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'a`$ i979CITY OF A TASCADERO
CITY COUNCIL
AGENDA
Tuesday, March 27, 2012
City Hall
Council Chambers
6907 EI Camino Real, Atascadero, California
City Council Closed Session: 5:15 P.M.
City Council: 6:00 P.M.
Special Joint Meeting of the City: Immediately following the
Council and Planning Commission conclusion of the City Council
Meeting
City Council in the Capacity of Immediately following the
Successor Agency to the conclusion of the Special Joint
Community Redevelopment Meeting of the City Council
Agency of Atascadero for and Planning Commission
Redevelopment and Housing
Purposes
CITY COUNCIL CLOSED SESSION: 5:15 P.M.
1. CLOSED SESSION -- PUBLIC COMMENT
2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION
3. CLOSED SESSION -- CALL TO ORDER
a. Conference with Legal Counsel — Anticipated Litigation
Initiation of litigation pursuant to Government Code Sec. 54956.9 (c)
Two cases.
b. Conference with Real Property Negotiators
(Govt. Code Sec. 54956.8)
Property Address: APN 031-381-001
7805 Pismo Avenue, Atascadero, CA
City Negotiator: Jim Lewis, Assistant City Manager
Negotiating Parties: Robert J. Gumer
Under Negotiation: Instruction to negotiator will concern price and terms
of payment.
4. CLOSED SESSION -- ADJOURNMENT
5. COUNCIL RETURNS TO CHAMBERS
6. CLOSED SESSION -- REPORT
REGULAR SESSION — CALL TO ORDER: 6:00 P.M.
PLEDGE OF ALLEGIANCE: Council Member Clay
ROLL CALL: Mayor Kelley
Mayor Pro Tem O'Malley
Council Member Clay
Council Member Fonzi
Council Member Sturtevant
APPROVAL OF AGENDA: Roll Call
A. CONSENT CALENDAR: (All items on the consent calendar are considered to
be routine and non-controversial by City staff and will be approved by one motion
if no member of the Council or public wishes to comment or ask questions. If
comment or discussion is desired by anyone, the item will be removed from the
consent calendar and will be considered in the listed sequence with an
opportunity for any member of the public to address the Council concerning the
item before action is taken. DRAFT MINUTES: Council meeting draft minutes
are listed on the Consent Calendar for approval of the minutes. Should anyone
wish to request an amendment to draft minutes, the item will be removed from
the Consent Calendar and their suggestion will be considered by the City
Council. If anyone desires to express their opinion concerning issues included in
draft minutes, they should share their opinion during the Community Forum
portion of the meeting.)
1. City Council Draft Action Minutes — March 13, 2012
■ Recommendation: Council approve the City Council Draft Action
Minutes of March 13, 2012. [City Clerk]
2. Fiscal Year 2010-2011 Audit
■ Fiscal Impact: None.
■ Recommendation: Council review and accept the financial audit for the
period ended June 30, 2011. [Administrative Services]
UPDATES FROM THE CITY MANAGER: (The City Manager will give an oral report on
any current issues of concern to the City Council.)
COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanting to
address the Council on any matter not on this agenda and over which the Council has
jurisdiction. Speakers are limited to three minutes. Please state your name for the
record before making your presentation. Comments made during Community Forum
will not be a subject of discussion. A maximum of 30 minutes will be allowed for
Community Forum, unless changed by the Council. Any members of the public who
have questions or need information, may contact the City Clerk's Office, between the
hours of 8:30 a.m. and 5:00 p.m. at 470-3400, or mtorgerson _atascadero.org.)
B. PUBLIC HEARINGS: None.
C. MANAGEMENT REPORTS:
1. In-Lieu Affordable Housing Fund Allocations - Funding Requests by
North County Connections and ECHO
■ Fiscal Impact: The fiscal impact is contingent on the direction provided by
the Council.
■ Recommendation: Council provide direction on the allocation of in-lieu
affordable housing funds in response to funding requests by North County
Connection (NCC) and EI Camino Homeless Shelter (ECHO). [Community
Development]
COUNCIL ANNOUNCEMENTS AND REPORTS: (On their own initiative, Council
Members may make a brief announcement or a brief report on their own activities.
Council Members may ask a question for clarification, make a referral to staff or take
action to have staff place a matter of business on a future agenda. The Council may
take action on items listed on the Agenda.)
D. COMMITTEE REPORTS: (The following represent standing committees.
Informative status reports will be given, as felt necessary):
Mayor Kelley
1. Atascadero State Hospital Advisory Committee
2. City of Atascadero Design Review Committee
3. City of Atascadero Finance Committee
4. County Mayors Round Table
5. Economic Vitality Corporation, Board of Directors (EVC)
6. Homeless Services Oversight Council
Mayor Pro Tem O'Malley
1. City/ Schools Committee
2. Integrated Waste Management Authority (IWMA)
3. League of California Cities — CITIPAC Board Member
4. SLO Council of Governments (SLOCOG)
5. SLO Regional Transit Authority (SLORTA)
Council Member Fonzi
1. Air Pollution Control District
2. City of Atascadero Design Review Committee
3. City of Atascadero Finance Committee
4. SLO Local Agency Formation Commission (LAFCo) - alternate
Council Member Sturtevant
1. City/ Schools Committee
2. Community Action Partnership of SLO County
3. League of California Cities — Council Liaison
E. INDIVIDUAL DETERMINATION AND / OR ACTION:
1. City Council
2. City Clerk
3. City Treasurer
4. City Attorney
5. City Manager
F. ADJOURN TO THE SPECIAL JOINT MEETING OF THE CITY COUNCIL AND
PLANNING COMMISSION.
Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that
person may be limited to raising those issues addressed at the public hearing described in this notice, or in written
correspondence delivered to the City Council at or prior to this public hearing. Correspondence submitted at this
public hearing will be distributed to the Council and available for review in the City Clerk's office.
I, Victoria Randall, Deputy City Clerk of the City of Atascadero, declare under the penalty of perjury that
the foregoing agenda for the March 27, 2012 Regular Session of the Atascadero City Council was
posted on March 20, 2012, at the Atascadero City Hall, 6907 EI Camino Real, Atascadero, CA 93422
and was available for public review in the Customer Service Center at that location.
Signed this 201h day of March, 2012, at Atascadero, California.
Victoria Randall, Deputy City Clerk
City of Atascadero
City of Atascadero
WELCOME TO THE ATASCADERO CITY COUNCIL MEETING
The City Council meets in regular session on the second and fourth Tuesday of each month at 6:00 p.m. unless there is a
Community Redevelopment Agency meeting commencing at 6:00 p.m. in which event the Council meeting will commence
immediately following the conclusion of the Community Redevelopment Agency meeting. Council meetings will be held at
the City Hall Council Chambers, 6907 EI Camino Real, Atascadero. Matters are considered by the Council in the order of
the printed Agenda. Regular Council meetings are televised live, audio recorded and videotaped for future playback.
Charter Communication customers may view the meetings on Charter Cable Channel 20 or via the City's website at
www.atascadero.org. Meetings are also broadcast on radio station KPRL AM 1230. Contact the City Clerk for more
information (470-3400).
Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file
in the office of the City Clerk and are available for public inspection during City Hall business hours at the Front Counter of
City Hall, 6907 EI Camino Real, Atascadero, and on our website, www.atascadero.org. An agenda packet is also
available for public review at the Atascadero Library, 6850 Morro Road. Contracts, Resolutions and Ordinances will be
allocated a number once they are approved by the City Council. The minutes of this meeting will reflect these numbers.
All documents submitted by the public during Council meetings that are either read into the record or referred to in their
statement will be noted in the minutes and available for review in the City Clerk's office.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting
or other services offered by this City, please contact the City Manager's Office or the City Clerk's Office, both at (805)
470-3400. Notification at least 48 hours prior to the meeting or time when services are needed will assist the City staff in
assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.
TO SPEAK ON SUBJECTS NOT LISTED ON THE AGENDA
Under Agenda item, "COMMUNITY FORUM", the Mayor will call for anyone from the audience having business with the
Council to approach the lectern and be recognized.
1. Give your name for the record (not required)
2. State the nature of your business.
3. All comments are limited to 3 minutes.
4. All comments should be made to the Mayor and Council.
5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other
individual, absent or present
This is the time items not on the Agenda may be brought to the Council's attention. A maximum of 30 minutes will be
allowed for Community Forum (unless changed by the Council). If you wish to use a computer presentation to support
your comments, you must notify the City Clerk's office at least 24 hours prior to the meeting. Digital presentations must
be brought to the meeting on a USB drive or CD. You are required to submit to the City Clerk a printed copy of your
presentation for the record. Please check in with the City Clerk before the meeting begins to announce your presence
and turn in the printed copy.
TO SPEAK ON AGENDA ITEMS (from Title 2, Chapter 1 of the Atascadero Municipal Code)
Members of the audience may speak on any item on the agenda. The Mayor will identify the subject, staff will give their
report, and the Council will ask questions of staff. The Mayor will announce when the public comment period is open and
will request anyone interested to address the Council regarding the matter being considered to step up to the lectern. If
you wish to speak for, against or comment in any way:
1. You must approach the lectern and be recognized by the Mayor
2. Give your name (not required)
3. Make your statement
4. All comments should be made to the Mayor and Council
5. No person shall be permitted to make slanderous, profane or negative personal remarks concerning any other
individual, absent or present
6. All comments limited to 3 minutes
The Mayor will announce when the public comment period is closed, and thereafter, no further public comments will be
heard by the Council.
ITEM NUMBER: A- 1
DATE: 03/27/12
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1915 R NOD
E; � CITY OF ATASCADERO
CITY COUNCIL
DRAFT ACTION MINUTES
Tuesday, March 13, 2012
City Hall
Council Chambers
6907 EI Camino Real, Atascadero, California
City Council Closed Session: 5:00 P.M.
City Council Regular Session: 6:00 P.M.
CITY COUNCIL CLOSED SESSION: 5:00 P.M.
Mayor Kelley announced that the Council is going into Closed Session at 5:00 p.m.
1. CLOSED SESSION -- PUBLIC COMMENT - None
2. COUNCIL LEAVES CHAMBERS TO BEGIN CLOSED SESSION
3. CLOSED SESSION -- CALL TO ORDER
a. Conference with Legal Counsel — Anticipated Litigation
Initiation of litigation pursuant to subdivision (c) of Government Code
Section 54956.9 (two cases)
4. CLOSED SESSION -- ADJOURNMENT
Draft City Council Minutes
March 13, 2012
Page 1 of 7
ITEM NUMBER: A- 1
DATE: 03/27/12
5. COUNCIL RETURNS TO CHAMBERS
6. CLOSED SESSION -- REPORT
City Attorney Pierik announced that the City Council authorized initiation of litigation in
one case, details of which will become known when the lawsuit is filed.
REGULAR SESSION — CALL TO ORDER: 6:00 P.M.
Mayor Kelley called the meeting to order at 6:02 p.m. and Mayor Pro Tem O'Malley led
the Pledge of Allegiance.
Mayor Kelley asked for a moment of silence for the passing of the County Public
Information Officer last week.
ROLL CALL:
Present: Council Members Clay, Fonzi, Sturtevant, Mayor Pro Tem O'Malley
and Mayor Kelley
Absent: None
Others Present: City Clerk / Assistant to City Manager Marcia McClure Torgerson
Staff Present: City Manager Wade McKinney, Assistant City Manager Jim Lewis,
Community Development Director Warren Frace, Community
Services Director Brady Cherry, Police Chief Jerel Haley, Fire Chief
Kurt Stone, and City Attorney Brian Pierik.
APPROVAL OF AGENDA:
MOTION: By Council Member Fonzi and seconded by Council Member
Sturtevant to approve the agenda.
Motion passed 5:0 by a roll-call vote.
Draft City Council Minutes
March 13, 2012
Page 2 of 7
ITEM NUMBER: A- 1
DATE: 03/27/12
A. CONSENT CALENDAR:
1. City Council Strategic Planning Workshop Draft Minutes — February
24, 2012
■ Recommendation: Council approve the City Council Strategic Planning
Workshop Draft Minutes of February 24, 2012. [City Clerk]
2. City Council Draft Action Minutes — February 28, 2012
■ Recommendation: Council approve the City Council Draft Action
Minutes of February 28, 2012. [City Clerk]
3. January 2012 Accounts Payable and Payroll
■ Fiscal Impact: $3,628,394.47.
■ Recommendation: Council approve certified City accounts payable,
payroll and payroll vendor checks for January 2012. [Administrative
Services]
MOTION: By Council Member Sturtevant and seconded by Council
Member Fonzi to approve the Consent Calendar.
Motion passed 5:0 by a roll-call vote.
UPDATES FROM THE CITY MANAGER:
City Manager Wade McKinney gave an update on projects and issues within the City.
COMMUNITY FORUM:
The following citizens spoke during Community Forum: Tom Farrell, Marlene Lutz, and
Mike Brennler.
Mayor Kelley closed the COMMUNITY FORUM period.
B. PUBLIC HEARINGS: None.
C. MANAGEMENT REPORTS:
1. Grant Participation Request - Regional Climate Action Plan (CAP)
"Toolbox" - And Local Atascadero CAP
■ Fiscal Impact: Short Term: No monetary match is required to receive the
grant and participate in the project. City staff resources would not be
significant, since APCD would be hiring the consultant and doing most of
the coordination. Long Term: If the City adopts a Climate Action Plan at
the end of this process, there would be a number of significant changes
for City operations, as well as private development. If the City chooses
Draft City Council Minutes
March 13, 2012
Page 3 of 7
ITEM NUMBER: A- 1
DATE: 03/27/12
not to participate with the other cities in the regional Climate Action Plan at
this time, Atascadero will be obligated to fund and staff a CAP process in
the future in order to comply with AB 32.
■ Recommendation: Council adopt the Draft Resolution to reconfirm
participation in a grant program for a regional Climate Action Plan (CAP)
"toolbox" and a local Atascadero CAP funded through PG&E, SoCal Gas
and the San Luis Obispo County Air Pollution Control District (APCD) and
appoint the City's Design Review Committee to act as a steering
committee. [Community Development]
Community Development Director Warren Frace gave the staff report and answered
questions from the Council. Also, Erin Genet from the APCD answered questions from
the Council.
PUBLIC COMMENT:
The following citizens spoke on this item: Ray Weymann, Laura Mordaunt (Exhibit A)
(spoke twice), Lydia Thompson, Paul Barris, Gary Kirkland, Edward Veg, Hank Hollstein
(spoke twice), Ted Gilbert (spoke twice), Josh Friedman, Mike Jackson (spoke twice),
Susan DeCarli (spoke twice), Wayne Casper (spoke twice), Norm Thompson, Dave
Decader, Peter Burn, Jim Patterson, Randall Jordan, Chuck Ward, Armando Herretia,
Jim Shannon (spoke twice), Mike Brennler, Sandy Jack, Mike Lautner (spoke twice),
and Al Fonzi.
Mayor Kelley closed the Public Comment period.
MOTION: By Mayor Pro Tem O'Malley and seconded by Council Member
Sturtevant to adopt the Draft Resolution to reconfirm
participation in a grant program for a regional Climate Action
Plan (CAP) "toolbox" and a local Atascadero CAP funded
through PG&E, SoCal Gas and the San Luis Obispo County Air
Pollution Control District (APCD) and appoint the City's Design
Review Committee to act as a steering committee.
Motion passed 5:0 by a roll-call vote. (Resolution No. 2012-
005)
Mayor Kelley recessed the meeting at 8:43 p.m.
Mayor Kelley reconvened the meeting at 9:02 p.m.
2. Proposition 1 B Project Fundinq Priorities
■ Fiscal Impact: None.
■ Recommendation: Council approve the plan for the use of 2009-2010
Appropriation of Proposition 1B State bond funds to resurface EI Camino
Real from the Von's Center to Santa Rosa Road. [Public Works]
Draft City Council Minutes
March 13, 2012
Page 4 of 7
ITEM NUMBER: A- 1
DATE: 03/27/12
Assistant City Manager Jim Lewis gave the staff report and answered questions from
the Council.
PUBLIC COMMENT: None
MOTION: By Council Member Sturtevant and seconded by Council
Member Fonzi to approve the plan for the use of 2009-2010
Appropriation of Proposition 1B State bond funds to resurface
EI Camino Real from the Von's Center to Santa Rosa Road.
Motion passed 5:0 by a roll-call vote.
COUNCIL ANNOUNCEMENTS AND REPORTS:
1. Mayor Bob Kelley.
Appointments by Mayor Kelley to Oversight Board pursuant to AB X 1 26.
Mayor Kelley stated that he will continue this item for a few weeks to review the makeup
of the Oversight Board.
2. Mayor Bob Kelley and Council Member Jerry Clay.
Mayor Kelley and Council Member Clay request City sponsorship for Family
Day on July 4, 2012 in Atascadero Lake Park, to include free admission
(donations accepted) to the Zoo.
Council Member Clay asked the City Council to make the July 4th event be a City
sponsored event. He explained the types of events that they are planning on having at
the Lake Park. He asked Steve Martin to elaborate on the event.
Steve Martin gave details of the plans for the event, including the community members
involved.
PUBLIC COMMENT:
The following citizens spoke on this item: Al Fonzi.
Mayor Kelley closed the Public Comment period.
MOTION: By Council Member Clay and seconded by Mayor Kelley that
the 4th of July celebration will be a City sponsored event with
the knowledge that the Committee is not going to ask the City
for any money. The Park fees will be waived, and the Zoo will
be free to visitors with a donation box.
Draft City Council Minutes
March 13, 2012
Page 5 of 7
ITEM NUMBER: A- 1
DATE: 03/27/12
Motion passed 3:2 by a roll-call vote. (Sturtevant and O'Malley
opposed)
After discussion below, votes were re-considered and the
Motion passed 5:0.
Council Member Clay asked Sturtevant and O'Malley to re-consider their votes, as he
would like this to be unanimous.
Council Member Sturtevant stated that if they can keep the event to what was just voted
on, the Zoo for free and the waiver of Park fees, and the City will not be asked to
contribute any money, and if the only City staff that will be involved will be those that
would have been on duty anyway, and no road closures, then that is a different
circumstance.
Council Member Clay said that road closures would have to be considered if we need it
for the bicycle club or the 5K run. We would like to have these events, and we don't
know if the roads will need to be closed.
Council Member Sturtevant then stated that if we can keep it minimal as has been
stated, then I can vote yes.
Mayor Pro Tem O'Malley stated that with that clarification, he would also like to vote
yes.
City Clerk Torgerson stated that with the two "no" voters changing their votes to "yes"
the motion passed 5:0 by a roll-call vote.
City Manager McKinney asked the City Council to clarify their decision on the 4t" of JUly
event. He understood that they agreed to the City sponsorship, allowing the City name
to be used by the event, the waiver of Park fees, open the Zoo at no charge with a
donation program, and the regular staff that would normally be assigned to work that
day would be involved. The City Council agreed.
The remaining City Council Members made brief announcements.
D. COMMITTEE REPORTS:
Mayor Kelley
1. City of Atascadero Design Review Committee — Next meeting they will be
discussing Eagle Ranch and the Los Lomas Townhouse project.
2. County Mayors Round Table — This month they discussed the effects of the
elimination of Redevelopment Agencies.
Draft City Council Minutes
March 13, 2012
Page 6 of 7
ITEM NUMBER: A- 1
DATE: 03/27/12
Mayor Pro Tem O'Malley
1. City / Schools Committee — They reviewed the plan for the school downtown.
2. Integrated Waste Management Authority (IWMA) — Meeting is tomorrow.
3. SLO Council of Governments (SLOCOG) — Rich Krumholtz retired from
CalTrans.
4. SLO Regional Transit Authority (SLORTA) — Will be looking at support for
community events.
Council Member Fonzi
1. Air Pollution Control District — Meeting next week.
2. SLO Local Agency Formation Commission (LAFCo) — alternate — Meeting on
Thursday to discuss an annexation to the City of Pismo Beach.
E. INDIVIDUAL DETERMINATION AND / OR ACTION:
1. City Clerk — Announced that Bill Wachtel is resigning from the Parks &
Recreation Commission. He is Council Member Clay's appointment and
Council Member Clay stated he has someone in mind and will report back at
the next Council meeting.
2. City Manager — Verified with the City Council on the specifics of their direction
regarding the 4th of July event.
F. ADJOURNMENT
Mayor Kelley adjourned the meeting at 9:52 p.m.
MINUTES PREPARED BY:
Marcia McClure Torgerson, C.M.C.
City Clerk / Assistant to the City Manager
The following exhibit is available for review in the City Clerk's office:
Exhibit A— Letter and DVD from Laura Mordaunt
Draft City Council Minutes
March 13, 2012
Page 7 of 7
ITEM NUMBER: A- 2
DATE: 03/27/12
is
1979
Atascadero City Council
Staff Report — Administrative Services Department
Fiscal Year 2010-2011 Audit
RECOMMENDATION:
Council review and accept the financial audit for the period ended June 30, 2011.
DISCUSSION:
The Audit firm of Moss, Levy, and Hartzheim performed a full audit of the financial
statements and found that the City presented fairly and accurately the City's financial
position, and further that the reporting was in conformity with generally accepted
accounting standards.
The Financial Statements reflect the leadership of the City Council. The focus put on
Council's top three priorities of economic development, continued enhancement of
public safety, and stability of City's finances, has improved the City's year-end results.
As a result of the focus on growth, the 2010/2011 fiscal year closed better than
expected. The final budget estimated the use of about $1.1 million in General Fund
Reserves, however, only about $600,000 in reserves was actually necessary to close
the gap. Revenues and expenses came in fairly close to projected levels, with no
significant variances of concern.
As previously reported, the audit shows the General fund balance at June 30, 2011,
was $6.9 million, or 41 .7% of expenditures. This continues to be in line with the
Council's long-range financial strategy and represents a healthy reserve.
ITEM NUMBER: A-2
DATE: 03/27/12
Below is a table comparing revenues and expenditures for the 2009/2010 and the
2010/2011 fiscal years.
COMPARATIVE INCOME STATEMENT
2009/2010 2010/2011
Actuals Actuals % Change $Change
Property Tax $ 7,233,564 $ 7,048,088 -2.6% $ (185,476)
Sales tax 2,583,898 2,862,255 10.8% 278,357
Other Taxes 1,650,747 1,734,899 5.1% 84,152
Intergovernmental 167,829 231,270 37.8% 63,441
Grants 141,687 179,167 26.5% 37,480
Service Charges
Mutual Aid 518,053 133,051 -74.3% (385,002)
Public safety 245,243 254,877 3.9% 9,634
Development 525,876 905,886 72.3% 380,010
Recreation, zoo,
parks & pavilion 593,191 630,059 6.2% 36,868
Interest 171,216 160,435 -6.3% (10,781)
Interfund charges 1,240,421 1,215,906 -2.0% (24,515)
Other 276,240 382,493 38.5% 106,253
CFD Transfer 267,130 276,430 3.5% 9,300
Total revenues $ 15,615,095 $ 16,014,816 2.6% $ 399,721
Employee services $ (12,061,133) $ (11,988,656) -0.6% $ 72,477
Operating supplies &
services (4,097,216) (3,943,802) -3.7% 153,414
Special purchases (165,194) (621,826) 276.4% (456,632)
Capital outlay (7,371) (57,617) 681.7% (50,246)
Debt service - - 0.0% -
Total expenses (16,330,914) (16,611,901) 1.7% $ (280,987)
NET INCOME $ (715,819) $ (597,085)
In total, revenues and expenses are consistent and up just slightly over the prior year.
The revenues that have historically been the City's top three -- Property Tax, Sales Tax
and Development revenue -- combine to have a net increase over the prior year of
almost $473,000.
Employee services came in just under the prior year amount, and about $1.3 million
under the budgeted amount. About $786,000 of the employee services amount that
ITEM NUMBER: A- 2
DATE: 03/27/12
came in under budget was due to a reduction in the need for mutual aid response. The
remaining $514,000 was salary savings due to position chills and vacancies.
Operating costs were down slightly as compared to 2009/2010, and were about
$600,000 less than budgeted. The operating costs have been reduced annually in
efforts to mitigate the effects of the sluggish economy. Back in fiscal year 2007/2008,
Operating Supplies and Services were $5.2 million. That is a 24% reduction in the
Operating Supplies category over the course of three fiscal years. These reductions
show the commitment of the Council and everyone in the organization to maintain
essential services while staying devoted to the fiscal health of the City.
AUDIT REPORT
The audit report summarizes the City's financial performance for the fiscal year and
provides an overview of financial activities for the year. It is a useful big-picture tool to
manage long-term fiscal health of the City. The Management Discussion and Analysis
discusses the financial highlights, gives an overview of the financial statements, and
provides a financial analysis of the City's funds. After that, summarized information on
all of the City's funds can be found. The Notes to the Financial Statements include
additional details and explanations of the figures in the Statements to give the reader a
better understanding of the complete fiscal performance of the City. The last section of
the report includes detailed information on the balance of each of the funds and their
activity. The report was audited by a local independent audit firm, Moss, Levy, and
Hartzheim, and as seen on the Independent Auditor's Report on page 1, was found be
to in conformity with generally accepted accounting principles.
FISCAL IMPACT:
None.
ATTACHMENT:
1. Fiscal Year 2010-2011 Audited City Financial Statements
Due to the length of the attachment, it is not included with the printed staff report;
however, it may be viewed in its entirety in the Office of the City Clerk or on the
City's webpage, www.atascadero.org, with the March 27, 2012 City Council
Agenda.
CITY OF ATASCADERO
FINANCIAL STATEMENTS
June 30, 2011
FINANCIAL STATEMENTS
June 30, 2011
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Tom O'Malley, MAYOR
Bob Kelley, MAYOR PRO TEMPORE
Jerry L. Clay, Sr., COUNCIL MEMBER
Roberta Fonzi, COUNCIL MEMBER
Brian Sturtevant, COUNCIL MEMBER
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FOUNDED�gY Wade G. McKinney, CITY MANAGER INCORPORATED�I 1979
Prepared by the Department of Administrative Services
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CITY OF ATASCADERO
TABLE OF CONTENTS
June 30, 2011
IndependentAuditors' Report...................................................................................................................................................................... 1
Management's Discussion and Analysis........................................................................................................................................................ 3
Basic Financial Statements:
Government-wide Financial Statements:
Statementof Net Assets................................................................................................................................................................... 13
Statementof Activities..................................................................................................................................................................... 15
Fund Financial Statements:
Governmental Funds:
BalanceSheet........................................................................................................................................................................... 16
Reconciliation of the Governmental Funds- Balance Sheet to the Statement of Net Assets....................................................................... 18
Statement of Revenues, Expenditures, and Changes in Fund Balances................................................................................................ 19
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Statement of Activities................................................................................................................... 21
Proprietary Funds:
Statementof Net Assets.............................................................................................................................................................. 22
Combining Statement of Revenues, Expenses, and Changes in Net Assets........................................................................................... 24
CombiningStatement of Cash Flows.............................................................................................................................................. 26
Notesto the Basic Financial Statements................................................................................................................................................... 28
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Summary ......................................... 62
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Detail............................................... 64
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Redevelopment Agency Fund.................................. 79
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Low/Moderate Income Housing Redevelopment Fund... 82
Schedule of Funding Progress for Postemployment Benefits Other Than Pensions...................................................................................... 83
i
CITY OF ATASCADERO
TABLE OF CONTENTS
June 30, 2011
Other Supplementary Information:
Major Capital Projects Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Blight Elimination Projects Fund........................... 84
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Historic City Hall Rehabilitation Fund.................... 85
Nonmajor Governmental Funds Overview............................................................................................................................................ 86
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet- Nonmajor Governmental Funds............................................................................................................... 92
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds..................................... 98
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:
Supplemental Law Enforcement Services Fund........................................................................................................................... 104
In Lieu Low/ Moderate Income Housing Fund............................................................................................................................. 105
Production of Affordable Housing Units Fund.............................................................................................................................. 106
Business Improvement Association Fund................................................................................................................................... 107
Community Development Block Grant Fund................................................................................................................................ 108
TreePlant Fund.................................................................................................................................................................... 109
GasTax Fund....................................................................................................................................................................... 110
AB2928 Traffic Congestion Relief Fund...................................................................................................................................... 111
LocalTransportation Fund....................................................................................................................................................... 112
StreetAssessment Fund......................................................................................................................................................... 113
General Government Facilities Fees Fund.................................................................................................................................. 114
CirculationSystem Fees Fund.................................................................................................................................................. 115
StormDrainage Facilities Fees Fund......................................................................................................................................... 116
Amapoa/Tecorida Drainage Impact Fees Fund............................................................................................................................ 117
LawEnforcement Facilities Fees Fund....................................................................................................................................... 118
FireFacilities Fees Fund......................................................................................................................................................... 119
OpenSpace Acquisition Fees Fund.......................................................................................................................................... 120
ii
CITY OF ATASCADERO
TABLE OF CONTENTS
June 30, 2011
Other Supplementary Information (continued):
Combining and Individual Fund Statements and Schedules (continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (continued):
ParklandFacilities Fees Fund.................................................................................................................................................. 121
PublicFacilities Fees Fund...................................................................................................................................................... 122
Library Expansion Facilities Fees Fund...................................................................................................................................... 123
Fire Aerial Vehicle Impact Fees Fund........................................................................................................................................ 124
Community Facilities District Fund............................................................................................................................................. 125
Apple Valley Street& Storm Drain Assessment District Fund.......................................................................................................... 126
Apple Valley Landscape & Lighting Assessment District Fund......................................................................................................... 127
Las Lomas Street& Storm Drain Assessment District Fund............................................................................................................ 128
Las Lomas Landscape & Lighting Assessment District Fund........................................................................................................... 129
De Anza Street & Storm Drain Assessment District Fund............................................................................................................... 130
De Anza Landscape & Lighting Assessment District Fund.............................................................................................................. 131
CapitalProjects Fund............................................................................................................................................................. 132
2005 Redevelopment Bond Project Fund.................................................................................................................................... 134
Assessment District#8 Construction Fund.................................................................................................................................. 135
Youth Center Construction Fund............................................................................................................................................... 136
2010 Redevelopment Bond Project Fund.................................................................................................................................... 137
Assessment District#4 Debt Service Fund................................................................................................................................. 138
Assessment District#7 Debt Service Fund................................................................................................................................. 139
AssessmentDistrict#9 Debt Service Fund................................................................................................................................. 140
Assessment District#10 Debt Service Fund................................................................................................................................ 141
2005 Redevelopment Bond Debt Service Fund............................................................................................................................ 142
iii
CITY OF ATASCADERO
TABLE OF CONTENTS
June 30, 2011
Other Supplementary Information (continued):
Combining and Individual Fund Statements and Schedules (continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual (continued):
1992 Street Assessment Improvement Fund............................................................................................................................... 143
1993 Camino Real Improvement Bonds Fund.............................................................................................................................. 144
2010 Bond Debt Service Fund.................................................................................................................................................. 145
Combining Statement of Net Assets - Internal Service Funds................................................................................................................... 146
Combining Statement of Revenues, Expenses, and Changes in Net Assets - Internal Service Funds............................................................... 147
Combining Statement of Cash Flows - Internal Service Funds.................................................................................................................. 149
Independent Auditor's Report on Internal Control Over Fiancial Reporting and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with Government Auditing Standards............................................................................... 151
iv
t
MANAGEMENT'S DISCUSSION AND ANALYSIS
Fiscal Year Ended June 30, 2011
INTRODUCTION
This discussion and analysis of the City of Atascadero's financial performance provides an overview of the City's financial activities for the fiscal
year ended June 30, 2011. For the most complete picture of the City, please read this document in conjunction with the City's basic financial
statements, the accompanying notes to the basic financial statements, and the basic financial statements of the City's component unit. The City's
financial statements and separate financial statements prepared by the Community Redevelopment Agency of Atascadero are available at City
Hall offices.
FINANCIAL HIGHLIGHTS
• The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $157 million. Of this amount, $22.5 million may be
used to meet the City's ongoing obligations to citizens and creditors.
• The City's total net assets increased by$1.0 million, which is consistent with the prior fiscal year increase.
• Capital projects expenditures were consistent with the prior fiscal year at$4.6 million.
• As of the close of the current fiscal year, the City's governmental funds reported combined ending fund balances of $46.7 million, an increase of
$14 million from the prior fiscal year. This increase was primarily due to the issuance of$16.0 million in 2010 Lease Revenue Bonds
• At the end of the current fiscal year, unassigned fund balance for the general fund was $5,468,236 or 33%of total general fund expenditures.
• The City's total debt increased by about $15.7 million during the current fiscal year, which was due to the issuance of $16,010,000 in Lease
Revenue bonds less scheduled debt service payments, plus an increase in compensated absences and other post-employment benefits.
• On January 14, 2011, the City and the Community Redevelopment Agency of Atascadero (Agency) entered into significant irrevocable contracts
whereby the Agency contracted with the City to complete the Historic City Hall Earthquake Rehabilitation Project ($13,000,000); the completion of
Identified Blight Elimination Projects prioritized by the Agency Board in June of 2010 ($8,176,820); and the production of affordable housing units
($5,383,800). In accordance with the agreements, funds were immediately transferred to the City and are held in separate escrow accounts
through construction with any remaining funds to be returned to the Agency upon completion of the Projects.
