to estimate the present value of pension benefits, adjusted for the effects of projected salary increases and any step rate benefits, to be payable in the future as a result of employee service to date. The measure is intended to help assess the funding status of the City's portion of the Fund to which contributions are made on a going-concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used. The most recent actuarial information available is for the year ended June 30, 1995. The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1995. The significant actuarial assumptions 35 - - - used in the 1995 valuation to compute the pension benefit obligation were an assumed rate of return on investment assets of 8.5 percent, annual payroll increases of 4.5 percent attributable to inflation, merit increases that varied by length of service and no postretirement benefit increases. The actuarial value of assets shown as of June 30, 1995 represents the smoothed market value. In years prior to 1994, it was shown on a book value basis. - - - - .. The total excess of assets over the pension benefit obligation applicable to the City's employees as of June 30, 1995 follows (in thousands): - .. Pension Benefit Obligation: - Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits - ... $ 50,793 .. Current employees: Accumulated employee contributions and allocated investment earnings Employer-financed, vested Employer-financed, nonvested - .. 25,986 22,153 582 - .. Total pension benefit obligation 99,514 - .. Actuarial value of assets (market value, $119,117) 112.058 - Excess of assets over the pension benefit obligation $ 12,544 - Actuarially Determined Contributions Required and Contributions Made - .. The funding policy of the Fund provides for actuarially determined periodic contributions by the City at rates such that sufficient assets will be available to pay the Fund's benefits when due. The contribution to the Fund for the fiscal year ended June 30, 1997 of $4,389,000 was made in accordance with the actuarially determined requirements computed as of June 30, 1995. The contribution consisted of $4,389,000 normal cost (14.2 percent of current covered payroll). The City contributed $1,964,000 as its share (6.36 percent of current covered payroll) and contributed $2,086,000 (6.75 percent of current covered payroll) on behalf of employees due to collective bargaining agreements and Council action; employees contributed $339,000 (1.1 percent of current covered payroll). ... .. - ..... - - - - The contribution rate for normal cost is determined using the entry age normal actuarial cost method, a projected benefit cost method. Such method takes into account those benefits that are expected to be earned in the future as well as - - - - - 36 - - -- those already accrued. The Fund uses the level percentage of payroll method to amortize the unfunded liability through Fiscal Year 2000. Significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the pension benefit obligation as described above. .... Historical Trend Information ~'""", Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. Ten-year trend information is not yet available. Nine-year trend information is included as Supplementary Information. For the City's share of the Fund, trend information on each of the three fiscal years from June 30, 1993 to June 30, 1995, follows: ~ Net assets available for benefits(1) 1995 1994 (dollars in millions) $112.0 102.6 $99.5 89.0 112.6% 115.3 $(12.5) (13.6) $29.2 27.8 Pension benefit obligation ~0'# Net assets available for benefits as a percentage of pension benefit obligation Unfunded (Excess of assets over) pension benefit obligation Estimated annual covered payroll ~ Unfunded (Excess of assets over) pension benefit obligation as a percentage of estimated annual covered payroll (42.9%) (49.1) ~ City's contributions made in accordance with actuarially determined requirements, as a percentage of annual covered payroll (2) 8 8.3% Of:," -Bit 1993 84.1 84.9 99.0 0.8 26.7 3.3 9 (1) In 1993, assets were shown at book value. In 1995 and 1994, assets are shown at actuarial value (smoothed market value). (2) In addition, the City contributes 7% and 9% on behalf of miscellaneous and safety employees, respectively. .... -:1l-~ ~ Trend information for Fiscal Year 1995-96 is not yet available. ~ .. - 37 - - - 9. POST-EMPLOYMENT BENEFITS - By Council resolution, the City provides certain health care benefits for retired employees (spouse and dependents are not included) under a SIR with excess insurance coverage or third-party insurance plan. Employees who have worked for the City for a minimum of 5 to 10 years (depending on the labor group) if hired prior to July I, 1989 and 15 years if hired subsequent to July I, 1989, are eligible for this benefit. As of June 30, 1997, approximately 279 participants were eligible to receive benefits. The cost of retiree health care benefits is recognized as an expenditure as insurance premiums are paid and is currently funded by applicable operating funds. For Fiscal Year 1996-97, such cost totaled approximately $277,000. - - - .. - .. - liIIIil 10. DEFERRED COMPENSATION PLAN - The City offers its employees a deferred compensation plan created in accordance with California Government Code Section 53212 and Internal Revenue Code Section 457. The plan, available to all of the City's permanent employees, permits employees to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. .. - - - - All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. - - - - - liIIIil It is the opinion of the City's management, based on advice of legal counsel, that the City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the assets of the deferred compensa- tion plan to satisfy the claims of general creditors in the future. The assets of the City's deferred compensation plan, which are recorded in an Agency Fund, are carried at market value, which is approximately $28,819,000 as of June 30, 1997. - .. - - - - - 11. RISK MANAGEMENT - The City is exposed to various risks of loss related to torts, errors and omissions, injuries to employees or others, unemployment and health care of employees. The City has established various self-insurance programs to - - - - - 38 ... .. .~ account for and finance its uninsured risks of loss. The activities of the self- insurance programs are recorded in the Internal Service Funds. Under the self- insurance programs, the City retains the risk of loss up to a maximum of $1 million for general liability claims, $250,000 for Workers Compensation claims with statutory excess insurance, $50,000 per employee with an annual aggregate of $500,000 with excess insurance for health care benefits and the actual costs incurred for unemployment 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 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. ACCEL coverage is limited to $9 million ultimate net loss for each occurrence in excess of the retained limit and $27 million ultimate net loss in the aggregate for each member. Settled claims have not exceeded this coverage in any of the past three fiscal years. The City has excess liability insurance of $10 million above the $1 million SIR and $9 million with ACCEL. - - ~ 'Ni-".,'4 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 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 incurred but not reported (IBNR) 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. fi~1i "*,'" ~. Changes in the self-insurance claims liability amount for Fiscal Years 1996-97 and 1995-96 were as follows (in thousands): ~ 1996-97 1995-96 ~ Beginning balance $3,841 3,841 ~ Current claims and changes in estimates 1,043 941 .~ Claim payments (1.043) (941) .~. Ending balance $3,841 3,841 ~ ... - pIi!\ - 39 - - - 12. SEGMENT INFORMATION FOR ENTERPRISE FUNDS .. - The City's Enterprise Funds include its Water, Wastewater and Solid Waste Management utility operations. .. - Fiscal Year 1996-97 segment information follows (in thousands): ..., Totals - Waste- Solid (Memorand um Water water Waste Only) ..., - Operating revenues $13,057 8,328 7,815 29,200 .. Depreciation expense $ 561 683 38 1,282 - - Operating income (loss) $ 3,312 (448) (366) 2,498 .. Nonoperating revenues, net $ 825 871 297 1,993 - Operating transfers in $ 175 115 4 294 .. - Operating transfers out $ (622) (332) (499) (1,453) - Net income (loss) $ 3,690 206 (564) 3,332 - Net property, plant - and equipment: additions - and retirements, net $ 2,299 514 29 2,842 .. Net working capital $11,179 8,281 5,937 25,397 .. - Total assets $33,109 25,882 6,793 65,784 ... Total fund equity $32,215 25,610 6,123 63,948 - There were no entitlements, shared revenues or tax revenues during the fiscal .. year ended June 30, 1997. In addition, there were no bonds or other long-term - liabilities outstanding as of June 30, 1997. .. - .... - - - .. - 40 .. - ~ 't~ .~ ~..... ....~ fd,:.:* ~4' ~ "~ .'<'i - ~. - - 13. FUND EQUITY Fund Deficits The following funds had deficits as of June 30, 1997: Special Revenue Funds: Revitalization Authority and Shoreline Golf Links Funds - The deficit of $364,000 in the Revitalization Authority is the result of expenditures for infrastructure and improvements funded by an advance from the General Fund. The deficit of $3,951,000 in the Shoreline Golf Links Funds is the result of a legal settlement with the former golf course operator, which resulted in the City assuming operations of the course and acquiring improvements valued at approximately $6.3 million. The legal settlement expenditure was funded by an advance from the Shoreline Regional Park Community Fund. City management believes future tax increment revenues and user fees will be sufficient to cover the deficits in the Revitalization Authority and Shoreline Golf Links Funds, respectively. Reservations and Designations Fund balances/retained earnings consist of reserved and unreserved amounts. Reserved fund balances/retained earnings represent that portion of a fund balance/retained earnings which are not available for appropriation or are legally segregated for a specific future use. The remaining portion are unreserved fund balance/retained earnings. Portions of unreserved fund balance may be designated to indicate tentative plans for financial resource utilization in a future period, such as for general contingencies or capital projects. Such plans or intentions are subject to change. Accumulated retained earnings of the Internal Service Funds are in accordance with City reserve policies. 41 - ... - Fund balances as of June 30, 1997 for Governmental Fund Types consist of the following reservations and designations (in thousands): Special Debt Capital General Revenue Service Projects Fund Funds Funds Funds Reserved for: Restricted cash and investments $ 10,833 24,334 Notes receivable 1,600 2,869 Due from other governments 1,403 789 Inventory 125 87 Deposits and prepaid costs 17 42 Advances to other funds 17,782 5,100 Debt service 1,683 Encumbrances 1,602 1,699 29 ,612 Total reserved fund balance $22,529 21,419 26,017 29 ,612 Unreserved: Designated for: Capital improvement program $10,766 91 11,855 Contingency operating 2,122 Emergencies 10,922 Environmental reserve 200 Light Rail Reserve 4,142 Library Project 1,838 Compensated absences 2,600 General Fund reserve 11 ,077 Total designated fund balance 43,667 91 11,855 U ndesigna ted (13,017) 1.303 Total unreserved fund balance (deficit) $43,667 (12,926) 13,158 ... - ... - ... - ... - - - - - - - .. - - - .. - ... .. ... - ... - ..... - ... - ..... -! - - 42 ... .. - Retained Earnings as of June 30, 1997 for Proprietary Fund Types consist of the following reservations (in thousands): ~, "'" Enterprise Funds Internal Service Funds - Reserved for: Due from other governments Financial Assurance Mechanism (Note 15) $ 1,020 796 316 '~ .'" Total reserved retained earnings $1,816 316 Total unreserved retained earnings $49,717 14,788 ~ 14. ORANGE COUNTY INVESTMENT POOLS {W"'", On December 6, 1994, the County of Orange (Orange County) and the Orange County Investment Pools (Pool) filed petitions for bankruptcy protection under Chapter 9 of the United States Code. The City was one of over 200 participants in the Pool (Pool Participants). As of December 6, 1994, the City's Pool investment balance was $39.8 million, according to the records of Orange County. i'A<l.'-"" .... ~~' A Comprehensive Settlement Agreement (Settlement) for the Pool was offered to the Pool Participants in March 1995. Pool Participants were offered a choice of two settlement options (Option A or Option B). In April, the City Council selected Option B, which provided for the return of approximately $31 million plus interest of approximately $538,000, less a professional reserve fund of approximately $122,500 and the reservation of all rights to recover the remaining balance from all potential resources, including Orange County and third parties (e.g., brokers). - ~ In October 1995, the City, along with the other Option B agencies, filed a complaint for damages against Orange County. As a result of this claim, a settlement agreement was reached whereby the Option B agencies received cash, warrants and secured claims. ,- As of June 30, 1997, the City had received $33.6 million in cash. Based on the settlement agreement, $1.7 million in warrants, to be paid over 10 years with interest, and $1.8 million in secured claims are also to be received from Orange County. The warrants and secured claims totaling $3.5 million have been classified as "Due from other governments" in the balance sheet, and fund balances/retained earnings have been fully reserved for such receivables in the Governmental and Proprietary Fund Types. ,~ .... ~ .~ "'- .... ~ - 43 - - .- In September 1995, the City, along with the other Option B agencies, filed a complaint for damages against Merrill Lynch & Company and certain of its affiliates. The case is currently on appeal on issues of standing; however, the complaint asserts damages in excess of the remaining unrecovered principal balance reflected in the records of Orange County. .. - - - 15. LANDFILL CONTAINMENT .. - The City is responsible for managing and controlling methane gas and containment of leachate at three former City-operated landfill sites. .. - As of June 30, 1997, City engineers and professional engineering consultants have estimated that the maximum total cost for potential pollution contain- ment and control at such landfill sites is approximately $24.1 million. As the landfill-related projects were funded by the Community in Fiscal Year 1993-94, the liability has been transferred to the City's General Capital Projects Fund. As of June 30, 1997, approximately $18.9 million of the obligation has been spent on landfill closure. City engineers and consultants have estimated the current portion of the remaining obligation to be approximately $4.4 million. Accordingly, this amount has been accrued in the City's General Capital Projects Fund with the balance of the obligation of approximately $0.8 million being recorded in the City's General Long-Term Obligations Account Group. - - - - - - .. - As of July I, 1996, the amount of the Landfill Containment Obligation recorded in the City's General Long-Term Obligations Account Group has been retroactively adjusted to reflect the estimate for postclosure care costs. - - .. Pursuant to a Postclosure Maintenance Plan filed with the State, the City is obligated for postclosure care costs in the amount of $1,543,000 annually for a period of thirty (30) years. The total amount of this obligation is approximately $46.3 million and is recorded in the City's General Long-Term Obligations Account Group. Annual transfers 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 amount of $1,370,000 per year for postclosure care costs on two of its landfill sites. The third landfill site is not subject to a FAM (annual postclosure care cost of $173,000). The estimated costs of closure and postclosure care are subject to changes such as the effects of inflation, revision of laws and other variables. - .. ... .. - liIiII' - - - 16. COMMITMENTS AND CONTINGENCIES .. 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 that the potential claims against the City not covered by insurance resulting from such litigation would not materially affect the financial position of the City. - .. - - - 44 - .~ - .... - The City has an agreement with the City of Palo Alto to purchase treatment capacity at the Palo Alto Waste Water Treatment Plant. The agreement provides that the City will purchase capacity for 50 years. The agreement 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 1996-97, these costs totaled $4,261,000. ~. ~ During Fiscal Year 1992-93, 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 a debt service component, as well as actual per-ton charges. For Fiscal Year 1996-97, these costs totaled $5,499,000. -- As of June 30, 1997, the City has $18,300,000 of outstanding multi-family housing revenue bonds. The bonds were issued to assist a developer in financing the Villa-Mariposa housing project. The purpose of the program is to provide needed rental housing for low- and moderate-income households. The bonds are payable solely from payments to be made from the developer. The bonds are secured by a First Deed of Trust and insured by municipal bond insurance. In the opinion of the City's management, the bonds are not payable from any revenues or assets of the City. 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. 