Loading...
HomeMy WebLinkAboutCC_2015-01-27_Item C3 att 1 City Audit CITY OF ATASCADERO FINANCIAL STATEMENTS June 30, 2014 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 FINANCIAL STATEMENTS June 30, 2014 Tom O’Malley, MAYOR Brian Sturtevant, MAYOR PRO TEMPORE Roberta Fonzi, COUNCIL MEMBER Bob Kelley, COUNCIL MEMBER Heather Moreno, COUNCIL MEMBER Rachelle Rickard, CITY MANAGER Prepared by the Department of Administrative Services ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2014 Independent Auditors' Report……………………...…………………………………………………………………………………………………………………………………………1 Management's Discussion and Analysis…………………………………………………………………………………………………………………………………………………………………………………3 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position……………………………………………………………………….……………………………………………………………………………………………………………………13 Statement of Activities………………………………………………………………………………………………………………………………………………………….15 Fund Financial Statements: Governmental Funds: Balance Sheet……………………………………………………………………………………………………………………………………………………………………16 Reconciliation of the Governmental Funds - Balance Sheet to the Statement of Net Position…………………………………………………………………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: Statement of Net Position……………………………….…………………………………………………………………………………………………………………………22 Combining Statement of Revenues, Expenses, and Changes in Net Position……………………………………………………………………………………………………….24 Combining Statement of Cash Flows………………………………………………………………………………………...……………………………………………………………26 Private Purpose Trust Funds: Statement of Fiduciary Net Position……………………………….…………………………………………………………………………………………………………………………28 Statement of Changes in Fiduciary Net Position………………………………………………………………………………………………………………………………….29 Notes to the Basic Financial Statements……………………………………………………………………………………………………………………………………………30 Required Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Summary ………………………………………………68 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Fund Detail………………………………………………70 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - In Lieu Low/Moderate Income Housing Fund………………………………………………86 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Circulation System Fees Fund………………………………………………87 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Fire Aerial Vehicle Impact Fees Fund………………………………………………88 Schedule of Funding Progress for Postemployment Benefits Other Than Pensions……………………………………………………………………………………………89 i ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2014 Other Supplementary Information: Major Capital Projects Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Historic City Hall Rehabilitation Fund………………………………………………90 Major Debt Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - 2010 Bond Debt Service Fund………………………………………………91 Nonmajor Governmental Funds Overview………………………………………………………………………………………………………………………………………….92 Combining and Individual Fund Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds………………………………………………………………………………………………………………97 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds…………………………………..………………102 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual: Supplemental Law Enforcement Services Fund…………………………………………………………………………………………………………………………….107 Atascadero Tourism Business Improvement District Fund……………………………………………………………………………………………………………………………………….108 Community Development Block Grant Fund………………………………………………………………………………………………………………………………..109 Tree Plant Fund………………………………………………………………………………………………………………………………………………………………110 Gas Tax Fund…………………………………………………………………………………………………………………………………………………………………..111 Local Transportation Fund……………………………………………………………………………………………………………………………………………..112 Street Assessment Fund……………………………………………………………………………………………………………………………………………………..113 General Government Facilities Fees Fund……………………………………………………………………………………………………………………………………..114 Storm Drainage Facilities Fees Fund…………………………………………………………………………………………………………………………………………….115 Amapoa/Tecorida Drainage Impact Fees Fund……………………………………………………………………………………………………………………………………..116 Law Enforcement Facilities Fees Fund…………………………………………………………………………………………………………………………………….117 Fire Facilities Fees Fund…………………………………………………………………………………………………………………………………………………………..118 Open Space Acquisition Fees Fund……………………………………………………………………………………………………………………………………………….119 Parkland Facilities Fees Fund………………………………………………………………………………………………………………………………………………………120 Public Facilities Fees Fund………………………………………………………………………………………………………………………………………………………121 Library Expansion Facilities Fees Fund………………………………………………………………………………………………………………………………………………122 Community Facilities District Fund…………………………...………………..…………………………………………………………………………………………..123 ii ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO TABLE OF CONTENTS June 30, 2014 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): Apple Valley Street & Storm Drain Assessment District Fund………….……………………………………………………………………………………………124 Apple Valley Landscape & Lighting Assessment District Fund…………………..…………………………………………………………………………………………125 Las Lomas Street & Storm Drain Assessment District Fund……………………...………………………………………………………………………………………126 Las Lomas Landscape & Lighting Assessment District Fund…………………………...