3
City of Atascadero
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2011
FINANCIAL HIGHLIGHTS (continued)
• On June 29, 2011, California Governor Brown signed two budget-related Assembly Bills AB 1X 26 and AB 1X 27, which significantly change the
California Community Redevelopment Law and affect the future of California Redevelopment Agencies. These bills were challenged in California
Supreme Court, and the dissolution bill, AB 1X 26, was upheld, and has dissolved all agencies in the state. This legislation will also affect the
agreements discussed above, as well as other agreements between the City and the Agency. See Note 14 for further details.
OVERVIEW OF THE FINANCIAL STATEMENTS
The financial statements presented herein include the activities of the City of Atascadero using the integrated approach as prescribed by Governmental
Accounting Standards Board (GASB) Statement No. 34.
Government-Wide Financial Statements
The Government-Wide Financial Statements present a broad overview of the financial picture of the City from the economic resources measurement
focus using the accrual basis of accounting. They present governmental activities and business-type activities separately. These statements include all
assets of the City (including infrastructure) as well as all liabilities (including long-term debt). Additionally, certain eliminations have occurred as
prescribed by GASB Statement No. 34 in regard to interfund activity, payables and receivables.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference reported as net assets. Over time,
increases or decreases in net assets may serve as an indicator of whether the financial position of the City of Atascadero is improving or declining.
The Statement of Activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net
assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods.
Both of the Government-wide Financial Statements distinguish functions of the City that are principally supported by taxes and intergovernmental
revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees or are
required by grantor agencies to be accounted for in this fashion (business-type activities).
The governmental activities include police, fire, parks, recreation, community development, public works, and general government activities. Property
and sales taxes, user fees, interest income, franchise fees, and state and federal grants finance these activities. The business-type activities include
wastewater and transit.
As required by accounting principles generally accepted in the United States of America, these financial statements present the City (the primary
government) and its component unit, for which the government is considered to be financially accountable (the Community Redevelopment Agency of
Atascadero). The City has no component units that require discrete presentation in accordance with GASB Statement No. 14, as amended by GASB
Statement No. 39.
4
City of Atascadero
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2011
OVERVIEW OF THE FINANCIAL STATEMENTS (continued)
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The
City of Atascadero, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. The funds of the City are divided into two categories of activities —governmental and proprietary.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government-wide Financial
Statements. However, unlike the Government-wide Financial Statements, Governmental Fund Financial Statements focus on near-term inflows and
outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful
in evaluating a government's near-term financing requirements.
Because the focus of governmental funds is narrower than that of the Government-wide Financial Statements, it is useful to compare the information
presented for governmental funds with similar information presented for governmental activities in the Government-wide Financial Statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet
and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison
between governmental funds and governmental activities.
The City maintains multiple individual governmental funds. Information for the General Fund is presented separately in the governmental funds balance
sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances. The General Fund, the Redevelopment
Agency Fund, the Low/Moderate Income Housing Redevelopment Fund, the Blight Elimination Projects Fund and the Historic City Hall Rehabilitation
Fund are considered to be the major governmental funds. Data from the other nonmajor governmental funds are combined into a single, aggregated
presentation. Individual fund data, including budgetary information, for each of these nonmajor governmental funds is provided in the combining financial
statements under the supplementary information section.
A budget comparison statement has been provided to demonstrate compliance with the budget. Budgetary information for the major governmental funds
has been provided under the required supplementary information section.
Proprietary Funds
Proprietary Funds provide the same type of information as the business-type activities in the government-wide financial statements, except that the
Proprietary Funds provide greater detail. The City maintains two types of Proprietary Funds: Enterprise Funds and Internal Service Funds. The City's
Enterprise Funds are the same as the business-type activities reported in the Government-wide Financial Statements: Transit and Wastewater. The City
uses Internal Service Funds to report activities that provide supplies and services for the City's other programs and activities. The City's Internal Services
Funds include the Technology Fund, the Building Maintenance and Replacement Fund, and the Vehicle and Equipment Replacement Fund. The Internal
Service Funds are combined into one column within the Proprietary Funds statements and are combined with governmental activities in the Government-
wide Financial Statements.
5
City of Atascadero
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2011
Notes to the Basic Financial Statements - The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Atascadero, assets
exceeded liabilities by about$157 million at the close of the most recent fiscal year.
2009-2010
2010-2011 2010-2011 2009-2010 Business-
Governmental Business-Type 2010-2011 Governmental Type 2009-2010
Activities Activities Total Activities Activities Total
Current and other assets $ 58,089,555 $ 10,508,563 $ 68,598,118 $ 42,354,428 $10,714,973 $ 53,069,401
Capital assets 107,836,619 14,794,665 122,631,284 105,446,198 14,866,288 120,312,486
Total assets 165,926,174 25,303,228 191,229,402 147,800,626 25,581,261 173,381,887
Current liabilities 3,874,852 252,639 4,127,491 2,700,565 311,745 3,012,310
Noncurrent liabilities 30,108,853 10,224 30,119,077 14,369,047 11,727 14,380,774
Total liabilities 33,983,705 262,863 34,246,568 17,069,612 323,472 17,393,084
Net assets:
Invested in capital
assets, net of
related debt 95,007,617 14,794,665 109,802,282 95,375,836 14,866,288 110,242,124
Restricted 24,642,590 - 24,642,590 23,713,267 - 23,713,267
Unrestricted 12,292,262 10,245,700 22,537,962 11,641,911 10,391,501 22,033,412
Total net assets $ 131,942,469 $ 25,040,365 $156,982,834 $ 130,731,014 $25,257,789 $155,988,803
The largest portion of the City's net assets (70%) reflects its investment in capital assets, less any related debt used to acquire those assets that is still
outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional 16% of the City's net assets represent resources subject to external restrictions on how they may be used. The remaining 14%
($22,537,962) is considered unrestricted and may be used to meet the City's ongoing obligations to citizens and creditors. There was an increase of
$504,550 in unrestricted net assets from fiscal year 2009-2010 to 2010-2011.
6
City of Atascadero
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2011
GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued)
Consistent with the prior fiscal year, as of the end of the current fiscal year, the City is able to report positive balances in both categories of net assets, for
both the government as a whole, as well as for its separate governmental and business-type activities.
During the current fiscal year, the City's net assets increased by$1.0 million. Information about changes in net assets is summarized below:
SUMMARY OF CHANGES IN NET ASSETS
For the Fiscal Years Ended June 30, 2011 and 2010
2010-2011 2010-2011 2009-2010 2009-2010
Governmental Business- 2010-2011 Governmental Business- 2009-2010
Activities Type Activities Total Activities Type Activities Total
Revenues:
Program Revenues
Charges for services $ 2,068,560 $ 1,930,599 $ 3,999,159 $ 2,080,904 $ 1,909,905 $ 3,990,809
Operating grants and contributions 1,653,560 495,533 2,149,093 1,507,538 474,542 1,982,080
Capital grants and contributions 3,354,535 149,306 3,503,841 3,737,926 110,696 3,848,622
General Revenues:
Secured and unsecured property taxes 10,354,971 - 10,354,971 9,738,208 - 9,738,208
Sales and use taxes 2,862,255 - 2,862,255 2,583,898 - 2,583,898
Other taxes 1,781,022 - 1,781,022 1,697,865 - 1,697,865
Motor vehicle in lieu 144,594 - 144,594 83,854 - 83,854
Loss on Inclusionary Housing Loans - - - (351,117) - (351,117)
Investment Income 415,503 82,942 498,445 440,705 151,998 592,703
Total Revenues 22,635,000 2,658,380 25,293,380 21,519,781 2,647,141 24,166,922
7
City of Atascadero
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2011
GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued)
SUMMARY OF CHANGES IN NET ASSETS
For the Fiscal Years Ended June 30, 2011 and 2010
2010-2011 2010-2011 2009-2010 2009-2010
Governmental Business- 2010-2011 Governmental Business- 2009-2010
Activities Type Activities Total Activities Type Activities Total
Program Expenses
General Government $ 2,005,166 $ - $ 2,005,166 $ 2,210,946 $ - $ 2,210,946
Public Safety 9,418,822 - 9,418,822 9,557,316 - 9,557,316
Community Development 2,829,741 - 2,829,741 2,120,633 - 2,120,633
Community, Recreation &Zoo Services 2,313,018 - 2,313,018 2,073,394 - 2,073,394
Parks & Open Space 709,193 - 709,193 820,451 - 820,451
Public Works 2,912,850 - 2,912,850 2,835,970 - 2,835,970
Sewer - 2,218,758 2,218,758 - 2,106,796 2,106,796
Transit - 657,046 657,046 - 634,434 634,434
Interest on long-term debt 1,234,755 - 1,234,755 615,851 - 615,851
Total Expenses 21,423,545 2,875,804 24,299,349 20,234,561 2,741,230 22,975,791
Increase in net assets 1,211,455 (217,424) 994,031 1,285,220 (94,089) 1,191,131
Net assets- beginning 130,731,014 25,257,789 155,988,803 129,445,794 25,351,878 154,797,672
Net assets- ending $ 131,942,469 $ 25,040,365 $ 156,982,834 $ 130,731,014 $ 25,257,789 $ 155,988,803
Governmental activities increased the City's net assets by$1,211,455 while business-type activities decreased the City's net assets by$217,424.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City of Atascadero uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such
information is useful in assessing the City's financing requirements.
8
City of Atascadero
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2011
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (continued)
As of June 30, 2011, the City's governmental funds reported combined ending fund balances of$46,732,970. Approximately 3% ($1,391,607)of this total
amount cannot be spent because it is in a non-spendable form and/or a non-cash form such as prepaid items, long-term notes receivable and long-term
advances receivable. The City's governmental funds Unassigned Fund Balance is (-$11,785,072). The General Fund portion of this ($5.5 million) is
available for any purpose. The remaining Unassigned Fund Balance is the aggregate amount of Other Governmental Funds where expenditures were
made prior to receipt of restricted revenues. The Restricted Fund Balance of $56,471,501 includes amounts constrained to specific purposes by their
providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation. This category of
fund balance reflects interfund activity and the activity related to the $16 million Lease Revenue bonds issued in the Fall of 2010. The Assigned fund
balance ($654,934) is the amount the City intends to use for a specific purpose.
General Fund — The General Fund is the chief operating fund of the City. At June 30, 2011, the total fund balance was $6,920,444 and the spendable
unrestricted fund balance was 79% ($5,468,236) of the total. As a measure of the General Fund's liquidity, it may be useful to compare total fund
balance to total fund expenditures. The total General Fund balance represents 42% of fund expenditures, down from 46% in the prior fiscal year. The
General Fund balance decreased $597,085 during the fiscal year.
Redevelopment Agency Fund — The Redevelopment Agency Fund is the primary fund for the Community Redevelopment Agency of Atascadero. At
June 30, 2011, the total fund balance was -$15,816,293. This is a $25 million swing from the prior fiscal year balance of $7,012,317. The
Redevelopment Agency transferred over $16 million for debt service related to the Lease Revenue Bonds that were issued during the fiscal year. In
addition, the Agency contracted with the City, transferring over $6.5 million in assets from this fund to the City for construction of certain Redevelopment
Agency priority blight elimination projects. See Note 14 for further information regarding the Redevelopment Agency and the effects of AB X1 26.
Low /Moderate Income Housing Redevelopment Fund — The Community Redevelopment Agency of Atascadero Low / Moderate Income Housing
Fund was established to promote low and moderate income housing in the City of Atascadero. At June 30, 2011, the total fund balance was a negative
($276,596). This is down significantly from the prior year balance of$4,801,359 due primarily to a significant capital contract for production of affordable
housing units. The Redevelopment Agency contracted with the City, transferring over$5.5 million in assets to the City from this fund for production of at
least 24 affordable housing units. See Note 14 for further information regarding the Redevelopment Agency and the effect of AB X1 26.
Blight Elimination Projects Fund — The Blight Elimination Projects Fund accounts for funds deposited with the City for, and costs associated with, the
construction of certain contracted blight elimination projects. The City entered into an agreement with the Redevelopment Agency whereby the Agency
deposited $8,179,378 with the City and the City agreed to construct specific blight elimination projects. Any funds remaining upon completion of the
projects must be returned to the Agency. At June 30, 2011, the total fund balance was $8,196,578. See Note 14 for further information regarding the
Redevelopment Agency and the effect of AB X1 26.
Historic City Hall Rehabilitation Fund— The Historic City Hall Rehabilitation Fund accounts for all of the costs related to the restoration of the Historic
City Hall rotunda building after it was severely damaged in the San Simeon Earthquake on December 22, 2003. At June 30, 2011, the total fund balance
was $12,148,093. This is up significantly from the previous year fund balance of $9,335. In September of 2010, the City issued $16.0 million in lease
revenue bonds. The Redevelopment Agency received the proceeds of the bonds and will reimburse the City for the related debt service payments.
Thirteen million dollars of the bond proceeds were transferred to the Historic City Hall Rehabilitation Fund for rehabilitation of the building and grounds.
See Note 14 for further information regarding the Redevelopment Agency and the effect of AB X1 26.
9
City of Atascadero
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2011
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (continued)
Other Governmental Funds —These are nonmajor funds of the City and are presented in the basic financial statements in the aggregate and in detail in
the supplementary section of this report. At June 30, 2011, these funds had an aggregate fund balance of $35,560,744. Of this total $730 is non-
spendable and $592,693 is assigned for specific uses. The Restricted Fund Balance of$36,127,740 includes $17.4 million for debt service on the 2010
lease revenue bonds. The remaining unassigned fund balances in the amount of negative $1,160,419 is the aggregate amount for several funds where
expenditures were made prior to receipt of restricted revenues. More information about these nonmajor funds can be found in the combining and
individual fund financial statements and schedules.
Proprietary Funds
The City's two enterprise funds provide the same type of information found in the Government-wide Financial Statements, but in more detail. Highlights
of the annual activity for these funds have already been presented in the discussion of the business-type activities.
Debt Administration
Debt, considered a liability of governmental activities, increased in FY 2010-2011 by$15,739,806. Amortization reduced debt by$420,000, compensated
absences increased it by$147,375, Other Post Employment Benefits increased it by another$2,431 and the issuance of lease revenue bonds increased
debt by$16 million.
On September 1, 2010, the City of Atascadero issued $16,010,000 in Lease Revenue Bonds for the Community Redevelopment Agency of Atascadero.
The bonds were issued by the City in order to achieve an overall lower interest rate on the bonds. The bond proceeds were transferred to the
Redevelopment Agency for use on the Historic City Hall Project and other redevelopment blight elimination projects. These bonds will mature between
fiscal years 2014 and 2040, at interest rates ranging from 3.00% to 5.00%. The Agency will make lease payments, from tax increment revenues, to the
City in amounts equal to the annual debt service payments on the bonds. The Bonds will then be repaid by the City using these lease revenues. Debt of
the business-type activities decreased by$1,503 in FY 2010-2011 due to a decrease in compensated absences.
Cash Management
To obtain flexibility in cash management, the City employs a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds
with maturities planned to coincide with cash needs. Idle cash is invested in certain eligible securities as constrained by law and further limited by the
City's Investment Policy. The goals of the City's Investment Policy are safety, liquidity and yield.
Capital Assets
The capital assets of the City are those assets that are used in the performance of the City's functions, including infrastructure assets. At June 30, 2011,
net capital assets of the governmental activities totaled $107,836,619 and the net capital assets of the business-type activities totaled $14,794,665.
Depreciation on capital assets is recognized in the Government-wide Financial Statements. The City has elected to depreciate its infrastructure assets.
In order to depreciate the infrastructure assets, an estimated useful life for each type of asset was determined using engineering standards, industry
standards, as well as discussions with City staff regarding the City's maintenance program for each asset type. This allowed the estimated useful life of
each asset type to be tailored to include the unique attributes of the City of Atascadero.
10
City of Atascadero
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2011
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (continued)
The following table presents summary information on the City's capital assets:
2010-2011 2010-2011 2009-2010 2009-2010
Governmental Business-Type 2010-2011 Governmental Business-Type 2009-2010
Activities Activities Total Activities Activities Total
Non-Depreciable:
Land $ 41,123,547 $ 442,044 $ 41,565,591 $ 41,123,547 $ 442,044 $ 41,565,591
Construction in progress 13,172,145 447,390 13,619,535 8,673,660 421,757 9,095,417
Depreciable:
Vehicles and equipment 8,306,171 865,167 9,171,338 8,249,498 864,620 9,114,118
Structures and improvements 20,894,367 24,182,732 45,077,099 20,881,011 23,618,968 44,499,979
Infrastructure 55,415,177 - 55,415,177 55,412,984 - 55,412,984
Accumulated Depreciation (31,074,788) (11,142,668) (42,217,456) (28,894,502) (10,481,101) (39,375,603)
Invested in capital assets, net
of related debt $ 107,836,619 $ 14,794,665 $ 122,631,284 $ 105,446,198 $ 14,866,288 $ 120,312,486
General Fund Budgetary Highlights
A detailed budgetary comparison schedule for the fiscal year ended June 30, 2011, is presented in the required supplementary information to the basic
financial statements. The final budget amounts (which are the focus of this discussion) are different from those presented in the 2010-2011 budget
document. This is due to changes that occurred between the time that the budget was prepared and fiscal year-end final budget approvals.
The following summarizes the original and final budget compared with actual results for 2010-2011.
Variance
Positive
General Fund Original Budget Final Budget Actual (Negative)
Revenues $ 16,772,000 $ 17,408,930 $ 15,738,386 $ (1,670,544)
Expenditures 17,956,390 18,555,320 16,516,522 P, 2,038,798
Other Sources (Uses) 154,830 59,830 181,051 121,221
Fund Balance, beginning 7,517,529 7,517,529 7,517,529 -
Fund Balance, ending $ 6,487,969 $ 6,430,969 $ 6,920,444 $ 489,475
11
City of Atascadero
Management's Discussion and Analysis
Fiscal Year Ended June 30, 2011
FINANCIAL ANALYSIS OF THE CITY'S FUNDS (continued)
The variance between the final budget and the original budget decreased the General Fund ending fund balance by an additional $57,000. This change
reflects a Council approved contribution toward the new library.
Economic Factors and Next Fiscal Year's Budget
The 2011-2012 Operating and Capital budget was significantly affected by the sluggish fiscal environment. Atascadero has been suffering through the
challenge of the economic downturn along with other cities, states and nations. Since the last major downswing in the 1990's, the Council has
implemented a conservative fiscal strategy. Using this framework, the City has saved money in the good years so that there is a resource to be drawn
from in the bad years. This policy has allowed for stable operations and long-term financial sustainability during this time of economic turmoil.
However, this current downturn has been severe and lengthy, and in combination with unavoidable future cost increases, has required the City to make
additional cuts to the already lean operating budgets. These cuts have been difficult on the organization, and will have some impact on the community,
although the core missions of the organization remain intact and have been fully funded. While services from the public's perspective will be somewhat
impacted, the City's ability to tackle new projects or initiatives has been greatly diminished.
There is some good news on the horizon, however. Despite the continued economic gloom in California, Atascadero is enjoying significant new
construction of retail space, including the new Galaxy Theatre and surrounding retail outlets. This is great news for the City, socially and financially.
Nonetheless, revenue gains from these new projects will not be realized for a few years into the future.
The 2011-2012 budget is the result of significant team work and represents difficult decisions, reductions, compromises and concessions. In preparing
the budget, the objective was to provide an effective plan to maintain the Council goals and the City's core services. The Council's top three priorities
are:
• Pursuit of Economic Development
• Enhancement of Public Safety
• Stabilization of the City's Finances
To accomplish all of these goals, the 2011-2012 budget includes the planned use of$1.1 million in reserves, in accordance with the Council's financial
strategy.
Legislation recently passed will affect the Community Redevelopment Agency of Atascadero. See Note 14 for additional factors affecting next fiscal
year's budget.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT TEAM
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the City's finances and
to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the City of Atascadero, Administrative Services Department, 6907 EI Camino Real, Atascadero, CA 93422.
12
BASIC FINANCIAL STATEMENTS
CITY OF ATASCADERO
STATEMENT OF NET ASSETS
June 30, 2011
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments $ 43,589,344 $ 10,370,079 $ 53,959,423
Restricted cash and investments:
Cash with fiscal agents 2,349,550 - 2,349,550
Certificates of deposit 1,633,723 - 1,633,723
Receivables:
Federal distributions due 2,825,948 280,471 3,106,419
Due from State of California 1,328,312 1,810 1,330,122
Due from County of San Luis Obispo 791,278 55,461 846,739
Accrued interest 73,052 16,308 89,360
Other receivables 267,810 54,106 321,916
Interfund balances 269,672 (269,672) -
Prepaid expenses 37,255 - 37,255
Notes receivable 3,713,125 - 3,713,125
Deferred charges 437,041 - 437,041
Deposits in excess of estimated claims liability 773,445 - 773,445
Capital assets:
Non-depreciable:
Land 41,123,547 442,044 41,565,591
Construction in progress 13,172,145 447,390 13,619,535
Depreciable:
Equipment 8,306,171 865,167 9,171,338
Structures and improvements 20,894,367 24,182,732 45,077,099
Infrastructure 55,415,177 - 55,415,177
Accumulated depreciation (31,074,788) (11,142,668) (42,217,456)
Total assets 165,926,174 25,303,228 191,229,402
The notes to the basic financial statements are an integral part of this statement.
13
CITY OF ATASCADERO
STATEMENT OF NET ASSETS(continued)
June 30, 2011
Governmental Business-Type
Activities Activities Total
LIABILITIES
Accounts payable $ 1,576,202 $ 178,962 $ 1,755,164
Accrued salaries and compensated absences 598,935 20,188 619,123
Accrued interest payable 378,265 - 378,265
Other payables 13,754 3,006 16,760
Deposits payable 398,227 - 398,227
Deferred revenue 909,469 50,483 959,952
Noncurrent liabilities:
Due within one year 440,000 - 440,000
Due in more than one year 29,668,853 10,224 29,679,077
Total liabilities 33,983,705 262,863 34,246,568
NET ASSETS
Invested in capital assets, net of related debt 95,007,617 14,794,665 109,802,282
Restricted for:
Restricted for parks and recreation 1,815,678 - 1,815,678
Restricted for streets, roads and drainage 4,676,689 - 4,676,689
Restricted for redevelopment&housing 685,332 - 685,332
Restricted for debt service 17,464,891 - 17,464,891
Unrestricted 12,292,262 10,245,700 22,537,962
Total net assets $ 131,942,469 $ 25,040,365 $ 156,982,834
The notes to the basic financial statements are an integral part of this statement.
14
CITY OF ATASCADERO
STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2011
Net(Expense)Revenue and
Program Revenues Changes in Net Assets
Operating Capital Net Net
Charges for Contributions Contributions Governmental Business-type
Expenses Services and Grants and Grants Activities Activities Total
Governmental activities:
General government $ 2,005,166 $ 6,723 $ 336,652 $ 1,120,785 $ (541,006) $ - $ (541,006)
Public safety 9,418,822 507,941 204,488 70,987 (8,635,406) - (8,635,406)
Community development 2,829,741 844,955 143,268 276,582 (1,564,936) - (1,564,936)
Community, recreation &zoo
services 2,313,018 585,203 72,506 152,215 (1,503,094) - (1,503,094)
Parks&open space 709,193 61,737 34,149 117,274 (496,033) - (496,033)
Public works 2,912,850 62,001 862,497 1,616,692 (371,660) - (371,660)
Interest on long-term debt 1,234,755 - - - (1,234,755) - (1,234,755)
Total governmental activities 21,423,545 2,068,560 1,653,560 3,354,535 (14,346,890) - (14,346,890)
Business-type activities:
Sewer 2,261,837 1,824,668 - - - (437,169) (437,169)
Transit 657,046 105,931 495,533 149,306 - 93,724 93,724
Total business-type activities 2,918,883 1,930,599 495,533 149,306 - (343,445) (343,445)
Total government $ 24,342,428 $ 3,999,159 $ 2,149,093 $ 3,503,841 (14,346,890) (343,445) (14,690,335)
General revenues
Taxes:
Secured and unsecured property taxes 10,354,971 - 10,354,971
Sales tax and payments in lieu of sales tax 2,862,255 - 2,862,255
Transient lodging tax 525,530 - 525,530
Franchise taxes 990,037 - 990,037
Business license tax 151,212 - 151,212
Property transfer tax 68,107 - 68,107
Othertaxes 46,136 - 46,136
Motor vehicle in lieu 144,594 - 144,594
Investment income 415,503 82,942 498,445
Total general revenues 15,558,345 82,942 15,641,287
Change in net assets 1,211,455 (260,503) 950,952
Net assets at beginning of fiscal year 130,731,014 25,257,789 155,988,803
Net assets at end of fiscal year $ 131,942,469 $ 24,997,286 $ 156,939,755
The notes to the basic financial statements are an integral part of this statement.
15
CITY OF ATASCADERO
GOVERNMENTALFUNDS
BALANCE SHEET
June 30, 2011
Low/Moderate Historic City Other
Income Housing Blight Hall NonMajor
General Redevelopment Redevelopment Elimination Rehabilitation Governmental
Fund Agency Fund Fund Projects Fund Fund Funds Totals
ASSETS
Cash and investments $ 4,105,851 $ 1,205,252 $ - $ 8,195,946 $ 11,501,539 $ 12,617,680 $ 37,626,268
Restricted cash and investments:
Cash and investments with fiscal agent - - - - - 2,349,550 2,349,550
Certificates of deposit 133,723 1,500,000 - - - - 1,633,723
Receivables:
Federal distributions due 136,602 - - - 881,438 1,289,699 2,307,739
Due from State of California 478,189 - - - 458,900 218,450 1,155,539
Due from County of San
Luis Obispo 143,456 30,405 10,530 - - 606,887 791,278
Accrued interest 6,540 2,464 - 12,956 21,069 20,614 63,643
Other receivables 208,653 8,482 - - - 50,675 267,810
Due from other funds 1,998,069 176,755 - - - 1,621,886 3,796,710
Prepaid items 14,792 - - - 910 730 16,432
Notes receivable - - - - - 3,713,125 3,713,125
Interfund advances receivable 1,375,175 - 1,335,322 - - 16,010,000 18,720,497
Total assets $ 8,601,050 $ 2,923,358 $ 1,345,852 $ 8,208,902 $ 12,863,856 $ 38,499,296 $ 72,442,314
The notes to the basic financial statements are an integral part of this statement.
16
CITY OF ATASCADERO
GOVERNMENTAL FUNDS
BALANCE SHEET(continued)
June 30, 2011
Low/Moderate Historic City Other
Income Housing Blight Hall NonMajor
General Redevelopment Redevelopment Elimination Rehabilitation Governmental
Fund Agency Fund Fund Projects Fund Fund Funds Totals
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 468,929 $ 18,890 $ 562 $ 12,324 $ 715,763 $ 341,250 $ 1,557,718
Accrued salaries and benefits 567,183 264 - - - 15,194 582,641
Due to other funds - - 1,621,886 - - 1,883,767 3,505,653
Deferred revenue 233,778 - - - - 675,691 909,469
Deposits 398,227 - - - - - 398,227
Other payables 12,489 - - - - 1,265 13,754
Interfund advances payable - 18,720,497 - - - 21,385 18,741,882
Total liabilities 1,680,606 18,739,651 1,622,448 12,324 715,763 2,938,552 25,709,344
Fund Balances:
Nonspendable 1,389,967 - - - 910 730 1,391,607
Restricted - - - 8,196,578 12,147,183 36,127,740 56,471,501
�aaiyi luu iui ci wui 1 wi ai wca-
development
services 62,241 - - - - - 62,241
Assigned for road projects - - - - - 592,693 592,693
Unassigned 5,468,236 (15,816,293) (276,596) - - (1,160,419) (11,785,072)
Total fund balances 6,920,444 (15,816,293) (276,596) 8,196,578 12,148,093 35,560,744 46,732,970
Total liabilities and fund balances $ 8,601,050 $ 2,923,358 $ 1,345,852 $ 8,208,902 $ 12,863,856 $ 38,499,296 $ 72,442,314
The notes to the basic financial statements are an integral part of this statement.
17
CITY OF ATASCADERO
RECONCILIATION OF THE GOVERNMENTAL FUNDS- BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
June 30, 2011
Total fund balances-governmental funds $ 46,732,970
In governmental funds, only current assets are reported. In the statement of net assets, all assets are reported,
including capital assets and accumulated depreciation.
Capital assets at historical cost $ 109,294,051
Accumulated depreciation (22,237,464)
Net 87,056,587
Long-term assets are not available to pay for current period expenditures and therefore are deferred in the funds.
Long-term assets consist of deposits in excess of estimated claims and judgments. 773,445
In governmental funds, interest on long-term debt is not recognized until the period in which it matures and is
paid. In the government-wide statement of activities, it is recognized in the period that it is incurred. (378,265)
Long-term liabilities: In governmental funds, only current liabilities are reported. In the statement of net assets,
all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental
activities consist of:
Bonds payable 28,395,000
Compensated absences payable 1,534,083
Other Post Employment Benefits 150,263
(30,079,346)
In governmental funds, bond issuance costs are expensed when the bonds are issued. In the government-wide
statement of activities,the costs are recorded as an asset and amortized over the life of the bond. 437,041
Internal service funds are used by management to charge the costs of various City activities to individual
governmental and enterprise funds. The unrestricted net assets of the internal service funds are included
in the Governmental Activities in the Statement of Net Assets. 27,400,037
Total net assets, governmental activities $ 131,942,469
The notes to the basic financial statements are an integral part of this statement.
18
CITY OF ATASCADERO
GOVERNMENTALFUNDS
STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES
For the Fiscal Year Ended June 30, 2011
Low/Moderate Historic City Other
Income Housing Blight Hall NonMajor
General Redevelopment Redevelopment Elimination Rehabilitation Governmental
Fund Agency Fund Fund Projects Fund Fund Funds Totals
Revenues:
Secured and unsecured property taxes $ 7,048,088 $ 1,015,932 $ 745,780 $ - $ - $ 1,545,171 $ 10,354,971
Taxes based on sales and use 2,862,255 - - - - - 2,862,255
Franchise tax 990,037 - - - - - 990,037
Othertaxes 744,862 - - - - - 744,862
Licenses and permits 206,390 - - - - 329,149 535,539
Intergovernmental revenues:
Motor vehicle in lieu 144,594 - - - - - 144,594
Grants 179,167 - - - 1,627,715 1,298,089 3,104,971
Other governmental revenues 86,676 - - - - 999,447 1,086,123
Charges for services:
Public safety 387,928 - - - - - 387,928
Development 699,496 - - - - - 699,496
Recreation, parks, pavilion and zoo 630,059 - - - - - 630,059
Other services 37,621 - - - - - 37,621
Fines and forfeitures 90,655 - - - - - 90,655
Use of money and property 160,435 431,544 (8,234) 69,403 91,830 9,866 754,844
Other revenues 1,470,123 - - - 48,563 1,518,686
Total revenues 15,738,386 1,447,476 737,546 69,403 1,719,545 4,230,285 23,942,641
The notes to the basic financial statements are an integral part of this statement.
19
CITY OF ATASCADERO
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES (continued)
For the Fiscal Year Ended June 30, 2011
Low/Moderate Historic City Other
Income Housing Blight Hall NonMajor
General Redevelopment Redevelopment Elimination Rehabilitation Governmental
Fund Agency Fund Fund Projects Fund Fund Funds Totals
Expenditures:
Current:
General government $ 2,485,538 $ - $ - $ - $ 75,767 $ 9,968 $ 2,571,273
Public safety 9,130,176 - - - - 72,130 9,202,306
Community development 1,592,486 778,210 271,701 323 18,698 65,772 2,727,190
Community, recreation, and
zoo services 1,776,851 - - - 8,344 260,705 2,045,900
Parks and open space 564,236 31,084 - - - 60,241 655,561
Public works 909,618 23,639 - - 6,983 1,180,099 2,120,339
Capital outlay 57,617 299,491 - 37,709 2,523,453 1,635,615 4,553,885
Debt service:
Principal - - - - - 420,000 420,000
Interest - 115,223 - - - 1,038,630 1,153,853
Bond Issuance Costs - - - - - 282,606 282,606
Total expenditures 16,516,522 1,247,647 271,701 38,032 2,633,245 5,025,766 25,732,913
Excess of revenues over(under)
expenditures (778,136) 199,829 465,845 31,371 (913,700) (795,481) (1,790,272)
Other Financing Sources (Uses):
Bonds Issued - - - - - 16,010,000 16,010,000
Premium on bonds issued - - - - - 90,283 90,283
Transfers in 276,430 43,030 - 8,179,378 13,052,458 23,846,174 45,397,470
Transfers out (95,379) (23,071,469) (5,543,800) (14,171) - (16,672,651) (45,397,470)
Total other financing sources
and uses 181,051 (23,028,439) (5,543,800) 8,165,207 13,052,458 23,273,806 16,100,283
Net changes in fund balances (597,085) (22,828,610) (5,077,955) 8,196,578 12,138,758 22,478,325 14,310,011
Fund balances-June 30, 2010 7,517,529 7,012,317 4,801,359 - 9,335 13,082,419 32,422,959
Fund balances-June 30, 2011 $ 6,920,444 $ (15,816,293) $ (276,596) $ 8,196,578 $ 12,148,093 $ 35,560,744 $ 46,732,970
The notes to the basic financial statements are an integral part of this statement.