'titi<",., ~ .... In December 1996, the City entered into an agreement with the Santa Clara Valley Transportation Authority (VTA) (formerly the Santa Clara County Transit District) contributing $15 million for the construction of the Tasman Corridor Light Rail extension project. The agreement provides for annual installments of $2.5 million to be paid to the VTA commencing in Fiscal Year 1996-97 until Fiscal Year 1999-2000 and an additional payment of $5 million in Fiscal Year 2000-01. The City made the Fiscal Year 1996-97 payment of $2.5 million in December 1996. 17. SUBSEQUENT EVENT - ~ In August 1997, the City accepted a settlement offer in the amount of $1.3 million for a legal malpractice suit brought against the law firm that represented the City in previous golf course litigation. Such amount shall be reflected in the Fiscal Year 1997-98 financial statements. ~ - ~ - - - 45 - .. - - - .. - .. - THIS PAGE INTENTIONALLY LEFT BLANK .. - - - - - .. - .. - - - .. - .. .. ... - - - .. - - - - - - - 46 ... .. "~ SUPPLEMENTARY INFORMATION ~ - ~ ~ ... ilik,"' - ""'" 'l;i!.o~' - - ~ - - ... ... 47 - .. - CITY OF MOUNTAIN VIEW. CALIFORNIA ... - EMPLOYEE RETIREMENT PLAN HISTORICAL TREND INFORMATION .. LAST TEN FISCAL YEARS (Dollars in Thousands) NET ASSETS AVAILABLE FOR BENEFITS UNFUNDED (EXCESS NET ASSETS PENSION AS A PERCENT OF OF ASSETS OVER) FISCAL A V AILABLE FOR BENEFIT PENSION BENEFIT PENSION BENEFIT YEAR BENEFITS (1) OBLIGA TION OBLIGA TION OBLIGA TION 1986-87 $ 42,500 $ 47,700 89.0% $ 5,200 1987-88 48,800 52,300 93.4% 3,400 1988-89 56,000 57,600 97.2% 1,600 1989-90 62,600 66,200 94.6% 3,500 1990-91 68,200 71,500 95.3% 3,300 1991-92 75,900 78,400 96.7% 2,500 1992-93 84,100 84,900 99.0% 800 1993-94 102,600 89,000 115.3% (13,600) 1994-95 112,000 99,500 112.6% (12,500) - ... - .. - .. ... .. - .. - .. - ... - .. .. (I) Prior to Fiscal Year 1993-94, assets were shown at book value. Assets for Fiscal Years 1993-94 and later are shown at actuarial value (smoothed market value). - ",. (2) Through Fiscal Year 1994-95, the City contributed 7% and 9% on behalf of miscellaneous and safety employees, respectively. - - Note: Dollars are rounded to the nearest hundred thousand. - - - - - - - - - - 48 ... ... ~ ~ .. CITY'S CONTRIBUTIONS MADE IN ACCORDANCE WITH - UNFUNDED (EXCESS OF ACTUARIALL Y DETERMINED ASSETS OVER) PENSION AS A REQUIREMENTS, AS A ~ ANNUAL COVERED PERCENTAGE OF ANNUAL PERCENT AGE OF ANNUAL ... PAYROLL COVERED PAYROLL COVERED PAYROLL (2) $ 16,100 32.3% N/A _At 18,000 19.2% 14.0% 19,500 8.2% 11.0% ~# 21,900 16.3% 9.0% 24,500 13.6% 11.0% - 26,500 9.7% 11.0% 26,700 3.3% 9.0% .. 27,800 (49.1%) 8.0% ~ 29,200 (42.9%) 8.3% ~ ... '.. -,.. ~ ~ ..,., ~ - .... - 49 .. - .. .. .. - .. .. - THIS PAGE INTENTIONALLY LEFT BLANK - - .. .. - .. - .. .. - - .. .. .. .. - - .. - .. - .. lOolif .. -- - - 50 .. - - 'ftlII!I ~ loVi"'" ,,~ --. .... ~.~ .. - - .~ .... - - ~ - ... GENERAL FUND The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activity of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police and fire protection, community development and services, engineering, public works operations and maintenance, and legal and administrative services. 51 .. .. CITY OF MOUNTAIN VIEW CALIFORNIA .. - GENERAL FUND COMPARATIVE BALANCE SHEETS .. JUNE 30, 1997 (Dollars in Thousands) - ASSETS 1997 1996 - Cash and investments $ 41,830 30,592 - Receivables: Accounts (net of allowances) 467 420 - Interest 884 605 1,600 1,600 .. Notes Taxes 5,123 3,797 - Due from other governments 1,403 1,426 Due from other funds 7,220 5,530 - Inventory 125 134 Deposits and prepaid costs 17 13 .. Advances to other funds 17,782 18,366 .- TOTAL ASSETS $ 76,451 62,483 - LIABILITIES AND FUND BALANCES - .. LIABILITIES: Accounts payable and accrued costs $ 1,163 843 - Accrued compensated absences 310 293 Due to other governments 477 475 - Refundable deposits 765 330 . Deferred revenue 25 78 Advances from other funds 7,515 4,769 .. Total liabilities 10,255 6,788 . FUND BALANCES: - Reserved for: Notes receivable 1,600 1,600 .. Due from other governments 1,403 1,426 Inventory 125 134 .. Deposits and prepaid costs 17 13 .. Advances to other funds 17,782 18,366 Encumbrances 1,602 1,482 - Unreserved: Designated for: - Capital improvement program 10,766 6,175 Contingency operating - 2,122 2,225 Emergencies 10,922 4,940 .. Environmental reserve 200 100 Light rail reserve 4,142 0 - Library project 1,838 3,400 -- Compensated absences 2,600 2,927 General fund 11,077 12,907 - Total fund balances 66,196 55,695 ..- TOTAL LIABILITIES AND FUND BALANCES $ 76,451 62,483 - .. - 52 .. ..... - CITY OF MOUNTAIN VIEW CALIFORNIA '~ GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ;~ YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) FAVORABLE (UNF A V) BUDGET ACTUAL VARIANCE REVENUES: Taxes $ 32,297 36,314 4,017 ..... Licenses, permits and fees 4,209 4,586 377 Fines and forfeitures 183 144 (39) Use of money and property 5,748 7,884 2,136 Intergovernmental revenues 3,120 3,370 250 ~ Charges for services 7,623 8,296 673 Other 477 8,171 7,694 Total revenues 53,657 68,765 15,108 _. EXPENDITURES: - Current: City Council 189 171 18 - City Clerk 376 351 25 - City Attorney 1,390 1,007 383 City Manager 2,504 1,174 1,330 - Employee services 4,001 1,156 2,845 Finance and administrative services 4,697 4,298 399 ..,.. Community development 3,189 2,886 303 - Public works 2,235 2,151 84 Community services 7,463 7,087 376 ~ Library services 2,914 2,909 5 Fire 8,836 8,255 581 - Police 11,607 11,024 583 Public services 3,637 3,411 226 Capital Outlay 1,132 776 356 Debt Service: Interest and fiscal charges 286 286 0 Total expenditures 54,456 46,942 7,514 - EXCESS (DEFICIENCY) OF REVENUES .- OVER (UNDER) EXPENDITURES (799) 21,823 22,622 - OTHER FINANCING SOURCES (USES): - Operating transfers in 17,249 17,491 242 Operating transfers out (30,261 ) (30,251 ) 10 - Sales of general fixed assets 1,000 1,438 438 Total other financing sources (uses) (12,012) (1 1,322) 690 - - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) "" EXPENDITURES AND OTHER FINANCING USES (12,811) 10,501 23,312 ... BEGINNING FUND BALANCE 55,695 55,695 0 ii!W ENDING FUND BALANCE $ 42,884 66,196 23,312 - ~ .. 53 - .. .. .. .. .. - THIS PAGE INTENTIONALLY LEFT BLANK .. .. - - .. .. .. - .. .. - .. - - - - .. - .. .. - - .. - ... - ... - - 54 - .. .... iIiM ..... - ..... - ... .... .... -- .... - \1;;4:..; ~ - ... ,- - MIll ~!i/;i - - ... ~ - SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for revenue sources that are restricted to expenditures for specified purposes. Special Revenue Funds used by the City follow: The Gas Tax Fund accounts for gas tax revenues received from the State and expended for construction and maintenance of City streets. The Construction and Real Property 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 Revitalization Authority Fund accounts for the activities of the Authority which was created to prepare and carry out redevelopment plans for a designated area of the City. The Shoreline Golf Links Fund accounts for revenues from user fees at Shoreline Golf Links and related golf course operations and improvements. The Parking District No.2 Fund accounts for revenues received for off-street 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 moneys received, including Community Development Block Grants, the Local Law Enforcement Block Grant Program and the Supplemental Law Enforcement Services Fund. The Police Asset Forfeiture Fund accounts for funds derived from criminal assets seized by police, primarily from illegal narcotics sales activity. The Cable Television Fund accounts for cable franchise revenues received and costs contributed to a third party for the development and operations of the local cable television system. The Deferred Assessment. 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. The Shoreline Regional Park Community Fund receives tax increment revenues on property within the Community. The fund accounts for the revenues and expenditures of the Community. 55 - - CITY OF MOUNTAIN VIEW CALIFORNIA - COMBINING BALANCE SHEET .. ALL SPECIAL REVENUE FUNDS - JUNE 30, 1997 (Dollars in Thousands) .. CONSTR. & REVIT AL- SHORELINE CONVEY - IZA TION GOLF - ASSETS GAS TAX ANCE TAX AUTH. LINKS ... Cash and investments $ 1,446 2,374 601 I, I 55 - Restricted cash and investments 0 0 0 0 Receivables: .. Accounts (net of allowances) 0 0 0 0 - Interest 24 70 20 18 Notes 0 0 988 0 . Taxes 118 0 52 0 Due from other governments 0 0 0 0 - Inventory 0 0 0 87 .. Deposits and prepaid costs 0 0 0 42 Advances to other funds 0 0 0 0 - TOTAL ASSETS $ 1,588 2,444 1,661 1,302 - - LIABILITIES AND FUND BALANCES . LIABILITIES: Accounts payable and accrued costs $ 0 0 0 100 - Due to other governments 0 0 0 0 . Due to other funds 0 0 0 0 Refundable deposits 0 0 19 0 - Deferred revenue 0 0 0 53 Advances from other funds 0 0 2,006 5,100 - Total liabilities 0 0 2,025 5,253 - FUND BALANCES (DEFICITS): .. Reserved for: Restricted cash and investments 0 0 0 0 - Notes receivable 0 0 988 0 .. Due from other governments 0 0 0 0 Inventory 0 0 0 87 - Deposits and prepaid costs 0 0 0 42 Advances to other funds 0 0 0 0 IIIiiI Housing set aside 0 0 0 0 Encumbrances 0 0 2 19 .. Unreserved: .. Designated for: Capital improvement program 0 0 0 0 - Undesignated 1,588 2,444 (1,354) (4,099) .. Total fund balances (deficits) 1,588 2,444 (364) (3,951) - TOTAL LIABILITIES AND FUND BALANCES $ 1,588 2,444 1,661 1,302 - - .. - 56 .. - - ~ - PARKING POLICE CABLE SHORELINE DISTRICT ASSET TELE- DEFERRED REG. PARK TOTALS - #2 GRANTS FORFEIT. VISION ASSMTS. COMM. 1997 1996 826 10 15 735 282 2,869 10,313 6,697 0 39 0 750 0 10,044 10,833 19,010 ~ 0 84 0 I 0 0 85 410 46 I 0 11 0 440 630 611 p;,," 0 1,857 0 0 24 0 2,869 2,298 17 0 0 0 0 754 941 322 0 0 0 0 0 789 789 801 jig 0 0 0 0 0 0 87 61 0 0 0 0 0 0 42 42 0 0 0 0 0 5,100 5,100 5,100 - 889 1,991 15 1,497 306 19,996 31,689 35,352 ... 5 32 0 4 0 76 217 496 ... 0 0 0 0 0 0 0 240 0 0 0 0 0 0 0 5,517 0 0 0 0 0 1 20 21 0 0 0 0 24 0 77 133 ---"\ 0 0 0 0 0 15,776 22,882 23,385 5 32 0 4 24 15,853 23,196 29,792 0 39 0 750 0 10,044 10,833 19,010 - 0 1,857 0 0 24 0 2,869 2,298 0 0 0 0 0 789 789 801 0 0 0 0 0 0 87 61 0 0 0 0 0 0 42 42 .... 0 0 0 0 0 5,100 5,100 5,100 0 0 0 0 0 0 0 280 .... 1 1,274 0 0 0 403 1,699 488 - - 91 0 0 0 0 0 91 58 - 792 (1,211 ) 15 743 258 (12,193) (13,017) (22,578) 884 1,959 15 1,493 282 4,143 8,493 5,560 - - 889 1,991 15 1,497 306 19,996 31,689 35,352 - - ~ - 57 - . CITY OF MOUNTAIN VIEW CALIFORNIA - . COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - ALL SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) .. CONSTR. & REV IT AL- SHORELINE - CONVEY - IZATION GOLF - GAS TAX ANCETAX AUTH. LINKS REVENUES: .. Taxes $ 0 2,272 1,310 0 .. Licenses, permits and fees 0 0 0 0 Use of money and property 92 249 87 62 - Intergovernmental revenues 1,342 0 0 0 Charges for services 0 0 0 2,623 .. Other 0 0 0 6 Total revenues 1,434 2,521 1,397 2,691 .. .. EXPENDITURES: Current: .. General government 0 0 0 0 Public safety 0 0 0 0 - Community development 0 0 80 0 .. Culture and recreation 0 0 0 1,780 Capital outlay 0 0 0 !OI . Total expenditures 0 0 80 1,881 - EXCESS (DEFICIENCY) OF REVENUES . OVER (UNDER) EXPENDITURES 1,434 2,521 1,3 I 7 810 .. OTHER FINANCING SOURCES (USES): Operating transfers in 126 332 214 0 - Operating transfers out (1,674) (2,667) (1,193) (245) .. Total other financing sources (uses) (1,548) (2,335) (979) (245) .. EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES ... OVER (UNDER) EXPENDITURES - AND OTHER FINANCING USES (114) 186 338 565 - BEGINNING FUND BALANCES (DEFICITS) 1,702 2,258 (702) (4,516) .. ENDING FUND BALANCES (DEFICITS) $ 1,588 2,444 (364) (3,95 I) - .. - .. .. .. - .. - 58 .. ... .. - ~ _... .- PARKING POLICE CABLE SHORELINE - DISTRICT ASSET TELE- DEFERRED REG. PARK TOTALS #2 GRANTS FORFEIT. VISION ASSMTS. COMM. 1997 1996 184 0 0 0 0 11,805 15,571 14,755 "'\\L 48 0 0 412 0 0 460 359 171 3 0 42 0 2,307 3,013 3,060 3 647 3 0 0 0 1,995 3,092 ~;o 154 0 0 0 0 0 2,777 1,445 2 2 0 825 0 4 839 496 562 652 3 1,279 0 14,116 24,655 23,207 ... 0 0 0 552 0 2,167 2,719 3,337 ~ 0 57 1 0 0 0 58 7 87 435 0 0 0 106 708 594 0 0 0 0 0 994 2,774 7,645 ~ 0 4 17 0 0 7 129 117 87 496 18 552 0 3,274 6,388 11,700 - 475 156 (15) 727 0 10,842 18,267 11,507 b>!# 3 8 0 0 0 1 684 1,841 ( 102) 0 (8) (94) 0 (10,035) (16,018) (12,042) (99) 8 (8) (94) 0 (10,034) (15,334 ) (10,201) - - 376 164 (23) 633 o 808 2,933 1,306 508 1,795 38 860 282 3,335 5,560 4,254 ... 884 1,959 15 1,493 282 4,143 8,493 5,560 - - "'I!IIRI - - - .. .. !M!itI. ... 59 .. .. CITY OF MOUNTAIN VIEW. CALIFORNIA .. .. COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - .. BUDGET AND ACTUAL .. ALL BUDGETED SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) - GAS TAX .. FAVORABLE - (UNF A V) BUDGET ACTUAL VARIANCE .. REVENUES: Taxes $ 0 0 0 .. Licenses, permits and fees 0 0 0 .. Use of money and property 120 92 (28) Intergovernmental revenues 1,307 1,342 35 - Charges for services 0 0 0 .. Other 0 0 0 Total revenues 1,427 1,434 7 .. .. EXPENDITURES: Current: .. City Attorney 0 0 0 City Manager 0 0 0 .. Finance and administrative services 0 0 0 .. Community development 0 0 0 Community services 0 0 0 - Capital outlay 0 0 0 Total expenditures - 0 0 0 - EXCESS (DEFICIENCY) OF REVENUES OVER(UNDER) EXPENDITURES 1,427 1,434 7 - - OTHER FINANCING SOURCES (USES): Operating transfers in 0 126 126 ... Operating transfers out (1,674) (1,674) 0 - Total other financing sources (uses) (1,674) (1,548) 126 - EXCESS (DEFICIENCY) OF REVENUES - AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES .. AND OTHER FINANCING USES (247) (114) 133 IIiIII BEGINNING FUND BALANCES (DEFICITS) 1,702 1,702 0 .. ENDING FUND BALANCES (DEFICITS) $ 1,455 1,588 133 - - .. - .. - 60 .. - - - - - .- CONSTRUCTION AND REAL REVIT ALIZA nON - PROPERTY CONVEYANCE TAX AUTHORITY FAVORABLE FAVORABLE (UNF A V) (UNF A V) ~ BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE 1,199 2,272 1,073 951 1,310 359 hl;.... 0 0 0 0 0 0 167 249 82 98 87 (11) 0 0 0 0 0 0 ~ 0 0 0 0 0 0 0 0 0 0 0 0 1,366 2,521 1,155 1,049 1,397 348 - 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100 80 20 .... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 100 80 20 h>4;i 1,366 2,521 1,155 949 1,317 368 ~ 0 332 332 190 214 24 - (2,667) (2,667) 0 (1,451) (1,193) 258 (2,667) (2,335) 332 ( 1 ,261 ) (979) 282 - - - - (1,301) 186 1,487 (312) 338 650 - 2,258 2,258 0 (702) (702) 0 .. 957 2,444 1,487 (1,014) (364) 650 - (Continued) iiiIIII -- - - - 61 .. .. CITY OF MOUNTAIN VIEW. CALIFORNIA .. .. COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - .. BUDGET AND ACTUAL (Continued) .. ALL BUDGETED SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) - SHORELINE GOLF LINKS .. FAVORABLE .. (UNF A V) BUDGET ACTUAL VARIANCE .. REVENUES: Taxes $ 0 0 0 .. Licenses, permits and fees 0 0 0 .. Use of money and property 24 62 38 Intergovernmental revenues 0 0 0 .. Charges for services 2,464 2,623 159 . Other 0 6 6 Total revenues 2,488 2,691 203 .. - EXPENDITURES: Current: .. City Attorney 0 0 0 .. City Manager 0 0 0 Finance and administrative services 0 0 0 .. Community development 0 0 0 Community services 1,969 1,780 189 .. Capital outlay 106 101 5 Total expenditures .. 2,075 1,881 194 .. EXCESS (DEFICIENCY) OF REVENUES OVER(UNDER) EXPENDITURES 413 810 397 .. .. OTHER FINANCING SOURCES (USES): Operating transfers in 0 0 0 .. Operating transfers out (245) (245) 0 .. Total other financing sources (uses) (245) (245) 0 .. EXCESS (DEFICIENCY) OF REVENUES .. AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES .. AND OTHER FINANCING USES 168 565 397 .. BEGINNING FUND BALANCES (DEFICITS) (4,516) (4,516) 0 .. ENDING FUND BALANCES (DEFICITS) $ (4,348) (3,951 ) 397 .. ... .. - .. - 62 .. ... - ... - ..... PARKING DISTRICT #2 CABLE TELEVISION FAVORABLE FAVORABLE (UNF A V) (UNF A V) - BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE 172 184 12 0 0 0 46 48 2 312 412 100 165 171 6 43 42 (1) 1 3 2 0 0 0 160 154 (6) 0 0 0 0 2 2 90 825 735 544 562 18 445 1,279 834 ..'" 0 0 0 0 0 0 ~ 0 0 0 640 552 88 0 0 0 0 0 0 144 87 57 0 0 0 ....: 0 0 0 0 0 0 ~ 0 0 0 0 0 0 144 87 57 640 552 88 ~ 400 475 75 (195) 727 922 .... 0 3 3 0 0 0 ... ( 102) ( 102) 0 (94) (94) 0 (102) (99) 3 (94) (94) 0 ~ -- 298 376 78 (289) 633 922 - MIl! 508 508 0 860 860 0 - 806 884 78 571 1,493 922 - (Continued) - - .. ,-- .. 63 ... - CITY OF MOUNTAIN VIEW. CALIFORNIA ... .. COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - ... BUDGET AND ACTUAL (Continued) ALL BUDGETED SPECIAL REVENUE FUNDS .. YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) - SHORELINE REGIONAL P ARK COMMUNITY .. FAVORABLE .- (UNF A V) BUDGET ACTUAL VARIANCE - REVENUES: Taxes $ 12,966 11,805 (1,161) - Licenses, permits and fees 0 0 0 - Use of money and property 1,163 2,307 1,144 Intergovernmental revenues 0 0 0 - Charges for services 0 0 0 - Other 30 4 (26) Total revenues 14,159 14,116 (43) - - EXPENDITURES: Current: - City Attorney 185 85 100 City Manager 487 286 201 . Finance and administrative services 1,801 1,796 5 - Community development 150 106 44 Community services 1,311 994 317 . Capital outlay 8 7 1 Total expenditures 3,942 3,274 - 668 - EXCESS (DEFICIENCY) OF REVENUES OVER(UNDER) EXPENDITURES 10,217 10,842 625 ... - OTHER FINANCING SOURCES (USES): Operating transfers in 0 1 1 - Operating transfers out (10,575) (10,035) 540 .. Total other financing sources (uses) (10,575) (10,034) 541 ... EXCESS (DEFICIENCY) OF REVENUES .. AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES ... AND OTHER FINANCING USES (358) 808 1,166 - BEGINNING FUND BALANCES (DEFICITS) 3,335 3,335 0 ... ENDING FUND BALANCES (DEFICITS) $ 2,977 4,143 1,166 llIIII ... 