……………………………………………………………………………………127 De Anza Street & Storm Drain Assessment District Fund…………………………..…………………………………………………………………………………128 De Anza Landscape & Lighting Assessment District Fund…………………………...…………………………………………………………………………………129 Capital Projects Fund……………………………………………………………………………………………………………………………………………………………130 Blight Elimination Projects Fund……………………………………………………………………………………………………………………………………………………………131 Youth Center Construction Fund………………………………………………………………………………………………………………………………………….132 Assessment District #4 Debt Service Fund…………………………………………………………………………………………………………………………………….133 1992 Street Assessment Improvement Fund…………………………………………………………………………………………………………………………..134 Combining Statement of Net Position - Internal Service Funds……………………………………………………………………………………………………………………135 Combining Statement of Revenues, Expenses, and Changes in Net Position - Internal Service Funds…………………………………………………………………..136 Combining Statement of Cash Flows - Internal Service Funds……………………………………………………………………………………………………………..138 iii ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 PARTNERS 2400 PROFESSIONAL PARKWAY, STE. 205 RONALD A LEVY, CPA SANTA MARIA, CA 93455 CRAIG A HARTZHEIM, CPA TEL: 805.925.2579 HADLEY Y HUI, CPA FAX: 805.925.2147 www.mlhcpas.com INDEPENDENT AUDITORS' REPORT City Council of the City of Atascadero Atascadero, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Atascadero (the City), as of and for the fiscal year ended June 30, 2014, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major 1 OFFICES: BEVERLY HILLS · CULVER CITY · SANTA MARIA MEMBER AMERICAN INSTITUTE OF CPAs · CALIFORNIA SOCIETY OF MUNICIPAL FINANCE OFFICERS · CALIFORNIA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS ITEM NUMBER: C-3DATE: 01/27/15ATTACHMENT: 1 fund, and the aggregate remaining information of the City of Atascadero, as of June 30, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the fiscal year ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Change in Accounting Principles As discussed in note 1 to the basic financial statements effective July 1, 2013, the City of Atascadero adopted Governmental Accounting Standards Board (GASB) Statement No. 65, Items Previously Reported as Assets and Liabilities, Statement No. 66, Technical Correction-2012, Statement No. 67, Financial Reporting for Pension Plans, and Statement No. 70, Accounting and Financial Reporting for Non-exchange Financial Guarantees. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on page 3 through 12, the budgetary comparison information on pages 68 through 88, and the schedule of funding progress for post-employment benefits other than pensions on page 89, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Atascadero’s basic financial statements. The major capital projects fund and major debt service fund budgetary schedules, combining and individual non-major fund financial statements and schedules, and combining internal service funds financial statements, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The major capital projects fund and major debt service fund budgetary schedules, combining and individual non-major fund financial statements and schedules, and combining internal service funds financial statements, are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the major capital projects fund and major debt service fund budgetary schedules, combining and individual non-major fund financial statements and schedules, and combining internal service funds financial statements, are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2014, on our consideration of the City of Atascadero’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Santa Maria, California December 15, 2014 2 ITEM NUMBER: C-3DATE: 01/27/15ATTACHMENT: 1 3 MANAGEMENT’S DISCUSSION AND ANALYSIS Fiscal Year Ended June 30, 2014 INTRODUCTION This discussion and analysis of the City of Atascadero’s financial performance provides an overview of the City’s financial a ctivities for the fiscal year ended June 30, 2014. For the most complete picture of the City, please read this document in conjunction with the City’s basic financial statements and the accompanying notes to the basic financial statements. The City’s financial statements 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 $181 million. Of this amount, about $14 million may be used to meet the City’s ongoing obligations to citizens and creditors.  Total unrestricted net position is $14.2 million, a 9% increase over the prior year.  A change in accounting principle prior year adjustment of ($254,579) was made which affects the government-wide statement of activities. Government Accounting Standards Board Statement No. 65 was effective for the City this year and requires that bond issuance costs are expensed in the year the debt is issued. The prior period adjustment reflects the amount of bond issuance costs that had not yet been expensed.  