20
CITY OF ATASCADERO
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2011
Total net change in fund balances-governmental funds $ 14,310,011
Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of
those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which
additions to capital outlay of$4,553,883 is greater than depreciation expense$(1,393,031) in the period. 3,160,852
The issuance of long-term debt, including bond premiums and issuance costs, provides (uses)current financial resources to
governmental funds. In the government-wide statements, bonds issued are treated as debt,while premiums are deferred
and amortized over the life of the bond. This amount is the net of$16,010,000 in bond principal issued, plus bond premiums
received ($90,283), less costs associated with issuing the bonds($282,606). (15,817,677)
In governmental funds, repayments of long-term debt are reported as expenditures. In the government-wide statements,
repayments of long-term debt are reported as reductions of liabilities. 420,000
In governmental funds, the issuance costs associated with long-term debt are reported as expenses in the fiscal year debt is
issued. In the government-wide statements,the issuance costs are recorded as assets and are amortized over the
life of the related debt. (17,142)
In governmental funds, interest on long-term debt is recognized in the period that it becomes due. In the government-wide
statement of activities, it is recognized in the period that it is incurred. Unmatured interest owing at the end of the period,
less matured interest paid during the period but owing from the prior period was: (178,983)
In the statement of activities, compensated absences are measured by the amounts earned during the fiscal year. In
governmental funds, however, expenditures for these items are measured by the amount of financial resources used
(essentially the amounts paid). This fiscal year, leave earned exceeded the amounts used by$141,908 (141,908)
In the statement of activities, some claims and judgment expenses do not require the use of current financial resources and
therefore are not reported as expenditures in governmental funds. 72,340
In the statement of activities,the long-term liability for Other Post Employment Benefits is recognized. The increase in the
long-term liability does not require the use of current financial resources and is not reported in governmental funds. (2,431)
Internal service funds are used by management to charge the costs of various City activities to individual governmental and
enterprise funds. The change in the unrestricted net assets of the internal service funds is included in the
Governmental Activities in the Statement of Activities. This amount is the net of the change in net assets$1,995,250
less the contributions of cash and fixed assets from other governmental funds($2,588,857). (593,607)
Changes in net assets of governmental activities $ 1,211,455
The notes to the basic financial statements are an integral part of this statement.
21
CITY OF ATASCADERO
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
June 30, 2011
Enterprise Funds
Internal Service
Wastewater Fund Transit Fund Totals Funds
ASSETS
Current Assets:
Cash and investments $ 10,370,079 $ - $ 10,370,079 $ 5,963,076
Receivables:
Federal distributions due 5,429 275,042 280,471 518,209
Due from State of California 1,810 - 1,810 172,773
Due from County of San Luis Obispo 51,834 3,627 55,461 -
Accrued interest 16,308 - 16,308 9,409
Other receivables 52,511 1,595 54,106 -
Prepaid expenses - - - 20,823
Interfund advances receivable 21,385 - 21,385 -
Total current assets 10,519,356 280,264 10,799,620 6,684,290
Capital Assets:
Non-depreciable:
Land 442,044 - 442,044 -
Construction in progress 134,465 312,925 447,390 6,340,053
Depreciable:
Vehicles and equipment 433,527 431,640 865,167 8,219,418
Structure and improvements 24,056,322 126,410 24,182,732 15,057,885
Accumulated depreciation (10,770,069) (372,599) (11,142,668) (8,837,324)
Net capital assets 14,296,289 498,376 14,794,665 20,780,032
Total assets 24,815,645 778,640 25,594,285 27,464,322
The notes to the basic financial statements are an integral part of this statement.
22
CITY OF ATASCADERO
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS(continued)
June 30, 2011
Enterprise Funds
Internal Service
Wastewater Fund Transit Fund Totals Funds
LIABILITIES
Current Liabilities:
Accounts payable $ 133,077 $ 45,885 $ 178,962 $ 18,484
Accrued salaries and benefits 18,662 1,526 20,188 16,294
Deferred revenue - 50,483 50,483 -
Due to other funds - 291,057 291,057 -
Other payables 2,640 366 3,006 -
Noncurrent Liabilities:
Compensated absences 10,224 - 10,224 29,507
Total liabilities 164,603 389,317 553,920 64,285
NET ASSETS
Invested in capital assets 14,296,289 498,376 14,794,665 20,780,032
Unrestricted 10,354,753 (109,053) 10,245,700 6,620,005
Total net assets $ 24,651,042 $ 389,323 $ 25,040,365 $ 27,400,037
The notes to the basic financial statements are an integral part of this statement.
23
CITY OF ATASCADERO
PROPRIETARY FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET ASSETS
For the Fiscal Year Ended June 30, 2011
Enterprise Funds
Internal Service
Wastewater Fund Transit Fund Totals Funds
Operating Revenues:
Service fees $ 1,782,654 $ 105,931 $ 1,888,585 $ 946,155
Installation, extension and connection fees 38,969 - 38,969 -
Other 3,045 - 3,045 -
Total operating revenues 1,824,668 105,931 1,930,599 946,155
Operating Expenses:
Salaries and benefits 491,368 41,344 532,712 408,183
Office expense 286 1,513 1,799 611
Advertising - 1,450 1,450 -
Computer maintenance and replacement 17,290 9,310 26,600 4,870
Insurance 37,139 15,382 52,521 27,000
Occupancy and rental costs 9,381 1,020 10,401 391,406
Utilities 234,532 - 234,532 40,483
Communications 6,406 1,234 7,640 6,185
Operating supplies 94,522 455 94,977 26,491
Vehicle and equipment operating costs 134,990 145,951 280,941 4,229
Contract services 126,955 258,519 385,474 70,932
Professional development 2,411 375 2,786 7,047
Recruitment - - - 392
Franchise fees 34,700 - 34,700 -
Administrative charges 229,400 124,910 354,310 90,320
Special projects:
Sewer line trench settlement repairs 17,592 - 17,592 -
Manhole repairs 9,913 - 9,913 -
Collection System Video Taping 116,820 - 116,820 -
Salt and Nutrient Management Plan 421 - 421 -
Sewer System Management Plan 1,865 - 1,865 -
Santa Rosa Sewer Improvement 43,079 - 43,079 -
Technology equipment - - - 4,142
Aerial Photo - - - 9,000
Depreciation 609,903 55,583 665,486 880,895
Total operating expenses 2,218,973 657,046 2,876,019 1,972,186
Operating income(loss) (394,305) (551,115) (945,420) (1,026,031)
The notes to the basic financial statements are an integral part of this statement.
24
CITY OF ATASCADERO
PROPRIETARY FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET ASSETS (continued)
For the Fiscal Year Ended June 30, 2011
Enterprise Funds
Internal Service
Wastewater Fund Transit Fund Totals Funds
Non-Operating Revenues(Expenses):
Transportation Development Act Funds-Operations $ - $ 276,186 $ 276,186 $ -
Section 5307 Revenues-Operations - 219,347 219,347 -
FEMA Earthquake Repair Grant - - - 280,197
OES Earthquake Repair Grant - - - 93,399
Interest income 86,531 (3,589) 82,942 50,048
Gain/(loss)on sale of capital assets 215 - 215 8,780
Total non-operating revenues 86,746 491,944 578,690 432,424
Change in net assets prior to capital
contributions (307,559) (59,171) (366,730) (593,607)
Capital Contributions:
Capital contributions from other funds - - - 2,588,857
Transportation Development Act Funds-Capital - 14,609 14,609 -
Section 5307 Revenues-Capital (Transit Center) - 45,334 45,334 -
Section 5307 Revenues-Capital (Bus Stop
Improvements) - 12,424 12,424 -
ARRA Capital Grant- Bus Shelter/Parking Area - 1,277 1,277 -
ARRA Capital Grant- Dial A Ride Bus - 547 547 -
ARRA Capital Grant-Bus Stop Improvements - 65,330 65,330 -
Prop 1 B Grant- Driver&Vehicle Safety - 3,437 3,437 -
PTMISEA-Driver&Vehicle Safety - 6,348 6,348 -
Total capital contributions - 149,306 149,306 2,588,857
Change in net assets (307,559) 90,135 (217,424) 1,995,250
Total net assets, June 30, 2010 24,958,601 299,188 25,257,789 25,404,787
Total net assets, June 30, 2011 $ 24,651,042 $ 389,323 $ 25,040,365 $ 27,400,037
The notes to the basic financial statements are an integral part of this statement.
25
CITY OF ATASCADERO
PROPRIETARY FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the Fiscal Year Ended June 30, 2010
Enterprise Funds
Internal Service
Wastewater Fund Transit Fund Totals Funds
Cash Flows From Operating Activities:
Receipts from customers $ 1,823,700 $ 117,770 $ 1,941,470 $ -
Internal activity-payments from other funds 70,731 - 70,731 946,155
Payments to suppliers of goods and services (1,164,448) (659,212) (1,823,660) (692,556)
Payments for employee services (489,792) (41,125) (530,917) (398,717)
Net cash provided (used)by operating
activities 240,191 (582,567) (342,376) (145,118)
Cash Flows From Non-Capital Financing
Activities:
Receipts from intergovernmental agencies - 735,460 735,460
Net cash provided (used)by non-capital
related financing activities - 735,460 735,460 -
Cash Flows From Capital and Related Financing
Activities:
Acquisition of fixed assets (444,559) (149,304) (593,863) (110,464)
Capital grant proceeds - - - 446,273
Proceeds from sale of capital assets 215 - 215 8,780
Net cash provided (used) by capital and
related financing activities (444,344) (149,304) (593,648) 344,589
The notes to the basic financial statements are an integral part of this statement.
26
CITY OF ATASCADERO
PROPRIETARY FUNDS
COMBINING STATEMENT OF CASH FLOWS (continued)
For the Fiscal Year Ended June 30, 2011
Enterprise Funds
Internal Service
Wastewater Fund Transit Fund Totals Funds
Cash Flows From Investing Activities:
Interest income $ 102,547 $ (3,589) $ 98,958 $ 58,439
Principal received on interfund advances 24,886 - 24,886 -
Net cash provided (used)by investing
activities 127,433 (3,589) 123,844 58,439
Net increase(decrease)in cash and cash
equivalents (76,720) - (76,720) 257,910
Cash and cash equivalents-June 30, 2010 10,446,799 - 10,446,799 5,705,166
Cash and cash equivalents-June 30, 2011 $ 10,370,079 $ - $ 10,370,079 $ 5,963,076
Reconciliation of operating income(loss)to net
cash provided (used) by operating activities:
Operating income(loss) $ (394,305) $ (551,115) $ (945,420) $ (1,026,031)
Adjustments to reconcile operating income (loss)to
net cash provided (used)by operating activities:
Depreciation expense 609,903 55,583 665,486 880,895
Change in assets and liabilities:
Receivables, net (968) 11,839 10,871 -
Prepaid expenses - - - (9,442)
Due from other funds 70,731 - 70,731 -
Accounts payable (42,639) (14,055) (56,694) (6)
Accrued salaries and benefits 3,079 219 3,298 3,999
Due to other funds (85,355) (85,355) -
Other payables (4,107) 317 (3,790) -
Compensated absences (1,503) - (1,503) 5,467
Net cash provided (used)by operating activities $ 240,191 $ (582,567) $ (342,376) $ (145,118)
The notes to the basic financial statements are an integral part of this statement.
27
NOTES TO THE BASIC FINANCIAL STATEMENTS
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 1 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The accompanying basic financial statements present the financial activity of the City, which is the primary government, along with the financial activities of
its component unit, which is an entity for which the City is financially accountable. Although they are separate legal entities, blended component units are
in substance part of the City's operations and are reported as an integral part of the City's basic financial statements. The City's component unit, which is
described below, is a blended component unit of the City.
The City Council serves in a separate session as the governing body of the Community Redevelopment Agency of Atascadero, although this Agency is a
legal entity apart from the City.
The Community Redevelopment Agency of Atascadero is included as a component unit in the accompanying financial statements. The financial activities
of the foregoing entity have been aggregated and merged (termed "blended")with those of the City in the accompanying financial statements, as it meets
the criteria for inclusion as set forth in the Governmental Accounting Standards Board (GASB) Statement No. 14, as amended by GASB Statement No. 39.
The Community Redevelopment Agency of Atascadero was established in 1999, by the City Council, to eliminate blight within the defined project areas by
encouraging and assisting planned development of low-income housing and commercial projects. Separate financial statements are prepared by the
Community Redevelopment Agency of Atascadero and are available at City Hall offices.
B. Basis of Presentation
The City's basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The
Governmental Accounting Standards Board is the acknowledged standard-setting body for establishing accounting and financial reporting standards
followed by governmental entities in the United States of America.
The accompanying financial statements are presented on the basis set forth in Governmental Accounting Standards Board Statements No. 34, Basic
Financial Statements—Management's Discussion and Analysis—for State and Local Governments; No. 36, Recipient Reporting for Certain Non-Exchange
Revenues, an Amendment of GASB Statement No. 33; No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and
Local Government–Omnibus; and No. 38, Certain Financial Statement Note Disclosures.
These statements require that the financial statements described below be presented.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information on the primary
government and its component unit. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
28
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Basis of Presentation (continued)
Government-Wide and Fund Financial Statements (continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual
enterprise funds are reported as separate columns in the fund financial statements.
C. Major Funds
GASB Statement No. 34 defines major funds and requires that the City's major governmental funds are identified and presented separately in the fund
financial statements. All other funds, called nonmajor funds, are combined and reported in a single column, regardless of their fund-type.
Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percent of their fund-type total. The
General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund
This fund accounts for all financial resources except those to be accounted for in another fund. It is the general operating fund of the City.
Redevelopment Agency Fund
This fund accounts for the operating activities of the Redevelopment Agency. The Agency's primary purpose is to eliminate blighted areas by encouraging
the development of residential, commercial, industrial, recreational, and public facilities.
Low/Moderate Income Housing Redevelopment Fund
This fund uses Redevelopment Housing Increment to promote low and moderate income housing within the City.
Blight Elimination Project Fund
This fund is used to complete the Identified Blight Elimination Projects so indicated by the Executive Board of the Atascadero Community Redevelopment
Agency. These Projects are key components of the revised Downtown Revitalization Plan and will improve pedestrian, vehicle, and bicycle traffic; provide
adequate parking; and improve the economic vitality of the Downtown Core.
Historic City Hall Rehabilitation Fund
This fund accounts for the rehabilitation of the historic City Hall building.
29
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
C. Major Funds (continued)
The City reported the following major proprietary funds:
Wastewater Fund
This fund accounts for the activities associated with the City's sewer plant operation and maintenance.
Transit Fund
This fund accounts for the activities associated with the operation and maintenance of transportation services, such as and including the Dial-a-Ride
Transit System.
D. Internal Service Funds
The Internal Service Funds are used to account for services rendered on a cost-reimbursement basis within the City. The City maintains three internal
service funds: the Technology Fund, the Vehicle and Equipment Replacement Fund, and the Building Maintenance and Replacement Fund. The Internal
Service Funds are presented in total on the Proprietary Funds financial statements. They are included in the governmental activities in the government-
wide financial statements since they represent internal governmental activities.
E. Basis of Accounting
The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the full accrual basis
of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash
flows take place.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989 generally are followed in both government-wide and
proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting
Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and proprietary
funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this
method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if
the revenues are collected within sixty days after fiscal year end. Expenditures are recorded when the related fund liability is incurred, except for principal
and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent that they have
matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and acquisitions under capital leases
are reported as other financing sources.
Proprietary funds distinguish operating revenues from nonoperating revenues. Operating revenues generally result from providing services in connection
with a proprietary fund's principal ongoing operations. The principal operating revenues of the Wastewater Fund and the Transit Fund are charges to
customers for services. The Wastewater Fund also recognizes as operating revenue the installation, extension and connections fees intended to recover
the cost of connecting new customers to the system. All revenues not meeting these definitions are reported as non-operating revenues, including non-
exchange transactions such as local transportation funds and federal Section 5307 revenues.
30
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
E. Basis of Accounting (continued)
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes,
grants, entitlements, and donations. On an accrual basis, revenues from property taxes are recognized in the fiscal year for which the taxes are levied.
Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and charges for services.
Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund
certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted
net assets may be available to finance program expenditures/expenses. The City's policy is to first apply restricted grant resources to such programs,
followed by general revenues if necessary.
F. Compensated Absences
In compliance with Governmental Accounting Standards Board Statement No. 16, the City has established a liability for accrued vacation, other leave and
certain sick leave in relevant funds. For governmental funds, the current liability appears in the respective funds. All vacation, sick and other leave paid is
accrued when incurred in the government-wide and proprietary funds financial statements. This liability is set up for the current employees at the current
rates of pay. If vacation and certain other leave are not used by the employee during the term of employment, compensation is payable to the employee at
the time of retirement or termination. Such compensation is calculated at the employee's prevailing rate at the time of retirement or termination. Each fiscal
year, an adjustment to the liability is made based on pay rate changes and adjustments for the current portion. The General Fund is primarily responsible
for the repayment of the governmental portion of compensated absences.
G. Property Taxes
California Constitution Article XIII A limits the combined property tax rate to one percent of a property's assessed valuation. Additional taxes may be
imposed with voter approval. Assessed value is calculated at one hundred percent of a property's fair value, as defined by Article XIII A, and may be
increased no more than two percent per year unless a change in ownership or new construction occurs. The state legislature has determined the method
of distributing the one percent tax levy among the various taxing jurisdictions.
Property tax revenues are recognized in the fiscal year for which taxes have been levied, and collected within sixty days of fiscal year end. Property taxes
are billed and collected as follows:
Secured Unsecured
Valuation/Lien Date(s) January 1 January 1
Levy Date(s) July 1 July 1
Due Date(s) November 1 (50%) August 1
February 1 (50%)
Delinquency Date(s) December 10 (Nov.) August 31
April 10 (Feb.)
31
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
G. Property Taxes (continued)
The City adopted an alternative method of property tax distribution (the "Teeter Plan"). Under this method, the City receives 100% of its secured property
tax levied in exchange for foregoing any interest and penalties collected on delinquent taxes. The City receives payments as a series of advances made
by the County throughout the fiscal year. The secured property tax levy is recognized as revenue upon receipt including the final payment, which generally
is received within 60 days after the fiscal year end.
H. Capital Assets Additions and Retirements
Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their
estimated fair value on the date contributed. The City's policy is to capitalize all capital assets with costs exceeding a minimum of$2,500, and with useful
lives exceeding one year.
With the implementation of GASB Statement No. 34, the City has recorded all its public domain (infrastructure) capital assets, which include roads,
bridges, curbs and gutters, streets and sidewalks, drainage systems, and lighting systems.
The City's collection of zoo animals is not capitalized. The collection of animals is held for public education purposes, is well cared for and there is a City
commitment to continue the collection.
The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to
depreciation expense each fiscal year represents that fiscal year's pro rata share of the cost of capital assets. GASB Statement No. 34 requires that all
capital assets with limited useful lives be depreciated over their estimated useful lives. Depreciation is provided using the straight line method which
means the cost of the asset is divided by its expected useful life in years and the result is charged to expense each fiscal year until the asset is fully
depreciated. The City has assigned the useful lives listed below to capital assets.
Structures and Improvements 3-100 years
Equipment 3-25 years
Infrastructure 15-100 years
I. Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, as prescribed by the
GASB and the American Institute of Certified Public Accountants, 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.
32
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
J. Cash and Cash Equivalents
For purposes of the statement of cash flows, the City considers all highly liquid investments with a maturity of three months or less when purchased to be
cash equivalents. The Proprietary Funds' "deposits" in the Citywide cash management pool are, in substance, demand deposits and are, therefore,
considered cash equivalents for purposes of the statement of cash flows.
K. Performance Bonds
The City receives performance bonds from developers to ensure compliance and completion of projects that affect the City's infrastructure. These
commitments may be in the form of cash, certificates of deposit in the City's name, letters of credit, or surety bonds. Upon receipt, these deposits are
recorded both as an asset and a liability. For purposes of simplifying the balance sheet, the performance bonds asset account in the amount of
$22,105,390 was netted against the liability account of$22,269,437 in fiscal year 2011. The net balance in the performance bond deposits liability account
at June 30, 2011, was $164,047 and is included in the "Deposits" liability reported in the basic financial statements.
L. Short-Term Debt
The City has no short-term debt.
M. Long-Term Contracts
The City uses the percentage-of-completion method of accounting for long-term contracts, recognizing the pro rata portion of the contract in the accounting
period covered by the contract.
N. Fund Balance
Categories of Fund Balance
In accordance with Government Accounting Standards Board Statement#54, the City classifies fund balances as follows:
Non-spendable- includes fund balance amounts that cannot be spent either because it is not in spendable form or because of legal or contractual
constraints
Restricted- includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors
or amounts constrained due to constitutional provisions or enabling legislation
Assigned- includes fund balance amounts that are constrained for specific purposes by the City through formal action of the City Council and does
not lapse at fiscal year end
Unassigned- includes positive fund balance within the General Fund which has not been classified within the above mentioned categories and
negative fund balances in other governmental funds
33
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
N. Fund Balance (continued)
Non-Spendable Fund Balance
The non-spendable fund balance of $1,391,607 is comprised of amounts reported in non-spendable form and/or not in cash form such as prepaid items,
long-term notes receivable and long-term advances receivable.
Assigned Fund Balance
An assigned fund balance of$62,241 is reported in the General Fund for City general fund contracts that were executed and outstanding at June 30, 2011.
In fiscal years 2001/2002 through 2007/2008, the City Council took action moving funds annually to the Capital Projects Fund for major road rehabilitation
projects. At June 30, 2011, $592,693 of these funds remain in the fund and are assigned to be spent on major road rehabilitation projects.
Use of Fund Balance Order
The City budgets and expends funds for each project or expense based on specific identified funding sources that are available now and in the future.
This means that at times the City may use unrestricted funds first for a particular project, leaving the eligible restricted funds available for a specific future
project; however it is the City's general policy to use restricted amounts first when both restricted and unrestricted amounts are available. Similarly, the
City would typically first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made.
Minimum Fund Balance Policy
The City adopted a formal fund balance policy stating that as part of the biennial budget process, fund balance shall be evaluated to determine the prudent
level of reserves based on eleven key measurements. The policy further states that except in the case of natural or fiscal emergencies, the City's general
fund balance shall not fall below 20% of General Fund expenditures.
Major Special Revenue Funds
The purpose for each major fund may be found in Note 1(C); however each major special revenue fund and its revenue source is listed below:
Major Special Revenue Fund Revenue Source
Redevelopment Agency Fund Redevelopment Tax Increment
Low/Moderate Income Housing Redevelopment Fund Redevelopment Tax Increment
34
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
N. Fund Balance (continued)
Detailed Schedule of Fund Balances
A detailed schedule of fund balances is provided below:
Disclosure of Fund Balance Reported on Balance Sheet
June 30, 2011
Low/Moderate Historic City Other
Income Housing Blight Hall NonMajor
General Redevelopment Redevelopment Elimination Rehabilitation Governmental
Fund Agency Fund Fund Projects Fund Fund Funds Totals
FUND BALANCES:
Nonspendable
Prepaid Items $ 14,792 $ - $ - $ - $ 910 $ 730 $ 16,432
I nterfund Advances Receivable 1,375,175 - - - - - 1,375,175
Restricted
Public Safety - - - - - 823,133 823,133
Streets, Roads and Drainage - - - - - 4,083,266 4,083,266
Parks, Open Space & Recreation - - - - - 1,815,678 1,815,678
Community Development and
Blight Elimination - - - 8,196,578 - 119,361 8,315,939
Historic City Hall Rehabilitation - - - - 12,147,183 - 12,147,183
Affordable Housing - - - - - 6,044,039 6,044,039
Debt Service - - - - - 23,242,263 23,242,263
Assigned
Community Development and
Blight Elimination 62,241 - - - - - 62,241
Streets, Roads and Drainage - - - - - 592,693 592,693
Unassigned 5,468,236 (15,816,293) (276,596) - - (1,160,419) (11,785,072)
Total Fund Balances $6,920,444 $ (15,816,293) $ (276,596) $ 8,196,578 $12,148,093 $35,560,744 $46,732,970
35
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
O. New Accounting Pronouncements
Governmental Accounting Standards Board Statement No. 54
For the fiscal year ended June 30, 2011, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 54, "Fund Balance
Reporting and Governmental Fund Type Definitions." The Statement is effective for periods beginning after June 15, 2010. The objective of this
Statement is to enhance the usefulness of fund balance information by providing clearer fund balance classifications that can be more consistently applied
and by clarifying the existing governmental fund type definitions. This Statement establishes fund balance classifications that comprise a hierarchy based
primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds.
Implementation of the Statement and the impact on the City's financial statements are explained in Note 1(N) Fund Balances.
Governmental Accounting Standards Board Statement No. 59
For the fiscal year ended June 30, 2011, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 59, "Financial
Instruments Omnibus." The Statement is effective for periods beginning after June 15, 2010. The objective of this Statement is to update and improve
existing standards regarding financial reporting and disclosure requirements of certain financial instruments and external investment pools for which
significant issues have been identified in practice. Implementation of the GASB Statement No. 59, did not have an impact on the City's financial
statements for the fiscal year ended June 30, 2011.
NOTE 2—STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Budgetary Information
Biennial budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental
funds. After adoption of the final budget, transfers of appropriations within a general fund department, or within other funds, can be made by the City
Manager or his appointee. Budget modifications between funds, and increases or decreases to a fund's overall budget, must be approved by the City
Council or Agency Board. Numerous properly authorized amendments were made during the fiscal year.
Budgetary control is enhanced by integrating the budget into the general ledger accounts. Encumbrance accounting is employed (e.g., purchase orders) to
avoid expenditures over budget. Encumbrances outstanding at fiscal year end are automatically re-budgeted in the following fiscal year.
B. Deficit Fund Balances
Deficit fund balances in the following funds exist due to large purchases incurred prior to the receipt of the long-term reimbursing revenues:
General Government Facilities Fees Fund $ (314,476)
Fire Aerial Vehicle Impact Fees Fund $ (845,943)
36
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 2—STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY(continued)
B. Deficit Fund Balances (continued)
A deficit fund balance of ($276,596) exists in the Low/Moderate Income Housing Redevelopment Fund due to an overestimation of available funds for
commitment. This is a short-term deficit fund balance and should be positive in fiscal year 2011/2012.
A deficit fund balance of ($15,816,293) exists in the Redevelopment Agency General Fund due to the accounting treatment of advances payable. In
September 2010, the City issued $16,010,000 on behalf of the Redevelopment Agency in order to receive a lower interest rate on the bonds. This
$16,010,000 Agency debt is properly recorded as an advance payable liability of the Redevelopment Agency. The liability will be paid off by the
Redevelopment Agency over the next 30 years.
C. Excess of Expenditures over Appropriations
Excess
Expenditures
Special Revenue Funds
Apple Valley Landscape and Lighting District $ 7,573
Expenses exceeded projections in the Apple Valley Landscape and Lighting District due to increased landscape maintenance costs and the expense of
increased City oversight.
37
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 3—CASH AND INVESTMENTS
Cash balances from all funds are combined and invested to the extent possible, pursuant to the Investment Policy and Guidelines approved by the City
Council, as well as State Government Code. The earnings from these investments are allocated monthly to each fund, based on an average of monthly
opening and closing balances of cash and investments. Investments are stated at fair value.
Cash and investments at June 30, 2011, consisted of the following:
Pooled Cash and Investments
Cash and cash equivalents $ 158,927
1 nvestments 19,190,028
Local Agency Investment Fund (State Pool) 36,244,191
Total Pooled Cash and Investments 55,593,146
Funds with Fiscal Agents:
United States Treasury Money Fund 2,349,550
Total Funds with Fiscal Agents 2,349,550
Total Cash and Investments $ 57,942,696
Cash and investments are reflected in the accompanying financial statements as follows:
Governmental Business-
Activities Type Activities Total
Cash and investments $ 43,589,344 $10,370,079 $ 53,959,423
Cash and investments held by fiscal agents 2,349,550 - 2,349,550
Restricted certificates of deposit 1,633,723 - 1,633,723
Total Cash and Investments $ 47,572,617 $10,370,079 $ 57,942,696
38
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 3—CASH AND INVESTMENTS (continued)
A. Deposits with Financial Institutions
For custodial credit risk associated with deposits, the City follows the California Government Code, which requires California financial institutions to secure
the City's deposits by pledging government securities as collateral. The fair value of the pledged securities must equal 110% of the City's deposits.
California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes equal to 150% of the City's deposits.
At fiscal year end, the City's bank account balance was $223,523. The entire balance was insured by federal depository insurance. Certificates of Deposit
totaling $14,587,033 are fully insured.
B. State Investment Pool
The fair value of the City's position in the State LAIF pool is the same as the value of the pool shares. The State LAIF pool credit quality is unrated.
LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State
Treasurer's Office audits the fund annually. Separate financial statements for LAIF can be obtained by writing Local Agency Investment Fund, Post Office
Box 942809, 915 Capitol Mall C-15, Sacramento, CA 94209-0001.
C. Authorized Investments
The City's Investment Policy lists the following as authorized investments:
Local Agency Investment Fund (LAIF)
U.S. Government Obligations
Bankers'Acceptances
Commercial Paper
Certificates of Deposit and Passbook Savings Accounts
Money Market Funds
39
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 3—CASH AND INVESTMENTS (continued)
D. Marking Investments to Fair Value (GASB Statement No. 31)
In fiscal year 1997/98, the City adopted Governmental Accounting Standards Board Statement No. 31, which requires that the City's investments be
carried at fair value instead of cost. Under GASB Statement No. 31, the City must adjust the carrying value of its investments to reflect their fair value at
each fiscal year end, and it must include the effects of these adjustments in income for that fiscal year.
GASB Statement No. 31 applies to all City investments, even if held to maturity and redeemed at full face value. Since the City's policy is to hold all
investments to maturity, the fair value adjustments required by GASB Statement No. 31 result in accounting gains or losses (called "recognized" gains or
losses) which do not reflect actual sales of the investments (called "realized" gains or losses). Thus, recognized gains or losses on an investment
purchased at par will now reflect changes in its value at each succeeding fiscal year end, but these recognized gains or losses will net to zero if the
investment is held to maturity. By following the requirements of GASB Statement No. 31, the City is reporting the amount of resources which would
actually have been available if it had been required to liquidate all of its investments at any fiscal year end.
E. Investments
Investments for the City are summarized below:
Percent
Of
Investments Fair Value Portfolio
Government Securities $ 4,602,995 8%
Certificates of Deposit 14,587,033 26%
Local Agency Investment Fund (State Pool) 36,244,191 66%
Total Investments Managed by City $ 55,434,219 100%
Investments Held by Fiscal Agents
United States Treasury Money Fund $ 2,349,550 100%
Total Investments Held by Fiscal Agents $ 2,349,550 100%
40
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 3—CASH AND INVESTMENTS (continued)
E. Investments (continued)
Within One One Month to One to Five Six to Ten
Fair Value On Demand Month One Year Years Years
Investments
Government Securities $ 4,602,995 $ - $ - $ - $ 4,602,995 $ -
Certificates of Deposit 14,587,033 - 750,458 3,260,838 10,442,014 133,723 **
Local Agency Investment Fund (State Pool) 36,244,191 36,244,191 - - - -
Total Investments Managed by City $ 55,434,219 $36,244,191 $ 750,458 $3,260,838 $15,045,009 $ 133,723
Percentage of Portfolio 100% 65% 1% 6% 27% 0%
*$1,500,000 in certificates of deposit with a local bank, service as a loan guarantee for Colony Square Commercial Development, approved by the
Redevelopment Agency Board April 14, 2009.
**
$133,723 in certificates of deposit with a local bank, serving as collateral for the Local Road Improvement Loan Program, approved by Council
June 14, 2005.
Interest Rate Risk. This is the risk that the market value of securities in the portfolio will fall, due to changes in general interest rates. In accordance with its
Investment Policy, the City mitigates interest rate risk by:
• Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need
to sell securities on the open market prior to maturity.
• Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pool.
Credit Risk. This is the risk of loss due to the failure of the security issuer or backer. The City mitigates credit risk by:
• Limiting investments to the safest types of securities.
• Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business.
• Diversifying the investment portfolio so that potential losses on individual securities will be minimized.
State law limits investments in commercial paper and corporate bonds to the top two ratings issued by Nationally Recognized Statistical Rating
Organizations (NRSROs). It is the City's policy to limit its investments in these investment types to the top rating issued by NRSROs. The City does not
hold any commercial paper or corporate bonds. Government securities held by the City are rated AAA, the top rating issued by NRSROs. The City's
investment in the State LAIF pool is unrated, as are the investments in the Certificates of Deposit.