11II - ... - 64 .. .. .. - - - ~ TOT ALS- - ANNUALL Y BUDGETED FUNDS FAVORABLE (UNF A V) - BUDGET ACTUAL VARIANCE 15,288 15,571 283 358 460 102 1,780 3,010 1,230 1,308 1,345 37 MMii 2,624 2,777 153 120 837 717 21,478 24,000 2,522 iilMiid 185 85 100 - 1,127 838 289 1,801 1,796 5 394 273 121 .... 3,280 2,774 506 114 108 6 6,901 5,874 1,027 14,577 18,126 3,549 190 676 486 - ( 16,808) (16,010) 798 (16,618) (15,334) 1,284 - - - (2,041 ) 2,792 4,833 '1"!l!l'JlI 3,445 3,445 0 - 1,404 6,237 4,833 ,~ ... .. .. - - 65 .. .. .. .. .. .. - .. .. THIS PAGE INTENTIONALLY LEFT BLANK .. .. .. .. .. .. .. - .. .. .. .. .. .. - .. IIlIfI .. IIIli .. lIIII .. IIIfIil .. .. - .. - 66 .. Ii- .... DEBT SERVICE FUNDS $iiii"N'iI i~ Debt Service Funds are used to account for accumulation of resources for, and payment of, principal, interest and related costs on the debt for which the City is obligated in some manner. Debt Service Funds used by the City follow: The 1995 Police/Fire Building Refunding Certificates of Participation Fund accounts for resources used for the purpose of paying the principal, interest and related costs on the 1995 Refunding Certificates of Participation as they become due. The Slurry Wall Certificates of Participation Fund accounts for resources used for the purpose of paying the principal, interest and related costs on the Certificates of Participation as they become due. The City of Mountain View Capital Improvements Financing Authority Fund accounts for resources used for the purpose of paying the principal, interest and related costs on the 1992 revenue bonds 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 1992 Tax Allocation and Refunding Bond Fund accounts for resources used for the purpose of paying the principal, interest and related costs on the Shoreline 1992 Tax Allocation and Refunding Bonds as they become due. The Shoreline 1993 Tax Allocation Bond Fund accounts for the resources used for the purpose of paying the principal, interest and related costs on the Shoreline 1993 Tax Allocation Bonds as they become due. ~ The Shoreline 1996 Tax Allocation Bond Fund accounts for the resources used for the purpose of paying the principal, interest and related costs on the Shoreline 1996 Tax Allocation Bonds as they become due. i. ,~ .... ..... .. 67 - I11III CITY OF MOUNTAIN VIEW. CALIFORNIA COMBINING BALANCE SHEET ALL DEBT SERVICE FUNDS JUNE 30, 1997 (Dollars in Thousands) CAPITAL POLICE/ SLURRY IMPROVE- FIRE BLDG. WALL MENTS ASSETS 1995 C. O. P. C.O.P. FIN. AUTH. Cash and investments $ 0 0 1 Restricted cash and investments 796 0 23,499 Receivables: Special assessments: Delinquent 0 0 0 Deferred 0 0 0 TOTAL ASSETS $ 796 0 23,500 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable and accrued costs $ 0 0 1 Due to other funds 0 0 0 Deferred revenue 0 0 0 Total liabilities 0 0 1 FUND BALANCES: Reserved for: Restricted cash and investments 796 0 23,499 Debt service 0 0 0 Total fund balances 796 0 23,499 TOTAL LIABILITIES AND FUND BALANCES $ 796 0 23,500 - .. - - - .. - - - .. - - - .. - .. - .. - I11III - - - .. - - - - - - - - - - - 68 - 'Ii. SPECIAL SHORELINE SHORELINE SHORELINE ASSESS- COMM. COMM. COMM. TOTALS MENTS 1992 T. A. I993T.A. I996T.A. 1997 1996 1,653 0 0 0 1,654 1,819 0 I 0 38 24,334 25,103 47 0 0 0 47 58 4,103 0 0 0 4,103 4,019 5,803 0 38 30,138 30,999 17 o 4,103 4,120 o o o o o o o o o o o o 18 o 4,103 4,121 1 13 4,019 4,033 0 1 0 38 24,334 25,103 1,683 0 0 0 1,683 1,863 1,683 1 0 38 26,017 26,966 ;l;.jci'!ir 5,803 0 38 30,138 30,999 - ;Wij ,- }~ ... ~ ..... ~ .. i""",,. - 69 - - CITY OF MOUNTAIN VIEW. CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL DEBT SERVICE FUNDS YEAR ENDED JUNE 30,1997 (Dollars in Thousands) CAPITAL POLICE/ SLURRY IMPROVE- FIRE BLDG. WALL MENTS 1995C.O.P. C.O. P. FIN. AUTH. REVENUES: Special assessments $ 0 0 0 Use of money and property 56 0 1,392 Total revenues 56 0 1,392 EXPENDITURES: Principal repayment 200 1,076 1,660 Interest and fiscal charges 495 90 2,684 Debt issuance costs 0 0 0 Total expenditures 695 1,166 4,344 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (639) (1,166) (2,952) OTHER FINANCING SOURCES (USES): Operating transfers in 645 1,166 2,153 Operating transfers out 0 0 0 Proceeds of refunding certificates of participation 0 0 0 Payment to refunded bond escrow agent 0 0 0 Total other financing sources (uses) 645 1,166 2,153 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 6 0 (799) BEGINNING FUND BALANCES 790 0 24,298 ENDING FUND BALANCES $ 796 0 23,499 - - - - - - - .. - .. - - - .. - .. - .. - - .. - - IiiIif - iWiII - - - - - - - - - 70 IiiIif - ,~ .~ ~ ~'''' SPECIAL SHORELINE SHORELINE SHORELINE ASSESS- COMM. COMM. COMM. TOTALS MENTS 1992 T. A. 1993T.A. 1996 T. A. 1997 1996 827 0 0 0 827 1,017 0 1 0 1 1,450 1,455 *~ 827 1 0 1 2,277 2,472 676 810 585 0 5,007 4,335 390 1,375 1,315 531 6,880 6,369 0 0 0 0 0 315 1,066 2,185 1,900 531 11,887 11,019 (239) (2,184) (1,900) (530) (9,610) (8,547) 45 2,184 1,900 568 8,661 8,137 0 0 0 0 0 (48) 0 0 0 0 0 9,097 0 0 0 0 0 (9,472) 45 2,184 1,900 568 8,661 7,714 iliIlii,~ ( 1 94 ) 0 0 38 (949) (833) -~ 1,877 0 0 26,966 27,799 - 1,683 0 38 26,017 26,966 .- - ... (~ iWijIli ~ -- 71 - - - .. - .. - .. - THIS PAGE INTENTIONALLY LEFT BLANK .. - .. - II1II - .. - .. - II1II - .. - - - - .- - - - - - - - - .... - 72 ..... - CAPITAL PROJECTS FUNDS ~"" Capital Projects Funds are used to account for resources used for the acquisition or construction of major capital projects, including landfill containment projects, other than those financed by proprietary funds. Capital Projects Funds used by the City follow: ~mjf The General Capital Projects Fund accounts for all general capital improvements on a pay-as-you-go basis for projects not funded from proprietary funds. iiii<>'''$ The Shoreline Community Capital Projects Fund accounts for capital improvement construction funded from the proceeds of the Shoreline Regional Park Community debt. _.~ Storm Drain Construction Fund accounts for revenues derived from off-site drainage fees used for storm drain projects in the Capital Improvements Program. The Recreation Construction Fund accounts for revenues derived from fees on residential subdivisions used for park and recreation projects. ~"iU The Special Assessment Construction Fund accounts for capital improvement construction funded from the proceeds of special assessment debt. ,~ - - ~ - .. 'i":~ - ,,... - - - 73 - .. CITY OF MOUNTAIN VIEW. CALIFORNIA COMBINING BALANCE SHEET ALL CAPITAL PROJECTS FUNDS JUNE 30, 1997 (Dollars in Thousands) SHORELINE GENERAL COMM. STORM CAPITAL CAPITAL DRAIN ASSETS PROJECTS PROJECTS CONSTR. Cash and investments $ 51,850 0 293 Restricted cash and investments 2,383 7,557 0 Receivables: Accounts 0 0 0 Interest 18 30 6 TOTAL ASSETS $ 54,251 7,587 299 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable and accrued costs $ 4,596 0 0 Accrued landfill containment costs 4,430 0 0 Due to other funds 0 7,220 0 Advances from other funds 6,013 0 0 Total liabilities 15,039 7,220 0 FUND BALANCES: Reserved for: Encumbrances 28,313 0 0 Unreserved: Designated for: Capital improvement program 10,899 367 299 Undesignated 0 0 0 Total fund balances 39,212 367 299 TOTAL LIABILITIES AND FUND BALANCES $ 54,25 I 7,587 299 - .. - .. - .. - - - .. - .. - .. - .. - .. - .. - - - WI - - - - - .... - .... - - - 74 - ili'ti' ~ SPECIAL RECREA- ASSESS- nON MENTS TOTALS CONSTR. CONSTR. 1997 1996 1,289 1,642 55,074 46,537 0 0 9,940 0 0 0 0 1 14 8 76 10 1,303 1,650 65,090 46,548 0 61 4,657 2,573 0 0 4,430 10,050 0 0 7,220 0 0 0 6,013 5,701 0 61 22,320 18,324 ~ 0 1,299 29,612 11,275 ~ 0 290 11,855 16,820 1,303 0 1,303 129 1,303 1,589 42,770 28,224 - ~ 1,303 1,650 65,090 46,548 ~ .. - - ,t~ .. ~. - 75 - - CITY OF MOUNTAIN VIEW. CALIFORNIA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) SHORELINE GENERAL COMM. STORM CAPITAL CAPITAL DRAIN PROJECTS PROJECTS CONSTR. REVENUES: Use of money and property $ 380 367 23 Intergovernmental revenues 968 0 0 Other 681 0 20 Total revenues 2,029 367 43 EXPENDITURES: Capital outlay 27,102 0 0 Debt issuance costs 0 508 0 Total expenditures 27,102 508 0 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (25,073) (141) 43 OTHER FINANCING SOURCES (USES): Operating transfers in 39,951 1,984 43 Operating transfers out (915) (22,588) (25) Tax allocation bond proceeds 0 21,112 0 Special assessment bond proceeds 0 0 0 Total other financing sources (uses) 39,036 508 18 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 13,963 367 61 BEGINNING FUND BALANCES 25,249 0 238 ENDING FUND BALANCES $ 39,212 367 299 - .. - .. - .. - - - - - - - - - . - - - .. - .. - ... - - - .... - - ... - - ... - 76 ... eM' ~m ~~ 'W-'#f - ~ - - .. -.. - SPECIAL RECREA- ASSESS- nON MENTS TOT ALS CONSTR. CONSTR. 1997 1996 43 28 841 48 0 0 968 263 1,096 196 1,993 602 1,139 224 3,802 913 0 203 27,305 14,035 0 47 555 0 0 250 27,860 14,035 1,139 (26) (24,058) (13,122) 52 877 42,907 7,579 (18) (2,430) (25,976) (1,042) 0 0 21,112 0 0 561 561 0 34 (992) 38,604 6,537 1,173 (1,018) (6,585) 14,546 130 34,809 2,607 28,224 1,303 1,589 28,224 42,770 77 - .. CITY OF MOUNTAIN VIEW. CALIFORNIA - COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL BUDGETED CAPITAL PROJECTS FUNDS YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) - - - - STORM DRAIN CONSTRUCTION FUND FAVORABLE (UNF A V) BUDGET ACTUAL VARIANCE - - .. REVENUES: Use of money and property Other Total revenues - $ 43 2 45 23 20 43 (20) 18 (2) .. - .. EXPENDITURES: Community services Total expenditures o o o o o o - - EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES - 45 43 (2) .. OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out Total other financing sources (uses) o (25) (25) 43 (25) 18 43 o 43 - - - EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES - - 20 61 41 - BEGINNING FUND BALANCES 238 238 o - - ENDING FUND BALANCES $ 258 299 41 - - - - - - - - - IIiIiiiiI - 78 ... .~ \'i~ .. '~ 410 130 1,173 763 130 o 1,303 763 ~ 540 .- .. - - - - - 430 1,234 804 368 368 o 798 1,602 804 79 - - - - - ... - .. - THIS PAGE INTENTIONALLY LEFT BLANK .. - - - .. - .. - - - .. - .. - - - - - ... - - - - - ... - ... - 80 .. "'~ iw..,!j; 1*,,,,,,. .~". ~ ,jjiljIJl!;t ~- IIiiiiIIJ .. - - ENTERPRISE FUNDS Enterprise Funds are used to account for City operations that are financed and operated like private business enterprises. Use of this type of fund permits user charges to finance or recover the costs, including depreciation, of providing the enterprise's services to the general public on a continuing basis. Enterprise Funds used by the City follow: The Water Fund accounts for the expenses related to the operation, main- tenance and capital outlay required to supply, distribute and meter water, which are paid from revenues derived from user fees. The Wastewater Fund accounts for the expenses related to the operation, main- tenance and capital outlays required to provide wastewater services, which are paid from revenues derived from the user fees. The City has an agreement with the City of Palo Alto to purchase treatment capacity at the Palo Alto Regional Water Control Plant. The Solid Waste Fund accounts for 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. 81 .. - CITY OF MOUNTAIN VIEW. CALIFORNIA - .. COMBINING BALANCE SHEET ALL ENTERPRISE FUNDS - JUNE 30, 1997 (Dollars in Thousands) - W ASTE- SOLID- - ASSETS WATER WATER WASTE .. Cash and investments $ 8,920 6,519 4,561 - Receivables: Accounts (net of allowances) 2,267 1,299 1,779 .. Interest 222 305 70 Due from other governments 409 414 197 - Inventory 80 16 0 - Advances to other funds 5,130 8,398 0 Land, buildings and equipment 21,973 2 I ,906 326 - Construction in progress 2,524 518 0 .. Accumulated depreciation (8,4 I 6) (13,493) (140) - TOTAL ASSETS $ 33,109 25,882 6,793 .. LIABILITIES AND FUND EQUITY - .. LIABILITIES: Accounts payable and accrued costs $ 473 133 588 - Accrued compensated absences 246 139 82 Refundable deposits 175 0 0 - Total liabilities 894 272 670 - FUND EQUITY: .. Contributed capital 2,971 9,444 0 - Retained earnings: Reserved for: .. Due from other governments 409 414 197 Financial assurance mechanism 0 0 796 - Unreserved 28,835 15,752 5,130 .. Total retained earnings 29,244 16,166 6,123 Total fund equity 32,215 25,610 6,123 .... IIilII TOTAL LIABILITIES AND FUND EQUITY $ 33,109 25,882 6,793 - - - - - - - ... - 82 - TOTALS 1997 1996 ~ ,~ 20,000 21,577 5,345 4,957 597 648 ],020 1,036 l~,," 96 1 ]2 13,528 10,389 44,205 42,996 3,042 1,4]8 (22,049) (20,776) ~"" 65,784 62,357 ~ 1,]94 467 175 1,836 1, ]65 408 ]68 ],74] 12,4] 5 12,415 i\,!JIl:,.p 1,020 1,036 796 831 ~ 49,7] 7 46,334 51,533 48,201 63,948 60,6]6 '~w 65,784 62,357 ... - ~ - ~ - 8"3 ,~ TOTALS 1997 1996 28,572 26,494 628 354 29,200 26,848 4,797 4,640 14,253 13,398 6,370 7,876 1,282 1,193 f"W 26,702 27,107 2,498 (259) 1,993 2,112 ~... 4,491 1,853 294 1 (1,453) (1,083) ~ (1,159) (1,082) 3,332 771 .... 48,201 47,430 ... 51,533 48,201 ~;j. ~ .. - ~ - 85 .. .. CITY OF MOUNTAIN VIEW. CALIFORNIA - COMBINING STATEMENT OF CASH FLOWS - ALL ENTERPRISE FUNDS - YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) ... W ASTE- SOLIO- WATER WATER WASTE - CASH FLOWS FROM OPERATING ACTIVITIES: - Operating income (loss) $ 3,312 (448) (366) - Adjustments to reconcile operating income (loss) to .. net cash provided by (used for) operating activities: Depreciation 561 683 38 - Changes in operating assets and liabilities: - Accounts receivable (266) (91 ) (31) Due from other governments 6 7 3 - Inventory 9 7 0 Accounts payable and accrued costs (13) (9) 51 - Accrued compensated absences 9 30 20 .. Refundable deposits 12 0 (5) Net cash provided by (used for) operating activities 3,630 179 (290) - CASH FLOWS FROM NONCAPIT AL .. FINANCING ACTIVITIES: - Collections from other funds 175 115 4 Payments to other funds (622) (332) (499) - Advances to other funds 0 (2,900) 0 Repayment of advances to other funds 0 154 0 .. Net cash provided by (used for) noncapital - financing activities (447) (2,963) (495) .. CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: .. Construction and acquisition of capital assets (2,299) (514) (29) - Advances to other funds for construction in progress (3,055) (495 ) 0 Refunds from other funds for construction in progress 2,619 538 0 - Net cash provided by (used for) capital and - related financing activities (2,735) (471) (29) - CASH FLOWS FROM INVESTING ACTIVITIES: I nterest received 846 868 330 - CASH AND CASH EQUIVALENTS: - INCREASE (DECREASE) 1,294 (2,387) ( 484) ... BEGINNING BALANCES 7,626 8,906 5,045 - ENDING BALANCES $ 8,920 6,519 4,561 - .. - - - - 86 "'" ... TOTALS 1997 1996 ,~ t_.", 2,498 (259) 1,282 1,193 (388) (1,033) 16 1,342 16 5 29 20 59 38 7 13 3,519 1,319 294 1 (1,453) (1,083) (2,900) 0 - 154 145 (3,905) (937) -- (2,842) (1,204) (3,550) (3,814) 3,157 2,359 ~ (3,235) (2,659) - 2,044 1,892 .- (1,577) (385) 21,577 21,962 20,000 21,577 .. - .... - 87 - - - ... - ... - - - THIS PAGE INTENTIONALLY LEFT BLANK ... - - - .. - - - .. - .. - .. - .. - - - - - .. - - - - - - - 88 ... ~. H\ii;j .... ,M ..... ~ - - .. INTERNAL SERVICE FUNDS Internal Service Funds are used to finance and account for goods and/or services provided by one City department or fund to other City departments or funds on a cost-reimbursement basis. Internal Service Funds used by the City follow: 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 administra- tion 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 program. The Retirees' Health Plan Fund accounts for the health plan expenses incurred for retired City employees. The Employee Benefits Fund accounts for the City's self-insurance retention health plan, vision and other benefits for City employees. 89 - IlIiI CITY OF MOUNTAIN VIEW. CALIFORNIA COMBINING BALANCE SHEET ALL INTERNAL SERVICE FUNDS JUNE 30, 1997 (Dollars in Thousands) EQUIPMENT WORKERS' UNEMPLOY - MAINT. AND COMPo MENT SELF- ASSETS REPLC. INSURANCE INSURANCE Cash and investments $ 6,129 3,088 287 Restricted cash and investments 0 71 0 Receivables: Accounts (net of allowances) 0 0 0 Interest 86 43 4 Due from other governments 38 141 4 Machinery and equipment 199 0 0 Accumulated depreciation (162) 0 0 TOTAL ASSETS $ 6,290 3,343 295 LIABILITIES AND FUND EQUITY LIABILITIES: Accounts payable and accrued costs $ 110 3 0 Accrued compensated absences 78 0 0 Accrued self-insurance claims 0 2,221 0 Total liabilities 188 2,224 0 FUND EQUITY: Retained earnings: Reserved for: Due from other governments 38 141 4 Unreserved 6,064 978 291 Total fund equity 6,102 1,119 295 TOTAL LIABILITIES AND FUND EQUITY $ 6,290 3,343 295 - .. - .. - .. - .. .. .. .. - .. .. - .. - .. - .. - .. - - - .. - - - - - - - - - 90 ... .... LIABILITY RETIREES' EMPLOYEE SELF - HEALTH BENEFITS TOTALS ~ PLAN PLAN 1997 1996 INSURANCE 4,630 4,055 301 18,490 15,673 0 0 2 73 191 0 0 0 0 5 69 60 4 266 245 78 54 1 316 322 0 0 0 199 182 0 0 0 (162) (152) 4,777 4,169 308 19,182 16,466 t;.)o,;B\' 43 0 3 159 188 0 0 0 78 72 1,620 0 0 3,841 3,841 1,663 0 3 4,078 4,101 78 54 1 316 322 t:iii4 3,036 4,115 304 14,788 12,043 3,114 4,169 305 15,104 12,365 '~ 4,777 4,169 308 19,182 16,466 ~. $4 - - ~ .. - - 91 - - CITY OF MOUNTAIN VIEW. CALIFORNIA - - COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS - ALL INTERNAL SERVICE FUNDS - YEAR ENDED JUNE 30,1997 (Dollars in Thousands) - EQUIPMENT WORKERS' UNEMPLOY - MAINT. AND COMPo MENT SELF- .. REPLC. INSURANCE INSURANCE ... OPERATING REVENUES: Service fees $ 1,247 0 0 .. Other 2 917 73 - Total operating revenues 1,249 917 73 ., OPERATING EXPENSES: Salaries and related expenses 689 0 0 - Self-funded insurance 0 939 22 - General and administrative 1,360 212 2 Depreciation II 0 0 .. Total operating expenses 2,060 I, I 5 I 24 - OPERATING INCOME (LOSS) (8 II) (234) 49 - .. NONOPERA TING REVENUES: Interest income 327 175 15 - INCOME (LOSS) BEFORE - OPERATING TRANSFERS (484 ) (59) 64 - OPERA TING TRANSFERS: - Operating transfers in 1,671 0 0 Operating transfers out (1,000) 0 0 .. Net operating transfers 671 0 0 .. NET INCOME (LOSS) 187 (59) 64 - ..- BEGINNING RETAINED EARNINGS 5,915 1,178 231 - ENDING RETAINED EARNINGS $ 6,102 1,119 295 - - - - - - - - .. - 92 .. LIABILITY RETIREES' EMPLOYEE ~ SELF - HEALTH BENEFITS TOTALS INSURANCE PLAN PLAN 1997 1996 0 0 0 1,247 1,159 30 0 797 1,819 1,830 30 0 797 3,066 2,989 0 0 0 689 682 104 0 842 1,907 1,551 498 277 3 2,352 2,600 0 0 0 II 5 602 277 845 4,959 4,838 (572) (277) (48) (1,893) (1,849) - 231 207 16 971 844 (341 ) (70) (32) (922) (1,005) 1,640 1,314 36 4,661 3,463 0 0 0 (1,000) (1,000) ~ 1,640 1,314 36 3,661 2,463 1,299 1,244 4 2,739 1,458 1,815 2,925 301 12,365 10,907 3,114 4,169 305 15,104 12,365 ~ ,Olif \Iiilitii - -- 93 - - CITY OF MOUNTAIN VIEW. CALIFORNIA COMBINING STATEMENT OF CASH FLOWS ALL INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 1997 (Dollars In Thousands) EQUIPMENT WORKERS' UNEMPLOY- MAINT. AND COMPo MENT SELF- REPLC. INSURANCE INSURANCE CASH FLOWS FROM OPERATING ACTIVITIES: Operating income (loss) $ (8 I I) (234) 49 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation II 0 0 Changes in operating assets and liabilities: Accounts receivable 0 0 0 Due from other governments 1 3 0 Accounts payable and accrued costs 45 3 0 Accrued compensated absences 6 0 0 Net cash provided by (used for) operating activities (748) (228) 49 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Collections from other funds 1,671 0 0 Payments to other funds (1,000) 0 0 Net cash provided by (used for) noncapital financing activities 671 0 0 CASH FLOWS FROM CAPITAL AND RELA TED FINANCING ACTIVITIES: Construction and acquisition of capital assets (18) 0 0 CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 328 179 14 CASH AND CASH EQUIVALENTS: INCREASE (DECREASE) 233 (49) 63 BEGINNING BALANCES 5,896 3,208 224 ENDING BALANCES $ 6,129 3,159 287 - - - - - - - - - - - - - - - - - .. - - - .. - - - - - - - - - - - .,.., - 94 ... i~ LIABILITY RETIREES' EMPLOYEE SELF- HEALTH BENEFITS TOTALS INSURANCE PLAN PLAN 1997 1996 ~ (572) (277) (48) (1,893) (1,849) li.;<-M 0 0 0 11 5 0 0 5 5 (5) 2 0 0 6 415 (79) 0 2 (29) 90 0 0 0 6 9 ,at;" (649) (277) (41 ) (1,894) (1,335) - 1,640 1,314 36 4,661 3,463 0 0 0 (1,000) (1,000) .... 1,640 1,314 36 3,661 2,463 .... 0 0 0 (18) (26) lIiIiilI\ 218 194 17 950 750 ~ 1,209 1,231 12 2,699 1,852 3,421 2,824 291 15,864 14,012 .... 4,630 4,055 303 18,563 15,864 ~ ... - ~ - ~ - 95 - .. - - - .. - - - THIS PAGE INTENTIONALLY LEFT BLANK .. - - - ... .. - - .. - - - .. .. - - - - .. - - '- - - .. - .. - 96 - J;,. ~~,~.~ - - ~ - ,~ .... !'>1""'" '~ .. ~, - AGENCY FUNDS Agency Funds are used to account for assets held by the City as trustee or agent for other governmental units, private organizations or individuals. Agency Funds used by the City follow: The Payroll Fund accounts for payroll-related liabilities. The Deferred Compensation Fund accounts for the assets and liabilities of the employer's deferred compensation plan as established under Internal Revenue Code Section 457. The Mountain View Sports Pavilion Fund accounts for maintenance funds deposited on behalf of the Mountain View School District to cover the District's share of operating costs associated with a gymnasium located at Graham Middle School. The Center for the Performing Arts Fund accounts for money received by the Center for the Performing Arts. The Fire Union Fund accounts for money received on behalf of the Fire Union used for union activities. The Flexible Benefit Plan Fund accounts for the assets and liabilities of the employer's flexible benefits plan established under Internal Revenue Code Section 125. 97 .. . CITY OF MOUNTAIN VIEW. CALIFORNIA ... - COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 1997 (Dollars in Thousands) ... .. AGENCY FUNDS DEFERRED SPORTS CENTER FOR ASSETS PA YROLL COMPo P A VILLI ON PERF. ARTS Cash and investments $ 1,826 28,819 305 0 Restricted cash 49 0 0 54 TOTAL ASSETS $ 1,875 28,819 305 54 - .. - .. ... - LIABILITIES AND FUND BALANCES LIABILITIES: Accrued payroll $ 1,875 0 0 0 Deferred compensation 0 28,819 0 0 Sports Pavillion 0 0 305 0 Collections payable 0 0 0 54 Total liabilities 1,875 28,819 305 54 TOTAL LIABILITIES AND FUND BALANCES $ 1,875 28,819 305 54 - .. .. .. .. - - lilt .. .. - .. - - .... .. ... - ... - - .. - - .. 98 - ,'i':lfiJ!' FIRE FLEXIBLE TOTALS jt!;.i;", UNION BENEFITS 1997 1996 5 0 30,955 24,699 '1lIt^i<< 0 20 123 1,306 5 20 31,078 26,005 0 0 1,875 2,128 0 0 28,819 23,460 0 0 305 356 5 20 79 61 5 20 31,078 26,005 ~ 5 20 31,078 26,005 f:y- ..... ~1!i -. ~ - ,... ~ ..,. - ,.... - 99 .. - CITY OF MOUNTAIN VIEW. CALIFORNIA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,1997 (Dollars in Thousands) BALANCE BALANCE PAYROLL FUND JULY 1,1996 ADDITIONS DELETIONS JUNE 30,1997 ASSETS: Cash and investments $ 873 43,790 42,837 1,826 Restricted cash 1,255 36,370 37,576 49 Total assets $ 2,128 80,160 80,413 1,875 LIABILITIES: Accrued payroll $ 2,128 565 818 1,875 Total liabilities $ 2,128 565 818 1,875 DEFERRED COMPENSATION FUND ASSETS: Cash and investments $ 23,460 6,398 1,039 28,819 Total assets $ 23,460 6,398 1,039 28,819 LIABILITIES: Deferred compensation $ 23,460 6,398 1,039 28,819 Total liabilities $ 23,460 6,398 1,039 28,819 SPORTS PA VILLION FUND ASSETS: Cash and investments $ 356 21 72 305 Total assets $ 356 21 72 305 LIABILITIES: Sports Pavillion maintenance $ 356 21 72 305 Total liabilities $ 356 21 72 305 CENTER FOR THE PERFORMING ARTS FUND ASSETS: Restricted cash $ 41 912 899 54 Total assets $ 41 912 899 S4 LIABILITIES: Collections payable $ 41 912 899 54 Total liabilities $ 41 912 899 54 - - - .. - .. .. - - .. .. .. - ~ - III - .. ... ... .. .. - .. .. .. ... - - - .. - - - - 100 - BALANCE BALANCE FIRE UNION FUND JULY 1,1996 ADDITIONS DELETIONS JUNE 30,1997 ASSETS: Cash and investments $ 10 25 30 5 Total assets $ 10 25 30 5 LIABILITIES: Collections payable $ 10 5 10 5 Total liabilities $ 10 5 10 5 FLEXIBLE BENEFITS PLAN FUND ASSETS: Restricted cash $ 10 117 107 20 Total assets $ 10 117 107 20 LIABILITIES: Collections payable $ 10 117 107 20 Total liabilities $ 10 117 107 20 ~, ALL AGENCY FUNDS ASSETS: Cash and investments $ 24,699 50,234 43,978 30,955 ~ Restricted cash 1,306 37,399 38,582 123 Total assets $ 26,005 87,633 82,560 31,078 ~ LIABILITIES: Accrued payroll $ 2,128 565 818 1,875 Deferred compensation 23,460 6,398 1,039 28,819 Sports Pavillion 356 21 72 305 Collections payable 61 1,034 1,016 79 Total liabilities $ 26,005 8,018 2,945 31,078 -... ~,",;,,' .... #;Ilf!I/'f ~ - ,,~ - 101 .. - - .. - .. - - - THIS PAGE INTENTIONALLY LEFT BLANK - - .. - .. - .. - .. .. .. .- - .. .. - ~ - .. .. - - .. - .. - .. - 102 - ~-!f"!l!I ~ ~ '""" ~. .- it;iI""'" --. ~ .~ ..... ~ -- - ...... ~ - ;WNI ... GENERAL FIXED ASSETS ACCOUNT GROUP General Fixed Assets Account Group accounts for fixed assets of the City which are associated with general governmental operations and not accounted for in pro- prietary type funds. 103 CITY OF MOUNTAIN VIEW. CALIFORNIA COMP ARA TIVE SCHEDULE OF GENERAL FIXED ASSETS BY SOURCE JUNE 30, 1997 (Dollars in Thousands) GENERAL FIXED ASSETS: Land Buildings Improvements other than buildings Equipment Construction in progress TOTAL GENERAL FIXED ASSETS INVESTMENT IN GENERAL FIXED ASSETS FROM: General Fund Special Revenue Funds Capital Projects Funds TOTAL INVESTMENT IN GENERAL FIXED ASSETS 104 .. - - - - .. - 1997 1996 .. $ - 69,732 55,460 70,152 70,152 21,901 20,491 12,375 11,365 19,447 7,986 193,607 165,454 .. ., - - $ .. - $ 134,313 39,847 19,447 135,279 22,189 7,986 .. - $ .. 193,607 165,454 .. - .. - - .. - - - .... - .. - .. -. - - .. - ... CITY OF MOUNTAIN VIEW. CALIFORNIA .... SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY FOR THE YEAR ENDED JUNE 30,1997 (Dollars in Thousands) BALANCE BALANCE JULY 1,1996 ADDITIONS DELETIONS JUNE 30,1997 --.; GENERAL GOVERNMENT: City Council $ 7 4 5 6 City Clerk 13 8 7 14 U<W City Attorney 16 0 3 13 ~ City Manager 95 0 10 85 Employee services 10 3 0 13 ..,. Finance and administrative services 654 275 1 928 Total general government 795 290 26 1,059 - PUBLIC SAFETY: Police 7,602 375 104 7,873 Fire 6,244 15 67 6,192 ~ Emergency communications 1,652 145 17 1,780 Total public safety 15,498 535 188 15,845 - PUBLIC WORKS: Engineering and capital improvements 180 8 5 183 Streets and sidewalks 940 27 14 953 ..... Public services 3,319 81 47 3,353 Total public works 4,439 116 66 4,489 COMMUNITY DEVELOPMENT: 184 112 58 238 CULTURE AND RECREATION: ~ Performing Arts Center 204 21 5 220 Recreation 6,302 47 12 6,337 ~ Parks and street landscaping 31,162 407 60 31,509 ~ Library 1,093 785 2 1,876 Shoreline Golf Links 6,348 54 0 6,402 - Shoreline 10,431 14,615 2 25,044 ..- Total culture and recreation 55,540 15,929 81 71,388 OTHER: """ Surplus 85 60 25 Other 80,927 199 10 81,116 Construction in Progress 7,986 12,927 1,466 19,447 Total other 88,998 13,126 1,536 100,588 - TOT AL GENERAL FIXED ASSETS $ 165,454 30,108 1,955 193,607 i~ ~ .. - - 105 .. .. CITY OF MOUNTAIN VIEW. CALIFORNIA - .. SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY - JUNE 30, 1997 (Dollars in Thousands) IMPR VMNTS - OTHER THAN .. LAND BUILDINGS BUILDINGS EQUIPMENT TOTAL .. GENERAL GOVERNMENT: City Council $ 0 0 0 6 6 - City Clerk 0 0 0 14 14 - City Attorney 0 0 0 13 13 City Manager 0 0 0 85 85 - Employee services 0 0 0 13 13 - Finance and administrative services 0 0 0 928 928 Total general government 0 0 0 1,059 1,059 - PUBLIC SAFETY: .. Police 300 5,394 184 1,995 7,873 - Fire 32 3,199 24 2,937 6,192 Emergency communications 0 0 0 1,780 1,780 - Total public safety 332 8,593 208 6,712 15,845 .. PUBLIC WORKS: - Engineering and capital improvements 0 0 0 183 183 .. Streets and sidewalks 0 0 0 953 953 - Public services 0 2,467 507 379 3,353 Total public works 0 2,467 507 1,515 4,489 - - COMMUNITY DEVELOPMENT: 0 0 10 228 238 - CULTURE AND RECREATION: Performing Arts Center 0 0 0 220 220 - Recreation 299 4,026 1,766 246 6,337 - Parks and street landscaping 22,925 200 7,291 1,093 31,509 Library 87 511 934 344 1,876 - Shoreline Golf Links 0 0 6,317 85 6,402 Shoreline 14,332 6,588 4,016 108 25,044 - Total recreation and culture 37,643 11,325 20,324 2,096 71,388 - OTHER: - Surplus 25 0 0 0 25 - Other 31,732 47,767 852 765 81,116 Total other 31,757 47,767 852 765 81,141 .- TOTAL $ 69,732 70,152 21,901 12,375 174,160 - .. CONSTRUCTION IN PROGRESS 19,447 - TOTAL GENERAL FIXED ASSETS $ 193,607 - - - 106 - ~,,:, ~c;; .~ ~ STATISTICAL SECTION (UNAUDITED) ..... ~ .... ~ -- - - - .M"l" tihii '"''''' ~ -. .. 107 - .. .. CITY OF MOUNTAIN VIEW. CALIFORNIA ., - GENERAL GOVERNMENT EXPENDITURES BY FUNCTION (1) - LAST TEN FISCAL YEARS (Dollars in Thousands) .... .. - FISCAL GENERAL PUBLIC PUBLIC COMMUNITY YEAR GOVERNMENT SAFETY WORKS DEVELOPMENT 1987-88 $ 7,397 11,716 2,039 1,904 1988-89 10,440 11,259 2,160 1,066 1989-90 8,589 14,272 3,780 841 1990-91 9,640 16,247 3,711 2,287 1991-92 10,864 16,959 3,704 2,718 1992-93 8,362 16,431 4,868 3,739 1993-94 9,304 16,897 4,779 2,761 1994-95 12,276 17,678 5,442 3,551 1995-96 11,711 18,719 5,290 3,276 1996-97 10,876 19,337 5,562 3,594 .. - ... .. .. ... ... oM - - .. - - .. (1) General expenditures by function shown are for the following funds of the City: General Fund, Special Revenue, Debt Service and Capital Projects. ... - .. - - .. - - - - - ... .. .. 108 ... CUL TURE iiWi. AND CAPITAL DEBT RECREA nON OUTLAY SERVICE TOTAL 5,862 23,668 7,769 60,355 6,482 24,792 14,172 70,371 ~ 45,478 12,984 94,264 8,320 9,603 26,863 13,380 81,731 10,561 10,983 23,217 79,006 10,154 14,807 18,385 76,746 9,718 17,595 15,337 76,391 9,985 14,245 12,881 76,058 17,118 14,749 11,314 82,177 12,770 28,210 12,728 93,077 .Wocl> ... - ... ~ .... 109 - .. - CITY OF MOUNTAIN VIEW. CALIFORNIA GENERAL REVENUES BY SOURCE (1) LAST TEN FISCAL YEARS (Dollars in Thousands) LICENSES, USE OF FISCAL PERMITS FINES AND MONEY AND YEAR TAXES AND FEES FORFEITURES PROPERTY 1987 -88 $32,711 3,562 335 12,705 1988-89 40,009 4,029 274 12,230 1989-90 42,005 1,052 345 17,547 1990-91 40,850 1,246 364 13,247 1991-92 42,701 1,296 204 9,529 1992-93 44,343 1,151 164 10,730 1993-94 43,109 2,912 161 9,994 1994-95 43,803 3,376 161 9,065 1995-96 49,113 4,078 149 10,420 1996-97 52,712 5,046 144 13,188 - - ..... .. .. - .. - - - .. - .. .. .. - .. - .. - (1) General revenues by source shown are for the following funds of the City: General Fund, Special Revenue, Debt Service and Capital Projects. - ... .. - - .. - - .. - .. ... .. - 110 .. ~ ~ ~-t: - - - ~j ~ - .. III - .. - CITY OF MOUNTAIN VIEW. CALIFORNIA IJlII APPROPRIA TIONS LIMIT - ... LAST TEN FISCAL YEARS (Dollars on Thousands) - .. - FISCAL CPIIPI POPULA nON RA no OF APPROPRIA nONS YEAR FACTOR (1) X FACTOR CHANGE LIMIT 1987-88 1.0347 (P) 1.0063 (2) 1. 0412 $ 57,650 1988-89 1.0466 (P) 1.0171 (2) 1.0645 61,369 1989-90 1.0498 (C) 1.0139 1.0644 65,321 1990-91 1.0421 (P) 1.0234 (2) 1.0665 69,664 1991-92 1.0414 (P) 1.0498 1.0933 76,164 1992-93 1.0100 (A) 1.0148 (2) 1.0249 78,063 1993-94 1.0272 (P) 1.0171 1.0448 81,557 1994-95 1.0154 (A) 1.0160 (2) 1.0316 84,139 1995-96 1.0472 (P) 1.0154 (2) 1.0633 89,467 1996-97 1.0467 (P) 1.0108 (2) 1.0580 94,657 - - .. - III - ft - .. - . - . - (1) "C" refers to Consumer Price Index "P" refers to Per Capita Personal Income "A" refers to Assessed Valuation of non-residential construction III - .. (2) Population change of the County. - (3) It was determined that it is not necessary to include proceeds of taxes in certain funds that were previously included. III - IiIIlliI - III - .. ... .. .. 112 - - ~ .iIiiw'a p",' ~ PERCENT APPROPRIA TIONS PERCENTAGE ~ YEAR TO YEAR SUBJECT TO OF LIMIT CHANGE LIMIT APPROPRIA TED ~'M 4.12% $ 43,775 75.93% 6.45% 49,449 80.58% ~ 6.44% 40, I 55 61.47% 6.65% 39,492 56.69% 9.33% 42,372 55.63% 2.49% 31,718 (3) 40.63% ~, 4.48% 31,695 38.86% 3.17% 31,897 37.91 % - 6.33% 33,825 37.81% 5.80% 37,613 39.74% "'~ ~. ~ ~ - - ..... .... ~ .. 113 .. .. ... CITY OF MOUNTAIN VIEW. CALIFORNIA PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS (Dollars in Thousands) PERCENT DELINQUENT FISCAL TAXES CURRENT OF LEVY TAX YEAR LEVIED (1) COLLECTIONS COLLECTED COLLECTIONS 1987-88 $ 14,780 $ 14,572 98.59% $ 135 1988-89 16,676 16,580 99.43% 143 1989-90 19,744 19,363 98.08% 194 1990-91 21,733 21,149 97.31% 175 1991-92 22,774 22,041 96.78% 198 1992-93 23,436 23,001 98.14% 165 1993-94 22,253 22,205 99.79% (2) 1994-95 21,115 21,097 99.91% 2 1995-96 (3) 21,017 21,017 100.00% 0 1996-97 21,081 21,081 100.00% 0 .. III .. .. .. - .. .. - - .. .. .. - . .. . .. - .. (I) Levies include real and personal property. - (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) Beginning in Fiscal Year 1995-96, amounts exclude Special Assessments. .. Source: To Fiscal Year 1994-95, Santa Clara County Department of Finance From Fiscal Year 1995-96, City of Mountain View .. - .. .. .. .. - .. ... 114 .. iW4 .. :~ iiIIIiiIf TOTAL ..... TAXES PERCENT COLLECTED OF LEVY - $ 14,707 99.51% 16,723 100.28% ~'-'; 19,557 99.05% 21,324 98.12% ~"'" 22,239 97.65% 23,166 98.85% 22,206 99.79% 21,099 99.92% 21,017 100.00% 21,081 100.00% ..... ~ iItlIlIit .. .. - - .... ilIiiii!i .. 115 FISCAL YEAR I987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 - - .. CITY OF MOUNTAIN VIEW. CALIFORNIA - ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY - - LAST TEN FISCAL YEARS (Dollars in Thousands) - - REAL PROPERTY ASSESSED ESTIMA TED VALUE ACTUAL VALUE (1) PERSONAL PROPERTY ASSESSED ESTIMA TED VALUE ACTUAL VALUE .. - - $ 3,593,988 N/A 762,053 762,053 3,704,308 N/A 841,3 10 841,310 4,124,412 N/A 1,013,203 1,013,203 4,465,121 N/A 1,073,249 1,073,249 4,670,920 N/A 1,045,203 1,045,203 4,959,913 N/A 1,071,666 1,071,666 5,230,170 N/A 1,109,558 1,109,558 5,193,289 N/A 971,462 971,462 5,352,033 N/A 1,005,958 1,005,958 5,430,717 N/A 1,096,539 1,096,539 - - . .. . - . .. - .. . .. (1) Data is not available in California. - (2) Homeowners exemption not included in total exemptions. .. . Source: Santa Clara County Assessor. .. - .. - .. - .. - .. - - 116 - ~ -- iIli'", ... RATIO OF TOTAL ASSESSED EXEMPTIONS TOTAL TO TOTAL .. GROSS ESTIMATED ESTIMATED REAL PROPERTY ASSESSED VALUE ACTUAL VALUE (1) ACTUAL VALUE (87,224) 4,268,817 N/A N/A (89,824) 4,455,794 N/A N/A (106,843 ) 5,030,772 N/A N/A (117,469) 5,420,901 N/A N/A ~.~ (116,683 ) 5,599,440 N/A N/A (132,253 ) 5,899,326 N/A N/A (255,699) 6,084,029 N/A N/A (175,077) 5,989,674 N/A N/A *'~ (187,694) 6,170,297 N/A N/A (125,224) (2) 6,402,032 N/A N/A ....4 .... ~ - !JI!If 11IIII - - iiiIiIiI - ... 117 .. .. .. CITY OF MOUNTAIN VIEW. CALIFORNIA .. PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS .. .. .. LAST TEN FISCAL YEARS (Dollars in Thousands) .. .. ... FISCAL CITY COUNTY SCHOOL YEAR DEBT PERCENT DEBT PERCENT DEBT PERCENT 1987-88 $52,113 1.43% $ 12,734 0.35% $ 897 0.02% 1988-89 47,915 1.24% 13,543 0.35% 7,551 0.20% 1989-90 49,296 1.15% 14,774 0.35% 7,024 0.16% 1990-91 53,369 1.17% 14,376 0.31 % 10,789 0.24% 1991-92 49,240 1.05% 17,541 0.37% 11,421 0.24% 1992-93 42,327 0.87% 17,320 0.36% 15,879 0.33% 1993-94 36,530 0.72% 16,534 0.33% 15,078 0.30% 1994-95 30,840 0.61% 28,853 0.57% 13,313 0.26% 1995-96 28,675 0.56% 27,632 0.54% 18,988 0.37% 1996-97 27,710 0.53% 26,734 0.51% 31,759 0.61% - .. - .. .. .. .. .. .. .. .. .. .. .. (1) Assessed value net of tax incremental valuation. .. .. Source: California Municipal Statistics, Inc. - IIIiIII - IIIiIII - .. - ... - .. .. 