41
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 3—CASH AND INVESTMENTS (continued)
E. Investments (continued)
Rating as of June 30, 2011
Fair Value AAA Not Rated
Investments
Government Securities $ 4,602,995 $ 4,602,995 $ -
Certificates of Deposit 14,587,033 - 14,587,033
Local Agency Investment Fund (State Pool) 36,244,191 - 36,244,191
Total Investments Managed by City $ 55,434,219 $ 4,602,995 $ 50,831,224
Custodial Credit Risk. Custodial credit risk is the risk that in the event of failure of the counterparty, the government will not be able to recover the value of
its investments or collateral securities that are in the possession of an outside party. The City's investments in government securities are held in trust by
Union Bank and are exposed to custodial credit risk because these investments are uninsured and collateralized with securities held by the Union Bank's
trust department or agency, but not in the City's name. The amounts held under this custodial arrangement are not limited by the City's Investment Policy.
Concentration Credit Risk. The City's Investment Policy provides guidelines (by type of investment vehicle that limits either the dollar amount, the percent
of the portfolio or the maturity term) for diversifying the investment portfolio so that potential losses on individual securities will be minimized. The City's
Investment Policy outlines the following criteria related to portfolio diversification:
• No more than forty percent (40%) of the City's portfolio shall be invested in U.S. government obligations, U.S. government agency
obligations, and U.S. government instrumentality obligations, which have a liquid market with a readily determinable market value.
• Up to forty percent (40%) of the City's portfolio may be invested in bankers' acceptances that are defined as bills of exchange or time
drafts, drawn on and accepted by a commercial bank, which are eligible for purchase by the Federal Reserve System, although no more
than thirty percent (30%) of the portfolio may be invested in bankers' acceptances with any one commercial bank. Additionally, the
maturity periods cannot exceed 180 days.
• A maximum of twenty-five percent (25%) of the City's portfolio may be invested in highest tier (e.g., A-1, P-1, F-1 or D-1 or higher)
commercial paper as rated by Moody's or Standard and Poor's rating service. Issuing corporations must be organized and operating in the
United States, have $500 million total assets, and have at least an "A" rating (by Moody's or Standard and Poor's) on debt other than
commercial paper. The maturity period cannot exceed 270 days. Purchases of eligible commercial paper may not exceed 10% of the
outstanding paper of an issuing corporation.
• There is no limit as to the amount of the investment portfolio that may be deposited in certificates of deposit or passbook savings
accounts. The minimum requirements for certificate of deposit investments shall be:
o Investments and accrued interest shall never exceed the FDIC insurance limit in any one institution.
o Qualified institutions must have a minimum equity ratio of 6% and a minimum capitalization of$10,000,000.
• Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec 80a-I et seq.)shall not exceed twenty percent (20%) of
the agency's surplus money that may be invested pursuant to the City's Investment Policy.
42
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 3—CASH AND INVESTMENTS (continued)
F. Funds with Fiscal Agents
The City had $2,349,550 in cash and investments as of June 30, 2011, held by fiscal agents pledged for the payment or security of certain bonds.
Investments held by fiscal agents consist of $79,500 held by the trustee for the 1993 Camino Real Improvement Bonds, $123 for the 1992 Street
Improvement Bonds, $852,423 for the 2005 Redevelopment Agency Tax Allocation Bonds and $1,417,504 for the 2010 Lease Revenue Bonds. The
California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds, certificates, or
leases, may be invested in accordance with the ordinance, resolutions, or indentures specifying the types of investments its fiscal agents may make.
NOTE 4—CAPITAL ASSETS
A. Capital Assets Additions and Retirements
Capital assets activity in the Governmental Activities for the fiscal year ended June 30, 2011, was as follows:
Transfers
Balance Between Balance
June 30, 2010 Additions Deletions Assets June 30, 2011
Governmental Activities
Non-Depreciable Capital Assets
Land $ 41,123,547 $ - $ - $ - $ 41,123,547
Construction in progress 8,673,660 4,498,485 - - 13,172,145
Total non-depreciable capital assets 49,797,207 4,498,485 - - 54,295,692
Depreciable Capital Assets
Vehicles and equipment 8,249,498 150,313 (93,640) - 8,306,171
Structures and improvements 20,881,011 13,356 - - 20,894,367
Infrastructure 55,412,984 2,193 - - 55,415,177
Total depreciable capital assets 84,543,493 165,862 (93,640) - 84,615,715
Less Accumulated Depreciation (28,894,502) (2,273,926) 93,640 - (31,074,788)
Net depreciable capital assets 55,648,991 (2,108,064) - - 53,540,927
Net governmental capital assets $ 105,446,198 $ 2,390,421 $ - $ - $ 107,836,619
43
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 4—CAPITAL ASSETS (continued)
A. Capital Assets Additions and Retirements (continued)
Capital assets activity in the Business-Type Activities for the fiscal year ended June 30, 2011, was as follows:
Transfers
Balance Between Balance
July 1, 2010 Additions Deletions Assets June 30, 2011
Business-Type Activities
Non-Depreciable Capital Assets
Land $ 442,044 $ - $ - $ - $ 442,044
Construction in progress 421,757 593,317 - (567,684) 447,390
Total non-depreciable capital assets 863,801 593,317 - (567,684) 889,434
Depreciable Capital Assets
Vehicles and equipment 864,620 547 - - 865,167
Structures and improvements 23,618,968 - (3,920) 567,684 24,182,732
Total depreciable capital assets 24,483,588 547 (3,920) 567,684 25,047,899
Less Accumulated Depreciation (10,481,102) (665,486) 3,920 - (11,142,668)
Net depreciable capital assets 14,002,486 (664,939) - 567,684 13,905,231
Net business-type capital assets $ 14,866,287 $ (71,622) $ - $ - $ 14,794,665
B. Depreciation Allocations
Depreciation expense was charged to functions and programs based on their usage of the related assets. The amounts allocated to each function or
program were as follows:
Governmental Activities:
General government $ 53,308
Public safety 402,095
Community development 91,352
Community, recreation &zoo services 289,400
Parks& open space 111,708
Public works 1,326,063
Total Depreciation Expense- Governmental Activities $ 2,273,926
44
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 4—CAPITAL ASSETS (continued)
B. Depreciation Allocations (continued)
Business-Type Activities:
Sewer $ 609,903
Transit 55,583
Total Depreciation- Business-Type Activities $ 665,486
NOTE 5—INTERFUND RECEIVABLES, PAYABLES, ADVANCES, AND TRANSFERS
A. Interfund Receivables and Payables
Due to/due from other funds consist of short-term interfund loans made for the purposes of cash flows. They are expected to be repaid by the borrowing
fund within one year. The composition of due to/due from balances at June 30, 2011, is as follows:
Receivable Fund Payable Fund Amount
General Fund Nonmajor Governmental Funds $ 1,707,012
General Fund Transit Fund 291,057
Nonmajor Governmental Funds Low/Moderate Income Housing Redevelopment Fund 1,621,886
Redevelopment Agency Fund Nonmajor Governmental Funds 176,755
Total $ 3,796,710
B. Interfund Advances
Interfund advances consist of formal long-term interfund loans between funds. Each interfund advance has an underlying loan agreement and specific
loan re-payment schedule that exceeds one year. The composition of interfund advance balances at June 30, 2011, is as follows:
Receivable Fund Payable Fund Amount
General Fund Redevelopment Agency Fund $ 1,375,175
Low/ Moderate Income Housing Redevelopment Agency Fund 1,335,322
Redevelopment Fund
Nonmajor Governmental Fund Redevelopment Agency Fund 16,010,000
Wastewater Fund Nonmajor Governmental Fund 21,385
Total $18,741,882
45
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 5—INTERFUND RECEIVABLES, PAYABLES, ADVANCES, AND TRANSFERS (continued)
B. Interfund Advances (continued)
There is a formal agreement adopted by the City Council setting the terms, conditions and repayment schedule for each interfund advance. Each advance
has a specific purpose as follows:
• The General Fund /Redevelopment Agency advance balance is comprised of three separate advances to the Redevelopment Agency Fund.
1998 Advance - In November of 1998, the City began advancing funds to the Agency for start-up costs, and continued to advance funds
through June 2000 under this agreement. Funds advanced under this loan agreement total $155,175 and carry an interest rate of the LAIF
stated rate plus 3% each month.
2001 Advance - In fiscal year 2001, the Agency and the City entered into a revolving loan agreement to cover operating costs. This loan
amount may not exceed $500,000 at any one time and carries a 9% interest rate. As needed during the course of each fiscal year, the
Agency will pay off this revolving advance payable and immediately receive a new$500,000 advance from the City. This allows the Agency to
spend these loaned amounts from the City on operational expenditures. It was not necessary to revolve this loan during the current fiscal
year. At June 30, 2011, the outstanding balance on this advance was $500,000.
2002 Advance- During fiscal year 2002, $720,000 was advanced to the Agency for the purchase of property. Interest on this advance is 9%.
• The interfund loan from the Low/Moderate Income Housing Redevelopment Fund to the Redevelopment Agency Fund was made in 2010 in order
to make the 2010 SERAF payment to the State. The loan is scheduled to be paid in one lump sum during fiscal year 2014/2015.
• In September of 2010, the City issued $16,010,000 in bonds on behalf of the Redevelopment Agency in order for the Agency to achieve and
overall lower debt service cost. At the time of the bond issuance, a reimbursement agreement was entered into whereby the City advanced the
Agency the proceeds of the bond and the Agency is required to make annual payments to the City in the amount of the debt service on the bonds.
Annual principal payments on the advance are required between fiscal years 2014 and 2040, at interest rates ranging from 3.0% to 5.0%.
• The interfund advance from the Wastewater Fund to the Assessment District #9 Fund is for a sewer improvement project and is expected to be
paid in full during fiscal year 2011/2012.
C. Interfund Transfers
Interfund transfers were made as follows:
46
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 5—INTERFUND RECEIVABLES, PAYABLES, ADVANCES, AND TRANSFERS (continued)
D. Interfund Transfers (continued)
$ 840 Transfer from the General Fund to the De Anza Landscape&Lighting Fund for open space maintenance
56,539 Transfer from the General Fund to the Library Expansion Facilities Fees Fund for a portion of the City's contribution to the purchase of the new
library facility
38,000 Transfer from the General Fund to the Redevelopment Agency General Fund for tourism, marketing and promotion
5,030 Transfer from the Business Improvement Association Fund to Redevelopment Agency General Fund for tourism, marketing and promotion
276,430 Transfer from the Community Facilities District Fund to the General Fund for fire, police and park services
445,966 Transfer from the Redevelopment General Fund to the 2010 Bond Debt Service Fund for debt service
46,635 Transfer from the Redevelopment Agency General Fund to the Capital Projects Fund for the Lake Park Frontage Improvement Project
6,271 Transfer from Gas Tax Fund to CDBG Fund for sidewalk barrier removal
222 Transfer from the Traffic Congestion Relief Fund Fund to the Gas Tax Fund for street maintenance
531 Transfer from the Local Transportation Fund to the Capital Projects Fund for the Atascadero Creek Trail Project
12,144 Transfer from the Amapoa Tecorida Fees Fund to the Storm Drain Facilities Fees Fund for the 2006 Marchant Avenue Drainage Project
362 Transfer from the Redevelopment Agency 2005 Bond Fund to the Capital Projects Fund for the Downtown Streetscape I I Project
14,171 Transfer from the Blight Elimination Fund to the Capital Projects Fund for the Downtown Streetscape III Project
21,208 Transfer from the Redevelopment Agency 2005 Bond Fund to the Capital Projects Fund for the Downtown Streetscape III Project
268,562 Transfer from the Local Transportation Fund to the Capital Projects Fund for the Downtown Streetscape I II Project
381 Transfer from the Local Transportation Fund to the Public Works Impact Fees Fund for a portion of the Lewis Avenue Bridge Project
381 Transfer from the Capital Projects Fund to the Public Works Impact Fees Fund for a portion of the Lewis Avenue Bridge Project
763 Transfer from the 2005 Redevelopment Bond Project Fund to the Public Works Impact Fees Fund for a portion of the Lewis Avenue
Bridge Project
16,010,000 Transfer of bonds issued from the Redevelopment Agency Fund to the 2010 Redevelopment Bond Project Fund
1,417,398 Transfer from the 2010 Redevelopment Bond Project Fund to the 2010 Bond Debt Service Fund for cash with fiscal agent required to be held
by the City
237,797 Transfer from the 2005 Redevelopment Bond Project Fund to the Blight Elimination Projects Fund for contracted blight elimination projects
1,425,171 Transfer from the 2010 Redevelopment Bond Project Fund to the Blight Elimination Projects Fund for contracted blight elimination projects
6,516,410 Transfer from the Redevelopment Agency General Fund to the Blight Elimination Projects Fund for specific contracted blight elimination projects
52,458 Transfer from the Redevelopment Agency General Fund to the Historic City Hall Rehabilitation Fund for prior fiscal year project costs
13,000,000 Transfer from the 2010 Bond Project Fund to the Historic City Hall Rehabilitation Fund for the Historic City Hall Project
5,543,800 Transfer from the Redevelopment Agency Low/Moderate Income Housing Fund to the Low Moderate Housing Production Fund for the production of
affordable housing
$45,397,470
47
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 6—LONG-TERM DEBT
A. Compensated Absences
City employees accumulate earned but unused vacation and certain other leave pay benefits which can be converted to cash at termination of
employment. In the statement of activities, the expenditure is allocated to each function based on usage. The vested benefits payable in accordance with
various collective bargaining agreements at June 30, 2011, total $1,563,590 for governmental activities and $10,224 for business-type activities.
B. 1999 Camino Real Limited Obligation Refunding Improvement Bonds
On February 17, 1999, the City issued $1,590,000 of Limited Obligation Refunding Bonds in order to refund the 1993 Camino Real Improvement Bonds.
The City is required to make principal payments in amounts that range from $40,000 to $160,000 annually on September 2 of each year to 2013. Interest
payments are due semi-annually on each March 2 and September 2. The interest payments made through maturity are based on an interest rate of
between 4.40% and 5.75%. The City is contingently liable on the bonds, as defined by Statement No. 6 of the Governmental Accounting Standards Board.
1999 Camino Real Limited Obligation
Refunding Improvement Bonds
Fiscal Year Ending
June 30, Principal Interest
2012 $ 145,000 $ 21,846
2013 150,000 13,475
2014 160,000 4,600
$ 455,000 $ 39,921
48
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 6—LONG-TERM DEBT (continued)
C. 2005 Redevelopment Agency Tax Allocation Bonds
The Atascadero Community Redevelopment Agency issued $12,490,000 in Tax Allocation bonds for improvements to the downtown core. These bonds
will mature between fiscal years 2011 and 2035, at interest rates ranging from 3.00%to 5.00%. The Bonds will be repaid with the Agency's Tax Increment
Revenues.
The following is a summary of principal and interest payments to be made in future fiscal years:
2005 Redevelopment Agency
Tax Increment Bonds
Fiscal Year Ending
June 30, Principal Interest
2012 $ 295,000 $ 551,368
2013 305,000 541,020
2014 315,000 529,929
2015 325,000 517,523
2016 340,000 504,222
2017-2021 1,915,000 2,289,935
2022-2026 2,390,000 1,799,995
2027-2031 3,030,000 1,143,687
2032-2035 3,015,000 310,625
$ 11,930,000 $ 8,188,304
49
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 6—LONG-TERM DEBT (continued)
D. 2010 Lease Revenue Bonds
On September 1, 2010, the City of Atascadero issued $16,010,000 in Lease Revenue Bonds for the Community Redevelopment Agency of Atascadero.
The bonds were issued by the City in order to achieve an overall lower interest rate on the bonds. The bond proceeds were transferred to the
Redevelopment Agency for use on the Historic City Hall Project and other redevelopment blight elimination projects. These bonds will mature between
fiscal years 2014 and 2040, at interest rates ranging from 3.0% to 5.0%. The Agency will make payments, from tax increment revenues, to the City in
amounts equal to the annual debt service payments on the bonds. The Bonds will then be repaid by the City using these revenues.
The following is a summary of principal and interest payments to be made in future fiscal years:
2010 Lease Revenue
Bonds
Fiscal Year Ending
June 30, Principal Interest
2012 $ - $ 764,512
2013 - 764,513
2014 - 764,512
2015 210,000 761,363
2016 215,000 754,450
2017-2021 1,215,000 3,651,775
2022-2026 1,460,000 3,385,094
2027-2031 1,830,000 3,007,750
2032-2036 3,180,000 2,469,500
2037-2040 7,900,000 1,026,250
$ 16,010,000 $ 17,349,719
50
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 6—LONG-TERM DEBT (continued)
D. Changes in Long-Term Liabilities
Long-term liability activity for the fiscal year ended June 30, 2011, was as follows:
Balance Balance Due Within
June 30, 2010 Additions Payments June 30, 2011 One Year
Governmental Activities:
Bonds Payable:
Camino Real 1999 Limited Obligation
Refundinq Improvement Bonds $ 590,000 $ - $ (135,000) $ 455,000 $ 145,000
2005 Redevelopment Bonds 12,215,000 - (285,000) 11,930,000 295,000
2010 Lease Revenue Bonds - 16,010,000 - 16,010,000 -
Compensated Absences 1,416,215 147,375 - 1,563,590 -
Other Post Employment Benefits 147,832 4,831 (2,400) 150,263 -
Total Governmental Activities $ 14,369,047 $ 16,162,206 $ (422,400) $ 30,108,853 $ 440,000
Business-type Activities:
Compensated Absences $ 11,727 $ - $ (1,503) $ 10,224 $ -
Total Business-type Activity $ 11,727 $ - $ (1,503) $ 10,224 $ -
NOTE 7 - EMPLOYEE RETIREMENT BENEFITS
A. Public Employees' Retirement System (PERS)
Plan Description
The City of Atascadero's defined benefit pension plan, Public Employees' Retirement System (PERS), provides retirement and disability benefits, annual
cost-of-living adjustments, and death benefits to plan members and beneficiaries. The City of Atascadero contributes to a risk pool under PERS which is
part of the Public Agency portion of the California Public Employees' Retirement System, (CaIPERS), an agent multiple-employer plan administered by
CalPERS, which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit
provisions, as well as other requirements, is established by State statutes with the Public Employees' Retirement Law. The City selects optional benefit
provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance (other local methods). CalPERS issues a
separate comprehensive annual financial report. Copies of the CaIPERS' annual financial report may be obtained from the CalPERS Executive Office,
Post Office Box 942701, Sacramento, CA 94229-2701.
51
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 7 - EMPLOYEE RETIREMENT BENEFITS (continued)
A. Public Employees' Retirement System (PERS) (continued)
Funding Policy
Active plan members in the CalPERS are required to contribute 8% for miscellaneous members or 9% for safety members of their annual covered salary.
The City makes 5.85% (of the 8%) of the contributions required of miscellaneous City employees and 9% (of the 9%)of the contributions required of safety
employees on their behalf and for their account. The City of Atascadero is required to contribute the actuarially determined remaining amounts necessary
to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board of Administration. The
required employer contribution rate for the fiscal year 2010-2011 was 13.242% for miscellaneous employees and 24.907% for safety employees. The
contribution requirements of the plan members are established by State statute, and the employer contribution rate is established and may be amended by
CalPERS. The City's contributions to CalPERS for the fiscal year ending June 30, 2011, 2010, and 2009, were $1,533,259, $1,536,988, and $1,696,714
respectively and equal 100% of the required contributions for each year.
B. Defined Contribution Plan
The City offers a defined contribution plan, Nationwide Retirement Solutions, for those employees that are excluded from CalPERS membership due to
part-time or elected status. The plan is approved as an FICA substitute. Members contribute 5% and the City contributes 2.5%. Total employee
contributions for the year were $11,814, and total contributions from the City were $5,907. Nationwide Retirement Solutions is the public employee plan
subsidiary of Nationwide Financial Services, Inc. (NYSE: NFS).
NOTE 8—OTHER POST EMPLOYMENT BENEFITS
A. Other Post Employment Benefits
Plan Description
In addition to the CalPERS pension benefits described above, the City provides post-retirement health benefits for Executive Management (City Council,
City Manager, and Department Heads). The City agreed to reimburse the retiree for retiree and/or retiree's dependent health (medical/dental/vision)
insurance premiums, disability insurance, long-term health care or life insurance premiums up to a maximum of$200 per month. The benefit is available
upon retirement from CalPERS or other similar retirement program after age 50, and the employee must have served for eight years with the City. The
benefit extends between the date of retirement and age 65. Currently, there is one person receiving benefits and eleven other people that may become
eligible for benefits under this program.
Funding Policy
The City accounts for this benefit on a pay-as-you-go basis. Postemployment expenditures are made from the General Fund, which is maintained on the
modified accrual basis of accounting. No funds are set aside to pay for benefits and administrative costs. These expenditures are paid as they come due.
In fiscal year ended, June 30, 2011, the City's total contributions were $2,400.
52
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 8—OTHER POST EMPLOYMENT BENEFITS (continued)
A. Other Post Employment Benefits (continued)
Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC).
The City has elected to calculate the ARC and related information using the alternative measurement method permitted by GASB Statement 45 for
employers in plans with fewer than one hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess)over a period not to exceed thirty years.
The following table shows the components of the City's annual OPEB cost for the current year, the amount actually contributed to the plan, and changes in
the City's net OPEB obligation for the postemployment healthcare benefits:
Annual required contribution $ 17,585
Interest on net OPEB obligation 527
Adjustment to annual required contribution (13,281)
Annual OPEB cost(expense) 4,831
Contributions made (2,400)
Increase (decrease) in net OPEB obligation 2,431
Net OPEB obligation, beginning of fiscal year 147,832
Net OPEB obligation, end of fiscal year $ 150,263
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2009 and 2010, were as
follows:
% of Annual
For Year Ended Annual OPEB OPEB Const Net OPEB
June 30 Cost Contributed Obligation
2009 $ 18,334 13.1% $ 143,238
2010 $ 6,994 34.3% $ 147,832
2011 $ 4,831 49.7% $ 150,263
53
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 8—OTHER POST EMPLOYMENT BENEFITS (continued)
A. Other Post Employment Benefits (continued)
Funded Status and Funding Progress
As of June 30, 2011, the actuarial accrued liability for benefits was $150,263, all of which was unfunded. The covered payroll (annual payroll of active
employees covered by the plan)was $1,143,344, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 13.1 percent.
The projection of future benefit payments for an ongoing plan involves estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer
are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of
funding progress, presented as required supplementary information following the notes to the financial statements, presents information about the actuarial
value of plan assets and the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and the plan members)
and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members at that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in
actuarial accrued liabilities and the actuarial value assets, consistent with the long-term perspective of the calculations.
The following simplifying assumptions were made:
Retirement age for active employees — Based on the historical average retirement age for the covered group, public safety active plan members
were assumed to retire at age 50, or at the first subsequent year in which the member would qualify for benefits and other active plan members
were assumed to retire at age 55, or at the first subsequent year in which the member would qualify for benefits.
Mortality—All active and inactive plan members were expected to live through age 65 (the age that benefits terminate).
Turnover — Non-group-specific age-based turnover data from GASB Statement 45 were used as the basis for assigning active members a
probability of remaining employed until the assumed retirement/age and for development of an expected future working lifetime assumption for
purposes of allocating to periods the present value of total benefits to be paid.
Based on the historical and expected returns of the City's short-term investment portfolio, a discount rate of 3.0 percent was used. In addition, a
simplified version of the projected unit credit and level cost method was used. The remaining amortization period at June 30, 2011, was thirty
years.
54
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 9—REVENUE LIMITATIONS IMPOSED BY CALIFORNIA PROPOSITION 218
Proposition 218, which was approved by voters in November 1996, will regulate the City's ability to impose, increase and extend taxes, assessments, and
fees. Any new, increase, or extended taxes, assessments, and fees subject to the provisions of Proposition 218, require voter approval before they can be
implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be
rescinded in the future years by the voters.
NOTE 10 - RISK MANAGEMENT
A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement
The City of Atascadero is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 121 California public
entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to
arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased
insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an
elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee.
B. Self-Insurance Programs of the Authority
A revised cost allocation methodology was introduced in 2010-11; however it retains many elements of the previous cost allocation methodology. Each
member pays an annual contribution (formerly called the primary deposit) to cover estimated losses for the coverage period. This initial funding is paid at
the beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit computation is then
conducted annually thereafter until all claims incurred during the coverage period are closed on a pool-wide basis. This subsequent cost re-allocation
among members based on actual claim development can result in adjustments of either refunds or additional deposits required.
The total funding requirement for self-insurance programs is estimated using actuarial models and pre-funded through the annual contribution. Costs are
allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk-sharing pool. Additional
information regarding the cost allocation methodology is provided below.
Liability
In the liability program claims are pooled separately between police and non-police exposures. (1) The payroll of each member is evaluated relative to the
payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight
applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a
percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for
each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs in excess of$750,000 up to
the reinsurance attachment point of$5 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of
covered claims from $5 million to $10 million are paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible. Costs of
covered claims from $10 million to $15 million are paid under two reinsurance contracts subject to a combined $3 million annual aggregate deductible. On
a cumulative basis for all 2010-11 reinsurance contracts the annual aggregate deductible is $5.5 million. (6) Costs of covered claims from $15 million up
to$50 million are covered through excess insurance policies.
55
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 10 - RISK MANAGEMENT (continued)
B. Self-Insurance Programs of the Authority (continued)
Liability(continued)
The overall coverage limit for each member including all layers of coverage is $50 million per occurrence.
Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a pooled sub-limit of$35 million per occurrence. This
$35 million subsidence sub-limit is composed of (a) $5 million retained within the pool's SIR, (b) $10 million in reinsurance and (c) $20 million in excess
insurance. The excess insurance layer has a $20 million annual aggregate.
Workers' Compensation
In the workers' compensation program claims are pooled separately between public safety (police and fire) and non-public safety exposures. (1) The
payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which
establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to
$50,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses
includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second
layer. (4) Incurred costs in excess of$100,000 up to the reinsurance attachment point of$2 million are distributed based on the outcome of cost allocation
within the first and second loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a reinsurance policy. Protection is
provided per statutory liability under California Workers' Compensation Law.
Employer's Liability losses are pooled among members to $2 million. Coverage from $2 million to $4 million is purchased as part of a reinsurance policy,
and Employer's Liability losses from $4 million to $10 million are pooled among members.
C. Purchased Insurance
Pollution Legal Liability Insurance
The City of Atascadero participates in the pollution legal liability insurance program (formerly called environmental insurance) which is available through
the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of
Atascadero. Coverage is on a claims-made basis. There is a $50,000 deductible. The Authority has a limit of$50 million for the 3-year period from July
1, 2008 through July 1, 2011. Each member of the Authority has a $10 million sub-limit during the 3-year term of the policy.
Property Insurance
The City of Atascadero participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several
insurance companies. City of Atascadero property is currently insured according to a schedule of covered property submitted by the City of Atascadero to
the Authority. City of Atascadero property currently has all-risk property insurance protection in the amount of$41,836,271. There is a $5,000 deductible
per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not
subject to retrospective adjustments.
56
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 10 - RISK MANAGEMENT (continued)
C. Purchased Insurance (continued)
Crime Insurance
The City of Atascadero purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided
through the Authority. Premiums are paid annually and are not subject to retrospective adjustments.
Special Event Tenant User Liability Insurance
The City of Atascadero further protects against liability damages by requiring tenant users of certain property to purchase low-cost tenant user liability
insurance for certain activities on agency property. The insurance premium is paid by the tenant user and is paid to the City of Atascadero according to a
schedule. The City of Atascadero then pays for the insurance. The insurance is arranged by the Authority.
D. Adequacy of Protection
During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured
coverage. There were also no significant reductions in pooled or insured liability coverage in 2010-11.
E. Unemployment
The City is fully self-insured for unemployment claims.
F. Self Insurance
The City retains the risk for losses incurred prior to joining the Authority. Several member agencies of the now dissolved Central Coast Cities Self-
Insurance Fund continue to participate in a non-risk sharing arrangement for claims management and the purchase of excess insurance for claims prior to
joining the Authority. Losses are debited and investment income is credited to specific member accounts. The City has not incurred any losses in excess
of insurance coverage.
57
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 10 - RISK MANAGEMENT (continued)
F. Self Insurance (continued)
Self-insurance activity as of and for the fiscal year ended June 30, 2011, is summarized as follows:
Workers'
Compensation
Interest earnings and other income $ 6,738
Claims expense 107,998
Estimated liability for reported claims and settlement
expenses 557,600
Assets on deposit 1,331,045
Assets in excess of (less than) liabilities $ 773,445
Changes in the balances of claim liabilities during the past two fiscal years are as follows:
Workers'
Compensation
Deposits June 30, 2009 $ 601,150
Claim payments and related expenditures (91,915)
Decrease in estimated claims liability June 30, 2010 182,800
Deposits and interest earnings 9,070
Deposits (unpaid claims liability) June 30, 2010 701,105
Claim payments and related expenditures (107,998)
Decrease in estimated claims liability June 30, 2011 173,600
Deposits and interest earnings 6,738
Deposits (unpaid claims liability) June 30, 2011 $ 773,445
58
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 11 —CONTINGENCIES AND COMMITMENTS
According to the City's attorney, no contingent liabilities are outstanding and no lawsuits of any significant financial consequence are pending or the risks are
covered by the City's insurance programs.
The City had received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could
generate expenditure disallowances under terms of the grants, it is believed that any required reimbursements will not be material.
The City leases office space at 6907 EI Camino Real in Atascadero. The renewed lease term began March 1, 2010 and continues through December 31, 2012.
The rate is $31,133 per month. The City may terminate the lease at any time with 60 days notice.
Construction and other significant commitments as of June 30, 2011, including encumbrances outstanding at fiscal year end, are as follows:
General Fund $ 62,241
Redevelopment Agency Fund 33,835
Low/ Moderate Income Housing Fund 35,971
Community Development Block Grant Fund 15,318
Gas Tax Fund 11,273
Local Transportation Fund 500
Storm Drainage Facilities Fees Fund 30,757
Capital Projects Fund 444,409
Blight Elimination Projects Fund 11,000
2005 Redevelopment Bond Project Fund 147,730
Historic City Hall Rehabilitation Fund 21,366,077
Wastewater Fund 89,251
Transit Fund 49,979
Building Maintenance and Replacement Fund 93,758
Total $ 22,392,099
59
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 12—NET ASSETS
GASB Statement No. 34 adds the concept of Net Assets, which is measured on the full accrual basis, to the concept of Fund Balance, which is measured on the
modified accrual basis.
A. Net Assets
Net Assets is the excess of all the City's assets over all its liabilities, regardless of fund. Net Assets are divided into three captions under GASB Statement
No. 34. These captions apply only to Net Assets, which is determined only at the government-wide level, and are described below:
Invested in capital assets, net of related debt describes the portion of Net Assets which is represented by the current net book value of the City's capital
assets, less the outstanding balance of any debt issued to finance these assets.
Restricted describes the portion of Net Assets which is restricted as to use by the terms and conditions of agreements with outside parties, governmental
regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include fees received for use on capital projects, debt
service requirements, and redevelopment funds restricted to low and moderate income purposes. Restricted Net Assets includes $25,083,786 restricted
by enabling legislation.
Unrestricted describes the portion of Net Assets which is not restricted as to use.
NOTE 13—SUBSEQUENT EVENTS
On June 29, 2011, the California Governor signed Assembly Bills X1 26 and X1 27 as part of the State's budget package. Assembly Bill X1 26 required each
California redevelopment agency to suspend nearly all activities except to implement existing contracts, meet already-incurred obligations, preserve its assets and
prepare for the impending dissolution of the agency. Assembly Bill X1 27 provided a means for redevelopment agencies to continue to exist and operate by
means of a Voluntary Alternative Redevelopment Program (VARP). Under this program, each city could adopt an ordinance agreeing to make certain payments to
the County Auditor Controller in fiscal year 2011-2012 and annual payments each fiscal year thereafter. The City of Atascadero adopted such an ordinance of
August 9, 2011.
The League of California Cities and the California Redevelopment Association (CRA) filed a lawsuit on July 18, 2011, on behalf of cities, counties and
redevelopment agencies, petitioning the California Supreme Court to overturn Assembly Bills X1 26 and 27 on the grounds that these bills violated the California
Constitution. On December 29, 2011 the Court issued an opinion in the case, upholding AB X1 26 and invalidating AB X1 27. As a result, all California
redevelopment agencies were dissolved effective February 1, 2012 and no opportunity to participate in the VARP is available.
The legislation requires the creation of successor agencies and oversight boards to continue to satisfy enforceable obligations of each former RDA and to
administer the dissolution and wind down of each dissolved RDA. The City of Atascadero is acting as the successor agency for the Community Redevelopment
Agency of Atascadero and is also acting as the Housing Successor Agency for the Housing funds. February 1, 2012 is the effective date of asset transfers from
the dissolved RDA to the successor agencies. Assets of the Agency will eventually be transferred to the County Assessor to be distributed among the taxing
entities in the County.
60
CITY OF ATASCADERO
NOTES TO THE BASIC FINANCIAL STATEMENTS
June 30, 2011
NOTE 13— SUBSEQUENT EVENTS (continued)
The legislation adopted in June 2011 also retroactively limits the transfers that occurred between the Agency and the City after January 1, 2011. In addition to
several agreements entered into on January 14, 2011 between the Agency and City which required the transfer of assets, there were many other transfers from
the Agency to the City during this time period. These transfers may be affected by AB X1 26 and could be invalidated by the State Controller.