118 - - - JIaiiwi,\ ~ .... Hlilt SPECIAL DISTRICT TOTAL TOTAL ASSESSED DEBT PERCENT OVERLAPPING VALUE (1) -- $ 3,232 0.09% 1.89% $ 3,640,483 -- 4,467 0.12% 1.91% 3,850,250 4,347 0.10% 1.76% 4,275,935 ..;;.il 6,378 0.14% 1.86% 4,573,99 I 6,065 0.13% 1.80% 4,679,399 ~ 6,546 0.13% 1.69% 4,870,465 6,340 0.12% 1.47% 5,079,443 ~ 11,822 0.23% 1.69% 5,033,212 12,035 0.24% 1.72% 5,079,069 .~ 13,366 0.26% 1.91% 5,221,721 !iiiiiiii '!f\WliiIII - - ~ - 1!!JM. - ...,.. ... - iIliiI ,. .. 119 - .. .. .. .. .. - .. - THIS PAGE INTENTIONALLY LEFT BLANK .. - .. - .. - .. - .. - .. - .. - .. .. .. - ... - ... - .. ... ... - .. - 120 ... <i'lilliiii CITY OF MOUNTAIN VIEW. CALIFORNIA SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS tiL.,; LAST TEN FISCAL YEARS (Dollars in Thousands) ..." CURRENT CURRENT RA TIO OF FISCAL ASSESSMENT ASSESSMENT COLLECTIONS YEAR BILLINGS COLLECTIONS TO AMOUNTS DUE 1987 -88 $ 2,919 $ 2,590 88.73% 1988-89 2,827 2,733 96.67% 1989-90 2,720 2,740 100.74% 1990-91 2,243 2,187 97.50% 1991-92 2,423 2,367 97.69% 1992-93 1,637 1,629 99.51% 1993-94 1,980 1,922 97.07% 1994-95 1,718 1,703 99.13 % ~, 1995-96 1,004 964 96.02% 1996-97 824 821 99.64% Source: Santa Clara County Controller. - ..... ~ - ..... ~. l!I\!IlI!ll ~ 121 - .. - CITY OF MOUNTAIN VIEW. CALIFORNIA .. - RA no OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA .. - LAST TEN FISCAL YEARS (Dollars in Thousands Except "Per Capita" Amounts) TOTAL LESS: FISCAL ASSESSED GROSS DEBT SERVICE YEAR POPULA nON VALUE(l) BONDED DEBT FUNDS 1987-88 64,522 $ 3,640,483 $ 6,740 $ 1,045 1988-89 65,856 3,850,250 5,635 1,115 1989-90 67,460 4,275,935 4,460 1,203 1990-91 68,071 4,573,991 3,235 1,203 1991-92 69,070 4,679,399 2,575 1,203 1992-93 69,875 4,870,465 1,870 1,203 1993-94 70,835 5,079,443 0 0 1994-95 71,496 5,033,212 0 0 1995-96 71,300 5,079,069 0 0 1996-97 73,000 5,221 ,721 0 0 .. .. - .. .. .. - - .. .. .. .. .. - - .. - (1) Amounts do not include tax incremental valuation. - (2) G.O. Bonds retired in Fiscal Year 1993-94. - - Population source: California State Department of Finance. U.S. Department of Commerce, Bureau of the Census. 1996-97 number is an estimate for January 1, 1997. - - Assessed value and gross bonded debt source: California Municipal Statistics, Inc. - - - - .. - .... - 122 .... ~ NET RATIO OF NET NET BONDED BONDED BONDED DEBT TO DEBT DEBT ASSESSED VALUE PER CAPITA $ 5,695 0.16% $ 88.26 4,520 0.12% 68.63 3,257 0.08% 48.28 2,032 0.04% 29.85 1,372 0.03% 19.86 667 0.01% 9.55 o (2) 0.00% 0.00 0 0.00% 0.00 0 0.00% 0.00 0 0.00% 0.00 ~ ~"'" ~ - ~ .- - - .~ - 123 - .. - .. .. .. - .. - THIS PAGE INTENTIONALLY LEFT BLANK .. - .. - .. - .. .. .. .. - - ... - - - - .... - - - - .... - ..Ill - ~- - 124 - .. CITY OF MOUNTAIN VIEW CALIFORNIA RATIO OF ANNUAL DEBT SERVICE .~ FOR GENERAL BONDED DEBT TO GENERAL GOVERNMENTAL EXPENDITURES LAST TEN FISCAL YEARS (Dollars in Thousands) RA no OF TOTAL DEBT SERVICE FISCAL DEBT TOTAL GENERAL TO GENERAL YEAR PRINCIPAL INTEREST SERVICE EXPENDITURES (1) EXPENDITURES 1987 -88 $1,050 $ 385 $ 1,435 $ 60,355 2.38% 1988-89 751 223 974 70,371 1.38% 1989-90 800 186 986 94,264 1.05% 1990-91 833 146 979 81,731 1.20% 1991-92 445 104 549 79,006 0.69% 1992-93 475 81 556 76,746 0.72% 1993-94 (2) 1,280 46 1,326 76,391 1.74% 1994-95 0 0 0 76,058 0.00% 1995-96 0 0 0 82,177 0.00% 1996-97 0 0 0 93,077 0.00% (1) Includes General Fund, Special Revenue, Debt Service and Capital Projects. (2) G.O. Bonds retired in Fiscal Year 1993-94. .\lD ~ ~ - .... ~ - 125 ... - ... CITY OF MOUNTAIN VIEW. CALIFORNIA .. PROPERTY VALUE, CONSTRUCTION AND BANK DEPOSITS - - LAST TEN FISCAL YEARS (Dollars in Thousands) COMMERCIAL RESIDENTIAL CONSTRUCTION (1) CONSTRUCTION (1) FISCAL NUMBER OF NUMBER OF YEAR UNITS VALUE UNITS VALUE 1987-88 19 $ 145,630 116 $ 16,008 1988-89 19 103,900 221 28,730 1989-90 28 26,669 205 24,837 1990-91 13 16,534 193 22,380 1991-92 2 648 154 15,497 1992-93 13 10,114 144 13,273 1993-94 11 22,902 15 3,154 1994-95 32 18,731 144 33,905 1995-96 14 81,309 146 20,399 1996-97 32 60,013 298 47,800 ... ... - .. - .. - .. - ... - .. - ... - . ... - Source: (1) City of Mountain View Building Inspection. - (2) Santa Clara County Assessor. Note: May include or exclude property in Mountain View and surrounding cities. Fiscal Year 1994-95 values are from California Municipal Statistics, Inc. and exclude unsecured property value. 'Ol'" .... .... (3) California State Banking Department. As of Fiscal Year 1996-97 data not available from the California State Banking Department. - .. - ... - ""'- - 1i~. - 126 - ~...:. PROPERTY VALUE (2) BANK COMMERCIAL RESIDENTIAL NONTAXABLE TOTAL DEPOSITS(3) $ 1,056,470 $ 2,752,752 $ (87,224) $ 3,721,998 $ 1,096,433 1,257,211 2,890,390 (89,824) 4,057,777 1,129,401 1,433,221 3,169,708 (106,843) 4,496,086 1,234,684 1,615,937 3,390,396 (117,469) 4,888,864 1,273,352 1,750,673 3,644,405 (116,683) 5,278,395 1,320,625 1,859,884 3,857,452 (132,252) 5,585,084 1,315,289 1,792,404 3,969,808 (255,699) 5,506,513 1,299,773 2,109,301 3,098,988 (175,077) 5,033,212 1,272,393 3,219,044 3,138,947 (187,694) 6,170,297 1,330,017 3,261,203 3,266,052 (125,224) 6,402,032 N/A ~. \~U ~ '.. ~. .~ ~ .. - 127 .. - .. CITY OF MOUNTAIN VIEW. CALIFORNIA - DEMOGRAPHIC STATISTICS - .. LAST TEN FISCAL YEARS (Dollars in Thousands) - .. - .. PER POPULA TION CAPITA UN- FISCAL DENSITY PERSONAL SCHOOL EMPLOYMENT YEAR POPULATION (SQ. MILE) INCOME (I) ENROLLMENT RATE (%) (I) 1987-88 64,522 5,515 $ 21 5,742 4.30% 1988-89 65,856 5,629 23 5,728 3.90% 1989-90 67,460 5,766 24 5,944 4.10% 1990-91 68,071 5,818 25 6,205 4.50% 1991-92 69,070 5,903 26 6,213 6.30% 1992-93 69,875 5,972 26 6,334 6.90% 1993-94 70,835 6,054 26 6,284 6.77% 1994-95 71,496 6, III 27 6,472 5.70% 1995-96 71,300 6,094 28 6,510 4.20% 1996-97 73,000 6,239 31 6,385 3.10% .. .. - .. - .. - - .. .. - - .. .. - (1) For Santa Clara County. - 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 .... .... - - ..... III. - - - - - 128 ..... ..... CITY OF MOUNTAIN VIEW. CALIFORNIA COMPUT A nON OF LEGAL DEBT MARGIN June 30, 1997 (Dollars in Thousands) '-SW il:l!li'", Assessed value (net) - June 30, 1997 (1) $ 5,221,721 liii;-;,~ Debt limit: 15% of assessed value 783,258 Less total bonded debt, general obligation 0 Legal debt margin (2) $ 783,258 (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. ~ .~ i~ ~ ~ .~ 'Jtl'II - 129 - .. - CALIFORNIA MUNICIPAL STATISTICS. INC. 250 MONiGOMERY STREE'l", SUITE 900 SA.N FRANCISCO 94104 September 26,1997 1996.97 Assessed Valuation: Redevelopment Incremental Valuation: Adjusted Assessed Valuution: ctrV OF MOUNTAIN VIEW S6,402,03 I ,854 1,180,31 t,t63 S5,221,720,69I OVERLAPPING TAX AtID ASSESSMENT DEBT: Santll Clara County Flood Control iIIld Water Conservation District, Zon~ W.I Santa Clara County Flood Conel'Ol and Waler Conservation District, Zone NC-l Mountain View-Los AIluS Union High School District Sunnyvale School District Whisman School District City of Mountain View 1915 Act Bonds Midpeninsuul Regional Park District TOTAL GROSS OVERLAPPING TAX AND ASSESSMENT DEBT less: Santa Clara Coonty flood Control and Water Conservation District, Zone NC-I TOTAL NET OVERLAPPING TAX AND ASSESSMENT DEBT % Applicable 5.703% 0.166 54.153 0.935 94.416 100. 8.474 DIRJOCT AND OVERLAPPING GENERAL FUND OBLIGATION DEBT: Santa Clara County General Fund Obligations Sunla Clara County Board of Educ<ltion Certificates of Pas tici pat ion Foothill Community College District CerlifielHes ofPanicipation Mountain View-Los Altus Union High School District Certificates of Participation Mountain View School District Certificate$ of Participation Sunnyvale S\:hool Oisuict Certificates of Participation City of Mountai,. Vi~w General Fund Obligations Midpt:ninsula Regional Park District Certificates of Participation EI Camino Hospital Disuict Authority S~nta Clara Valley Water Dislricl Certificates ofPartieipation TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND ODLIGATION DEBT Less: City of Mountain View Certificates of Participation (100% self.supporting from tax increment revenues) EI Camino I-lo~pjtul District Authority TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND OBLIGATION Dl:.BT GROSS COMBINED TOTAL DEBT NET COMBINED TOTAL DEBT 4.817% 4.817 [4.193 54.153 93.874 0.935 100. &.474 n630 4.817 . - .. - .. - .. .. .. Debt 6/30/97 :$ 935,007 2,415 5,740,218 93,500 15,741.120 4.826,282 2.829.045 S30, t 67,S!!7 2,415 $30,165,172 .. .. - .. .. .. $24,791,654 1,007,476 3,914,631 3,219,396 2,975,806 74, \46 31,859,197 3,990,000 835,808 6.546785 S79,214,899 8,975,000 835.&08 $69,404,091 $109,382,486 (1) $99,569,263 .. .. - - .. .. - .. .... (I) Excludes tax and revenue anticipation notes, revenue, mortgage revenue and tax allocation bonds and non-bonded C3pitallease obligations. Ratios to 1996-97 Assessed Valuation: Tot.1l Gross Overlapping Tax and Assessment OebL..................................................... 0.47% Total Net Overlapping TJX and Asse$$mcnt Debt ............___...........................___.............0.47% Ratios to Adjustcd Asse~.,ed Villu~tion: Gross Combiner.! Direct Debt ($31,859, 197)...................___............................................0.61% Net Combined Direct Debt (S22.884,197) ..................................................................0.44% Gross Combined Total Debt.... ..... ...... .... ............................. ..............___...........................2.09% Nd Combined Total D~bt................:....__......................____..___........................................1.91% STATE SCHOOL BUILDING AI(l REP^ Y ADLE AS Of 6/30/97: $0 YV($375) TEL .. 15 ..1Z I ,33 I 6 FAX a 1 5 ..121.3339 E:MAIL INFO<il'CALMUNLCOM 130 _1IiiIf - - - - - - - - WORLD WIDE: WEB', WWW.CALMUNI.CQM - - l.lh(l>% ~ CITY OF MOUNTAIN VIEW CALIFORNIA TOP TEN PROPERTY OWNERS Fiscal Year 1996-97 PRIMARY ASSESSED OWNER USE V ALUA nON Silicon Graphics Inc. Unsecured $ 322,730,412 "'-'>9 Richard T. Peery Trust Industrial 115,535,587 Sun Microsystems Inc Unsecured 104,763,672 WRC Properties, Inc. Commercial 98,493,737 Alza Corporation Industrial 87,674,468 Copley Investors Limited Partnership Industrial 84,221,172 Board of Trusteees Leland Stanford University Industrial 76,942,544 Acuson Corporation Unsecured 54,407,049 Eagle Square Partners Commercial 47,356,079 Hewlett Packard Company Industrial/ 47,086,039 Unsecured Subtotal $ 1,039,210,759 "li;*;;l' Total Fiscal Year 1996-97 Total Assessed Valuation $6,402,031,854 - Source: Santa Clara County Assessor Fiscal Year 1996-97 Combined Tax Rolls. '.~ - <~ ,~ ~ -- 131 PERCENTAGE OF TOTAL ASSESSED V ALUA nON 5.04% 1.80% 1.64% 1.54% 1.3 7% 1.32% 1.20% 0.85% 0.74% 0.74% 16.23% 132 - .. - .. - - - .. November 7, 1902 - Council/Manager .. - 563 80 .. .. 11.7 .. - 142.4 3,500 .. .. 25 215 .. 112.5 1 .. 660 lit 1 .. 1 .. 50 1 - 1 .. 1 2 - 35 - 1 1 ... 1 - 1 1 - 1 .. - 4 92 .. 4,811 - 2,292 1,438 ..- .... w - - CITY OF MOUNTAIN VIEW. CALIFORNIA MISCELLANEOUS STATISTICAL DATA June 30, 1997 Date of incorporation Form of government Number of employees (Excluding Police and Fire) Classified Exempt Area in square miles Name of government facilities and services: Miles of streets Number of street lights Culture and recreation: City parks City park acreage Roadway landscaping acreage Regional parks Regional park acreage Regional park facilities: Golf courses (18 holes) Boathouse Sailing lake acreage Clubhouse and banquet facility Historic house Community centers Swimming pools Tennis courts Senior Center Cuesta Tennis Center Mountain View Sports Pavillion Whisman Sports Center Deer Hollow Farm Performing Arts Center Fire protection: Number of stations Number of fire personnel and officers Number of calls answered Number of fire inspections conducted Number of environmental safety inspections conducted Police protection: Number of stations 1 Number of police personnel and officers 145 Number of police reserves 22 Number of patrol units 37 Number of calls answered 56,194 ~'1 Number of law violations: Physical arrests 3,926 Traffic violations 6,760 Parking violations 3,629 Sewage system: Miles of sanitary sewers 173 Miles of storm sewers 80 Number of treatment plants 0 Number of storm drain inlets 1,730 Number of sewer service connections 15,444 Daily average treatment in gallons 0 Maximum daily capacity of treatment plant in gallons 0 Water system: Miles of water mains 166 Number of water service connections 15,444 Number of fire hydrants 2,324 Daily average consumption in gallons 13,095,000 Maximum daily capacity of system in gallons 30,800,000 Education: Number of elementary schools 7 Number of elementary school instructors 188 Number of middle schools 2 Number of middle school instructors 87 Number of secondary schools 2 Number of secondary school instructors 98 -W&,". Number of community colleges 0 Number of universities 0 '~ - Hospitals: Number of hospitals 1 Number of patient beds 426 ,~ -,~ ),,~ "tItn - - 133 - .. CITY OF MOUNTAIN VIEW CALIFORNIA .. .. SCHEDULE OF INSURANCE IN FORCE .. AS OF JUNE 30, 1997 - ~ Companv and Policy Number Policy Period Premium Limits - WC Excess First Specialty Insurance 7/1/96 - 97 $ 13,041 $ 225,000 - ... Policy # CRE80002 275,000 Employers Reinsurance Corp. 7/1/96 - 97 26,790 . 275,000 - - Policy # ERC0577882 10Mil - Property & Auto Chubb Group 10/1/96 - 97 51,585 20 Mil Ea Occurance Policy # 52 I 96 .. ... Auto Physical Damage Scheduled - '* Civic Center Property & Chubb Group 4/1/97 - 98 20,809 26 Mil Loss of Rents, Fine Arts Policy # 52199 5,154 Loss of Rents .. - CGL and E&O ACCEL 7/1/96 - 97 185,799 IMil SIR .. Policy # ACC9697MTV492 4Mil xs Pool .. Excess Liability Layer Insurance Co. of State of Penn. 7/1/96 - 97 17,121 5Mil xs $5M - Policy # 4796-4657 10Mil xs $IOM .. Travel Accident American International Cos 7/1/96 - 97 683 200,000 .. Policy # GTP8035078 50,000 .. Public EmpI. Blanket Bond Cal-Surance Assoc., Inc. 12/7/96 - 97 1,766 100,000 Policy # CCP002110501 - Em1hquake (4 Layers) Scottsdale Insurance Co. 4/1 /97 - 98 - 86,514 7.5 Mil Policy # CI5035525 (1st Layer) - Gulf Insurance Co. Policy # GU5858673 (1st Layer) - RLI Insurance Co. 2.5 Mil xs $7.5M Policy # RLI IMF02171 7 (2nd Layer) -. Western Remanager 5Mil xs $lOM "'. Policy # REP970090 (3rd Layer) American National Fire Insurance 5 Mil xs $15M - Policy # IMP7235550-01 (4th Layer) - Special Events Gulf Insurance Co. 9/15/96 - 97 1,600 I Mil Policy # CGL005733857 - - Flood National Flood Insurance Prog. 7130/96 - 97 12,138 242,000 Ea Bldg Policy # FL2-0316-7268-2 (Amphitheatre) 220,000 Contents - Policy # FL2-0316-7269-0 (Irrigational) Policy # FL2-03 I 3-6689-7 (Coast Casey) - Course of Construction Allianz 11/25/96 - 97 47,362 14Mil - 585 Franklin Street Policy # A TO 1025964 ..... - 134 - '*<:i'OJ Coverage .... Excess workers compensation in excess of $250,000 self-insured retention each claim to $10 million. Employer's liability. "All Risk" blanket on real and personal property excluding earthquake and flood; Electronic data processing equipment and software blanket; Newly acquired buildings $1,000,000 until reported. Blanket extra expense $500,000. Earthquake sprinkler leakage damage $1,000,000; valuable paper, loss of rents at 1000 Villa $1,500,000. Collision and other specified causes of loss including earthquake, fire, theft and vandalism on scheduled Fire vehicles and bookmobile ($5,000 deductible-collision). Property (Fire and extended coverage) City Hall & Performing Arts ($10,000 deductible) including loss of rents (no deductible) caused by covered loss; includes coverage for Plaza Art ($1,000 deductible each). Includes boiler and machinery breakdown. Pooled comprehensive general and auto liability and E&O. Comprehensive general and auto liability and E&O (layer above pool). Accidental death or dismemberment - council, commissioners, full-time employees while traveling on business for the City. All employees blanket bond, $5,000 deductible. '~ Earthquake for City Hall and Performing Arts Center. Real and personal property including loss of rents $7,500,000. Deductible: 10% per location on Earthquake. Excess follows the form of underlying coverage - total $20M. '~ - Tenants and permittees of the City -- individual premiums charged ,~ Flood insurance for Amphitheatre Pump Station, Irrigation Pump Station and Coast Casey Pump ""'" Station, located in flood zone. Deductible of$5,000 each building and contents. - ~ Insures against All Risks by either loss or damage, while in the course of constructing the new library. ~fn4 - 135 Name and Title CITY OF MOUNTAIN VIEW. CALIFORNIA SURETY BONDS OF PRINCIPAL OFFICERS June 30, 1997 (Dollars in Thousands) Finance and Administrative Services Director Public employee blanket bond (Includes City Manager) Investment Officer 136 Annual Premium $0.42 1.70 0.50 .. .. .. .. - .. .. - Amount of Surety - .. $100 - .. 100 - .. 100 - .. .. .. .. .. - .. - .. .. - - - - .. - - .. - - .. - - MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY (A COMPONENT UNIT OF THE CITY OF MOUNTAIN VIEW, CALIFORNIA) TABLE OF CONTENTS Community City Page Page Independent Auditors' Report............................................................................... .139 Component Unit Financial Statements as of and for the Year Ended June 30, 1997: Combined Balance Sheet-All Fund Types and Account Groups.... 140-141 Combined Statement of Revenues, Expenditures and Changes in Fund Balances-All Governmental Fund Types ...............................142-143 Combined Statement of Revenues, Expenditures and Changes in Fund Balances-Budget and Actual-All Special Revenue Funds .......144 Notes to Component Unit Financial Statements .................................145-153 Combining Statements-Debt Service Funds: Combining Balance Sheet-All Funds ...................................................154-155 68-69 Combining Statement of Revenues, Expenditures and Changes in Fund Balances-All Funds ...................................................................... 156-157 70-71 ~ ~ ~ ~.'4< ~ ~ ... 137 . .. .. - - - - - - THIS PAGE INTENTIONALLY LEFT BLANK .. - .. - .. - .. - . .. .. .. .. .. - .. - - - - - - - - lOIiIIil ..., - - 138 - I I I I I I I I I I I I I I I I I I I nnr:Jn KPMGJ Peat Marwick LLP 50 West San Fernando Street San Jose, CA 95113 Independent Auditors' Report The Board of Directors Mountain View Shoreline Regional Park Community Mountain View, California: We have audited the accompanying component unit financial statements of the Mountain View Shoreline Regional Park Community (the Community), a component unit of the City of Mountain View, California, as of and for the year ended June 3D, 1997, as listed in the foregoing table of contents. These component unit financial statements are the responsibility of the Community's management. Our responsibility is to express an opinion on these component unit financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the component unit financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the component unit financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall component unit financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the component unit financial statements referred to above present fairly, in all material respects, the financial position of the Mountain View Shoreline Regional Park Community as of June 3D, 1997, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic component unit financial statements taken as a whole. The supplementary data listed in the foregoing table of contents as "Combining Statements" is presented for purposes of additional analysis and is not a required part of the basic component unit financial statements of the Community. Such supplementary data has been subjected to the auditing procedures applied in the audit of the basic component unit financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic component unit fmancial statements taken as a whole. kfmrr fL.;t~ LLj/ October 10, 1997 IIII M,"oo';""" KPMGlmemal;onal MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY I (A Component Unit of the City of Mountain View, California) I COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1997 (Dollars in Thousands) I GOVERNMENTAL FUND TYPES I SPECIAL DEBT CAPITAL ASSETS AND OTHER DEBITS REVENUE SERVICE PROJECTS Cash and investments (Note 2) $ 2,869 0 0 I Restricted cash and investments (Note 2) 10,044 39 7,557 Receivables: I Interest 440 0 30 Taxes 754 0 0 Due from other governments (Note 7) 789 0 0 I Advances to the City of Mountain View (Note 4) 5,100 0 0 Fixed assets (Note 3) 0 0 0 Amount available in debt service fund 0 0 0 I Amount to be provided for retirement of generallong-tenn debt 0 0 0 TOTAL ASSETS AND OTHER DEBITS $ 19,996 39 7,587 I LIABILITIES, FUND EQUITY AND OTHER CREDITS: I LIABILITIES: Accounts payable and accrued costs $ 76 0 0 I Due to City of Mountain View (Note 4) 0 0 7,220 Refundable deposits I 0 0 Advances from the City of Mountain View (Note 4) 15,776 0 0 Revenue and Tax Allocation bonds (Note 5) 0 0 0 I Total liabilities 15,853 0 7,220 FUND EQUITY AND OTHER CREDITS: I Investment in general fixed assets 0 0 0 Fund balances (Note 6): Reserved for: I Restricted cash and investments 10,044 39 0 Due from other governments 789 0 0 Advances to the City of Mountain View 5,100 0 0 I Encumbrances 403 0 0 Unreserved: Designated for: I Capital improvement program 0 0 367 Undesignated (12,193) 0 0 Total fund equity and other credits 4,143 39 367 I TOTAL LIABILITIES, FUND EQUITY AND OTHER CREDITS $ 19,996 39 7,587 See accompanying notes to component unit financial statements. I 140 I 'i:&o-W ACCOUNT GROUPS GENERAL GENERAL TOTALS FIXED LONG-TERM (Memorandum Only) ASSETS OBLIGA nONS 1997 1996 0 0 2,869 0 0 0 17,640 18,261 0 0 470 420 0 0 754 204 0 0 789 801 0 0 5,lDO 5,lDO 28,034 0 28,034 13,245 0 39 39 1 0 69,350 69,350 49,033 28,034 69,389 125,045 87,065 0 0 76 332 0 0 7,220 5,053 0 0 1 1 0 0 15,776 16,064 0 69,389 69,389 49,034 0 69,389 92,462 70,484 28,034 0 28,034 13,245 0 0 10,083 18,261 ~ 0 0 789 801 0 0 5,lDO 5,lDO 0 0 403 106 - 0 0 367 ~ 0 0 (12,193) (20,932) 28,034 0 32,583 16,581 '~ 28,034 69,389 125,045 87,065 ,~ ~ ~ 141 - MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY - (A Component Unit of the City of Mountain View, California) .. COMBINED STATEMENT OF REVENUES, EXPENDITURES - AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES - YEAR ENDED JUNE 30,1997 (Dollars in Thousands) .. GOVERNMENTAL .. FUND TYPES .. SPECIAL DEBT CAPITAL REVENUE SERVICE PROJECTS .. REVENUES: .. Taxes $ 11,805 0 0 Use of money and property 2,307 2 367 .. Other 4 0 0 .. Total revenues 14,116 2 367 - EXPENDITURES: .. Current: General government 2,167 0 0 - Community development 106 0 0 Culture and recreation 994 0 0 .. Capital outlay 7 0 0 - Debt service: Principal repayment 0 1,395 0 - Interest and fiscal charges 0 3,221 0 Debt issuance costs 0 0 508 - Total expenditures 3,274 4,616 508 .. EXCESS (DEFICIENCY) OF REVENUES .. OVER (UNDER) EXPENDITURES 10,842 (4,614) (141) .. OTHER FINANCING SOURCES (USES) : - Operating transfers in 0 4,652 1,984 - Operating transfers out (6,599) 0 (37) Transfers from the City of Mountain View 1 0 0 - Transfers to the City of Mountain View (3,436) 0 (22,551 ) - Tax allocation bond proceeds 0 0 21,112 Total other financing sources (uses) (10,034) 4,652 508 - EXCESS (DEFICIENCY) OF REVENUES - AND OTHER FINANCING SOURCES - OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 808 38 367 - BEGINNING FUND BALANCES (DEFICIT) - 3,335 0 - RESIDUAL EQUITY TRANSFER 0 0 0 - ENDING FUND BALANCES $ 4,143 39 367 - See accompanying notes to component unit financial statements. - - - 142 - Jiih~ TOTALS (Memorandum Only) 1,997 1,996 11,805 11,844 2,676 2,379 4 251 14,485 14,474 2,167 2,931 106 115 994 1,090 7 21 1,395 1,335 3,221 2,753 508 0 8,398 8,245 6,087 6,229 6,636 4,084 (6,636) (4,084) 1 1,277 (25,987) (2,059) .... 21,112 0 (4,874) (782) ~ .-- 1,213 5,447 3,336 (1,456) - 0 (655) ~ 4,549 3,336 ;~ ~ ... - 143 - .. MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY (A Component Unit of the City of Mountain View, California) COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ALL SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30,1997 (Dollars in Thousands) SPECIAL REVENUE FUNDS FAVORABLE (UNF A V) BUDGET ACTUAL VARIANCE REVENUES: Taxes $ 12,966 11,805 (1,161) Use of money and property 1,163 2,307 1,144 Other 30 4 (26) Total revenues 14,159 14,116 (43) EXPENDITURES: Current: City Attorney 185 85 100 City Manager 487 286 201 Finance and administrative services 1,801 1,796 5 Community development 150 106 44 Community services 1,311 994 317 Capital outlay 8 7 1 Total expenditures 3,942 3,274 668 EXCESS OF REVENUES OVER EXPENDITURES 10,217 10,842 625 OTHER FINANCING SOURCES (USES) : Operating transfers out (6,846) (6,599) 247 Transfers from the City of Mountain View 0 1 1 Transfers to the City of Mountain View (3,729) (3,436) 293 Total other financing sources (uses) (10,575) (10,034) 541 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (358) 808 1,166 BEGINNING FUND BALANCES 3,335 3,335 0 ENDING FUND BALANCES $ 2,977 4,143 1,166 ... .. - .. - .. .. .. - .. .. - - .. - - - - - .. - - .. .... - - - - - See accompanying notes to component unit fmancial statements. .... .... ... .... .... - 144 .. *~"-H 'l!iid MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY (A Component Unit of the City of Mountain View, California) NOTES TO COMPONENT UNIT FINANCIAL STATEMENTS JUNE 30, 1997 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Reporting Entity-The Mountain View Shoreline Regional Park Community (Community) was created in 1969 pursuant to the provisions of the Mountain View Regional Park Community Act. The purpose of the Community is to provide for the development of approximately 1,550 acres of bayfront lands. The Community is an integral part of the City of Mountain View, California (City), and the accompanying financial statements are included as a blended component unit in the general purpose financial statements of the City. Description of Funds and Account Groups-The accounts of the Community are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the component unit financial statements, into categories as follows: . Governmental Fund Types: ~ Special Revenue Fund is used to account for proceeds of specific revenue sources which are designated to finance particular functions or activities of the Community's government. '~ ~ Debt Service Funds are used to account for the accumulation of financial resources for, and the payment of, general long-term debt principal, interest and related costs. ~ Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital projects. - - ~ ltd .. '""" 145 - - - . Account Groups: .. General Fixed Assets Account Group-Fixed assets used in Governmental Fund Type operations are accounted for in the General Fixed Assets Account Group rather than in the govern- mental funds. Fixed assets are generally stated at cost or estimated historical cost. No depreciation has been charged against general fixed assets. lilt .. .. . - General Long-Term Obligations Account Group-Long-term liabilities expected to be financed from Governmental Fund Types are accounted for in the General Long-Term Obligations Account Group rather than in the Governmental Fund Types. .. - - .. Basis of Accounting refers to when revenues and expenditures are recognized in the accounts and reported in the component unit financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. .. - .. Governmental Fund Types are accounted for using the modified accrual basis of accounting. Revenues are recorded as received, or accrued, if they are both measurable and available to finance expenditures of the current period. Revenues considered susceptible to accrual include property taxes, interest and certain other intergovernmental revenues. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long- term debt which are recorded when paid. - .. - .. .. - Measurement Focus-The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All Governmental Fund Types are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet, with the exception of advances from the City and certain other receivables which are long term in nature. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. - .. .. .. ... - - Budgets and Budgetary Accounting-The Community adopts an annual budget on or before June 30 for the ensuing fiscal year for the Special Revenue Fund. All Debt Service Funds are budgeted annually in the Special Revenue Fund, the fund obligated for such payments. The Capital Projects Fund is budgeted on a project basis. Such budget is based on a project time frame, rather than a fiscal year "operating" time frame, whereby unused appropriations continue until project completion. .. - .. - - - WI! ... 146 .. Budgeted appropriations become effective each July 1. The 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 annual budget is presented on a basis consistent with the component unit financial statements prepared in accordance with generally accepted accounting principles. ~~.. Budgeted revenue amounts represent the original budget modified by adjustments authorized during the year. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year and reappropriated amounts for prior-year encumbrances. The Community Board must approve appropriation increases to departmental budgets; however, management may transfer Board-approved budgeted amounts within fund and departmental expenditure classifications. Supplemental appropriations were approved during the course of the year as needed. Encumbrance Accounting under which purchase orders, contracts, and other commitments for the expenditure of resources are recorded in order to reserve that portion of the applicable appropriation, is utilized in the Governmental Fund Types. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Such encumbrances are automatically reappropriated for inclusion in the following year's budget. Cash and Investments of the Community are pooled with those of the City for investment purposes except funds restricted under provisions of bond indentures which are held by the trustee. Investments are stated at cost or amortized cost. Interest earnings on pooled cash and investments are allocated monthly based on the average daily cash balance of each fund. iAlIiil Fixed Assets are valued at historical cost or at estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their esti- mated fair market value on the date donated. Public domain ("infrastructure") general fixed assets, such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are not capitalized. ~ .,~ - Governmental Fund Type fixed assets are recorded as expenditures and such assets are capitalized in the General Fixed Assets Account Group. .~ ~ ~ '~ - 147 .. - - Property Tax Levy. Collection and Maximum Rates-The State of California (State) Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed 1 percent of its assessed value unless an additional amount has been approved by voters. - - .. Assessed value is calculated at 100 percent of market value as defined by Article XIII A and may be increased by no more than 2 percent per year unless there is new construction on the property or the property is sold or transferred. The State Legislature has determined the method of distribution of receipts from the 1 percent tax levy among the counties, cities, school districts and other districts. .. .. - .. - Santa Clara County (County) assesses properties, bills and collects property taxes on behalf of the Community as follows: .. - Secured - Unsecured - Lien dates Levy dates Due dates January 1 July 1 50% on November 1 50% on February 1 December 10 (for November) April 10 (for February) January 1 July 1 Upon receipt of billing August 31 .. - .. Delinquent as of - .. The term "unsecured" refers to taxes on property not secured by liens on real property. - - In Fiscal Year 1993-94, the County adopted the Teeter Plan whereby the County remits to the City the full tax levy due. .. .. Property taxes levied are recorded as revenue in the fiscal year of levy. .. Insurance Programs-The Community is covered under the City's insurance program. The City has a self-insured retention (SIR) for the first $1 million of any general liability claim occurrence with excess liability coverage through an insurance pool for the next $9 million and an additional $10 million covered by insurance. The City has a SIR for the first $250,000 in workers compensation claims with statutory excess insurance and has a SIR for unemployment claims whereby it reimburses the State based on actual cost. Claims for long-term disability are covered by insurance. The City offers a SIR for the first $50,000 per employee, annual aggregate of approximately $500,000, with excess insurance, in addition to other fully insured plans for employees' health benefits. .. - - - .. - - - Estimated liabilities are recorded for claims in cases where such amounts are reasonably determinable and where the liability is likely for incurred but not reported (IBNR) claims, which are incurred through the end of the fiscal year - - - - 148 - -. 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. Additional information regarding the City's insurance programs can be found in the City's June 3D, 1997 general purpose financial statements. Use of Estimates-The accompanying component unit financial statements have been prepared on the modified accrual basis of accounting in accordance with generally accepted accounting principles. This 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 expenditures during the reporting period. Actual results could differ from those estimates. ~ Comparative Data-Comparative total data for the prior year have been presented in the accompanying component unit financial statements in order to provide an understanding of changes in the Community's financial position and results of operations. However, comparative data (i.e., presentation of prior year totals by fund type) have not been presented in each of the combined statements since their inclusion would make the statements unduly complex and difficult to read. "Totals (Memorandum Only)" Information-Total columns on the accompa- nying combined financial statements captioned "Totals (Memorandum Only)" do not represent consolidated financial information, are not necessary for a fair presentation of the financial information, but are presented as additional analytical data. Interfund eliminations have not been made in the aggregation of this data. 2. CASH AND INVESTMENTS ~ The Community's cash and investments are included in the City's cash and investment pool. - State statutes and the City's investment policy authorize the City to invest in 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 or LAIF). iiiliiI1IiiI - ~ ~ ~ Additional information regarding insurance, collateralization and custodial risk categorization of the City's cash and investments can be found in the City's June 3D, 1997 general purpose financial statements. - .. - ~ 149 - . .. 3. GENERAL FIXED ASSETS A summary of changes in general fixed assets follows (in thousands): Balance Balance July I, June 30, 1996 Additions Deletions 1997 Land $ - 14,332 14,332 Buildings 6,588 6,588 Improvements other than buildings 3,733 283 4,016 Machinery and equipment 110 2 108 Construction in progress 2,814 452 276 2,990 Total General Fixed Assets $13,245 15,067 278 28,034 .. .. .. - .. - . - .. - - - Construction in progress is composed of the following (in thousands): .. Expended to Project June 30, Committed Au thoriza tion 1997 Balance North Bayshore Improvements $3,000 1,953 1,047 Crittenden Lane and Utility Improvements 1,313 81 1,232 Shoreline Golf Parking and Circulation 880 861 19 Shoreline Boulevard Improvements 593 65 528 Other Projects 583 --.3.Q 553 Total Construction in Progress $6,369 2,990 3,379 .. .. - .. - .. .. .. .. 