Agencies throughout California, including the City of Atascadero, continue to evaluate AB X1 26 and understand its effects. The details of the outcome are
unknown as this time. Additional clarification is expected to come from the State Department of Finance, Legislature, and professional best practices.
61
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-SUMMARY
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Secured and unsecured property taxes $ 7,462,140 $ 7,462,140 $ 7,048,088 $ (414,052)
Taxes based on sales and use 2,931,100 2,931,100 2,862,255 (68,845)
Franchise tax 1,103,460 1,103,460 990,037 (113,423)
Other taxes 640,970 640,970 744,862 103,892
Licenses and permits 211,350 211,350 206,390 (4,960)
Intergovernmental revenues:
Motor vehicle in-lieu and related payments 75,000 75,000 144,594 69,594
Other governmental revenues 93,540 93,540 86,676 (6,864)
Grants 29,400 180,030 179,167 (863)
Charges for services:
Public safety 1,127,660 1,142,950 387,928 (755,022)
Development 643,920 1,072,130 699,496 (372,634)
Recreation, parks, pavilion and zoo 617,040 635,260 630,059 (5,201)
Other services 62,820 62,820 37,621 (25,199)
Fines and forfeitures 116,880 116,880 90,655 (26,225)
Use of money and property 195,850 195,850 160,435 (35,415)
Other revenues 1,460,870 1,485,450 1,470,123 (15,327)
Total revenues 16,772,000 17,408,930 15,738,386 (1,670,544)
Expenditures:
Employee services 13,227,160 13,283,260 11,988,656 1,294,604
Operating supplies&services 4,521,520 4,543,270 3,942,962 600,308
Special purchases, projects and community funding 188,710 662,580 527,287 135,293
Capital outlay 19,000 66,210 57,617 8,593
Total expenditures 17,956,390 18,555,320 16,516,522 2,038,798
Excess of revenues over(under)expenditures (1,184,390) (1,146,390) (778,136) 368,254
62
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-SUMMARY(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Other Financing Sources (Uses):
Transfers in $ 276,430 $ 276,430 $ 276,430 $ -
Transfers out (121,600) (216,600) (95,379) 121,221
Total other financing sources and uses 154,830 59,830 181,051 121,221
Net changes in fund balance $ (1,029,560) $ (1,086,560) (597,085) $ 489,475
Fund balance-June 30, 2010 7,517,529
Fund balance-June 30, 2011 $ 6,920,444
63
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes:
Property taxes:
Secured property tax $ 4,868,810 $ 4,868,810 $ 4,702,267 $ (166,543)
Property tax in lieu of VLF 2,279,620 2,279,620 2,157,408 (122,212)
Unsecured property taxes 138,710 138,710 131,153 (7,557)
Supplemental property taxes 180,000 180,000 68,167 (111,833)
Prior year secured and unsecured (5,000) (5,000) (11,796) (6,796)
Property tax penalties and interest - - 889 889
Taxes based on sales:
Sales and use taxes 2,192,400 2,192,400 2,177,349 (15,051)
Sales tax in-lieu payments 738,700 738,700 684,906 (53,794)
Transient occupancy tax 410,000 410,000 525,530 115,530
Franchise taxes:
Cable television franchise fees 242,530 242,530 215,441 (27,089)
Electricity franchise fees 219,870 219,870 203,428 (16,442)
Garbage disposal franchise fees 380,750 380,750 363,244 (17,506)
Landfill franchise fees 16,000 16,000 13,615 (2,385)
Recycling franchise fees 15,000 15,000 18,592 3,592
Gas franchise fees 195,000 195,000 141,017 (53,983)
Wastewater franchise fees 34,310 34,310 34,700 390
Business licenses 162,500 162,500 151,212 (11,288)
Property transfer tax 68,470 68,470 68,107 (363)
Other miscellaneous taxes - - 13 13
Total Taxes 12,137,670 12,137,670 11,645,242 (492,428)
Licenses and Permits:
Construction permits 162,790 162,790 172,915 10,125
Grading and drainage permits 15,000 15,000 7,963 (7,037)
Encroachment permits 17,140 17,140 17,181 41
Tree application fees 14,280 14,280 7,560 (6,720)
Planning Inspections 2,140 2,140 771 (1,369)
Total Licenses and Permits 211,350 211,350 206,390 (4,960)
64
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues (continued):
Intergovernmental Revenues:
Motor vehicle in-lieu (VLF) $ 75,000 $ 75,000 $ 144,594 $ 69,594
Homeowners'tax relief 47,740 47,740 46,123 (1,617)
State mandated costs 19,000 19,000 10,370 (8,630)
Other County Reimbursements - - 2,785 2,785
P.O.S.T. reimbursement 26,800 26,800 27,398 598
Grants:
JAG police grant-small 2,260 2,260 148 (2,112)
JAG police grant-large 5,740 5,740 2,505 (3,235)
Bulletproof vest grant - - 175 175
OTS mini grant 2010 Click It or Ticket 4,750 4,750 3,908 (842)
OTS Grant-2011 DUI - 112,130 73,322 (38,808)
OTS mini grant 2010 DUI 9,740 9,740 8,452 (1,288)
FEMA earthquake funding 5,180 5,180 5,184 4
FEMA administration - - 7,609 7,609
CalEMA earthquake funding 1,730 1,730 1,728 (2)
CalEMA administration - - 38,051 38,051
FEMA Fire Equipment Grant 2010 - 25,780 25,384 (396)
County SLO Works Program - 9,640 9,639 (1)
Avoid the 14 Grant - 3,080 3,062 (18)
Total Intergovernmental Revenues 197,940 348,570 410,437 61,867
Charges for Services:
Public safety:
First response charges 110,510 110,510 102,372 (8,138)
Weed abatement services 100,000 115,290 113,299 (1,991)
Mutual aid- Fire 869,160 869,160 133,051 (736,109)
Mutual Aid-Police - - 6,188 6,188
Police false alarms 3,310 3,310 3,570 260
Fingerprints 16,500 16,500 15,043 (1,457)
Vehicle release fees 15,750 15,750 9,120 (6,630)
Other public safety services 12,430 12,430 5,285 (7,145)
65
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues (continued):
Charges for Services(continued):
Development:
Zoning fees $ 42,840 $ 42,840 $ 14,199 $ (28,641)
Subdivision fees-Planning 25,700 25,700 8,971 (16,729)
Subdivision fees-Public Works 10,710 10,710 1,900 (8,810)
General and specific plans 13,560 13,560 - (13,560)
EIR and annexations fees 110,000 525,810 489,681 (36,129)
Assessment district formations 8,880 8,880 3,179 (5,701)
Appeals 1,610 1,610 - (1,610)
Planning review 48,200 48,200 17,521 (30,679)
Building plan check fees 305,000 305,000 101,561 (203,439)
Public Works plan check fees 50,300 50,300 22,038 (28,262)
Fire plan check&inspection fees 26,130 26,130 24,647 (1,483)
Public improvements revenue - 12,400 12,399 (1)
Other planning fees 990 990 3,400 2,410
Recreation:
Aquatics 8,600 8,600 21,825 13,225
Adult sports 41,200 41,880 46,693 4,813
Youth sports 30,900 30,900 38,500 7,600
Classes 63,000 71,960 88,425 16,465
Special events 35,540 35,540 28,379 (7,161)
Teen Center membership 4,500 4,500 3,329 (1,171)
Administrative:
Copy and mailing fees 6,570 6,570 4,689 (1,881)
Document imaging fee 18,750 18,750 14,622 (4,128)
Business license application fees 20,850 20,850 18,135 (2,715)
Other administrative charges - - 175 175
Business license renewal fees 16,650 16,650 - (16,650)
Pavilion rentals and concessions 142,200 142,200 135,378 (6,822)
Colony Park Community Center rentals 5,800 5,800 19,905 14,105
Other facility rentals 2,600 2,600 1,644 (956)
Park charges 22,600 22,600 50,375 27,775
Zoo 260,100 268,680 195,606 (73,074)
Total Charges for Services 2,451,440 2,913,160 1,755,104 (1,158,056)
66
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues(continued):
Fines and Forfeitures:
Motor vehicle fines $ 75,000 $ 75,000 $ 56,898 $ (18,102)
Traffic school fines 15,000 15,000 12,058 (2,942)
Misdemeanor and other minor fines 15,500 15,500 13,766 (1,734)
Parking fines 4,880 4,880 1,185 (3,695)
Fire and code enforcement fines 500 500 200 (300)
Business license penalties 5,500 5,500 6,068 568
Other penalties 500 500 480 (20)
Total Fines and Forfeitures 116,880 116,880 90,655 (26,225)
Use of Money and Property:
Interest 195,850 195,850 160,435 (35,415)
Total Use of Money and Property 195,850 195,850 160,435 (35,415)
Other Revenues:
Interfund administrative charges 1,243,180 1,243,180 1,215,906 (27,274)
Workers'comp reimbursement 10,000 10,000 17,490 7,490
Donations:
Police - 4,340 4,332 (8)
Fire - 12,300 12,284 (16)
Recreation - - 450 450
Parks - 2,940 2,942 2
Zoo Society-education and operations 20,000 25,000 25,532 532
Other zoo donations 3,000 3,000 1,837 (1,163)
Dove Creek commercial agreement 40,000 40,000 40,000 -
Insurance reimbursements - - 2,189 2,189
Contribution from Technology Services and
Replacement Fund for surplus charges 75,800 75,800 75,800 -
Contribution from Vehicle and Equipment
Replacement Fund for surplus charges 60,090 60,090 60,090 -
Other revenues 8,800 8,800 11,271 2,471
Total Other Revenues 1,460,870 1,485,450 1,470,123 (15,327)
Total Revenues 16,772,000 17,408,930 15,738,386 (1,670,544)
67
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures:
City Council:
Salaries and benefits $ 18,860 $ 25,680 $ 25,670 $ 10
Office expense 600 780 778 2
Advertising 750 750 700 50
Computer maintenance and replacement 7,030 7,030 7,030 -
Occupancy 88,770 88,770 88,770 -
Communications 500 500 314 186
Operating supplies 4,650 4,650 3,710 940
Vehicle&equipment operating costs 500 500 - 500
Contract services 5,000 1,630 201 1,429
Professional development 22,600 21,080 19,291 1,789
Community outreach 53,350 55,670 55,670 -
Chamber of Commerce 48,140 48,140 47,977 163
Tourism 38,000 - - -
Business Development 12,000 12,000 10,000 2,000
LAFCO Contribution 22,270 16,270 15,865 405
Special projects&community funding:
Community events 600 600 560 40
Economic Development Strategy 12,830 12,830 - 12,830
Building Public Trust Program - 1,570 1,567 3
Human Resources Grants 20,000 20,000 - 20,000
Total City Council 356,450 318,450 278,103 40,347
City Clerk:
Salaries and benefits 2,890 2,920 2,910 10
Office expense 1,150 1,390 1,383 7
Advertising 16,000 16,000 12,414 3,586
Computer maintenance and replacement 400 400 - 400
Contract services 6,700 6,430 6,045 385
Professional development 3,720 3,720 2,114 1,606
Municipal election 19,500 19,500 16,989 2,511
Total City Clerk 50,360 50,360 41,855 8,505
68
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures (continued):
City Treasurer:
Salaries and benefits $ 9,510 $ 9,510 $ 9,227 $ 283
Office expense 50 50 - 50
Occupancy 880 880 880 -
Contract services 3,600 3,600 3,500 100
Professional development 800 800 - 800
Total City Treasurer 14,840 14,840 13,607 1,233
City Attorney:
Office expense 480 480 125 355
Communications 80 80 52 28
Contract services 334,750 334,750 199,903 134,847
Total City Attorney 335,310 335,310 200,080 135,230
City Manager:
Salaries and benefits 711,140 724,930 720,913 4,017
Office expense 9,790 9,790 7,091 2,699
Computer maintenance and replacement 31,770 31,770 31,770 -
Insurance 32,500 32,500 28,309 4,191
Occupancy 24,050 24,050 24,050 -
Communications 4,800 4,800 3,069 1,731
Operating supplies 11,600 11,600 6,620 4,980
Vehicle&equipment operating costs 9,400 9,400 9,146 254
Contract services 26,200 12,410 4,173 8,237
Professional development 24,350 29,520 28,968 552
Citywide training 7,000 2,200 2,200 -
Recruitment 500 130 - 130
Employee development 2,000 2,000 532 1,468
Contingency 100,000 93,810 - 93,810
Total City Manager 995,100 988,910 866,841 122,069
69
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures (continued):
Administrative Services:
Salaries and benefits $ 693,030 $ 700,920 $ 700,862 $ 58
Office expense 15,370 15,260 12,361 2,899
Computer maintenance and replacement 76,630 76,630 72,508 4,122
Insurance 32,610 32,610 28,204 4,406
Occupancy 17,860 17,860 17,860 -
Communications 1,100 1,100 762 338
Operating supplies 50 160 152 8
Vehicle&equipment operating costs 3,650 3,650 3,600 50
Contract services 249,010 241,390 241,383 7
Professional development 3,850 3,540 2,558 982
Recruitment - 40 32 8
Contingency 5,000 5,000 - 5,000
Total Administrative Services 1,098,160 1,098,160 1,080,282 17,878
Police:
Salaries and benefits 4,746,370 4,746,370 4,401,776 344,594
Office expense 20,170 16,860 12,891 3,969
Advertising - 200 195 5
Computer maintenance and replacement 180,720 180,720 173,763 6,957
Insurance 184,890 184,890 160,859 24,031
Occupancy 39,550 35,850 33,143 2,707
Utilities 44,510 44,510 39,984 4,526
Communications 47,880 46,380 35,297 11,083
Operating supplies 22,380 17,790 17,376 414
Vehicle&equipment operating costs 216,110 216,110 211,489 4,621
Contract services 261,230 265,820 265,811 9
Professional development 9,520 9,550 9,541 9
Recruitment 3,950 10,560 10,335 225
Contingency 10,000 10,000 - 10,000
Special purchases, projects&studies:
Desks - 1,110 1,102 8
Surveillance equipment - 560 552 8
5,787,280 5,787,280 5,374,114 413,166
70
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Variance with Final
Budget Budget Positive
Original Final Actual Amounts (Negative)
Expenditures (continued):
Police Grants:
Salaries and benefits $ 18,210 $ 85,530 $ 49,760 $ 35,770
Office expense - 500 141 359
Computer maintenance and replacement - 240 235 5
Operating supplies 3,420 12,910 10,623 2,287
Contract Services 2,760 3,280 1,495 1,785
Professional development 36,100 42,590 35,133 7,457
Special purchases:
Police radios - 1,340 1,340 -
Radio antenna for police station 1,520 - - -
Checkpoint lighting - 3,620 3,611 9
Portable generator - 1,140 1,136 4
Radar equipment - 1,830 - 1,830
Personal protective vests 4,060 4,060 3,421 639
Capital outlay:
GIS traffic collision mapping - 28,580 20,650 7,930
66,070 185,620 127,545 58,075
Total Police 5,853,350 5,972,900 5,501,659 471,241
Fire:
Salaries and benefits 2,915,540 2,895,500 2,789,580 105,920
Office expense 5,520 7,040 7,033 7
Computer maintenance and replacement 110,250 106,500 106,500 -
Insurance 142,000 124,990 124,989 1
Occupancy 23,450 25,680 25,680 -
Utilities 23,050 19,520 19,520 -
Communications 16,550 11,770 11,763 7
Operating supplies 31,100 27,840 27,831 9
Vehicle and equipment operating costs 96,930 130,640 128,833 1,807
Contract services 4,280 7,870 7,867 3
Professional development 24,430 20,410 20,405 5
Recruitment 2,270 1,650 1,646 4
Contingency 10,000 7,140 - 7,140
Special purchases, projects&studies:
Dishwasher - 610 606 4
3,405,370 3,387,160 3,272,253 114,907
71
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures (continued):
Mutual Aid Fires:
Salaries and benefits $ 599,850 $ 599,850 $ 91,015 $ 508,835
Operating supplies 35,000 35,000 - 35,000
Mutual aid travel - - 10,877 (10,877)
Vehicle&equipment operating costs 3,000 3,000 - 3,000
Contract services 3,500 3,500 - 3,500
641,350 641,350 101,892 539,458
Weed Abatement and Other Fire Programs:
Salaries and benefits 169,720 160,580 159,040 1,540
Office expense 750 1,320 1,309 11
Advertising 1,500 1,530 1,530 -
Computer maintenance and replacement 2,860 2,860 2,860 -
Operating supplies 2,320 1,170 728 442
Vehicle&equipment operating costs 700 2,420 1,712 708
Contract services:
Weed abatement 50,000 90,330 88,325 2,005
Other - 1,000 1,000 -
Special purchases, projects&studies:
Replacement fire hose - 18,950 18,518 432
Capital outlay:
Thermal imaging camera - 9,690 9,686 4
DRT vehicle replacement - 9,580 9,573 7
227,850 299,430 294,281 5,149
Total Fire 4,274,570 4,327,940 3,668,426 659,514
72
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures (continued):
Community Development:
Salaries and benefits $ 890,490 $ 890,490 $ 810,350 $ 80,140
Office expense 16,500 15,250 12,521 2,729
Advertising 5,600 5,600 5,290 310
Computer maintenance and replacement 120,000 121,250 121,246 4
Insurance 51,810 51,810 45,103 6,707
Occupancy 34,760 34,760 34,760 -
Communications 3,600 3,600 2,453 1,147
Operating supplies 1,800 1,800 1,005 795
Vehicle operations 16,160 16,160 14,502 1,658
Contract services 107,000 98,230 64,448 33,782
Professional development 15,400 15,400 11,489 3,911
Recruitment 1,100 1,100 166 934
Contingency 5,000 5,000 - 5,000
Special purchases, projects&studies:
2010 Housing Element Update 1,250 1,250 1,005 245
Wal-Mart EIR 67,150 349,760 331,794 17,966
Eagle Ranch EIR - 133,200 89,437 43,763
Factory Outlet Assessment 36,970 45,740 45,740 -
Total Community Development 1,374,590 1,790,400 1,591,309 199,091
Central Reception:
Salaries and benefits 68,110 68,710 63,316 5,394
Office expense 1,580 1,580 689 891
Computer maintenance and replacement 7,080 7,080 7,080 -
Insurance 4,410 4,410 3,883 527
Occupancy 5,660 5,660 5,660 -
Communications 440 440 348 92
Vehicle&equipment operating costs 650 280 - 280
Professional development 150 150 - 150
Recruitment 230 - - -
Total Central Reception 88,310 88,310 80,976 7,334
73
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures (continued):
Community Services Administration:
Salaries and benefits $ 239,290 $ 231,910 $ 192,113 $ 39,797
Office expense 7,800 7,360 4,022 3,338
Advertising 150 930 930 -
Computer maintenance and replacement 7,100 7,100 7,100 -
Insurance 8,380 8,380 7,263 1,117
Occupancy 8,560 8,560 8,560 -
Communications 700 700 660 40
Operating supplies 590 590 153 437
Vehicle and equipment operating costs 3,600 3,600 3,600 -
Contract services - 7,380 7,372 8
Professional development 4,240 3,760 1,999 1,761
Recruitment - 30 29 1
Contingency 5,000 - - -
Total Community Services Administration 285,410 280,300 233,801 46,499
Recreation:
Salaries and benefits 255,970 256,790 225,671 31,119
Office expense 5,290 5,300 1,213 4,087
Advertising 3,100 3,100 1,320 1,780
Computer maintenance and replacement 14,170 14,170 14,165 5
Insurance 16,880 16,880 15,122 1,758
Occupancy 24,540 24,800 17,078 7,722
Utilities 4,210 4,190 3,827 363
Communications 750 770 463 307
Operating supplies 26,730 24,530 20,416 4,114
Vehicle and equipment operating costs 3,890 2,490 2,428 62
Contract services 88,990 102,100 96,662 5,438
Professional development 2,800 1,760 210 1,550
Recruitment 2,200 1,310 256 1,054
Parking lot repairs - 970 970 -
Total Recreation 449,520 459,160 399,801 59,359
74
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures (continued):
Community Center:
Salaries and benefits $ 128,310 $ 128,310 $ 98,614 $ 29,696
Office expense 1,900 1,900 671 1,229
Advertising 500 500 - 500
Computer maintenance and replacement 8,970 8,970 7,470 1,500
Insurance 12,320 12,320 10,158 2,162
Occupancy 17,180 15,780 15,780 -
Utilities 62,500 62,500 30,281 32,219
Communications 1,600 3,000 1,558 1,442
Operating supplies 20,500 20,500 7,824 12,676
Vehicle and equipment operations 6,360 6,360 3,859 2,501
Contract services 21,400 21,110 8,295 12,815
Professional development 250 250 225 25
Recruitment 400 400 32 368
Vandalism repairs - 290 288 2
Total Community Center 282,190 282,190 185,055 97,135
Pavilion:
Salaries and benefits 148,690 145,170 121,541 23,629
Office expense 940 880 776 104
Advertising 6,000 6,060 6,057 3
Computer maintenance and replacement 6,580 6,580 6,580 -
Insurance 9,160 9,160 7,828 1,332
Occupancy 5,920 5,920 5,920 -
Utilities 21,150 20,950 20,676 274
Communications 1,310 1,440 1,434 6
Operating supplies 8,760 7,500 7,499 1
Vehicle and equipment operating costs 820 310 264 46
Contract services 21,980 27,050 23,524 3,526
Professional development 800 410 405 5
Recruitment 80 760 753 7
Special purchases, projects&studies:
Tables - 1,860 1,852 8
Capital outlay:
Ice machine 4,000 3,780 3,137 643
Window blinds 15,000 13,360 13,356 4
Total Pavilion 251,190 251,190 221,602 29,588
75
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures (continued):
Zoo:
Salaries and benefits $ 479,890 $ 473,610 $ 473,578 $ 32
Office expense 1,660 2,630 2,622 8
Advertising 500 1,500 1,496 4
Computer maintenance and replacement 17,260 17,260 17,260 -
Insurance 23,240 20,150 20,148 2
Occupancy 3,940 3,940 3,940 -
Utilities 23,100 38,030 38,027 3
Communications 580 690 687 3
Operating supplies 59,370 67,510 67,498 12
Vehicle and equipment operating costs 6,130 4,710 4,704 6
Contract services 16,350 30,410 30,409 1
Professional development 9,270 7,790 7,789 1
Recruitment 1,050 560 558 2
Special purchases, projects&studies:
Animal acquisition - 2,400 2,392 8
Shelving and storage - 480 476 4
Total Zoo 642,340 671,670 671,584 86
Public Works Administration:
Salaries and benefits 586,840 574,910 520,372 54,538
Office expense 6,800 4,150 3,778 372
Advertising 200 170 108 62
Computer maintenance and replacement 74,900 74,930 74,921 9
Insurance 24,790 24,370 21,590 2,780
Occupancy charges 12,760 12,760 12,760 -
Communications 2,600 2,600 2,573 27
Operating supplies 730 900 898 2
Vehicle operations 9,060 9,110 9,104 6
Contract services 14,520 13,080 5,411 7,669
Professional development 4,980 5,070 5,065 5
Recruitment 550 460 32 428
Contingency 5,000 5,000 - 5,000
Special purchases, projects&studies:
NPDES, Phase II 44,330 44,330 1,726 42,604
Dormant project public improvements - 12,400 12,399 1
Total Public Works Administration 788,060 784,240 670,737 113,503
76
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures (continued):
Public Works Operations:
Salaries and benefits $ 175,220 $ 187,150 $ 187,135 $ 15
Office expense 3,580 5,860 5,858 2
Advertising - 370 368 2
Computer maintenance and replacement 4,870 4,870 4,870 -
Insurance 7,770 6,660 6,655 5
Occupancy charges 18,030 19,560 19,556 4
Utilities 1,400 6,040 6,033 7
Communications 1,400 1,010 887 123
Operating supplies 650 1,920 1,921 (1)
Vehicle&equipment operating costs 5,640 4,280 4,276 4
Contract Services - 400 400 -
Professional development 3,050 490 482 8
Contingency 2,000 - - -
Capital outlay:
Air compressor - 1,220 1,215 5
Total Public Works Operations 223,610 239,830 239,656 174
Parks:
Salaries and benefits 369,230 374,420 345,213 29,207
Computer maintenance and replacement 2,140 2,140 2,140 -
Insurance 20,990 20,990 18,272 2,718
Occupancy 5,920 5,920 5,920 -
Utilities 103,050 112,210 112,206 4
Communications 2,600 2,600 2,180 420
Operating supplies 43,250 36,200 36,193 7
Vehicle and equipment operations 31,600 23,920 23,920 -
Contract services 10,250 16,190 16,184 6
Professional development 4,000 3,590 835 2,755
Recruitment - 40 32 8
Special purchases, projects&studies:
Creek Maintenance Projects - - 450 (450)
Memorial benches - 510 507 3
Memorial trees - 2,430 184 2,246
Total Parks 593,030 601,160 564,236 36,924
77
CITY OF ATASCADERO
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE-DETAIL(continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures (continued):
Non-Departmental:
Special purchases, projects&studies:
Earthquake recovery-relocation $ - $ - $ 6,912 $ (6,912)
Total Non-Departmental - - 6,912 (6,912)
Total expenditures 17,956,390 18,555,320 16,516,522 2,038,798
Excess of revenues over(under)
expenditures (1,184,390) (1,146,390) (778,136) 368,254
Other Financing Sources (Uses):
Transfer from Community Facilities District Fund 276,430 276,430 276,430 -
Transfer to Gas Tax Fund for streets maintenance (120,760) (120,760) - 120,760
Transfer to De Anza Landscape& Lighting
District for open space maintenance (840) (840) (840) -
Transfer to Library Facilities Fees Fund - (57,000) (56,539) 461
Transfer to Redevelopment Agency Fund for
tourism, marketing and promotion - (38,000) (38,000) -
Total other financing sources (uses) 154,830 59,830 181,051 121,221
Excess of revenues and other sources over
(under)expenditures and other uses $ (1,029,560) $ (1,086,560) (597,085) $ 489,475
Fund balance, June 30, 2010 7,517,529
Fund balance, June 30, 2011 $ 6,920,444
78
CITY OF ATASCADERO
REDEVELOPMENT AGENCY FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Variance with Final
Budget Budget Positive
Original Final Actual Amounts (Negative)
Revenues
Redevelopment increment-current secured rolls $ 1,448,890 $ 1,448,890 $ 1,261,402 $ (187,488)
Redevelopment increment-supplemental rolls 63,840 63,840 29,449 (34,391)
SERAF - (274,919) (274,919)
Interest income 91,790 91,790 57,948 (33,842)
Rental income 373,600 373,600 373,596 (4)
Total revenues 1,978,120 1,978,120 1,447,476 (530,644)
Expenditures:
Operations and Administration
Salaries and benefits - 1,980 1,971 9
Office expense 2,650 670 229 441
Advertising 950 950 228 722
Computer maintenance and replacement 2,230 2,230 2,230 -
Insurance 17,650 17,650 15,375 2,275
Communications 230 230 56 174
Operating supplies 150 150 - 150
Vehicle&equipment operating costs 400 400 - 400
Contract services 134,600 134,600 133,430 1,170
Professional development 20,100 7,490 7,490 -
Administration 269,240 269,240 269,240 -
Interest 122,000 122,000 115,223 6,777
Total Operations and Administration 570,200 557,590 545,472 12,118
Property Management
Insurance 5,340 5,340 4,965 375
Occupancy 1,000 1,000 1,000 -
Operating supplies 1,000 1,000 - 1,000
Contract services 4,600 4,600 3,200 1,400
Total Property Management 11,940 11,940 9,165 2,775
79
CITY OF ATASCADERO
REDEVELOPMENT AGENCY FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE (continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Expenditures(continued):
Programs and Projects
Special purchases, projects&studies:
Advertising $ 25,800 $ 800 $ 640 $ 160
Utilities - 1,720 1,716 4
Operating supplies 5,500 4,600 1,948 2,652
Contract services 128,790 109,200 108,376 824
Tourism 14,360 9,040 9,032 8
Main Street program 59,160 30,000 30,000 -
Special events&promotions - 9,600 9,600 -
Graffiti removal program 25,000 1,090 1,087 3
Creek improvements 25,000 31,090 31,084 6
Sunken Gardens holiday enhancements 8,300 8,300 - 8,300
Economic Development Strategy 25,000 25,000 23,914 1,086
Historic consultant- Printery 28,410 28,410 - 28,410
Permit fee waiver program 16,480 16,480 14,334 2,146
Design guidelines 9,640 9,640 - 9,640
Restaurant stimulus program - 1,000,000 - 1,000,000
Tourism, marketing &events - 128,720 128,509 211
Fagade improvement program 40,000 40,000 19,892 20,108
Downtown sidewalk repair program - 13,390 13,387 3
Site design assistance program 10,000 10,000 - 10,000
Capital outlay:
Zoo Entrance and Restroom Project 296,780 296,780 299,491 (2,711)
Parking improvements 500,000 500,000 - 500,000
Total Programs and Projects 1,218,220 2,273,860 693,010 1,580,850
Total expenditures 1,800,360 2,843,390 1,247,647 1,595,743
Excess of revenues over(under)expenditures 177,760 (865,270) 199,829 1,065,099
80
CITY OF ATASCADERO
REDEVELOPMENT AGENCY FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE (continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Other Financing Sources(Uses):
Transfer from General Fund for tourism and marketing $ - $ 38,000 $ 38,000 $ -
Transfer from Business Improvement Association
Fund for tourism and marketing - 5,030 5,030 -
Transfer to Capital Projects Fund for Streetscape III Project (79,500) - - -
Transfer of debt issued to 2010 Bond Project Fund - - (16,010,000) (16,010,000)
Transfer to 2010 Bond Debt Service Fund for the bond
interest payment - (445,970) (445,966) 4
Transfer to Blight Elimination Fund for the Blight Elimination
Projects - (6,555,750) (6,516,410) 39,340
Transfer to Historic City Hall Rehabilitation Fund for the City
Hall Rehabilitation Project (4,656,160) (4,656,160) (52,458) 4,603,702
Transfer to Capital Projects Fund for Lake Park Frontage
Project (427,320) (427,320) (46,635) 380,685
Total other financing sources (uses) (5,162,980) (12,042,170) (23,028,439) (10,986,269)
Excess of revenues and other sources
over(under)expenditures and other uses $ (4,985,220) $ (12,907,440) (22,828,610) $ (9,921,170)
Fund balance, June 30, 2010 7,012,317
Fund balance, June 30, 2011 $ (15,816,293)
81
CITY OF ATASCADERO
LOW/MODERATE INCOME HOUSING REDEVELOPMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Current secured increment $ 799,140 $ 799,140 $ 735,601 $ (63,539)
Supplemental tax increment 22,130 22,130 10,179 (11,951)
Interest income 159,970 159,970 (8,234) (168,204)
Total revenues 981,240 981,240 737,546 (243,694)
Expenditures:
Contract services 10,000 8,980 7,127 1,853
Professional development - 1,020 1,016 4
Administrative charges 25,770 25,770 25,770 -
Special projects and purchases:
SLO County Housing Trust Fund 7,000 7,000 7,000 -
Downtown housing assistance program 500,000 500,000 200,052 299,948
2010/2011 RDA Housing Strategy - 60,000 30,736 29,264
Total expenditures 542,770 602,770 271,701 331,069
Excess of revenues over(under)expenditures 438,470 378,470 465,845 87,375
Other Financing Sources:
Transfer to Production of Affordable Housing Units
Fund for affordable housing - (5,543,800) (5,543,800) -
Total other financing sources - (5,543,800) (5,543,800) -
Excess of revenues and other sources over
(under)expenditures $ 438,470 $ (5,165,330) (5,077,955) $ 87,375
Fund balance, June 30, 2010 4,801,359
Fund balance, June 30, 2011 $ (276,596)
82
CITY OF ATASCADERO
SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
For the Fiscal Year Ended June 30, 2011
The following table provides required supplementary information regarding the City's postemployment healthcare benefits.