4. RECEIVABLES FROM/PAYABLES TO THE CITY OF MOUNTAIN VIEW - - The Community advanced funds to the City for the legal settlement related to the golf course. The City's management believes future user fees will be sufficient to repay this advance to the City. - - The City makes payments to third parties on behalf of the Community for general capital projects. Bond proceeds to fund capital projects are held with the trustee and remitted to the Community on a reimbursement basis, at which time they are forwarded to the City. Funds from the Community will be due to the City until such time as the trustee releases the bond proceeds to the Comm uni ty. .. - .... - - - - - 150 - li-U Improvements to the Community have been partially funded by advances from the City. The Community's management believes that future property tax increment revenues will be sufficient to repay the advances. 5. LONG-TERM OBLIGATIONS Long-term debt as of June 30, 1997 follows (in thousands): Authorized Outstanding Interest and as of Type of Indebtedness Maturity Ra tes Issued June 30.1997 1992 Tax Allocation Refunding Bonds 2016 4.0-6.5% $28,229 23,914 1993 Tax Allocation Bonds 2018 3.1-5.75% 25,465 23,725 1996 Tax Allocation Bonds 2021 4.0-5.6% 21,750 21.750 Total Long-Term Debt $69 ,389 Debt service payments for the above tax allocation bonds are generally made from property taxes transferred from the Special Revenue Fund to the Debt Service Fund. The following is a summary of activity for Fiscal Year 1996-97 long-term debt (in thousands): Balances, June 30, 1997 $49,034 21,750 (1.395) $69,389 Balances, July 1, 1996 -- Debt issued Debt retired - ~ In August 1996, the Community issued $21.75 million in 1996 Series A Tax Allocation Bonds (1996 Series A Bonds). Proceeds totaling $21.1 million, net of original discount of $638,000, are being used to fund the acquisition of certain land from the City and to fund road, water, sewer and other public improvements along certain roadways. The 1996 Series A Bonds were issued at an average interest rate of 5.78 percent with a final maturity date of 2021. .. ,~ ~ tiiiiI* ~ ~ ,.., .. 151 - .. ... Annual debt service requirements to maturity for long-term debt, including interest payments of $55,053,000, follows (in thousands): .. - Fiscal Year Ending June 30. - - .. 1998 1998 2000 2001 2002 Thereafter $ 5,663 5,675 5,673 5,668 5,663 96.100 - .. - .. - Total $124,442 - There are a number of limitations, covenants and restrictions contained in the bond indentures. The Community is in compliance with all limitations, covenants and restrictions. - - - 6. FUND BALANCES .. Fund balances consist of reserved and unreserved amounts. Reserved fund balances represent that portion of a fund balance which is not available for appropriation or is legally segregated for a specific future use. The remaining portion is unreserved fund balance. - . .. .. 7. ORANGE COUNTY INVESTMENT POOLS - On December 6, 1994, the County of Orange (Orange County) and the Orange County Investment Pools (Pool) filed petitions for bankruptcy protection under Chapter 9 of the United States Code. The City was one of over 200 participants in the Pool (Pool Participants). As of December 6, 1994, the City's Pool investment balance was $39.8 million, according to the records of Orange County. - - - - IiIIIl A Comprehensive Settlement Agreement (Settlement) for the Pool was offered to the Pool Participants in March 1995. Pool Participants were offered a choice of two settlement options (Option A or Option B). In April, the City Council selected Option B, which provided for the return of approximately $31 million plus interest of approximately $538,000, less a professional reserve fund of approximately $122,500 and the reservation of all rights to recover the remaining balance from all potential resources, including Orange County and third parties (e.g., brokers). - - - .. - - - - - 152 - k..... it<~ ~ .... iA;w, ~ -- - - - fIIIIJlJ. ... - ... - - .. In October 1995, the City, along with the other Option B agencies, filed a complaint for damages against Orange County. As a result of this claim, a settlement agreement was reached whereby the Option B agencies received cash, warrants and secured claims. As of June 30, 1997, the City had received $33.6 million in cash. Based on the settlement agreement, $1.7 million in warrants, to be paid over 10 years with interest, and $1.8 million in secured claims are also to be received from Orange County. The warrants and secured claims totaling $3.5 million, of which approximately $789,000 has been allocated to the Community, have been classified as "Due from other governments" in the balance sheet, and fund balance has been fully reserved for such receivable in the Special Revenue Fund. In September 1995, the City, along with the other Option B agencies, filed a complaint for damages against Merrill Lynch & Company and certain of its affiliates. The case is currently on appeal on issues of standing; however, the complaint asserts damages in excess of the remaining unrecovered principal balance reflected in the records of Orange County. 8. COMMITMENTS AND CONTINGENCIES The Community is a defendant in several lawsuits and other matters arising in the normal course of operations. The Community's management and legal counsel are of the opinion that the potential claims against the Community not covered by insurance resulting from such litigation would not materially affect the component unit financial statements of the Community. 9. SUBSEQUENT EVENT In August 1997, the City accepted a settlement offer in the amount of $1.3 million for a legal malpractice suit brought against the law firm that represented the City in previous golf course litigation. Such amount shall be reflected in the Fiscal Year 1997-98 financial statements. 153 - - MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY (A Component Unit of the City of Mountain View, California) - - COMBINING BALANCE SHEET ALL DEBT SERVICE FUNDS JUNE 30, 1997 (Dollars in Thousands) - - - ASSETS SHORELINE SHORELINE SHORELINE COMM. COMM. COMM. 1992 T. A. 1993 T. A. 1996 T. A. $ 0 38 $ 0 38 - - . Restricted cash and investments - TOTAL ASSETS .. LIABILITIES AND FUND BALANCES - - FUND BALANCES: Reserved for: Restricted cash and investments Total fund balances - $ o o 38 38 - - TOTAL LIABILITIES AND FUND BALANCES $ o 38 - - .. - - - - .. .. - .. .. .. - - .. JIilII - IIiII - 154 .. ~\" IIt;ih""," - ~. JDW - 'JI!:l!l!IiI - - - .. .- ~ - TOTALS 1997 1996 39 39 39 39 39 155 .. .. MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY (A Component Unit of the City of Mountain View, California) COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL DEBT SERVICE FUNDS YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) SHORELINE SHORELINE SHORELINE COMM. COMM. COMM. 1992 T. A. 1993 T. A. 1996 T. A. REVENUES: Use of money and property $ 0 Total revenues 0 EXPENDITURES: Principal repayment 810 585 0 Interest and fiscal charges 1,375 1,315 531 Total expenditures 2,185 1,900 531 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES (2,184) (1,900) (530) OTHER FINANCING SOURCES (USES) : Operating transfers in 2,184 1,900 568 Total other financing sources (uses) 2,184 1,900 568 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 0 0 38 BEGINNING FUND BALANCES 0 0 ENDING FUND BALANCES $ 0 38 .. .. .. .. .. .. .. .. .. .. - .. .. .. .. .. .. .. - .. .. .. - .. ... ... - ... ... .. .. - - .. - 156 .. - ~ .. .. TOTALS 1997 1 996 2 2 2 2 1,395 1,335 3,221 2,753 4,616 4,088 ....,;4 (4,614) ( 4,086) - M!WII 4,652 4,084 4,652 4,084 ~ ~ 38 (2) ... 3 39 ... - - ~ .. '"'" - ~ IiiiliiI - .... ..., .. 157 III . - . .. ". III . .. THIS PAGE INTENTIONALLY LEFT BLANK .. - . .. III .. llIlIIi - .. - .. .. . III - - .. - .. III - - - - .. - .. - 158 .. ;;;W &.w,,;,...,. - iM ,~ '- 1'"~ ...., ~~>> ~ - MOUNTAIN VIEW REVIT ALIZA TION AUTHORITY (A COMPONENT UNIT OF THE CITY OF MOUNTAIN VIEW, CALIFORNIA) TABLE OF CONTENTS Authority City Page Page Independent Auditors' Report............ ....... ......... ......... ............... .................... ...... ..161 Component Unit Financial Statements as of and for the Year Ended June 30, 1997: Combined Balance Sheet-All Fund Types and Account Groups.. 162-163 Combined Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)-All Governmental Fund Types............ 164-165 Combined Statement of Revenues, Expenditures and Changes in Fund Balance (Deficits)-Budget and Actual-All Special Revenue Funds.. ......................... .......... ......... ............... .......... ...... .................. .166 Notes to Component Unit Financial Statements................................ 167-174 Combining Statements: Special Revenue Funds: Combining Balance Sheet-All Funds .................................................. 176-177 Combining Statement of Revenues, Expenditures and Changes in Fund Balance (Deficits )-All Funds .................................................... 178-179 Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)-Budget and Actual-All Funds............ 180-181 Independent Auditors' Report on Compliance ..................................................183 159 56-57 58-59 60-65 - - .. . .. - .. . THIS PAGE INTENTIONALLY LEFT BLANK - . .. - - .. .. - .. . .. . .. . - ... .. .. - .. - - - .. - - - ""-III! - 160 .. I I I I I I I I I I I I I I I I I I I nnnn KPMGJ Peat Marwick LLP 50 West San Fernando Street San Jose. CA 95113 Independent Auditors' Report The Board of Directors Mountain View Revitalization Authority Mountain View, California: We have audited the accompanying component unit financial statements of the Mountain View Revitalization Authority (the Authority), a component unit of the City of Mountain View, California, as of and for the year ended June 3D, 1997, as listed in the foregoing table of contents. These component unit financial statements are the responsibility of the Authority's management. Our responsibility is to express an opinion on these component unit financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the component unit financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the component unit financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall component unit financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the component unit financial statements referred to above present fairly, in all material respects, the financial position of the Mountain View Revitalization Authority as of June 30,1997, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the basic component unit financial statements taken as a whole. The supplementary data listed in the foregoing table of contents as "combining statements" is presented for purposes of additional analysis and is not a required part of the basic component unit fmancial statements of the Authority. Such supplementary data has been subjected to the auditing procedures applied in the audit of the basic component unit financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic component unit financial statements taken as a whole. KflJ?ri fi;(-~ LLf October 10, 1997 IIII M,moo,'"mo' KPMGlnternallOnal I MOUNT AlN VIEW REVIT ALIZA TION AlITHORITY I (A Component Unit of the City of Mountain View, California) COMBINED BALANCE SHEET I ALL FUND TYPES AND ACCOUNT GROUPS JUNE 30, 1997 (Dollars in Thousands) GOVERNMENTAL I FUND TYPES SPECIAL DEBT ASSETS AND OTHER DEBITS REVENUE SERVICE I Cash and investments (Note 2) $ 601 0 Restricted cash and investments (Note 2) 0 796 I Receivables: Interest 20 0 Notes 988 0 Taxes 52 0 I Fixed assets (Notes 3 and 6) 0 0 Amount available in debt service fund 0 0 Amount to be provided for retirement I of general long-term debt (Note 5) 0 0 TOTAL ASSETS AND OTHER DEBITS $ 1,661 796 I LIABILITIES, FUND EQUITY (DEFICITS) AND OTHER CREDITS I LIABILITIES: Accounts payable and accrued costs $ 0 0 Due to other governments 0 0 I Refundable deposits 19 0 Advances from the City of Mountain View (Note 4) 2,006 0 Certificates of participation (Note 5) 0 0 I Total liabilities 2,025 0 FUND EQUITY (DEFICIT) AND OTHER CREDITS: I Investment in general fixed assets 0 0 Fund balances (deficits) (Note 7): Reserved for: Restricted cash and investments 0 796 I Notes receivable 988 0 Housing set aside 0 0 Encumbrances 2 0 I Unreserved (1,354) 0 Total fund equity (deficit) and other credits (364) 796 TOTAL LIABILITIES, FUND EQUITY . AND OTHER CREDITS $ 1,661 796 See accompanying notes to component unit fmancial statements. I I 162 I ~ ACCOUNT GROUPS GENERAL GENERAL TOTALS FIXED LONG-TERM (Memorandum Only) ASSETS OBLIGATIONS 1997 1996 0 0 601 1,359 0 0 796 790 0 0 20 26 0 0 988 409 0 0 52 0 5,404 0 5,404 5,394 0 796 796 790 0 8,179 8,179 8,385 5,404 8,975 16,836 17,153 0 0 0 15 0 0 0 240 0 0 19 20 0 0 2,006 2,221 0 8,975 8,975 9,175 0 8,975 11,000 11,671 ~ 5,404 0 5,404 5,394 ~ 0 0 796 790 ~ 0 0 988 409 0 0 0 280 0 0 2 3 ~ 0 0 (1,354) (1,394) 5,404 0 5,836 5,482 ,.. 5,404 8,975 16,836 17,153 ~ ~ 163 MOUNTAIN VIEW REVITALIZATION AUTHORITY (A Component Unit of the City of Mountain View, California) CO}yffiINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) .. IllIIl IIIlIII .. - . - GOVERNMENTAL FUND TYPES SPECIAL DEBT REVENUE SERVICE . - - REVENUES: Taxes Use of money and property Total revenues $ 1,310 87 1,397 o 56 56 IllIIl - EXPENDITURES: Current: Community development Capital outlay Debt service: Principal repayment Interest and fiscal charges Debt issuance costs Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) : Operating transfers in Operating transfers out Transfers to the City of Mountain View Proceeds of refunding certificates of participation Payment to refunded bond escrow agent Total other financing sources (uses) .. EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER)EXPENDITURES AND OTHER FINANCING USES BEGINNING FUND BALANCES (DEFICITS) - - 80 0 0 0 0 200 0 495 0 0 80 695 1,317 (639) 214 645 (859) 0 (334) 0 0 0 0 0 (979) 645 - . . . - . - . - - - - 338 6 - (702) 790 - ENDING FUND BALANCES (DEFICIT) $ 796 (364) - See accompanying notes to component unit financial statements. 164 - - - - - .. ... .. ~ TOTALS (Memorandwn Only) 1997 1996 1,310 1,024 143 124 1,453 1,148 80 10 0 11 200 0 495 276 0 315 775 612 678 536 859 1,937 (859) (1,937) (334) (8) 0 9,097 ~..,.. 0 (9,472) (334) (383) w...j,;< .~ ..... 344 153 88 (65) .. 432 88 !#iIM .., - ~ .. 165 MOUNTAIN VIEW REVITALIZATION AUTIIORITY (A Component Unit of the City of Mountain View, California) COMBINED STATEIv1ENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICITS) - BUDGET AND ACTUAL ALL SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) .. . .. . .. . .. . SPECIAL REVENUE FUNDS FAVORABLE (UNF A V) BUDGET ACTUAL V ARlANCE .. - REVENUES: Taxes Use of money and property Total revenues $ .. 951 98 1,049 1,310 87 1,397 359 (11) 348 . .. EXPENDITURES: Current: Community development Total expenditures EXCESS OF REVENUES OVER EXPENDITURES OTIIER FINANCING SOURCES (USES) : Operating transfers in Operating transfers out Transfers to the City of Mountain View Total other financing sources (uses) - EXCESS (DEFICIENCY) OF REVENUES AND OTIIER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTIIER FINANCING USES BEGINNING FUND BALANCE (DEFICITS) - 100 80 20 100 80 20 949 1,317 368 190 214 24 (911 ) (859) 52 (540) (334) 206 (1,261) (979) 282 - . .. . .. . .. - (312) - 338 650 (702) .. (702) o ENDING FUND BALANCE (DEFICITS) $ 650 - (1,014) (364) See accompanying notes to component unit financial statements. 166 - - - - - .. - .. - - .. - ~ .~ MOUNTAIN VIEW REVITALIZATION AUTHORITY (A Component Unit of the City of Mountain View, California) ~.,..# NOTES TO COMPONENT UNIT FINANCIAL STATEMENTS JUNE 3D, 1997 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Reporting Entity-The Mountain View Revitalization Authority (Authority) was established in 1969. The Authority was formed to provide an improved physical, social and economic environment in a certain area of the City of Mountain View, California (City). Moneys for the Authority are provided primarily by issuance of bonds, incremental property tax revenues and interest income. toi-i"" The Authority is an integral part of the City, and the accompanying financial statements are included as a blended component unit in the general purpose financial statements of the City. "- Description of Funds and Account Groups-The accounts of the Authority are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the component unit financial statements, into categories as follows: . Governmental Fund Types: .. Special Revenue Funds are used to account for proceeds of specific revenue sources which are designated to finance particular functions or activities of the Authority's government. - Debt Service Fund is used to account for the accumulation of financial resources for, and the payment of, general long-term debt principal, interest and related costs. .~ - . Account Groups: ~ General Fixed Assets Account Group-Fixed assets used in Governmental Fund Type operations are accounted for in the General Fixed Assets Account Group rather than in the governmental funds. Fixed assets are generally stated at cost or - ~ - 167 .. .. - estimated historical cost. No depreciation has been charged against general fixed assets. . - General Long-Term Obligations Account Group-Long-term liabilities expected to be financed from Governmental Fund Types are accounted for in the General Long-Term Obligations Account Group rather than in the Governmental Fund Types. .. . . - Basis of Accounting refers to when revenues and expenditures are recognized in the accounts and reported in the component unit financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. .. - . Governmental Fund Types are accounted for using the modified accrual basis of accounting. Revenues are recorded as received, or accrued, if they are both measurable and available to finance expenditures of the current period. Revenues considered susceptible to accrual include property taxes, interest and certain other intergovernmental revenues. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long- term debt which are recorded when paid. - .. .. .. . . Measurement Focus-The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All Governmental Fund Types are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet, with the exception of advances from the City which are long term in nature. Operating statements of these funds present increases (Le., revenues and other financing sources) and decreases (Le., expenditures and other financing uses) in net current assets. .. . - . .. .. Budgets and Budgetary Accounting-The Authority adopts an annual budget on or before June 30 for the ensuing fiscal year for the Special Revenue Funds. The Debt Service Fund is budgeted annually in the Special Revenue Fund, the fund obligated for such payments. - .. - Budgeted appropriations become effective each July 1. The Authority 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 Funds annual budgets are presented on a basis consistent with the component unit financial statements prepared in accordance with generally accepted accounting principles. - - IIiIllf - .. - 168 .. ~ '1d6fiI Budgeted revenue amounts represent the original budget modified by adjustments authorized during the year. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year and reappropriated amounts for prior-year encumbrances. The Authority Board must approve appropriation increases to departmental bud- gets; however, management may transfer Board-approved budgeted amounts within fund and departmental expenditure classifications. Supplemental appropriations were approved during the course of the year as needed. Encumbrance Accounting, under which purchase orders, contracts, and other commitments for the expenditure of resources are recorded in order to reserve that portion of the applicable appropriation, is utilized in the Governmental Fund Types. Encumbrances outstanding at year-end are reported as reserva- tions of fund balances since they do not constitute expenditures or liabilities. Such encumbrances are automatically reappropriated for inclusion in the following year's budget. Cash and Investments of the Authority are pooled with those of the City for investment purposes except funds restricted under provisions of debt indentures which are held by the trustee. Investments are stated at cost or amortized cost. Interest earnings on pooled cash and investments are allocated monthly based on the average daily cash balance of each fund. Fixed Assets are valued at historical cost or at estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their esti- mated fair market value on the date donated. Public domain ("infrastructure") general fixed assets, such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are not capitalized. Governmental Fund Type fixed assets are recorded as expenditures and such assets are capitalized in the General Fixed Assets Account Group. ~ Property Tax Levy, Collection and Maximum Rates-The State of California (State) Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed 1 percent of its assessed value unless an additional amount has been approved by voters. '*~ .~ Assessed value is calculated at 100 percent of market value as defined by Article XIII A and may be increased by no more than 2 percent per year unless there is new construction on the property or the property is sold or transferred. The State Legislature has determined the method of distribution of receipts from the 1 percent tax levy among the counties, cities, school districts and other districts. - - ~ -- ..... ~ 169 . .. - Santa Clara County (County) assesses properties, bills and collects property taxes on behalf of the Authority as follows: .. - Secured Unsecured .. - Lien dates Levy dates Due dates January 1 July 1 50% on November 1 50% on February 1 December 10 (for November) April 10 (for February) January 1 July 1 Upon receipt of billing August 31 .. - Delinquent as of .. - .. The term "unsecured" refers to taxes on property not secured by liens on real property. - .. In Fiscal Year 1993-94, the County adopted the Teeter Plan whereby the County remits to the City the full tax levy due. - .. Property taxes levied are recorded as revenue in the fiscal year of levy. - Insurance Programs-The Authority is covered under the City's insurance program. The City has a self-insured retention (SIR) for the first $1 million of any general liability claim occurrence with excess liability coverage through an insurance pool for the next $9 million and an additional $10 million covered by insurance. The City has a SIR for the first $250,000 in workers compensation claims with statutory excess insurance and has a SIR for unemployment claims whereby it reimburses the State based on actual cost. Claims for long-term disability are covered by insurance. The City offers a SIR for the first $50,000 per employee, annual aggregate of approximately $500,000, with excess insurance, in addition to other fully insured plans for employees' health benefits. .. - .. - - - - - Estimated liabilities are recorded for claims in cases where such amounts are reasonably determinable and where the liability is likely for incurred but not reported (IBNR) 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. .. - .. - Additional information regarding the City's insurance programs can be found in the City's June 30, 1997 general purpose financial statements. .. - - - - - .. - 170 .. Use of Estimates-The accompanying component unit financial statements have been prepared on the modified accrual basis of accounting in accordance with generally accepted accounting principles. This requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Comparative Data-Comparative total data for the prior year have been presented in the accompanying component unit financial statements in order to provide an understanding of changes in the Authority's financial position and results of operations. However, comparative data (i.e., presentation of prior year totals by fund type) have not been presented in each of the combined statements since their inclusion would make the statements unduly complex and difficult to read. "Totals (Memorandum Only)" Information-Total columns on the accompanying combined financial statements captioned "Totals (Memorandum Only)" do not represent consolidated financial information, are not necessary for a fair presentation of the financial information, but are presented as additional analytical data. Interfund eliminations have not been made in the aggregation of this data. 2. CASH AND INVESTMENTS The Authority's cash and investments are included in the City's cash and investment pool. -. State statutes and the City's investment policy authorize the City to invest in 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 or LAIF). '~ - Additional information regarding insurance, collateralization and custodial risk categorization of the City's cash and investments can be found in the City's June 30, 1997 general purpose financial statements. - .. - 171 - - - 3. GENERAL FIXED ASSETS III A summary of changes in general fixed assets follows (in thousands): .. - Balance Balance July I, June 30, 1996 Additions Deletions 1997 Buildings $5,394 5,394 Machinery and equipment JJ2 ----1.Q Total General Fixed Assets $5,394 10 5,404 - - - - - - 4. ADV ANCES FROM THE CITY OF MOUNTAIN VIEW - .. Improvements to the Authority have been partially funded by advances from the City. The Authority's management believes that future property tax increment revenues will be sufficient to repay the advances. .. . 5. LONG-TERM OBLIGATIONS .. . Long-term debt as of June 30, 1997 follows (in thousands): .. Authorized Outstanding Interest and as of Type of Indebtedness Maturity Ra tes Issued June 30.1997 1995 Refunding COPs 2016 4.0 - 6.0% $9,175 8,975 . - - .. Debt service payments for the above are generally made from property taxes transferred from the Special Revenue Fund to the Debt Service Fund. - .. The following is a summary of activity for Fiscal Year 1996-97 long-term debt (in thousands): .. - Balance, July I, 1996 $ 9,175 .. - Debt retired (200) $ 8,975 .. Balance, June 30, 1997 .. - - .. - .. - 172 .. .ii:iiitIl Annual debt service requirements to maturity for long-term debt, including interest payments of $6,005,000, follows (in thousands): Fiscal Year Ending June 30, 1998 1999 2000 2001 2002 Thereafter $ 756 755 753 754 755 11.207 Total $14,980 There are a number of limitations, covenants and restrictions contained in the debt indenture. The Authority is in compliance with all limitations, covenants and restrictions. 6. LEASING ARRANGEMENTS - In Fiscal Year 1995-96, the City transferred ownership of the Police/Fire Building to the Authority and then entered into a 20-year lease for such property with the Authority. Simultaneously, the Authority entered into an indebtedness agreement whereby the Authority pledges tax increment revenue in amounts equal to the lease payments. The City has assigned the indebtedness payments to a trustee for the benefit of the owners of the 1995 COPs. The indebtedness payments are scheduled to be sufficient, in both time and amount, to pay the principal and interest on the 1995 COPs when due. To the extent the indebtedness payments are not sufficient to pay the principal and interest on the 1995 COPs, the City is obligated to make lease payments sufficient to satisfy the principal and interest payments on the 1995 COPs when due. When the 1995 COPs are repaid and the lease expires, ownership of the property will revert to the City. .w. ~ - ... UiiIIiI ~ 173 - . - The future minimum lease payments to be received by the Authority (which are equal to the indebtedness payments to be made to the City) follows (in thousands): . - .. . Fiscal Year Ending June 30. - .. - 1998 1999 2000 2001 2002 Thereafter $ 756 755 753 754 755 11.207 .. - .. - Total .. $14,980 - 7. FUND BALANCES .. Fund balances consist of reserved and unreserved amounts. Reserved fund balances represent that portion of a fund balance which is not available for appropriation or is legally segregated for a specific future use. The remaining portion is unreserved fund balance. - .. - .. As of June 30, 1997, the Special Revenue Funds have a deficit fund balance of $364,000 resulting from expenditures for infrastructure and improvements in the Authority funded by advances from the City. The Authority's management believes that future property tax increment revenues will be sufficient to cover the deficit. - - - .. 8. COMMITMENTS AND CONTINGENCIES - The Authority is a defendant in several lawsuits and other matters arising in the normal course of operations. The Authority's management and legal counsel are of the opinion that the potential claims against the Authority not covered by insurance resulting from such litigation would not materially affect the component unit financial statements of the Authority. - - .. - SAW/FIN 553-08-05-97 ARd - - .. - - - - - 174 .. ~ THIS PAGE INTENTIONALLY LEFT BLANK ~ - WiiIliI1W .~ - ~ - -- - 175 .. .. MOUNTAIN VIEW REVITALIZATION AUTHORITY (A Component Unit of the City of Mountain View, California) COMBINING BALANCE SHEET ALL SPECIAL REVENUE FUNDS JUNE 30, 1997 (Dollars in Thousands) REVIT AL- HOUSING IZATION SET ASSETS AUTH. ASIDE Cash and investments $ 597 4 Receivables: Interest 19 1 Notes 0 988 Taxes 52 0 TOTAL ASSETS $ 668 993 LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable and accrued costs $ 0 0 Due to other governments 0 0 Refundable deposits 19 0 Advances from the City of Mountain View 1,929 77 Total liabilities 1,948 77 FUND BALANCE (DEFICITS): Reserved for: Notes receivable 0 988 Housing set aside 0 0 Encumbrances 2 0 Unreserved (1,282) (72) Total fund balance (deficits) (1,280) 916 TOTAL LIABILITIES AND FUND BALANCES $ 668 993 - .. .. .. - .. - .. - .. III .. - .. .. .. III .. .. .. .. - .. - - .. - - - .. - - - ... - 176 .. ~ TOTALS 1997 1996 601 1,359 20 26 988 409 52 0 1,661 1,794 o 15 o 240 19 20 2,006 2,221 2,025 2,496 988 409 0 280 2 3 (1,354) (1,394) (364) (702) ~ 1,661 1,794 - .~ .iIIiiiI ~ 'fti!iIiI '1(~ - ..,. - 177 .. .. MOUNTAIN VIEW REVITALIZATION AUTHORITY (A Component Unit of the City of Mountain View, California) COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE (DEFICITS) ALL SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) REVIT AL- HOUSING IZATION SET AUTH. ASIDE REVENUES: Taxes $ 1,310 0 Use of money and property 65 22 Total revenues 1,375 22 EXPENDITURES: Current: Community development 80 0 Capital outlay 0 0 Total expenditures 80 0 EXCESS OF REVENUES OVER EXPENDITURES 1,295 22 OTHER FINANCING SOURCES (USES) : Operating transfers in 0 214 Operating transfers out (859) 0 Transfers to the City of Mountain View (325) (9) Total other financing sources (uses) (1,184) 205 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 111 227 BEGINNING FUND BALANCE (DEFICITS) (I ,391) 689 ENDING FUND BALANCE (DEFICITS) $ (1,280) 916 .. .. .. . .. . .. .. .. .. .. .. - .. .. .. .. .. - .. - .. - .. - - - IIiiIII - - - IIiiIII - .. - 178 .. ~ TOTALS 1997 1996 1,310 1,024 87 100 1,397 1,124 80 10 o 11 80 21 1,317 1,103 .... 214 205 (859) (l ,937) (334 ) (8) (979) (1,740) ~ 338 (637) ... (702) (65) ~ (364) (702) ~ - ~ - .. &iIiI .... - 179 .. .. MOUNTAIN VIEW REVITALIZATION AUTHORITY (A Component Unit of the City of Mountain View, California) - . COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS) - BUDGET AND ACTUAL ALL SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1997 (Dollars in Thousands) .. . .. . REVITALIZATION AUTHORITY FAVORABLE (UNF A V) BUDGET ACTUAL VARIANCE REVENUES: Taxes $ 951 1,310 359 Use of money and property 98 65 (33) Total revenues 1,049 1,375 326 EXPENDITURES: Current: Community development 100 80 20 Total expenditures 100 80 20 EXCESS OF REVENUES OVER EXPENDITURES 949 1,295 346 OTHER FINANCING SOURCES (USES) : Operating transfers in 0 0 0 Operating transfers out (911 ) (859) 52 Transfers to the City of Mountain View (325) (325) 0 Total other financing sources (uses) (1,236) (1,184) 52 EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (287) 111 398 BEGINNING FUND BALANCES (DEFICITS) (1,391) (1,391) 0 ENDING FUND BALANCES (DEFICITS) $ (1,678) (1,280) 398 - .. .. .. .. .. .. . .. . .. .. .. IIIllI .. - .. - .. - -: - - .. - - .... - - 180 .. ~ HOUSING SET ASIDE FAVORABLE (UNF A V) BUDGET ACTUAL VARIANCE TOTALS- ANNUALLY BUDGETED FUNDS FAVORABLE (UNF A V) BUDGET ACTUAL VARIANCE o o o o 22 22 o 22 22 951 98 1,049 1,310 87 1,397 359 (11) 348 0 0 0 100 80 20 0 0 0 100 80 20 ~i~ 0 22 22 949 1,317 368 .. 190 214 24 190 214 24 0 0 0 (911 ) (859) 52 iiM& (215) (9) 206 (540) (334) 206 (25) 205 230 (1,261) (979) 282 .... (25) 227 252 (312) 338 650 - 689 689 0 (702) (702) 0 -... ""'" 664 916 252 (1,014) (364) 650 ..... .. - - ,l;~ ... - 181 .. IIIiI .. .. .. IIIiI .. IIIiI THIS PAGE INTENTIONALLY LEFT BLANK .. .. .. ... .. IIIiI .. .. .. . .. . - .. - .. .... .. - ... .... .. - .. - - .... .. - 182 .. I I I I I I I I I I I I I I I I I I I nn05J K-PMG Peat Marwick LLP 50 West San Fernando Street San Jose, CA 95113 Independent Auditors' Report on Compliance The Board of Directors Mountain View Revitalization Authority Mountain View, California: We have audited the component unit financial statements of the Mountain View Revitalization Authority (the Authority), a component unit of the City of Mountain View, California, as of and for the year ended June 30,1997, and have issued our report thereon dated October 10, 1997. We conducted our audit in accordance with generally accepted auditing standards, and government auditing standards, as appropriate. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the component unit financial statements are free of material misstatement. Compliance with laws and regulations applicable to the Authority is the responsibility of the Authority's management. As part of obtaining reasonable assurance about whether the component unit financial statements are free of material misstatement, we performed tests of the Authority's compliance with provisions of laws and regulations contained in the Guidelines for Compliance Audits of California Redevelopment Agencies, issued by the State Controller's Office, Division of Local Government Fiscal Affairs. The results of our tests indicate that, with respect to the items tested, the Authority complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to the items not tested, nothing came to our attention that caused us to believe that the Authority had not complied, in all material aspects, with those provisions. This report is intended for the information of the Authority and the State Controller's Office. However, this report is a matter of public record and its distribution is not limited. /(fr116- f~~ LLf' October 10, 1997 IIII M.m"''''"mo' KPMGlnlernat,onal 184 I I I I I I I I I I I I I I I I I I I THIS PAGE INTENTIONALL Y LEFT BLANK