SCHEDULE OF FUNDING PROGRESS
Actuarial Asset Actuarial Accrued Unfunded Liability Annual Covered UAAL as a %of
Valuation Date Value Liability(AAL) (Excess Assets) Funded Ratio Payroll Covered Payroll
6/30/2010 $ - $ 147,832 $ 147,832 0.0% $ 1,168,081 12.7%
6/30/2011 $ - $ 150,263 $ 150,263 0.0% $ 1,143,344 13.1%
83
CITY OF ATASCADERO
BLIGHT ELIMINATION PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ - $ - $ 69,403 $ 69,403
Total revenues - - 69,403 69,403
Expenditures:
Special projects and purchases:
Downtown lighting study - 72,200 - 72,200
Downtown parking improvement study - - 323 (323)
Capital outlay:
Downtown property purchase - 12,000 15,894 (3,894)
Downtown pedestrian bridge - 30,000 20,145 9,855
Maiden statue placement - 51,590 1,670 49,920
Blight Elimination Projects - 7,845,160 - 7,845,160
Total expenditures - 8,010,950 38,032 7,972,918
Excess of revenues over(under)expenditures - (8,010,950) 31,371 8,042,321
Other Financing Sources:
Transfer from Redevelopment Agency General Fund for - 6,555,750 6,516,410 (39,340)
Blight Elimination Projects
Transfer from 2010 Bond Project Fund for Blight - 1,433,120 1,425,171 (7,949)
Elimination Projects
Transfer from 2005 Bond Project Fund for Blight - 216,710 237,797 21,087
Elimination Projects
Transfer to Capital Projects Fund for Streetscape III - (186,430) (14,171) 172,259
Project
Transfer to Circulation Impact Fee Fund for - (8,200) - 8,200
Lewis Avenue Bridge Project
Total otherfinancing sources - 8,010,950 8,165,207 154,257
Excess of revenues and other sources over
(under)expenditures $ - $ - 8,196,578 $ 8,196,578
Fund balance, June 30, 2010 -
Fund balance, June 30, 2011 $ 8,196,578
84
CITY OF ATASCADERO
HISTORIC CITY HALL REHABILITATION FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
California Cultural Historical Endowment Grant- Mitigation $ 386,590 $ 386,590 $ 81,525 $ (305,065)
California Cultural Historical Endowment Grant- Programming - - 3,264 3,264
CaIEMA-Earthquake Repair Funds 957,160 957,160 120,276 (836,884)
CaIEMA-Earthquake Mitigation Grant 2,009,070 2,009,070 265,455 (1,743,615)
FEMA- Earthquake Repair Funds 2,871,460 2,871,460 360,829 (2,510,631)
FEMA- Earthquake Mitigation Grant 6,027,190 6,027,190 796,366 (5,230,824)
Interest income - - 91,830 91,830
Total revenues 12,251,470 12,251,470 1,719,545 (10,531,925)
Expenditures:
Special projects:
FEMA Administration 128,980 128,980 102,796 26,184
Programming of City Hall 14,560 14,560 6,996 7,564
Capital outlay:
Historic City Hall- Earthquake Repairs 11,864,880 11,864,880 1,624,451 10,240,429
Historic City Hall- Rehabilitation 4,912,560 4,912,560 899,002 4,013,558
Total expenditures 16,920,980 16,920,980 2,633,245 14,287,735
Excess of revenues over(under)expenditures (4,669,510) (4,669,510) (913,700) 3,755,810
Other Financing Sources:
Transfer from the Redevelopment Agency Fund for 4,656,160 4,656,160 52,458 (4,603,702)
the rehabilitation of Historic City Hall
Transfer of bond proceeds from the 2010 Bond Project - 13,000,000 13,000,000 -
Fund for the rehabilitation of Historic City Hall
Total other financing sources 4,656,160 17,656,160 13,052,458 (4,603,702)
Excess of revenues and other sources over
(under)expenditures $ (13,350) $ 12,986,650 12,138,758 $ (847,892)
Fund balance, June 30, 2010 9,335
Fund balance, June 30, 2011 $ 12,148,093
85
OTHER SUPPLEMENTARY INFORMATION
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS OVERVIEW
SPECIAL REVENUE FUNDS
The City has established the following special revenue funds in order to account for the proceeds from revenue sources that are restricted to
expenditures for specified purposes:
Supplemental Law Enforcement Services Fund
This fund is used for Supplemental Law Enforcement Services grant monies received and to account for the allowed expenditures of these funds.
In Lieu Low/Moderate Income Housing Fund
This fund was established to account for the "In Lieu"fees paid by developers for future Low and Moderate Housing projects.
Production of Affordable Housing Units Fund
This fund was established as a result of the contractual agreement between the RDA and the City to complete production of 24 affordable housing units, in
accordance with the Agency's Housing Production Plan. The Redevelopment Agency paid the City monies up front for these Projects and these funds were
deposited into this fund.
Business Improvement Association Fund
The City established a Downtown Parking & Business Improvement Area (BIA) in 1986, for the purpose of acquisition, construction, and/or maintenance of parking
facilities, decoration of public places, promotion of public events, and the general promotion of business activities in the downtown area. An annual assessment is
placed on all businesses in the downtown area, and this fund accounts for the revenues and expenses associated with these BIA monies.
Community Development Block Grant Fund
This fund is used for Community Development Block Grant monies received from the federal government. These funds must be used for low or moderate income
projects, or to eliminate blight in the community. The City receives an annual allocation from the federal government, based on the number of qualified persons in
the City. The City holds an annual hearing to determine how this money is to be spent.
Tree Plant Fund
This fund accounts for Tree Mitigation Fees and the expenditure thereof. A fee may be paid by a developer in lieu of planting a tree on improved property. These
funds are then used for the preservation and planting of the City's native trees.
Gas Tax Fund
This fund accounts for gas tax monies received from the State, which are expended to maintain various streets within the City.
AB2928 Traffic Congestion Relief Fund
This fund accounts for Assembly Bill 2928 Traffic Congestion Relief Funds. It is allocated based on population and may only be used for street or road
maintenance and reconstruction. It requires a modest General Fund expenditure on streets in order for the City to qualify for this annual allocation.
Local Transportation Fund
This fund accounts for Local Transportation funds that can be used for streets projects. Local Transportation Funds (LTF) must first be spent to meet any
reasonable community transit need. The City uses LTF monies to run the City's bus system and to contribute to San Luis Obispo Regional Transit Authority. Any
remaining funds are accounted for in this fund and must be used for bikepath projects and streets projects.
Street Assessment Fund
This fund accounts for assessments collected to maintain various streets within the City.
86
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued)
SPECIAL REVENUE FUNDS (continued)
General Government Facilities Fees Fund
General Facilities are those limited to office or work buildings and equipment used by City staff to undertake their daily duties. As the City increases in both
population and new businesses, City Hall and the City maintenance yard will increasingly become overcrowded with growing staff. New facilities and equipment will
be necessary to extend the current level of service to these new residents and businesses. Because the need for these new facilities and additional equipment is
directly related to new construction, a General Government Facilities Fee is charged on all new development. These fees are deposited into this fund and then
used for expanded/new facilities and equipment as listed in the Atascadero Master Facilities Plan updated February 2006.
Circulation System Fees Fund
Because a developed parcel will generate a statistically predictable amount of trips, depending upon the specific land use of the development, it can be said that all
new development contributes to traffic impacts which have significant and widespread cumulative impacts on the City's existing road system. Therefore, the City
charges a Circulation System Fee in order to fund the creation of more lane miles or more efficient lane miles with which to accommodate the additional trips
created by new development. These fees are deposited into this fund and then used for the construction of the new/increased/improved roadway and bridge
facilities as listed in the Atascadero Master Facilities Plan updated February 2006.
Storm Drainage Facilities Fees Fund
As vacant land is developed and bare dirt or turf is replaced with impervious rooftop, parking lots, driveways, pools and sidewalks, water runoff increases; the
cumulative effects of this additional runoff is managed by constructing the appropriate capital facilities. Because the need for these capital facilities is directly
related to new construction, a Storm Drainage Facilities Fee is charged on all new development. These fees are deposited into this fund and then used for the
construction of the new/increased/improved capital facilities as listed in the Atascadero Master Facilities Plan updated February 2006.
Amapoa/Tecorida Drainage Impact Fees Fund
This fund accounts for Amapoa/Tecorida Drainage Fees collected on all development in the Amapoa/Tecorida area of the City, and were collected in addition to
other fees for necessary drainage improvement. In May 2003, the Council voted to rescind this fee and adopt one citywide drainage fee. All remaining funds are
being spent on drainage improvements in the Amapoa/Tecorida area.
Law Enforcement Facilities Fees Fund
Residents and businesses benefit from both direct (response to a call for service) and indirect (crime prevention programs, patrol, etc.) law enforcement services.
The addition of new residential units and new businesses necessarily increase the demand upon the law enforcement service level by creating more direct calls for
service, more area requiring preventative patrol, and in general, more opportunities for crimes to be committed. If law enforcement capabilities are not expanded,
then the increasing number of calls for service will reduce the amount of time available for preventative patrol. Because the need for additional police officers, as
well as the need for these officers to be equipped and housed, is directly related to new construction, a Law Enforcement Facilities Fee is charged on all new
development. These fees are deposited into this fund and then used for the purchase/construction of equipment/stations for these additional officers as listed in
the Atascadero Master Facilities Plan updated February 2006.
Fire Facilities Fees Fund
In addition to providing fire prevention programs, the Fire Department responds to calls for fire and medical services from two existing fire stations. Each new
residential and business development creates more calls for service, increasing the likelihood of simultaneous (and thus competing) calls for service. Additionally,
as development spreads further from the existing stations, response times will necessarily increase, taking the existing engine companies out of service for greater
periods of time. These developments create the need for additional facilities and equipment. Because the need for these new facilities and additional equipment is
directly related to new construction, a Fire Facilities Fee is charged on all new development. These fees are deposited into this fund and then used for the
relocation/construction of fire stations, as well as the purchase of additional equipment, as listed in the Atascadero Master Facilities Plan updated February 2006.
87
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued)
SPECIAL REVENUE FUNDS (continued)
Open Space Acquisition Fees Fund
Future residential development, by increasing the City's population, will by definition impact the City's available land and decrease open space. Without open space
acquisition, the City's remaining available land will be developed and the City will lose much of its historic charm that is so valuable to residents. Because the need
for land acquisition is directly related to new construction, an Open Space Acquisition Fee is charged on all new development. These fees are deposited into this
fund and then used for land acquisitions as listed in the Atascadero Master Facilities Plan updated February 2006.
Parkland Facilities Fees Fund
Residential development, by increasing the City's population, necessarily impacts the City's park system. Without future parkland and continued development of
currently owned, but underutilized parkland, the City's parks become overcrowded and overused with the ultimate result becoming a negative experience for park
users. Because the need for new facilities and land acquisitions is directly related to new construction, a Parkland Facilities Fee is charged on all new
development. These fees are deposited into this fund and then used for expanded/new facilities and land acquisitions as listed in the Atascadero Master Facilities
Plan updated February 2006.
Public Facilities Fees Fund
The City currently has existing community use facilities, such as the Lake Pavilion and the Youth Center. Future additional residential units will increase the City's
population, placing ever greater demands on existing community use facilities, and new or expanded community center space will be necessary to extend the
current level of service to new residents. Because the need for these new facilities is directly related to new construction, a Public Facilities Fee is charged on all
new residential development. These fees are deposited into this fund and then used for expanded/new community use facilities as listed in the Atascadero Master
Facilities Plan updated February 2006, and for debt service on the Lake Pavilion.
Library Expansion Facilities Fees Fund
The County Public Library System currently owns a 7,000 square foot library facility within the City limits. While the City is not the library service provider, the City's
residents and businesses have an interest in maintaining the library service levels. Additional development within the City will increase the demand for a larger
sized library and for more volumes within the library. Because the need for additional volumes and the need for an expanded library is directly related to new
construction, a Library Facilities Fee is charged on all new development. These fees are deposited into this fund and then will be used for the expansion of the
amount of library facility space and the expansion of the library collection as listed in the Atascadero Master Facilities Plan updated February 2006. These monies
will be accumulated for several years, as necessary for expansion of the existing library facility.
Fire Aerial Vehicle Impact Fees Fund
This fund accounts for the aerial fire truck impact fees that are imposed on commercial and multi-family residential developments. A platform aerial truck was
purchased in fiscal year 2007-2008.
Community Facilities District Fund
This fund is used to account for fees assessed in the Community Facilities District. This district was established in 2005 in order to provide funding for expansion
of police, fire, and parks services as the City's population increases. Developments that must obtain Planning Commission approval are subject to annexation into
the city-wide district.
Apple Valley Street& Storm Drain Assessment District Fund
This fund is used to account for fees assessed in development known as The Colony at Apple Valley. This assessment district was established in 2005 in order to
maintain the Street and Storm Drain related improvements in the development.
88
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued)
SPECIAL REVENUE FUNDS (continued), & CAPITAL PROJECTS FUNDS
Apple Valley Landscape & Lighting Assessment District Fund
This fund is used to account for fees assessed in development known as The Colony at Apple Valley. This assessment district was established in 2005 in order to
maintain the Landscape & Lighting related improvements in the development.
Las Lomas Street&Storm Drain Assessment District Fund
This fund is used to account for fees assessed in development known as Las Lomas. This assessment district was established in 2005 in order to maintain the
Street and Storm Drain related improvements in the development.
Las Lomas Landscape & Lighting Assessment District Fund
This fund is used to account for fees assessed in development known as Las Lomas. This assessment district was established in 2005 in order to maintain the
Landscape and Lighting related improvements in the development.
De Anza Street& Storm Drain Assessment District Fund
This fund is used to account for fees assessed in development known as De Anza Estates. This assessment district was established in 2005 in order to maintain
the Street and Storm Drain related improvements in the development.
De Anza Landscape & Lighting Assessment District Fund
This fund is used to account for fees assessed in development known as De Anza Estates. This assessment district was established in 2005 in order to maintain
the Landscape and Lighting related improvements in the development.
The City has established the following capital projects funds in order to account for expenditures for specific capital project purposes:
Capital Projects Fund
This fund is typically used to account for the financial resources used in the construction or acquisition of major capital facilities or equipment obtained by special
funding such as grants or dedicated reimbursements. It is also used as a type of clearinghouse for projects with many different sources of funding.
2005 Redevelopment Bond Project Fund
This fund is used to account for the expenditures of the 2005 Redevelopment Bond proceeds and the related interest on these proceeds. The Community
Redevelopment Agency of Atascadero issued bonds in November of 2004 in order to complete a list of projects to revitalize the downtown area. These projects
are a key component of the revised Downtown Revitalization Plan. Implementing the plan will improve pedestrian, vehicle and bicycle traffic; provide adequate
parking; establish the revitalized Sunken Gardens as the central hub for the area; and promote downtown's economic vitality.
Assessment District#8 Construction Fund
This fund contains the balance of monies remaining from a past wastewater construction project.
Youth Center Construction Fund
This fund accounts for funds received for and expended on the construction of the new Colony Park Community Center.
2010 Redevelopment Bond Project Fund
This fund is used to account for the expenditures of the 2010 Lease Revenue Bond proceeds and the related interest on these proceeds. In September 2010, the
City of Atascadero issued lease revenue bonds. The spendable proceeds of these bonds were transferred to this Redevelopment Agency Fund. The Agency
Board and the community identified the renovation of the Historic City Hall and specific blight elimination projects as the priority projects for the bond proceeds. In
January 2011, the Agency contracted with the City to complete these projects, transferring funds to an escrow account held by the City.
89
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued)
DEBT SERVICE FUNDS
The City has established the debt service funds to account for the payment and accumulation of resources related to long-term debt principal and
interest for the following debt issues:
Assessment District#4 Debt Service Fund
This fund is used to account for fees assessed in Assessment District#4, and the related debt service payments. This assessment district was established in 1986
in order to construct sewer improvements in the area known as Separado/Cayucos.
Assessment District#7 Debt Service Fund
Assessment District#7 was formed to bring sewer services to an area referred to as East Santa Rosa Road, pursuant to a regional Water Quality Control Board
issued Cease and Desist Order prohibiting septic systems in the area. Rather than issue bonds to construct the necessary sewer improvements, the assessment
district received a loan from the City's Wastewater Fund. The proceeds from this loan were used to construct a sewer main extension and the related necessary
sewer improvements needed to comply with the Cease and Desist Order.
Assessment District#9 Debt Service Fund
Assessment District#9 was formed to bring sewer services to an area referred to as North San Gabriel Road, pursuant to a regional Water Quality Control Board
issued Cease and Desist Order prohibiting septic systems in the area. Rather than issue bonds to construct the necessary sewer improvements, the assessment
district received a loan from the City's Wastewater Fund. The proceeds from this loan were used to construct a sewer main extension and the related necessary
sewer improvements needed to comply with the Cease and Desist Order.
Assessment District#10 Debt Service Fund
Assessment District#10 was formed to bring sewer services to an area referred to as West Santa Rosa Road, pursuant to a regional Water Quality Control Board
issued Cease and Desist Order prohibiting septic systems in the area. Rather than issue bonds to construct the necessary sewer improvements, the assessment
district received a loan from the City's Wastewater Fund. The proceeds from this loan were used to construct a sewer main extension and the related necessary
sewer improvements needed to comply with the Cease and Desist Order.
2005 Redevelopment Bond Debt Service Fund
The City issued $12,490,000 in Tax Allocation bonds for improvements to the City's downtown core. The bonds will mature between fiscal years 2010 and 2035,
at interest rates ranging from 3.00% to 5.00%. The Bonds will be repaid with the Agency's Tax Increment Revenues.
1992 Street Assessment Improvement Fund
This fund is used to account for fees assessed in the 1992 Street Improvement Assessment District and the related debt service payments. This assessment
district was formed in 1992 in order to construct street improvements in two non-contiguous sections of the City: the Las Encinas area and the 3F Meadows area.
In accordance with the original bond agreement, the District called $180,000 in aggregate principal bonds on September 2, 1995.
90
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued)
DEBT SERVICE FUNDS
1993 Camino Real Improvement Bonds Fund
The Assessment District was formed to construct and dedicate off-site improvements and utility services to serve the development now known as Mission Oaks
Annex. On July 8, 1993, the City issued $2,100,000 in 1915/1913 Act assessment bonds at interest rates of 4.5% to 7.25%. Proceeds from these assessment
bonds were used to construct street improvements, sewer lines, water mains, electrical and telephone utility extensions, street lighting, traffic signalization,
landscaping, and storm drains in and around the area known as Mission Oaks Annex. On February 13, 1999, the City defeased the outstanding bonds and issued
new lower interest bonds.
2010 Bond Debt Service Fund
The City issued $16,010,000 in Lease Revenue bonds, transferring the proceeds to the Redevelopment Agency for the rehabilitation of the historic City Hall
building, as well as blight elimination projects, as funds allow. The bonds will mature between fiscal years 2014 and 2040, at interest rates ranging from 3.00% to
5.00%. The Bonds will be repaid by the City General Fund, to be reimbursed by the Redevelopment Agency General Fund.
91
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
June 30, 2011
Special Revenue Funds
Supplemental In Lieu Low/ Production of Business Community
Law Moderate Affordable Improvement Development
Enforcement Income Housing Housing Units Association Block Grant Tree Plant
Services Fund Fund Fund Fund Fund Fund Gas Tax Fund
ASSETS
Cash and investments $ 130,600 $ 467,050 $ 3,948,103 $ 1,027 $ - $ 500,197 $ 642,256
Restricted cash and investments:
Cash with fiscal agent - - - - - - -
Receivables:
Federal distributions due - - - - 152,667 - -
Due from State of California 25,000 - - - - - 90,445
Due from County of San Luis Obispo - - - - - - -
Accrued interest 222 741 6,259 3 - 793 913
Other receivables - - - - 362 - 11
Due from other funds - - 1,621,886 - - - -
Prepaid items - - - - - - 730
Notes receivable - 3,713,125 - - - - -
Interfund advances receivable - - - - - - -
Total assets $ 155,822 $ 4,180,916 $ 5,576,248 $ 1,030 $ 153,029 $ 500,990 $ 734,355
LIABILITIES AND FUND BALANCES
Accounts payable $ 1,564 $ - $ - $ - $ 10,208 $ 4,614 $ 161,624
Accrued salaries and benefits 259 - - - - 945 13,990
Due to other funds - - - - 142,821 - -
Deferred revenue 150,589 - - - - - -
Other payables - - - - - - -
Interfund advances payable - - - - - - -
Totalliabilities 152,412 - - - 153,029 5,559 175,614
Fund Balances:
Nonspendable - - - - - - 730
Restricted 3,410 4,180,916 5,576,248 1,030 - 495,431 558,011
Assigned for road projects - - - - - - -
Unassigned - - - - - - -
Total fund balances 3,410 4,180,916 5,576,248 1,030 - 495,431 558,741
Total liabilities and fund balances $ 155,822 $ 4,180,916 $ 5,576,248 $ 1,030 $ 153,029 $ 500,990 $ 734,355
92
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET(continued)
June 30, 2011
Special Revenue Funds
General Storm Amapoa/
AB2928 Traffic Local Street Government Circulation Drainage Tecorida
Congestion Transportation Assessment Facilities Fees System Fees Facilities Fees Drainage Impact
Relief Fund Fund Fund Fund Fund Fund Fees Fund
ASSETS
Cash and investments $ - $ 528,667 $ 55,254 $ - $ 1,243,203 $ 744,702 $ 76,412
Restricted cash and investments:
Cash with fiscal agent - - - - - - -
Receivables:
Federal distributions due - - - - - - -
Due from State of California - - - - - - -
Due from County of San Luis Obispo - 353,394 55 - 1,119 - -
Accrued interest - 1,196 87 - 1,927 1,184 126
Other receivables - - - - - - -
Due from other funds - - - - - - -
Prepaid items - - - - - - -
Notes receivable - - - - - - -
Interfund advances receivable - - - - - - -
Total assets $ - $ 883,257 $ 55,396 $ - $ 1,246,249 $ 745,886 $ 76,538
LIABILITIES AND FUND BALANCES
Accounts payable $ - $ 6,241 $ - $ - $ 2,392 $ 4,100 $ -
Accrued salaries and benefits - - - - - - -
Due to other funds - - - 314,476 - - -
Deferred revenue - - - - 411,133 -Other payables - - - - - - -
Interfund advances payable - - - - - -
Total liabilities - 6,241 - 314,476 413,525 4,100 -
Fund Balances:
Nonspendable - - - - - - -
Restricted - 877,016 55,396 - 832,724 741,786 76,538
Assigned for road projects - - - - - - -
Unassigned - - - (314,476) - - -
Total fund balances - 877,016 55,396 (314,476) 832,724 741,786 76,538
Total liabilities and fund balances $ - $ 883,257 $ 55,396 $ - $ 1,246,249 $ 745,886 $ 76,538
93
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET(continued)
June 30, 2011
Special Revenue Funds
Law Library
Enforcement Open Space Parkland Public Expansion Fire Aerial
Facilities Fees Fire Facilities Acquisition Facilities Fees Facilities Fees Facilities Fees Vehicle Impact
Fund Fees Fund Fees Fund Fund Fund Fund Fees Fund
ASSETS
Cash and investments $ 48,635 $ 757,035 $ 394,863 $ 312,732 $ 141,302 $ 7,149 $ -
Restricted cash and investments:
Cash with fiscal agent - - - - - - -
Receivables:
Federal distributions due - - - - - - -
Due from State of California - - - - - - -
Due from County of San Luis Obispo - - - - - - -
Accrued interest 77 1,194 622 493 223 11 -
Other receivables - 302 - - - - -
Due from other funds - - - - - - -
Prepaid items - - - - - - -
Notes receivable - - - - - - -
Interfund advances receivable - - - - - - -
Total assets $ 48,712 $ 758,531 $ 395,485 $ 313,225 $ 141,525 $ 7,160 $ -
LIABILITIES AND FUND BALANCES
Accounts payable $ - $ 18 $ - $ 496 $ - $ - $ -
Accrued salaries and benefits - - - - - - -
Due to other funds - - - - - - 845,943
Deferred revenue - - - 22,000 - - -
Other payables - - - - - - -
Interfund advances payable - - - - - - -
Totalliabilities - 18 - 22,496 - - 845,943
Fund Balances:
Nonspendable - - - - - - -
Restricted 48,712 758,513 395,485 290,729 141,525 7,160 -
Assigned for road projects - - - - - - -
Unassigned - - - - - - (845,943)
Total fund balances 48,712 758,513 395,485 290,729 141,525 7,160 (845,943)
Total liabilities and fund balances $ 48,712 $ 758,531 $ 395,485 $ 313,225 $ 141,525 $ 7,160 $ -
94
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET(continued)
June 30, 2011
Special Revenue Funds
Apple Valley Apple Valley Las Lomas Las Lomas De Anza
Street&Storm Landscape& Street&Storm Landscape& De Anza Street Landscape&
Community Drain Lighting Drain Lighting &Storm Drain Lighting
Facilities Assessment Assessment Assessment Assessment Assessment Assessment
District Fund District Fund District Fund District Fund District Fund District Fund District Fund
ASSETS
Cash and investments $ 624 $ 207,715 $ 175,413 $ 196,873 $ 236,556 $ 190,584 $ 120,251
Restricted cash and investments:
Cash with fiscal agent - - - - - - -
Receivables:
Federal distributions due - - - - - - -
Due from State of California - - - - - - -
Due from County of San Luis Obispo 14,334 549 316 51 108 5,769 2,005
Accrued interest - 322 280 307 400 295 189
Other receivables - - 50,000 - - - -
Due from other funds - - - - - - -
Prepaid items - - - - - - -
Notes receivable - - - - - - -
Interfund advances receivable - - - - - - -
Total assets $ 14,958 $ 208,586 $ 226,009 $ 197,231 $ 237,064 $ 196,648 $ 122,445
LIABILITIES AND FUND BALANCES
Accounts payable $ 1,195 $ 440 $ 8,997 $ 440 $ 14,565 $ 440 $ 1,608
Accrued salaries and benefits - - - - - - -
Due to other funds - - - - - - -
Deferred revenue - - 75,000 - - - -
Other payables 1,265 - - - - - -
Interfund advances payable - - - - - - -
Totalliabilities 2,460 440 83,997 440 14,565 440 1,608
Fund Balances:
Nonspendable - - - - - - -
Restricted 12,498 208,146 142,012 196,791 222,499 196,208 120,837
Assigned for road projects - - - - - - -
Unassigned - - - - - - -
Total fund balances 12,498 208,146 142,012 196,791 222,499 196,208 120,837
Total liabilities and fund balances $ 14,958 $ 208,586 $ 226,009 $ 197,231 $ 237,064 $ 196,648 $ 122,445
95
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET(continued)
June 30, 2011
Capital Projects Funds Debt Service Funds
2005 Assessment Assessment
Redevelopment District#8 Youth Center District#4 Assessment
Capital Bond Project Construction Construction 2010 Bond Debt Service District#7 Debt
Projects Fund Fund Fund Fund Project Fund Fund Service Fund
ASSETS
Cash and investments $ - $ 301,941 $ - $ - $ - $ 49,022 $ -
Restricted cash and investments:
Cash with fiscal agent - - - - - - -
Receivables:
Federal distributions due 833,207 - - 303,825 - - -
Due from State of California 1,730 - - 101,275 - - -
Due from County of San Luis Obispo 228,580 - - - - - -
Accrued interest 99 821 - - - 78 -
Other receivables - - - - - - -
Due from other funds - - - - - - -
Prepaid items - - - - - - -
Notes receivable - - - - - - -
Interfund advances receivable - - - - - - -
Total assets $ 1,063,616 $ 302,762 $ - $ 405,100 $ - $ 49,100 $ -
LIABILITIES AND FUND BALANCES
Accounts payable $ 122,208 $ - $ - $ 100 $ - $ - $ -
Accrued salaries and benefits - - - - - - -
Due to other funds 8,065 176,755 - 395,707 - - -
Deferred revenue - 7,676 - 9,293 - - -
Other payables - - - - - - -
Interfund advances payable - - - - - -Total liabilities 130,273 184,431 - 405,100 - - -
Fund Balances:
Nonspendable - - - - - - -
Restricted 340,650 118,331 - - - 49,100 -
Assigned for road projects 592,693 - - - - - -
Unassigned - - - - - - -
Total fund balances 933,343 118,331 - - - 49,100 -
Total liabilities and fund balances $ 1,063,616 $ 302,762 $ - $ 405,100 $ - $ 49,100 $ -
96
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET(continued)
June 30, 2011
Debt Service Funds
Assessment Assessment 2005 1992 Street 1993 Camino
District#9 District#10 Redevelopment Assessment Real 2010 Bond
Debt Service Debt Service Bond Debt Improvement Improvement Debt Service
Fund Fund Service Fund Fund Bonds Fund Fund TOTALS
ASSETS
Cash and investments $ 25,377 $ - $ 578,810 $ 174,324 $ 361,003 $ - $ 12,617,680
Restricted cash and investments:
Cash with fiscal agent - - 852,423 123 79,500 1,417,504 2,349,550
Receivables:
Federal distributions due - - - - - - 1,289,699
Due from State of California - - - - - - 218,450
Due from County of San Luis Obispo 548 - 59 - - - 606,887
Accrued interest 37 - 915 275 525 - 20,614
Other receivables - - - - - - 50,675
Due from other funds - - - - - - 1,621,886
Prepaid items - - - - - - 730
Notes receivable - - - - - - 3,713,125
Interfund advances receivable - - - - - 16,010,000 16,010,000
Total assets $ 25,962 $ - $ 1,432,207 $ 174,722 $ 441,028 $ 17,427,504 $ 38,499,296
LIABILITIES AND FUND BALANCES
Accounts payable $ - $ - $ - $ - $ - $ - $ 341,250
Accrued salaries and benefits - - - - - - 15,194
Due to other funds - - - - - - 1,883,767
Deferred revenue - - - - - - 675,691
Other payables - - - - - - 1,265
Interfund advances payable 21,385 - - - - - 21,385
Total liabilities 21,385 - - - - - 2,938,552
Fund Balances:
Nonspendable - - - - - - 730
Restricted 4,577 - 1,432,207 174,722 441,028 17,427,504 36,127,740
Assigned for road projects - - - - - - 592,693
Unassigned - - - - - - (1,160,419)
Total fund balances 4,577 - 1,432,207 174,722 441,028 17,427,504 35,560,744
Total liabilities and fund balances $ 25,962 $ - $ 1,432,207 $ 174,722 $ 441,028 $ 17,427,504 $ 38,499,296
97
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES
For Fiscal Year Ended June 30, 2011
Special Revenue Funds
Supplemental In Lieu Low/ Production of Business Community
Law Moderate Affordable Improvement Development
Enforcement Income Housing Units Association Block Grant Tree Plant
Services Fund Housing Fund Fund Fund Fund Fund Gas Tax Fund
Revenues:
Taxes and assessments $ - $ - $ - $ - $ - $ - $ -
Licenses and permits - - - - - 3,802 -
Intergovernmental revenues 75,129 - - - 152,666 - 739,718
Use of money and property 1,091 (105,400) 32,448 (11) - 4,211 3,513
Other revenues - - - - - - 520
Total revenues 76,220 (105,400) 32,448 (11) 152,666 8,013 743,751
Expenditures:
Salaries and benefits 13,399 - - - - 16,318 301,367
Supplies and services 1,469 18,460 - - 9,968 613 355,245
Special projects and studies 52,474 2,460 - - 148,969 27,714 4,337
Capital outlay 7,787 - - - - - -
Debt service:
Principal - - - - - -Interest - - - - - - -
Total expenditures 75,129 20,920 - - 158,937 44,645 660,949
Excess of revenues over
(under)expenditures 1,091 (126,320) 32,448 (11) (6,271) (36,632) 82,802
Other Financing Sources (Uses):
Bondsissued - - - - - - -
Premium on bonds issued - - - - - - -
Transfers in - - 5,543,800 - 6,271 - 222
Transfers out - - - (5,030) - - (6,271)
Total other financing
sources (uses) - - 5,543,800 (5,030) 6,271 - (6,049)
Excess of revenues and
other sources over(under)
expenditures and other
uses 1,091 (126,320) 5,576,248 (5,041) - (36,632) 76,753
Fund balance, June 30, 2010 2,319 4,307,236 - 6,071 - 532,063 481,988
Fund balance, June 30, 2011 $ 3,410 $ 4,180,916 $ 5,576,248 $ 1,030 $ - $ 495,431 $ 558,741
98
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES (continued)
For Fiscal Year Ended June 30, 2011
Special Revenue Funds
Amapoa/
General Storm Tecorida
AB2928 Traffic Local Street Government Circulation Drainage Drainage
Congestion Transportation Assessment Facilities Fees System Fees Facilities Fees Impact Fees
Relief Fund Fund Fund Fund Fund Fund Fund
Revenues:
Taxes and assessments $ - $ - $ 2,140 $ - $ - $ - $ -
Licenses and permits - - - 8,616 147,523 14,038 -
Intergovernmental revenues - 257,202 - - - -
Use of money and property 1,833 6,935 471 (3,589) 10,297 6,212 686
Other revenues - - - - - - -
Total revenues 1,833 264,137 2,611 5,027 157,820 20,250 686
Expenditures:
Salaries and benefits - - - - - - -
Supplies and services - - - - - - -
Special projects and studies 118,403 161 - - 3,004 55,891 -
Capital outlay 83,673 52,632 - - 2,193 30,594 -
Debt service:
Principal - - - - - - -
Interest - - - - - - -
Total expenditures 202,076 52,793 - - 5,197 86,485 -
Excess of revenues over
(under)expenditures (200,243) 211,344 2,611 5,027 152,623 (66,235) 686
Other Financing Sources (Uses):
Bondsissued - - - - - - -
Premium on bonds issued - - - - - - -
Transfers in - - - - 1,525 12,144 -
Transfers out (222) (269,474) - - - - (12,144)
Total other financing
sources (uses) (222) (269,474) - - 1,525 12,144 (12,144)
Excess of revenues and
other sources over(under)
expenditures and other
uses (200,465) (58,130) 2,611 5,027 154,148 (54,091) (11,458)
Fund balance, June 30, 2010 200,465 935,146 52,785 (319,503) 678,576 795,877 87,996
Fund balance, June 30, 2011 $ - $ 877,016 $ 55,396 $ (314,476) $ 832,724 $ 741,786 $ 76,538
99
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES (continued)
For Fiscal Year Ended June 30, 2011
Special Revenue Funds
Law Library
Enforcement Open Space Parkland Public Expansion Fire Aerial
Facilities Fees Fire Facilities Acquisition Facilities Fees Facilities Fees Facilities Fees Vehicle Impact
Fund Fees Fund Fees Fund Fund Fund Fund Fees Fund
Revenues:
Taxes and assessments $ - $ - $ - $ - $ - $ - $ -
Licenses and permits 9,949 14,164 24,159 77,961 21,113 7,670 147
Intergovernmental revenues - - - 15,000 - - -
Use of money and property 407 16,353 3,355 2,618 1,179 (177) (9,477)
Other revenues - - - - - - -
Total revenues 10,356 30,517 27,514 95,579 22,292 7,493 (9,330)
Expenditures:
Salaries and benefits - - - - - - -
Supplies and services - - - 496 - - -
Special projects and studies - - 15,000 - 254,750 -
Capital outlay - - - - - - -
Debt service:
Principal - - - - - -Interest - - - - - - -
Total expenditures - - - 15,496 - 254,750 -
Excess of revenues over
(under)expenditures 10,356 30,517 27,514 80,083 22,292 (247,257) (9,330)
Other Financing Sources (Uses):
Bondsissued - - - - - - -
Premium on bonds issued - - - - - - -
Transfers in - - - - - 56,539 -
Transfers out - - - - - - -
Total other financing
sources (uses) - - - - - 56,539 -
Excess of revenues and
other sources over(under)
expenditures and other
uses 10,356 30,517 27,514 80,083 22,292 (190,718) (9,330)
Fund balance, June 30, 2010 38,356 727,996 367,971 210,646 119,233 197,878 (836,613)
Fund balance, June 30, 2011 $ 48,712 $ 758,513 $ 395,485 $ 290,729 $ 141,525 $ 7,160 $ (845,943)
100
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES (continued)
For Fiscal Year Ended June 30, 2011
Special Revenue Funds
Apple Valley Apple Valley Las Lomas Las Lomas De Anza
Street&Storm Landscape& Street&Storm Landscape& De Anza Street Landscape&
Community Drain Lighting Drain Lighting &Storm Drain Lighting
Facilities Assessment Assessment Assessment Assessment Assessment Assessment
District Fund District Fund District Fund District Fund District Fund District Fund District Fund
Revenues:
Taxes and assessments $ 288,345 $ 38,290 $ 21,980 $ 23,276 $ 49,464 $ 37,789 $ 12,719
Licenses and permits - - - - - - -
Intergovernmental revenues - - - - - - -
Use of money and property (590) 1,724 1,321 1,635 1,844 1,618 989
Other revenues - - - - - - -
Total revenues 287,755 40,014 23,301 24,911 51,308 39,407 13,708
Expenditures:
Salaries and benefits - - - - - - -
Supplies and services 4,788 3,511 77,673 5,994 99,460 3,617 22,997
Special projects and studies - - - - 24,046 - -
Capital outlay - - - - - - -
Debt service:
Principal - - - - - -Interest - - - - - - -
Total expenditures 4,788 3,511 77,673 5,994 123,506 3,617 22,997
Excess of revenues over
(under)expenditures 282,967 36,503 (54,372) 18,917 (72,198) 35,790 (9,289)
Other Financing Sources (Uses):
Bondsissued - - - - - - -
Premium on bonds issued - - - - - - -
Transfers in - - - - - - 840
Transfers out (276,430) - - - - - -
Total other financing
sources (uses) (276,430) - - - - - 840
Excess of revenues and
other sources over(under)
expenditures and other
uses 6,537 36,503 (54,372) 18,917 (72,198) 35,790 (8,449)
Fund balance, June 30, 2010 5,961 171,643 196,384 177,874 294,697 160,418 129,286
Fund balance, June 30, 2011 $ 12,498 $ 208,146 $ 142,012 $ 196,791 $ 222,499 $ 196,208 $ 120,837
101
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES (continued)
For Fiscal Year Ended June 30, 2011
Capital Projects Funds Debt Service Funds
2005 Assessment 2010
Redevelopment District#8 Youth Center Redevelopment Assessment Assessment
Capital Bond Project Construction Construction Bond Project District#4 Debt District#7 Debt
Projects Fund Fund Fund Fund Fund Service Fund Service Fund
Revenues:
Taxes and assessments $ - $ - $ - $ - $ - $ - $ 27,556
Licenses and permits 7 - - - - - -
Intergovernmental revenues 1,057,821 - - - - - -
Use of money and property (2,320) 4,985 (13) (4,435) 24,892 419 37
Other revenues - - - 4,535 - - 43,079
Total revenues 1,055,508 4,985 (13) 100 24,892 419 70,672
Expenditures:
Salaries and benefits - - - - - - -
Supplies and services - - 1,045 100 282,606 - 338
Special projects and studies - - - - - - -
Capital outlay 1,409,873 48,863 - - - - -
Debt service:
Principal - - - - - -Interest - - - - - - -
Total expenditures 1,409,873 48,863 1,045 100 282,606 - 338
Excess of revenues over
(under)expenditures (354,365) (43,878) (1,058) - (257,714) 419 70,334
Other Financing Sources (Uses):
Bondsissued - - - - - - -
Premium on bonds issued - - - - 90,283 - -
Transfers in 351,469 - - - 16,010,000 - -
Transfers out (381) (260,130) - - (15,842,569) - -
Total other financing
sources (uses) 351,088 (260,130) - - 257,714 - -
Excess of revenues and
other sources over(under)
expenditures and other
uses (3,277) (304,008) (1,058) - - 419 70,334
Fund balance, June 30, 2010 936,620 422,339 1,058 - - 48,681 (70,334)
Fund balance, June 30, 2011 $ 933,343 $ 118,331 $ - $ - $ - $ 49,100 $ -
102
CITY OF ATASCADERO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCES (continued)
For Fiscal Year Ended June 30, 2011
Debt Service Funds
Assessment 2005 1992 Street 1993 Camino
Assessment District#10 Redevelopment Assessment Real 2010 Bond
District#9 Debt Debt Service Bond Debt Improvement Improvement Debt Service
Service Fund Fund Service Fund Fund Bonds Fund Fund TOTALS
Revenues:
Taxes and assessments $ 15,292 $ 3,632 $ 850,738 $ - $ 173,950 $ - $ 1,545,171
Licenses and permits - - - - - - 329,149
Intergovernmental revenues - - - - - - 2,297,536
Use of money and property 115 9 1,074 1,490 2,010 107 9,866
Other revenues - 429 - - - - 48,563
Total revenues 15,407 4,070 851,812 1,490 175,960 107 4,230,285
Expenditures:
Salaries and benefits - - - - - - 331,084
Supplies and services 481 - 2,200 - 2,166 1 893,228
Special projects and studies - - - - - - 707,209
Capital outlay - - - - - - 1,635,615
Debt service: -
Principal - - 285,000 - 135,000 - 420,000
Interest 1,604 176 561,161 - 29,723 445,966 1,038,630
Total expenditures 2,085 176 848,361 - 166,889 445,967 5,025,766
Excess of revenues over
(under)expenditures 13,322 3,894 3,451 1,490 9,071 (445,860) (795,481)
Other Financing Sources (Uses):
Bonds issued - - - - - 16,010,000 16,010,000
Premium on bonds issued - - - - - - 90,283
Operating transfers in - - - - - 1,863,364 23,846,174
Operating transfers out - - - - - - (16,672,651)
Total other financing
sources(uses) - - - - - 17,873,364 23,273,806
Excess of revenues and
other sources over(under)
expenditures and other
uses 13,322 3,894 3,451 1,490 9,071 17,427,504 22,478,325
Fund balance, June 30, 2010 (8,745) (3,894) 1,428,756 173,232 431,957 - 13,082,419
Fund balance, June 30, 2011 $ 4,577 $ - $ 1,432,207 $ 174,722 $ 441,028 $ 17,427,504 $ 35,560,744
103
CITY OF ATASCADERO
SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
S.L.E.S.F. Grant $ 125,550 $ 225,550 $ 75,129 $ (150,421)
Interest income 1,790 1,790 1,091 (699)
Total revenues 127,340 227,340 76,220 (151,120)
Expenditures:
Employee services 33,950 41,650 13,399 28,251
Operating supplies 2,750 5,410 1,469 3,941
Special projects and purchases:
Critical response equipment 6,640 6,460 6,040 420
Emergency operations center upgrade 52,450 44,660 40,366 4,294
Speed survey 5,730 6,070 6,068 2
Capital outlay:
Digital Video Surveillance System - 7,790 7,787 3
Phone logger/recorded 26,360 25,840 - 25,840
In Car Video - 90,000 - 90,000
Total expenditures 127,880 227,880 75,129 152,751
Excess of revenues over(under)expenditures $ (540) $ (540) 1,091 $ 1,631
Fund balance, June 30, 2010 2,319
Fund balance, June 30, 2011 $ 3,410
104
CITY OF ATASCADERO
IN LIEU LOW/MODERATE INCOME HOUSING FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ 12,960 $ 12,960 $ 3,930 $ (9,030)
Gain/(Loss) on Inclusionary Housing Program Loans - - (109,330) (109,330)
Total revenues 12,960 12,960 (105,400) (118,360)
Expenditures:
Contract services 10,000 10,000 - 10,000
Administrative Charges 18,460 18,460 18,460 -
Special projects:
Closing Cost Program Expense - - 2,460 (2,460)
Total expenditures 28,460 28,460 20,920 7,540
Excess of revenues over(under)expenditures $ (15,500) $ (15,500) (126,320) $ (110,820)
Fund balance, June 30, 2010 4,307,236
Fund balance, June 30, 2011 $ 4,180,916
105
CITY OF ATASCADERO
PRODUCTION OF AFFORDABLE HOUSING UNITS FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ - $ - $ 32,448 $ 32,448
Total revenues - - 32,448 32,448
Expenditures:
Capital outlay:
Production of 24 Very Low/Low Income Units - 5,383,800 - 5,383,800
Total expenditures - 5,383,800 - 5,383,800
Excess of revenues over(under)expenditures - (5,383,800) 32,448 5,416,248
Other Financing Sources (Uses):
Transfer from the RDA Low/Mod Housing Fund - 5,543,800 5,543,800 -
Total other financing sources (uses) - 5,543,800 5,543,800 -
Excess of revenues and other sources over
(under)expenditures and other uses $ - $ 160,000 5,576,248 $ 5,416,248
Fund balance, June 30, 2010 -
Fund balance, June 30, 2011 $ 5,576,248
106
CITY OF ATASCADERO
BUSINESS IMPROVEMENT ASSOCIATION FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ - $ - $ (11) $ (11)
Total revenues - - (11) (11)
Expenditures:
Advertising 5,030 - - -
Total expenditures 5,030 - - -
Excess of revenues over(under)expenditures (5,030) - (11) (11)
Other Financing Sources (Uses):
Transfer to Redevelopment Agency Fund for tourism,
marketing and promotion - (5,030) (5,030) -
Total other financing sources (uses) - (5,030) (5,030) -
Excess of revenues and other sources over
(under)expenditures and other uses $ (5,030) $ (5,030) (5,041) $ (11)
Fund balance, June 30, 2010 6,071
Fund balance, June 30, 2011 $ 1,030
107
CITY OF ATASCADERO
COMMUNITY DEVELOPMENT BLOCK GRANT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Community Development Block Grant $ 463,890 $ 463,890 $ 152,419 $ (311,471)
CDBG ARRA-Lewis Avenue Barrier Removal 2,900 2,900 247 (2,653)
Total revenues 466,790 466,790 152,666 (314,124)
Expenditures:
Administration:
CDBG General Administration 62,560 40,430 9,721 30,709
ARRA Project Administration 1,180 1,180 247 933
Special projects and studies:
EI Camino Homeless Organization 16,240 16,240 16,238 2
North County Women's Shelter Projects 19,250 19,250 18,294 956
Loaves&Fishes Groceries 8,120 8,120 8,119 1
Youth Scholarships 3,250 3,250 3,248 2
Youth Mentor Program 1,620 1,620 1,624 (4)
People's Self Help Housing Remodel 15,320 15,320 - 15,320
Literacy Programs-Literacy Council 1,080 1,080 1,083 (3)
Sidewalk Improvement Project IV-South ECR 94,090 100,360 100,363 (3)
Misc. Sidewalk Improvement Projects 217,830 239,960 - 239,960
Capital outlay:
Paloma Park Walkway Barrier Removal 14,630 14,630 - 14,630
Lake Park Walkway Barrier Removal 9,900 9,900 - 9,900
Lewis Avenue Barrier Removal -ARRA Project 1,720 1,720 - 1,720
Total expenditures 466,790 473,060 158,937 314,123
Excess of revenues over(under)expenditures - (6,270) (6,271) (1)
Other Financing Sources (Uses): -
Transfer from Gas Tax Fund for the South ECR
Sidewalk Barrier Removal Project - 6,270 6,271 1
Total other financing sources (uses) - 6,270 6,271 1
Excess of revenues and other sources over
(under)expenditures and other uses $ - $ - - $ -
Fund balance, June 30, 2010 -
Fund balance, June 30, 2011 $ -
108
CITY OF ATASCADERO
TREE PLANT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Permits and fees $ 5,000 $ 5,000 $ 3,802 $ (1,198)
Interest income 14,870 14,870 4,211 (10,659)
Total revenues 19,870 19,870 8,013 (11,857)
Expenditures:
Employee Services 15,890 16,330 16,318 12
Office Expense - 1,000 562 438
Operating supplies 10,000 8,560 51 8,509
Special projects and studies:
Native Tree Re-Planting Project 38,000 38,000 27,714 10,286
Total expenditures 63,890 63,890 44,645 19,245
Excess of revenues over(under)expenditures $ (44,020) $ (44,020) (36,632) $ 7,388
Fund balance, June 30, 2010 532,063
Fund balance, June 30, 2011 $ 495,431
109
CITY OF ATASCADERO
GAS TAX FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Section 2103 highway users tax $ - $ - $ 270,792 $ 270,792
Section 2105 highway users tax 157,290 157,290 146,711 (10,579)
Section 2106 highway users tax 123,710 123,710 120,272 (3,438)
Section 2107 highway users tax 205,930 205,930 195,943 (9,987)
Section 2107.5 highway users tax 6,000 6,000 6,000 -
Interest income 7,500 7,500 3,513 (3,987)
Other revenues - - 520 520
Total revenues 500,430 500,430 743,751 243,321
Expenditures:
Salaries and benefits 365,160 365,160 301,367 63,793
Advertising - 230 228 2
Computer maintenance&replacement 4,570 4,570 4,570 -
Insurance 28,350 28,350 24,275 4,075
Occupancy 500 270 - 270
Utilities 65,000 65,000 62,193 2,807
Communications 3,200 3,200 2,359 841
Operating supplies and equipment 44,890 44,890 20,278 24,612
Vehicle and equipment operations 34,560 34,560 27,181 7,379
Contract services 119,250 97,530 48,162 49,368
Professional development 1,800 2,250 2,249 1
Administrative charges 163,750 163,750 163,750 -
Special projects:
Crosswalk Safety Improvement Projects 15,000 4,337 10,663
Total expenditures 831,030 824,760 660,949 163,811
Excess of revenues over(under)expenditures (330,600) (324,330) 82,802 407,132
Other Financing Sources (Uses):
Transfer from General Fund for street maintenance 120,760 120,760 - (120,760)
Transfer from AB2928 Fund for streets projects 125,000 125,000 222 (124,778)
Transfer to CDBG Fund for the South ECR
Sidewalk Barrier Removal Project - (6,270) (6,271) (1)
Total other financing sources (uses) 245,760 239,490 (6,049) (245,539)
Excess of revenues and other sources over
(under)expenditures and other uses $ (84,840) $ (84,840) 76,753 $ 161,593
Fund balance, June 30, 2010 481,988
Fund balance, June 30, 2011 $ 558,741
110
CITY OF ATASCADERO
AB2928 TRAFFIC CONGESTION RELIEF FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
AB2928-Traffic Congestion Relief $ 296,320 $ 296,320 $ - $ (296,320)
Interest income 90 90 1,833 1,743
Total revenues 296,410 296,410 1,833 (294,577)
Expenditures:
Special projects:
San Fernando Road Repair Project - 27,600 28,933 (1,333)
Pavement Marking Program - 58,200 51,379 6,821
West Mall Grind and Overlay Project - - 18,600 (18,600)
Local Road Overlay Program-Asphalt - - 19,491 (19,491)
Capital projects:
EI Verano Overlay Project - - - -
San Luis Surface Treatment 145,800 60,000 - 60,000
Palomar Road Shoulder Repair 26,400 26,400 - 26,400
San Ramon Overlay 178,030 178,030 83,673 94,357
Total expenditures 350,230 350,230 202,076 148,154
Excess of revenues over(under)expenditures (53,820) (53,820) (200,243) (146,423)
Other Financing Sources (Uses):
Transfer to Gas Tax Fund for asphalt (125,000) (125,000) (222) 124,778
Total other financing sources (uses) (125,000) (125,000) (222) 124,778
Excess of revenues and other sources over
(under)expenditures and other uses $ (178,820) $ (178,820) (200,465) $ (21,645)
Fund balance, June 30, 2010 200,465
Fund balance, June 30, 2011 $ -
111
CITY OF ATASCADERO
LOCAL TRANSPORTATION FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Local Transportation Tax-Article 3 Bike Paths $ 19,000 $ 19,000 $ 15,154 $ (3,846)
Local Transportation Tax-Article 8 Streets 449,080 449,080 241,071 (208,009)
Safe Routes to School Grant-San Gabriel Project 70,080 70,080 (2,527) (72,607)
School Contribution-San Gabriel Routes to School 3,500 3,500 3,504 4
Interest income 21,930 21,930 6,935 (14,995)
Total revenues 563,590 563,590 264,137 (299,453)
Expenditures:
Special projects:
Minor Bridge Repair 25,000 25,000 161 24,839
Santa Rosa @ Atascadero Lake Bridge Study 24,860 24,860 - 24,860
Capital outlay:
San Andres Road Rehabilitation Project - -
Atascadero Avenue Rehabilitation Project 779,600 779,600 1,357 778,243
East Front Overlay 245,760 245,760 - 245,760
San Gabriel Routes to School Project 77,080 77,080 11,543 65,537
Old Morro Road Slope Repair 349,280 349,280 39,732 309,548
Total expenditures 1,501,580 1,501,580 52,793 1,448,787
Excess of revenues over(under)expenditures (937,990) (937,990) 211,344 1,149,334
Other Financing Sources (Uses):
Transfer to Capital Projects Fund for the Atascadero
Creek Trail Project (144,130) (144,130) (531) 143,599
Transfer to Capital Projects Fund for the
Downtown Streetscape III Project - (392,490) (268,562) 123,928
Transfer to Circulation System Fees Fund for a
portion of the Lewis Avenue Bridge Project (4,100) (4,100) (381) 3,719
Total other financing sources (uses) (148,230) (540,720) (269,474) 271,246
Excess of revenues and other sources over
(under)expenditures and other uses $ (1,086,220) $ (1,478,710) (58,130) $ 1,420,580
Fund balance, June 30, 2010 935,146
Fund balance, June 30, 2011 $ 877,016
112
CITY OF ATASCADERO
STREET ASSESSMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and special assessments-Lobos Lane $ 280 $ 280 $ 280 $ -
Taxes and special assessments-Sonora/Pinal 360 360 360 -
Taxes and special assessments-Maleza 180 180 180 -
Taxes and special assessments-San Fernando 580 580 580 -
Taxes and special assessments-Aguila 100 100 100 -
Taxes and special assessments- Pinal/Escarpa 140 140 180 40
Taxes and special assessments-Cayucos 220 220 220 -
Taxes and special assessments- Falda 240 240 240 -
Interest income 1,650 1,650 471 (1,179)
Total revenues 3,750 3,750 2,611 (1,139)
Excess of revenues over(under)expenditures $ 3,750 $ 3,750 2,611 $ (1,139)
Fund balance, June 30, 2010 52,785
Fund balance, June 30, 2011 $ 55,396
113
CITY OF ATASCADERO
GENERAL GOVERNMENT FACILITIES FEES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ 17,420 $ 17,420 $ 8,616 $ (8,804)
Interest income(expense) (9,700) (9,700) (3,589) 6,111
Total revenues 7,720 7,720 5,027 (2,693)
Excess of revenues over(under)expenditures $ 7,720 $ 7,720 5,027 $ (2,693)
Fund balance, June 30, 2010 (319,503)
Fund balance, June 30, 2011 $ (314,476)
114
CITY OF ATASCADERO
CIRCULATION SYSTEM FEES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ 316,600 $ 316,600 $ 147,523 $ (169,077)
STIP-Rosario Study 120,000 120,000 - (120,000)
Interest income 18,000 18,000 10,297 (7,703)
Total revenues 454,600 454,600 157,820 (296,780)
Expenditures:
Special projects and studies:
Minor interchange improvements 245,070 245,070 3,004 242,066
Rosario NB Auxiliary Lane Study 120,000 120,000 - 120,000
Capital outlay:
Lewis Avenue Bridge Project 23,560 23,560 2,193 21,367
Total expenditures 388,630 388,630 5,197 383,433
Excess of revenues over(under)expenditures 65,970 65,970 152,623 86,653
Other Financing Sources (Uses):
Transfer from 2005 Redevelopment Bond Project
Fund for the Lewis Avenue Bridge Project 8,200 770 763 (7)
Transfer from Blight Elimination Project
Fund for the Lewis Avenue Bridge Project - 7,430 - (7,430)
Transfer from Capital Projects Fund for the Lewis
Avenue Bridge Project 4,100 4,100 381 (3,719)
Transfer from Local Transportation Fund for the
Lewis Avenue Bridge Project 4,100 4,100 381 (3,719)
Total other financing sources (uses) 16,400 16,400 1,525 (14,875)
Excess of revenues and other sources over
(under)expenditures and other uses $ 82,370 $ 82,370 154,148 $ 71,778
Fund balance, June 30, 2010 678,576
Fund balance, June 30, 2011 $ 832,724
115
CITY OF ATASCADERO
STORM DRAINAGE FACILITIES FEES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ 25,380 $ 25,380 $ 14,038 $ (11,342)
Interest income 11,630 11,630 6,212 (5,418)
Total revenues 37,010 37,010 20,250 (16,760)
Expenditures:
Special projects
Drainage System Atlas 23,040 23,040 2,425 20,615
Atascadero Creek Corps of Engineering 15,000 15,000 13,420 1,580
Atascadero Creek Cleanout at Portola 44,260 44,260 40,046 4,214
Capital projects:
2006 Marchant Avenue Drainage 321,750 321,750 12,144 309,606
San Jacinto @ Traffic Way Drainage Project 139,460 139,460 2,823 136,637
2009/2011 Drainage Improvement Project 144,300 144,300 14,737 129,563
Cenegal Road and Storm Drain Repair Project - - 890 (890)
Total expenditures 687,810 687,810 86,485 601,325
Excess of revenues over(under)expenditures (650,800) (650,800) (66,235) 584,565
Other Financing Sources (Uses):
Transfer from Amapoa Tecorida Drainage Impact Fee
Fund for the Marchant Drainage Project 88,570 88,570 12,144 (76,426)
Total other financing sources (uses) 88,570 88,570 12,144 (76,426)
Excess of revenues and other sources over
(under)expenditures and other uses $ (562,230) $ (562,230) (54,091) $ 508,139
Fund balance, June 30, 2010 795,877
Fund balance, June 30, 2011 $ 741,786
116
CITY OF ATASCADERO
AMAPOA/TECORIDA DRAINAGE IMPACT FEES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ 770 $ 770 $ 686 $ (84)
Total revenues 770 770 686 (84)
Excess of revenues over(under)expenditures 770 770 686 (84)
Other Financing Sources(Uses):
Transfer to the Storm Drainage Facilities Fees Fund
for the Marchant Drainage Project (88,570) (88,570) (12,144) 76,426
Total other financing sources (uses) (88,570) (88,570) (12,144) 76,426
Excess of revenues and other sources over
(under)expenditures and other uses $ (87,800) $ (87,800) (11,458) $ 76,342
Fund balance, June 30, 2010 87,996
Fund balance, June 30, 2011 $ 76,538
117
CITY OF ATASCADERO
LAW ENFORCEMENT FACILITIES FEES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ 22,370 $ 22,370 $ 9,949 $ (12,421)
Interest income 1,470 1,470 407 (1,063)
Total revenues 23,840 23,840 10,356 (13,484)
Excess of revenues over(under)expenditures $ 23,840 $ 23,840 10,356 $ (13,484)
Fund balance, June 30, 2010 38,356
Fund balance, June 30, 2011 $ 48,712
118
CITY OF ATASCADERO
FIRE FACILITIES FEES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ 29,930 $ 29,930 $ 14,164 $ (15,766)
Rental income 10,800 10,800 9,900 (900)
Interest income 22,950 22,950 6,453 (16,497)
Total revenues 63,680 63,680 30,517 (33,163)
Excess of revenues over(under)expenditures $ 63,680 $ 63,680 30,517 $ (33,163)
Fund balance, June 30, 2010 727,996
Fund balance, June 30, 2011 $ 758,513
119
CITY OF ATASCADERO
OPEN SPACE ACQUISITION FEES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ 33,160 $ 33,160 $ 24,159 $ (9,001)
Interest income 11,800 11,800 3,355 (8,445)
Total revenues 44,960 44,960 27,514 (17,446)
Excess of revenues over(under)expenditures $ 44,960 $ 44,960 27,514 $ (17,446)
Fund balance, June 30, 2010 367,971
Fund balance, June 30, 2011 $ 395,485
120
CITY OF ATASCADERO
PARKLAND FACILITIES FEES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ 95,810 $ 95,810 $ 77,961 $ (17,849)
Fire Safe Council Grant 37,000 37,000 15,000 (22,000)
Interest income 8,170 8,170 2,618 (5,552)
Total revenues 140,980 140,980 95,579 (45,401)
Expenditures:
Contract services - - 496 (496)
Special projects
Stadium Park Study 37,000 37,000 15,000 22,000
Total expenditures 37,000 37,000 15,496 21,504
Excess of revenues over(under)expenditures $ 103,980 $ 103,980 80,083 $ (23,897)
Fund balance, June 30, 2010 210,646
Fund balance, June 30, 2011 $ 290,729
121
CITY OF ATASCADERO
PUBLIC FACILITIES FEES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ 26,010 $ 26,010 $ 21,113 $ (4,897)
Interest income 4,030 4,030 1,179 (2,851)
Total revenues 30,040 30,040 22,292 (7,748)
Excess of revenues over expenditures $ 30,040 $ 30,040 22,292 $ (7,748)
Fund balance, June 30, 2010 119,233
Fund balance, June 30, 2011 $ 141,525
122
CITY OF ATASCADERO
LIBRARY EXPANSION FACILITIES FEES FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ 16,830 $ 16,830 $ 7,670 $ (9,160)
Interest income 6,300 6,300 (177) (6,477)
Total revenues 23,130 23,130 7,493 (15,637)
Expenditures:
Special projects
Library Expansion Contribution - 254,900 254,750 150
Total expenditures - 254,900 254,750 150
Excess of revenues over(under)expenditures 23,130 (231,770) (247,257) (15,787)
Other Financing Sources (Uses):
Transfer from General Fund - 57,000 56,539 (461)
Total other financing sources (uses) - 57,000 56,539 (461)
Excess of revenues over expenditures $ 23,130 $ (174,770) (190,718) $ (15,948)
Fund balance, June 30, 2010 197,878
Fund balance, June 30, 2011 $ 7,160
123
CITY OF ATASCADERO
FIRE AERIAL VEHICLE IMPACT FEES FUND
STATEMENT OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ 3,790 $ 3,790 $ 147 $ (3,643)
Interest income(expense) - - (9,477) (9,477)
Total revenues 3,790 3,790 (9,330) (13,120)
Excess of revenues over(under)expenditures $ 3,790 $ 3,790 (9,330) $ (13,120)
Fund balance, June 30, 2010 (836,613)
Fund balance, June 30, 2011 $ (845,943)
124
CITY OF ATASCADERO
COMMUNITY FACILITIES DISTRICT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ 280,280 $ 280,280 $ 288,345 $ 8,065
Interest income - - (590) (590)
Total revenues 280,280 280,280 287,755 7,475
Expenditures:
Contract services 5,250 5,250 4,788 462
Total expenditures 5,250 5,250 4,788 462
Excess of revenues over(under)expenditures 275,030 275,030 282,967 7,937
Other Financing Sources (Uses):
Transfer to the General Fund for police,fire and
parks services (276,430) (276,430) (276,430) -
Total other financing sources (uses) (276,430) (276,430) (276,430) -
Excess of revenues and other sources over
(under)expenditures and other uses $ (1,400) $ (1,400) 6,537 $ 7,937
Fund balance, June 30, 2010 5,961
Fund balance, June 30, 2011 $ 12,498
125
CITY OF ATASCADERO
APPLE VALLEY STREET&STORM DRAIN ASSESSMENT DISTRICT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ 36,970 $ 36,970 $ 38,290 $ 1,320
Interest income 4,290 4,290 1,724 (2,566)
Total revenues 41,260 41,260 40,014 (1,246)
Expenditures:
Advertising - - 440 (440)
Contract services 3,850 3,850 2,164 1,686
Administration 4,040 4,040 907 3,133
Total expenditures 7,890 7,890 3,511 4,379
Excess of revenues over expenditures $ 33,370 $ 33,370 36,503 $ 3,133
Fund balance, June 30, 2010 171,643
Fund balance, June 30, 2011 $ 208,146
126
CITY OF ATASCADERO
APPLE VALLEY LANDSCAPE &LIGHTING ASSESSMENT DISTRICT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ 25,010 $ 25,010 $ 21,980 $ (3,030)
Interest income 4,960 4,960 1,321 (3,639)
Total revenues 29,970 29,970 23,301 (6,669)
Expenditures:
Advertising - - 540 (540)
Utilities 9,770 9,770 10,108 (338)
Operating supplies 900 900 186 714
Contract services 48,610 48,610 65,635 (17,025)
Administration 10,820 10,820 1,204 9,616
Total expenditures 70,100 70,100 77,673 (7,573)
Excess of revenues over(under)expenditures $ (40,130) $ (40,130) (54,372) $ (14,242)
Fund balance, June 30, 2010 196,384
Fund balance, June 30, 2011 $ 142,012
127
CITY OF ATASCADERO
LAS LOMAS STREET&STORM DRAIN ASSESSMENT DISTRICT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ 20,410 $ 20,410 $ 23,276 $ 2,866
Interest income 5,370 5,370 1,635 (3,735)
Total revenues 25,780 25,780 24,911 (869)
Expenditures:
Advertising - - 440 (440)
Contract services 4,290 4,290 4,212 78
Administration 4,040 4,040 1,342 2,698
Total expenditures 8,330 8,330 5,994 2,336
Excess of revenues over(under)expenditures $ 17,450 $ 17,450 18,917 $ 1,467
Fund balance, June 30, 2010 177,874
Fund balance, June 30, 2011 $ 196,791
128
CITY OF ATASCADERO
LAS LOMAS LANDSCAPE&LIGHTING ASSESSMENT DISTRICT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ 78,440 $ 78,440 $ 49,464 $ (28,976)
Interest income 6,330 6,330 1,844 (4,486)
Total revenues 84,770 84,770 51,308 (33,462)
Expenditures:
Advertising - - 560 (560)
Utilities 16,870 16,870 6,461 10,409
Operating supplies 700 700 6,070 (5,370)
Contract services 125,190 125,190 80,962 44,228
Administration 10,820 10,820 5,407 5,413
Special projects:
Planting and landscape project - - 24,046 (24,046)
Total expenditures 153,580 153,580 123,506 30,074
Excess of revenues over(under)expenditures $ (68,810) $ (68,810) (72,198) $ (3,388)
Fund balance, June 30, 2010 294,697
Fund balance, June 30, 2011 $ 222,499
129
CITY OF ATASCADERO
DE ANZA STREET&STORM DRAIN ASSESSMENT DISTRICT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ 36,520 $ 36,520 $ 37,789 $ 1,269
Interest income 4,570 4,570 1,618 (2,952)
Total revenues 41,090 41,090 39,407 (1,683)
Expenditures:
Advertising - - 440 (440)
Contract services 3,560 3,560 2,183 1,377
Administration 4,410 4,410 994 3,416
Total expenditures 7,970 7,970 3,617 4,353
Excess of revenues over expenditures $ 33,120 $ 33,120 35,790 $ 2,670
Fund balance, June 30, 2010 160,418
Fund balance, June 30, 2011 $ 196,208
130
CITY OF ATASCADERO
DE ANZA LANDSCAPE& LIGHTING ASSESSMENT DISTRICT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ 21,320 $ 21,320 $ 12,719 $ (8,601)
Interest income 4,310 4,310 989 (3,321)
Total revenues 25,630 25,630 13,708 (11,922)
Expenditures:
Advertising - - 560 (560)
Operating supplies 150 150 205 (55)
Contract services 29,760 29,760 21,197 8,563
Administration 10,820 10,820 1,035 9,785
Total expenditures 40,730 40,730 22,997 17,733
Excess of revenues over(under)expenditures (15,100) (15,100) (9,289) 5,811
Other Financing Sources (Uses):
Transfer from the General Fund for
open space maintenance 840 840 840 -
Total other financing sources (uses) 840 840 840 -
Excess of revenues and other sources over
(under)expenditures and other uses $ (14,260) $ (14,260) (8,449) $ 5,811
Fund balance, June 30, 2010 129,286
Fund balance, June 30, 2011 $ 120,837
131
CITY OF ATASCADERO
CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Impact fees $ - $ - $ 7 $ 7
STIP Funds- Downtown Streetscape II - - - -
ARRA Local Grant-Santa Rosa Road Rehabilitation 487,540 487,540 458,052 (29,488)
RSHA-Santa Rosa Road Rehabilitation 243,300 243,300 228,580 (14,720)
ARRA Regional Grant-Downtown Streetscape III 685,000 685,000 371,189 (313,811)
State River Parkways Grant-Creek Trail Project 418,560 418,560 - (418,560)
SLOCOG Grant-Curbaril Park& Ride 19,590 19,590 - (19,590)
Interest income 12,780 12,780 (2,320) (15,100)
Donations-LINK Pedestrian Tunnel - - - -
Total revenues 1,866,770 1,866,770 1,055,508 (811,262)
Expenditures:
Special projects:
Curbaril Park and Ride Improvements 19,590 19,590 - 19,590
Capital outlay:
Downtown Streetscape Improvements II 3,080 3,080 362 2,718
Downtown Streetscape Improvements III 892,640 1,285,130 675,130 610,000
Santa Rosa Road Rehabilitation 1,239,840 1,239,840 687,215 552,625
Lake Park Sign & Frontage 427,320 427,320 46,635 380,685
Atascadero Creek Trail Enhancement Project 562,690 562,690 531 562,159
Total expenditures 3,145,160 3,537,650 1,409,873 2,127,777
Excess of revenues over(under)expenditures (1,278,390) (1,670,880) (354,365) 1,316,515
132
CITY OF ATASCADERO
CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE (continued)
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Other Financing Sources:
Transfer from the 2005 RDA Bond Project Fund
for the Downtown Streetscape II Project $ 3,080 $ 3,080 $ 362 $ (2,718)
Transfer from the 2005 RDA Bond Project Fund
for the Downtown Streetscape III Project 128,140 21,210 21,208 (2)
Transfer from the RDA Fund for the Downtown
Streetscape III Project 79,500 - - -
Transfer from the Blight Elimination Fund for the
Downtown Streetscape III Project - 186,430 14,171 (172,259)
Transfer from the Local Transportation Fund for the
Downtown Streetscape III Project - 392,490 268,562 (123,928)
Transfer from the Local Transportation Fund for the
Atascadero Creek Trail Enhancement Project 144,130 144,130 531 (143,599)
Transfer from the RDA General Fund for the
Lake Park Frontage Project 427,320 427,320 46,635 (380,685)
Transfer to Circulation Impact Fee Fund for the Lewis
Avenue Bridge Project (4,100) (4,100) (381) 3,719
Total other financing sources 778,070 1,170,560 351,088 (819,472)
Excess of revenues and other sources over
(under)expenditures $ (500,320) $ (500,320) (3,277) $ 497,043
Fund balance, June 30, 2010 936,620
Fund balance, June 30, 2011 $ 933,343
133
CITY OF ATASCADERO
2005 REDEVELOPMENT BOND PROJECT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ - $ - $ 4,985 $ 4,985
Total revenues - - 4,985 4,985
Expenditures:
Special projects&community funding:
Downtown Lighting Projects 72,200 - - -
Capital outlay:
Maiden Statue Restoration Project 245,890 194,300 48,863 145,437
Total expenditures 318,090 194,300 48,863 145,437
Excess of revenues over(under)expenditures (318,090) (194,300) (43,878) 150,422
Other Financing Sources:
Transfer to Circulation System Fee Fund for the
Lewis Avenue Bridge Project (8,200) (770) (763) 7
Transfer to the Capital Projects Fund for Downtown
Streetscape Improvements, Phase II (3,080) (3,080) (362) 2,718
Transfer to the Capital Projects Fund for Downtown
Streetscape Improvements, Phase III (128,140) (21,210) (21,208) 2
Transfer to the Blight Elimination Project Fund - (216,710) (237,797) (21,087)
Total other financing sources (uses) (139,420) (241,770) (260,130) (18,360)
Excess of revenues and other sources over
(under)expenditures and other uses $ (457,510) $ (436,070) (304,008) $ 132,062
Fund balance, June 30, 2010 422,339
Fund balance, June 30, 2011 $ 118,331
134
CITY OF ATASCADERO
ASSESSMENT DISTRICT#8 CONSTRUCTION FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ - $ - $ (13) $ (13)
Total revenues - - (13) (13)
Expenditures:
Contract Services - 1,100 1,045 55
Total expenditures - 1,100 1,045 55
Excess of revenues over(under)expenditures $ - $ (1,100) (1,058) $ 42
Fund balance, June 30, 2010 1,058
Fund balance, June 30, 2011 $ -
135
CITY OF ATASCADERO
YOUTH CENTER CONSTRUCTION FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income(expense) $ - $ - $ (4,435) $ (4,435)
Donations 14,930 14,930 4,535 (10,395)
Total revenues 14,930 14,930 100 (14,830)
Expenditures:
Youth Center Fund Raising Expense - - 100 (100)
Capital outlay:
Youth/Community Center 19,230 19,230 - 19,230
Total expenditures 19,230 19,230 100 19,130
Excess of revenues over(under)expenditures $ (4,300) $ (4,300) - $ 4,300
Fund balance, June 30, 2010 -
Fund balance, June 30, 2011 $ -
136
CITY OF ATASCADERO
2010 REDEVELOPMENT BOND PROJECT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ - $ 32,840 $ 24,892 $ (7,948)
Total revenues - 32,840 24,892 (7,948)
Expenditures:
Cost of bond issuance - - 122,506 (122,506)
Underwriters'discount - - 160,100 (160,100)
Total expenditures - - 282,606 (282,606)
Excess of revenues over(under)expenditures - 32,840 (257,714) (290,554)
Other Financing Sources:
Premium on bonds issued - - 90,283 90,283
Transfer of bonds issued from Redevelopment Agency
General Fund - 14,400,280 16,010,000 1,609,720
Transfer to 2010 Bond Debt Service Fund
for cash with fiscal agent required to be held by City - - (1,417,398) (1,417,398)
Transfer to the Blight Elimination Fund for Blight
Elimination Projects - (1,433,120) (1,425,171) 7,949
Transfer to the Historic City Hall Fund for the Historic
City Hall Project - (13,000,000) (13,000,000) -
Total other financing sources (uses) - (32,840) 257,714 290,554
Excess of revenues and other sources over
(under)expenditures and other uses $ _ $ _ _ $ _
Fund balance, June 30, 2010 -
Fund balance, June 30, 2011 $ -
137
CITY OF ATASCADERO
ASSESSMENT DISTRICT#4 DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ - $ - $ 419 $ 419
Total revenues - - 419 419
Excess of revenues over(under)expenditures $ - $ - 419 $ 419
Fund balance, June 30, 2010 48,681
Fund balance, June 30, 2011 $ 49,100
138
CITY OF ATASCADERO
ASSESSMENT DISTRICT#7 DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ - $ - $ 27,556 $ 27,556
Interest income - - 37 37
Contribution from wastewater fund - - 43,079 43,079
Total revenues - - 70,672 70,672
Expenditures:
Services - 338 (338)
Total expenditures - - 338 (338)
Excess of revenues over(under)expenditures $ - $ - 70,334 $ 70,334
Fund balance, June 30, 2010 (70,334)
Fund balance, June 30, 2011 $ -
139
CITY OF ATASCADERO
ASSESSMENT DISTRICT#9 DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ 10,940 $ 10,940 $ 15,292 $ 4,352
Interest income 240 240 115 (125)
Total revenues 11,180 11,180 15,407 4,227
Expenditures:
Services 950 950 481 469
Interest 1,600 1,600 1,604 (4)
Total expenditures 2,550 2,550 2,085 465
Excess of revenues over expenditures $ 8,630 $ 8,630 13,322 $ 4,692
Fund balance, June 30, 2010 (8,745)
Fund balance, June 30, 2011 $ 4,577
140
CITY OF ATASCADERO
ASSESSMENT DISTRICT#10 DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ 3,650 $ 3,650 $ 3,632 $ (18)
Interest income 30 30 9 (21)
Contribution from wastewater fund - - 429 429
Total revenues 3,680 3,680 4,070 390
Expenditures:
Interest 180 180 176 4
Total expenditures 180 180 176 4
Excess of revenues over(under)expenditures $ 3,500 $ 3,500 3,894 $ 394
Fund balance, June 30, 2010 (3,894)
Fund balance, June 30, 2011 $ -
141
CITY OF ATASCADERO
2005 REDEVELOPMENT BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Current secured increment $ 845,860 $ 845,860 $ 850,738 $ 4,878
Interest income 39,390 39,390 1,074 (38,316)
Total revenues 885,250 885,250 851,812 (33,438)
Expenditures:
Services 2,900 2,900 2,200 700
Principal 285,000 285,000 285,000 -
Interest 561,160 561,160 561,161 (1)
Total expenditures 849,060 849,060 848,361 699
Excess of revenues over(under)expenditures $ 36,190 $ 36,190 3,451 $ (32,739)
Fund balance, June 30, 2010 1,428,756
Fund balance, June 30, 2011 $ 1,432,207
142
CITY OF ATASCADERO
1992 STREET ASSESSMENT IMPROVEMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ - $ - $ 1,490 $ 1,490
Total revenues - - 1,490 1,490
Excess of revenues over expenditures $ - $ - 1,490 $ 1,490
Fund balance, June 30, 2010 173,232
Fund balance, June 30, 2011 $ 174,722
143
CITY OF ATASCADERO
1993 CAMINO REAL IMPROVEMENT BONDS FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Taxes and assessments $ 175,600 $ 175,600 $ 173,950 $ (1,650)
Interest income 12,200 12,200 2,010 (10,190)
Total revenues 187,800 187,800 175,960 (11,840)
Expenditures:
Services 3,290 3,290 2,166 1,124
Principal 135,000 135,000 135,000 -
Interest 29,730 29,730 29,723 7
Total expenditures 168,020 168,020 166,889 1,131
Excess of revenues over expenditures $ 19,780 $ 19,780 9,071 $ (10,709)
Fund balance, June 30, 2010 431,957
Fund balance, June 30, 2011 $ 441,028
144
CITY OF ATASCADERO
2010 BOND DEBT SERVICE FUND
SCHEDULE OF REVENUES, EXPENDITURES,AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
Budget Variance with Final
Budget Positive
Original Final Actual Amounts (Negative)
Revenues:
Interest income $ - $ - $ 107 $ 107
Total revenues - - 107 107
Expenditures:
Lease Payment-9/1/10 Facility Lease - - 1 (1)
Cost of issuance - 135,240 - 135,240
- 160,100 - 160,100
Interest Expense - 445,970 445,966 4
Total expenditures - 741,310 445,967 295,343
Excess of revenues over(under)expenditures - (741,310) (445,860) 295,450
Other Financing Sources:
Bonds issued - 16,010,000 16,010,000 -
Premiums on bonds issued - 90,280 - (90,280)
Transfer from Redevelopment Agency 2010 Bond
Project Fund for cash with fiscal agent required
to be held by City - - 1,417,398 1,417,398
Transfer of bond proceeds to 2010 Bond Project Fund - (14,400,280) - 14,400,280
Transfer from Redevelopment Agency General Fund
for annual debt service per 2010 reimbursement
agreement - 445,970 445,966 (4)
Total other financing sources (uses) - 2,145,970 17,873,364 15,727,394
Excess of revenues and other sources over
(under)expenditures and other uses $ - $ 1,404,660 17,427,504 $ 16,022,844
Fund balance, June 30, 2010 -
Fund balance, June 30, 2011 $ 17,427,504
145
CITY OF ATASCADERO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET ASSETS
June 30, 2011
Vehicle and Building
Equipment Maintenance and
Technology Fund Replacement Fund Replacement Fund Totals
ASSETS
Current Assets:
Cash and investments $ 1,255,123 $ 2,344,426 $ 2,363,527 $ 5,963,076
Receivables:
Federal distributions due 1,109 3,850 513,250 518,209
Due from State of California 406 1,284 171,083 172,773
Accrued interest 1,988 3,703 3,718 9,409
Prepaid expenses 20,823 - - 20,823
Total current assets 1,279,449 2,353,263 3,051,578 6,684,290
Capital Assets:
Non-depreciable:
Construction in progress - 17,197 6,322,856 6,340,053
Depreciable:
Vehicles - 3,559,892 - 3,559,892
Equipment 1,967,462 2,674,351 17,713 4,659,526
Structure and improvements - - 15,057,885 15,057,885
Accumulated depreciation (1,736,343) (3,256,829) (3,844,152) (8,837,324)
Net capital assets 231,119 2,994,611 17,554,302 20,780,032
Total assets 1,510,568 5,347,874 20,605,880 27,464,322
LIABILITIES
Current Liabilities:
Accounts payable 8,623 2,624 7,237 18,484
Accrued salaries and benefits 13,773 - 2,521 16,294
Noncurrent Liabilities:
Compensated absences 12,746 - 16,761 29,507
Total liabilities 35,142 2,624 26,519 64,285
NET ASSETS
Invested in capital assets 231,119 2,994,611 17,554,302 20,780,032
Unrestricted 1,244,307 2,350,639 3,025,059 6,620,005
Total net assets $ 1,475,426 $ 5,345,250 $ 20,579,361 $ 27,400,037
146
CITY OF ATASCADERO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET ASSETS
For the Fiscal Year Ended June 30, 2011
Vehicle and Building
Equipment Maintenance and
Technology Fund Replacement Fund Replacement Fund Totals
Operating Revenues:
Charges for services $ 638,695 $ 123,100 $ 320,250 $ 1,082,045
Contribution to General Fund (75,800) (60,090) - (135,890)
Total operating revenues 562,895 63,010 320,250 946,155
Operating Expenses:
Salaries and benefits 335,460 - 72,723 408,183
Office expense 611 - - 611
Computer maintenance, software and replacement - - 4,870 4,870
Insurance - - 27,000 27,000
Occupancy and rental costs 17,810 - 373,596 391,406
Utilities - - 40,483 40,483
Communications 5,382 - 803 6,185
Operating supplies and services 13,580 - 12,911 26,491
Vehicle and equipment operating costs 175 - 4,054 4,229
Contract services 49,562 - 21,370 70,932
Professional development 7,047 - - 7,047
Recruitment 392 - - 392
Administrative charges 32,030 - 58,290 90,320
Special projects:
Virtual computers-pano devices 2,095 - - 2,095
Small printers 108 - - 108
Small projectors 812 - - 812
Other minor capital outlay 1,127 - - 1,127
2011 aerial photo 9,000 - - 9,000
Depreciation 147,558 417,597 315,740 880,895
Total operating expenses 622,749 417,597 931,840 1,972,186
Operating income(loss) (59,854) (354,587) (611,590) (1,026,031)
147
CITY OF ATASCADERO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET ASSETS (continued)
For the Fiscal Year Ended June 30, 2011
Vehicle and Building
Equipment Maintenance and
Technology Fund Replacement Fund Replacement Fund Totals
Non-Operating Revenues(Expenses):
FEMA Earthquake Repair Grant $ - $ - $ 280,197 $ 280,197
OES Earthquake Repair Grant - - 93,399 93,399
Interest income 10,875 19,640 19,533 50,048
Gain (loss)on sale of capital assets - 8,780 - 8,780
Total non-operating revenues(expenses) 10,875 28,420 393,129 432,424
Change in net assets prior to capital
contributions (48,979) (326,167) (218,461) (593,607)
Capital Contributions:
Capital contributions from other funds 20,650 31,397 2,536,810 2,588,857
Total capital contributions 20,650 31,397 2,536,810 2,588,857
Change in net assets (28,329) (294,770) 2,318,349 1,995,250
Total net assets, June 30, 2010 1,503,755 5,640,020 18,261,012 25,404,787
Total net assets, June 30, 2011 $ 1,475,426 $ 5,345,250 $ 20,579,361 $ 27,400,037
148
CITY OF ATASCADERO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
For the Fiscal Year Ended June 30, 2011
Vehicle and Building
Equipment Maintenance and
Technology Fund Replacement Fund Replacement Fund Totals
Cash Flows From Operating Activities:
Internal activity-payments from other funds $ 562,895 $ 63,010 $ 320,250 $ 946,155
Payments to suppliers of goods and services (145,989) 2,624 (549,191) (692,556)
Payments for employee services (327,693) - (71,024) (398,717)
Net cash provided (used)by operating
activities 89,213 65,634 (299,965) (145,118)
Cash Flows From Capital and Related Financing
Activities:
Acquisition of fixed assets (15,502) (94,962) - (110,464)
Capital grant proceeds - - 446,273 446,273
Proceeds from sale of capital assets - 8,780 - 8,780
Net cash provided (used)by capital
and related financing activities (15,502) (86,182) 446,273 344,589
Cash Flows From Investing Activities:
Interest income 12,512 23,199 22,728 58,439
Net cash provided (used)by investing activities 12,512 23,199 22,728 58,439
Net increase in cash and cash equivalents 86,223 2,651 169,036 257,910
Cash and cash equivalents-June 30, 2010 1,168,900 2,341,775 2,194,491 5,705,166
Cash and cash equivalents-June 30, 2011 $ 1,255,123 $ 2,344,426 $ 2,363,527 $ 5,963,076
149
CITY OF ATASCADERO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS (continued)
For the Fiscal Year Ended June 30, 2011
Vehicle and Building
Equipment Maintenance and
Technology Fund Replacement Fund Replacement Fund Totals
Reconciliation of operating income(loss)to net
cash provided by operating activities
Operating income (loss) $ (59,854) $ (354,587) $ (611,590) $ (1,026,031)
Adjustments to reconcile operating income (loss)
to net cash provided (used)by operating
activities:
Depreciation expense 147,558 417,597 315,740 880,895
Change in assets and liabilities:
Prepaid expenses (9,442) - - (9,442)
Accounts payable 3,184 2,624 (5,814) (6)
Accrued salaries and benefits 3,690 - 309 3,999
Compensated absences 4,077 - 1,390 5,467
Net cash provided (used)by
operating activities $ 89,213 $ 65,634 $ (299,965) $ (145,118)
150
ITEM NUMBER: C - 1
��' I°�" FM] 6 DATE: 3/27/12
Atascadero City Council
Staff Report — Community Development Department
In-Lieu Affordable Housing Fund Allocations
Funding Requests by North County Connections and ECHO
RECOMMENDATION:
Council provide direction on the allocation of in-lieu affordable housing funds in
response to funding requests by North County Connection (NCC) and EI Camino
Homeless Shelter (ECHO).
DISCUSSION:
Background: On October 25, 2011, the Atascadero City Council and Community
Redevelopment Agency reviewed funding requests for proposed low and moderate
income housing projects. There were two funding sources discussed: Redevelopment
Low and Moderate Income Housing Fund (RDA LMI), and the City's In-Lieu Affordable
Housing Fund (In-lieu fund.) The Council/Board identified five projects for additional
review and potential funding:
Proposed Project Request Council Direction
North County Connection (NCC) $100,000 $100,000 in-lieu funds
Property acquisition for social service program
EI Camino Homeless Organization (ECHO) Not defined Up to $300,000 in-lieu funds
Emergency Shelter for study; possibly RDA
funds for construction
Woodridge/ Las Lomas Apartments $324,000 $324,000 RDA LMI funds
15 deed restricted affordable units in 100 unit
apartment project
People's Self-Help Housing $1,000,000 $1,000,000 RDA LMI funds
Oak Grove II, down payment assistance for 24
single-family residential units
ROEM $3,755,000 RDA LMI funds—revise
Acacias Apartments—40 units request for lower amount
ITEM NUMBER: C - 1
DATE: 3/27/12
Analysis:
RDA LMI Fund
On December 29, 2011 , the California Supreme Court ruled that the State was
permitted to eliminate redevelopment agencies. Consequently, the City's
Redevelopment Agency ceased to exist as of February 1, 2012. All of the assets of the
Redevelopment Agency are being transferred to the Successor Agency that will oversee
the distribution of all remaining funds and assets to a variety of local taxing entities.
There is a bill in Sacramento, SB 654, that would preserve the RDA's housing funds,
but the status of the bill is uncertain at this time. The most conservative assumption
would be that Atascadero's $5,200,000 in RDA Low and Moderate Income Housing
Funds can no longer be allocated to the affordable housing projects. City staff notified
the five affordable housing project applicants that the Redevelopment Agency has been
dissolved, all funding sources have been frozen, and City/RDA funding of affordable
housing participation project has been postponed indefinitely (see attached letter).
Atascadero's In-Lieu Housing Fund
While RDA LMI Housing Funds are no longer available, the City does still have control
over the Affordable Housing In-Lieu Fund. The Council's Inclusionary Housing Policy,
adopted in 2003, requires developers of Planned Developments to either provide 20%
percent of the project as deed restricted affordable units, or contribute 5.0% of the
construction value of the market-rate units to the City's In-Lieu Housing Fund. The City
Attorney has determined that the money must be used to create long term affordable
housing units.
The City's Affordable Housing In-Lieu fund currently has an account balance of
$437,780. The funds are currently used to administer the City's existing affordable
housing programs, including staff time to process documents at time of sale and
ongoing verification of deed restricted units. The City typically uses about $16,000
per year to administer the affordable housing loan program.
Fund Balance 6/30/2011 $467,790
2011/12 Revenues
- Refund to 4 unit PD on Santa Ysabel, Oct. 2011 - $22,280
- Foreclosure of Very Low Unit + $58,530
2011/12 Budgeted Expenditures
- Housing Element Implementation (Consultant Contract) - $34,530
- Affordable Loan Program Administration - $15,740
2012/13 Budgeted Expenditures
- Affordable Loan Program Administration - $15,990
Current Fund Balance $437,780
Staff recommends preserving at least $100,000 in this account in order to
continue basic administration for the City's existing LMI affordable housing loan
program for the next few years. Administration of the LMI affordable housing
ITEM NUMBER: C - 1
DATE: 3/27/12
loan program includes annual monitoring of existing affordable loans to insure
that residency and rent covenants are maintained by the unit owners and that
homeowners insurance is properly maintained, protecting the City's investment.
In addition, staff spends a considerable amount of time working with
homeowners, realtors, investors, developers, escrow agents and banking agents
to insure that units are purchased and sold in accordance with program
covenants. Preserving $100,000 at this time in the LMI fund would allow
administration to continue until development picks up and home prices increase.
This would leave $279,250 available to fund housing projects at this time.
North County Connection Funding Request
At the October 25, 2011 RDA affordable housing project review meeting, North County
Connection (NCC) requested $100,000 from the In-Lieu Affordable Housing Fund for
property acquisition of their existing site at 8600 Atascadero Ave. NCC has operated
their social service programs at this site for over 10 years, and the property is currently
for sale. At the October meeting, the City Council expressed support for North County
Connection's $100,000 request.
Staff has reviewed the request with the City Attorney, who has advised that the City's
In-Lieu Affordable Housing Fund can only be used for housing related services and
projects, and cannot be used for projects which do not provide housing. NCC is
agreeable to providing a deed restricted low-income unit on the site at 8600 Atascadero
Avenue. There is an existing studio apartment in the building which could easily be
fixed up for use as an on-site manager's unit. The unit cannot be used for overnight
care of NCC's clients (per the site's use permit); however, a manager's unit or
permanent rental unit is in compliance with the residential zoning and the approved
business license for NCC. This low-income studio unit would rent for no more than
$782 per month, with the rental income going directly to NCC.
Purchase Deal Points for 8600 Atascadero Ave:
• Purchase price $399,900
• Buyer to execute a First Trust Deed in the amount of $194,900, secured by the
property, in favor of the Seller
• Monthly payments on First Deed equal to NCC's current rent payment
• The property is to be sold "as is"
• This proposal is offered to North County Connection only
• Escrow to close on or before April 15, 2011
City Funding Points:
• $100,000 of in-lieu funds, structured as a no payment loan by City to NCC
• Loan due at either 55 years, or at time of sale
• Record deed restriction for one low-income unit for a period of 55 years
• NCC to show annual verification of rental to a qualified tenant
• Property to be maintained in good condition and continue to operate in
compliance with the conditions of the business license
ITEM NUMBER: C - 1
DATE: 3/27/12
NCC has identified a budget of $53,000 that is needed in addition to the purchase price
for immediate repairs, including a new roof, improvements to the exterior bathrooms,
and fixing up the low-income unit. Additional remodeling beyond the initial $53,000 of
immediate work is identified for future fund raising, but is not absolutely necessary at
this time. It appears that with the City's $100,000 in-lieu contribution, a loan from the
seller, several CDBG grants, and private donations, NCC will have enough to purchase
the property and begin to make the necessary repairs, including completion of the low-
income rental unit on-site.
Summary of NCC Purchase Costs & Funding Sources:
Costs to purchase 8600 Atascadero Ave:
■ Purchase Price $399,900
■ Immediate site improvements $53,000
Total needed to purchase & make immediate repairs $452,900
Funding Source: Funding Status
■ Loan from seller $194,900 Loan Secured
■ City of Atascadero (in-lieu fee allocation) $100,000 Request to Council 3/27/12
■ SLO County (re-allocated CDBG funds 2011) $35,000 Fund allocated by Board 2011
■ Donation from project amend $5,200 Funds secured
■ Private donations secured to date $4,800 Funds secured
■ 2012 CDBG - City of Atascadero $55,000 Request to Council 2/28/12
■ 2012 CDBG - SLO County $43,614 Request to Board 3/20/12
Total funding sources designated $438,514
Remaining Gap (for site improvements) $14,386
If the Council is satisfied with the conditions outlined above, Council may choose to
allocate the requested $100,000 of in-lieu funds. Final loan documents, deed
restrictions and an appraisal would be brought back to City Council for final
authorization prior to placing funds in an escrow account.
ECHO Funding Request
For the past six years, EI Camino Homeless Organization (ECHO) has operated an
emergency housing shelter at 6370 Atascadero Mall, located at the First Baptist Church
of Atascadero, next to the Atascadero High School and Atascadero Bible Church. The
First Baptist Church has advised ECHO that due to growth in their congregation and the
needs of their ministries for more space, it is necessary for ECHO to relocate to another
facility by May 2012.
ITEM NUMBER: C - 1
DATE: 3/27/12
At the October 25, 2011 Council/RDA Board meeting, ECHO requested City assistance
to help them through the property acquisition and development process in order to
relocate and build a new homeless shelter. The Council expressed interest in allocating
up to $300,000 of in-lieu funds as a technical assistance grant for ECHO to hire experts
to develop a viable business plan and funding strategy. There was some discussion at
the meeting that upon forming a plan, ECHO may be eligible for additional RDA funds to
help purchase a property and construct a new shelter.
Over the past few months, City staff met with ECHO several times to discuss potential
properties for purchase, and options for construction of a new emergency shelter.
ECHO is currently considering a few possible locations. A formal request and business
plan for relocating has not yet been submitted.
In order to receive in-lieu affordable housing funding, ECHO would need to designate
permanent affordable rental units. The City Attorney has advised that temporary
housing and shelters do not qualify for in-lieu affordable housing funds. ECHO has
considered some sites which have existing residential units which could be used to
meet the funding requirement. These can be existing units, or new units, provided that
deed restrictions can be recorded for affordability. Rent from the affordable units could
be used to fund shelter operations.
Without RDA housing funds, the only funds available to assist ECHO are the in-lieu
funds. Based on the need to continue to operate the City's affordable housing program,
the City would only have $237,780 available at this time to assist ECHO. Staff is
looking for Council direction on how to proceed.
FISCAL IMPACT:
The fiscal impact is contingent on the direction provided by the Council. If the Council
chooses to earmark in-lieu housing funds for NCC and ECHO, staff strongly
recommends the Council reserve at least $100,000 in the in-lieu housing fund in
order to continue to administer the existing low and moderate income affordable
housing loan program. The City of Atascadero currently has close to $4 million in
notes receivable on several dozen existing deed restricted affordable housing units
within the City. Depleting the in-lieu fund completely would mean that ongoing loan
program administration for these units would have to be funded from the General Fund.
As housing construction has been relatively stagnant over the past several years, the
City has not seen an increase in the In-Lieu Housing Fund in recent years, and staff
does not expect this fund to increase in the near future. In addition, if in-lieu funds are
diminished, the City may not have funding available to purchase deed restricted
affordable homes which have gone into foreclosure, and those existing LMI affordable
units would potentially turn to market rate units upon resale.
ITEM NUMBER: C - 1
DATE: 3/27/12
Current in-lieu fund balance $437,780
NCC - $100,000
ECHO - $237,780 (maximum recommended)
Account balance reserved to administer $100,000 (minimum to be preserved)
existing affordable housing program
(6 years @$16,000 per year)
ATTACHMENTS:
Attachment 1: Letter Sent to Affordable Housing Applicants Jan. 2012
ITEM NUMBER: C - 1
DATE: 3/27/12
Attachment 1
Attachment 1: Letter Sent to Affordable Housing Applicants Jan.2012
i
:�.. (_yITY (=)F AT SC ODER(-)
COI1 MUNIT1 DEITLOPMENT DEPARTMENT
J anuary 19,2012
Attn:Sue Warren
North C ounty C onne ction
8600 Atascadero Ave.
Atascadero,CA 93422
RE: RDA and In-lieu Housing Fund Allocations Frozen
Dear Ms.Warren:
This letter is to inform you that due to the California Supreme Court's decision to dissolve all
redevelopment agencies in the State, all Atascadero Redevelopment and In-lieu Affordable
Housing Fund allocations have been frozen.
In June 2011, the State Legislature passed, (and Governor Brown signed), legislation that
abolished all redevelopment agencies (RDA) in California and required the transfer of local
property tax revenue to the State in order to re-establish the agency. In response,California cities
and redevelopment agencies filed suit to block the action. Unfortunately, on December 29,2011,
W.California Supreme Court upheld the State's action to abolish redevelopment agencies,but
struck down a provision that would have allowed their re-creation under anew revenue sharing
agreement.
The City of Atas c adero,along with the other 400 re development agenciesinthe State,iscuff ently
in the process of sorting out what the dissolution of the RDA means. The Court's ruling was the
"worst case scenario" and a surprise to many. The Court's decision is unclear,and the details of
what steps need to be taken are still being debated. It will take some time to figure out exactly
what financial impact this will have on the City. We are currently consulting with attorneys on
what the City's rights are, and how we should proceed. What we do know is that unless new
legislation is approved,the City's Redevelopment Agency will be dissolved on February 1,2012.
Over the past year, Atascadero had been working with local affordable housing developers and
non-profits to identify prospective housing projects which would qualify for RDA low and
moderate affordable housing funds, as well as the City of Atascadero's Affordable Housing In-
lieu Funds. On October 25,2011,the City Council/Redevelopment Agency Board identified five
proposed projects which would be considered for funding in January 2012. Council/Agency
direction at the October25th meeting was to gather additional information for potential funding of
projects by North County Connection, El Camino Homeless Organization, Peoples Self Help
-.••Mt2S•mw
6907 EL CA1VM0 REAL ATASCADF.RO, CA 93422 - (805)461-5000 - F,�X 461-7612
ITEM NUMBER: C - 1
DATE: 3/27/12
Attachment 1
CITY OF ATASCADERO
COMMUNITY DEVELOPMENT DEPARTMENT
February 23,2012
Page 2 of 6
Housing Corporation, ROEM Corporation, and Hidden Oaks Apartments Inc. It was the City's
desire to be ready to move forward with funding of the selected affordable housing projects in
January, upon a favorable ruling by the State Supreme Court. Unfortunately,the Court did not
rule in the City's favor with their December 29th decision,and therefore,funding of these projects
cannot be allocated at this time.
The California Re development A s s o ciation and various housing and infill development advocacy
groups have indicated their intent to seek legislative modifications or proposals for continuing
economic development and affordable housing activities in California.However, at this time it is
premature to speculate on the nature or likely outcome of such proposals.Until the situation with
the Redevelopment Agency and the associatedfinds nds have been sorted out,and the City has a
complete understanding of the f dl impact of the State's decision, all RDA and ire-Neat
affordable hoasieggfxmding have been frozen.
We understand this news will be upsetting and will be very disruptive to your project.
Unfortunately,this is a situation that has been createdbythe State of California andis beyond the
control of the City of Atascadero. I have attached additional information about the State's
dissolution process and contact information for your local State legislatures.
Please feel free to contact myself at 470-3402, or Callie Taylor at 470-3448 if we can be of
assistance, or if you have questions regarding this letter.
Sincerely,
WarrenFrace
Community Development Director
Attachment: "News fromthe Uy'article 1113112
Press Release 12/29/11
cc: W.Ntl6nney
J.Lewis
Steven Dukett,Urban Futures Inc.,3111 N.Tustin St.,Ste.230,Orange,CA 92865