Capital projects expenditures were less than the amount spent in the prior fiscal year by about $7.8 million due in part to the conclusion of construction of some major projects such as the Transit Center and the rehabilitation of the Historic City Hall  As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $40 million, an increase of $1.1 million from the prior fiscal year. Approximately $34 million of the total is not available for more spending because it represents amounts that are already obligated or restricted, including $17 million in advances receivables from the Successor Agency and $4.7 million in notes receivable for affordable housing. About $5.6 million of the ending fund balance is available for future obligations.  The City’s ending total debt was lower than the beginning debt by $113,868. There was an increase in compensated absences, a reduction in the PERS side fund, and a decrease in other post-employment benefits.  At the end of the current fiscal year, unassigned fund balance for the general fund was $7,210,495 or 41% of total general fund expenditures. This is an increase over the prior year of $615,217. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2014 4 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-W ide Financial Statements present a broad overview of the financial picture of the City from the economic resources mea surement 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 Position presents information on all of the City’s assets and liabilities, with the difference reported as net position. Over time, increases or decreases in net position 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 position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the ti ming 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 peri ods. 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). The City previously had a component unit (the Community Redevelopment Agency of Atascadero) through January 31, 2012, for which the government was considered to be financially accountable. Effective February 1, 2012, Assembly Bill AB 1x26, as modified by the California Supreme Court, dissolved redevelopment agencies in California. All assets and liabilities were required to be transferred to the cor responding Successor Agency identified in each community. In Atascadero, the City became the Successor Agency and holds these assets and liabilities in Private Purpose Trust. See Note 15 in the Notes to the Financial Statements for further details on the Successor Agency. The City has no component units that require discrete presentation in accordance with GASB Statement No. 14, as amended by GASB Statements No. 39 and No. 61. 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 demon strate compliance with finance-related legal requirements. The funds of the City are divided into two categories of activities – governmental and proprietary. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2014 5 OVERVIEW OF THE FINANCIAL STATEMENTS (continued) 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 Fund Financial Statements 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 t he 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 In Lieu Low/Moderate Income Housing Fund, the Circulation System Fees Fund, the Fire Aerial Vehicle Impact Fees Fund, the Historic City Hall Rehabilitation Fund, and the 2010 Bond Debt Service 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 fu nds 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 Se rvice 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. 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. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2014 6 GOVERNMENT-WIDE FINANCIAL ANALYSIS As noted earlier, net position 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 $181 million at the close of the most recent fiscal year. 2013-2014 Governmental Activities 2013-2014 Business-Type Activities 2013-2014 Total 2012-2013 Governmental Activities 2012-2013 Business-Type Activities 2012-2013 Total 50,880,624$ 9,498,996$ 60,379,620$ 50,656,078$ 10,787,079$ 61,443,157$ 129,378,816 16,969,875 146,348,691 124,108,423 16,010,187 140,118,610 Total assets 180,259,440 26,468,871 206,728,311 174,764,501 26,797,266 201,561,767 4,399,962 226,558 4,626,520 5,352,058 879,369 6,231,427 21,208,919 23,526 21,232,445 21,325,576 20,830 21,346,406 Total liabilities 25,608,881 250,084 25,858,965 26,677,634 900,199 27,577,833 117,005,394 16,969,875 133,975,269 113,307,684 16,010,187 129,317,871 32,656,277 - 32,656,277 31,618,278 - 31,618,278 4,988,888 9,248,912 14,237,800 3,160,905 9,886,880 13,047,785 Total net position 154,650,559$ 26,218,787$ 180,869,346$ 148,086,867$ 25,897,067$ 173,983,934$ Net position: Net investment in capital assets Restricted Unrestricted Current and other assets Capital assets Current liabilities Noncurrent liabilities The largest portion of the City’s net position (74%) 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 futur e spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the reso urces 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 18% of the City’s net position represents resources subject to external restrictions on how they may be used. The remaining 8% ($14,237,800) is considered unrestricted and may be used to meet the City’s ongoing obligations to citizens and creditors. There was an increase of $1,190,015 in unrestricted net position from fiscal year 2012-2013 to 2013-2014. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2014 7 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 position, 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 position increased by about $7.1 million. Information about changes in net position is summarized below: 2013-2014 Governmental Activities 2013-2014 Business-Type Activities 2013-2014 Total 2012-2013 Governmental Activities 2012-2013 Business-Type Activities 2012-2013 Total Revenues: Program Revenues Charges for services 3,711,767$ 2,331,732$ 6,043,499$ 3,295,810$ 2,226,166$ 5,521,976$ Operating grants and contributions 1,261,866 567,837 1,829,703 1,577,625 455,277 2,032,902 Capital grants and contributions 8,382,865 83,502 8,466,367 5,010,415 803,667 5,814,082 General Revenues: Secured and unsecured property taxes 8,185,022 - 8,185,022 9,911,766 - 9,911,766 Sales and use taxes 3,510,813 - 3,510,813 3,295,061 - 3,295,061 Other taxes 2,286,542 - 2,286,542 2,043,779 - 2,043,779 Motor Vehicle in Lieu 12,170 - 12,170 14,693 - 14,693 Investment Income 954,347 85,951 1,040,298 883,766 71,669 955,435 Total Revenues 28,305,392 3,069,022 31,374,414 26,032,915 3,556,779 29,589,694 SUMMARY OF CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2014 and 2013 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2014 8 GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued) 2013-2014 Governmental Activities 2013-2014 Business-Type Activities 2013-2014 Total 2012-2013 Governmental Activities 2012-2013 Business-Type Activities 2012-2013 Total Program Expenses General Government 2,439,944$ -$ 2,439,944$ 2,550,467$ -$ 2,550,467$ Public Safety 10,204,254 - 10,204,254 11,096,608 - 11,096,608 Community Development 1,862,897 - 1,862,897 1,625,531 - 1,625,531 Community, Recreation & Zoo Services 2,293,532 - 2,293,532 2,232,646 - 2,232,646 Parks & Open Space 781,090 - 781,090 748,770 - 748,770 Public Works 3,143,873 - 3,143,873 3,065,852 - 3,065,852 Sewer - 2,035,872 2,035,872 - 2,029,709 2,029,709 Transit - 711,430 711,430 - 617,115 617,115 Interest on long-term debt 761,531 - 761,531 770,864 - 770,864 Total Expenses 21,487,121 2,747,302 24,234,423 22,090,738 2,646,824 24,737,562 Change in net position 6,818,271 321,720 7,139,991 3,942,177 909,955 4,852,132 Net position- beginning 148,086,867 25,897,067 173,983,934 147,858,806 24,987,112 172,845,918 Prior year adjustment (254,579) - (254,579) (3,714,116) - (3,714,116) Adjusted Net position- beginning 147,832,288 25,897,067 173,729,355 144,144,690 24,987,112 169,131,802 Net position- ending 154,650,559$ 26,218,787$ 180,869,346$ 148,086,867$ 25,897,067$ 173,983,934$ SUMMARY OF CHANGES IN NET POSITION For the Fiscal Years Ended June 30, 2014 and 2013 Governmental activities during the year increased the City’s net position by $6,818,271 with an offsetting prior period adjustment decrease of $254,579 due to a change in accounting principle. Business-type activities increased the City’s net position by $321,720. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2014 9 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. As of June 30, 2014, the City’s governmental funds reported combined ending fund balances of $40,004,026. Approximately 44% ($17,420,747) 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 $5,609,805. The General Fund portion of this, $7,210,495, 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 $16,645,547 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. The Assigned fund balance, $327,927, is the amount the City intends to use for road projects. General Fund – The General Fund is the chief operating fund of the City. At June 30, 2014, the total fund balance was $8,620,512 and the spendable unassigned fund balance was 84% ($7,210,495) 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 48.5% of fund expenditures, up from 43% in the prior fiscal year. The General Fund balance increased $613,444 during the fiscal year. In Lieu Low/Moderate Income Housing Fund – This fund accounts for fees that are paid by developers in lieu of building inclusionary (affordable) housing. These fees are expended on programs that provide and/or promote affordable housing within the City. At June 30, 2014, the fund balance was $5,185,964. Circulation System Fees Fund – This fund accounts for fees that are paid by developers 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 expended for the construction of new/increased/improved roadway and bridge facilities. The fund balance at June 30, 2014, was $1,066,427, up $143,992 from the prior year. Fire Aerial Vehicle Impact Fees Fund – This fund accounts for impact fees imposed on commercial and multi -family residential developments for the purpose of contributing toward the purchase of the Aerial Fire Truck (Ladder Truck). The City purchased this truck in fiscal year 2007 -2008 using future revenues, and therefore, the fund had a negative balance of ($860,324) at June 30, 2014. As the economy continues to improve and development is reinvigorated over time, Impact Fee revenues should move this negative balance toward zero. 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, 2014, the total fund balance was ($487,952). This is down from the previous year fund balance of $1,728,168 due to the continued finalization of the construction contracts to rehabilitate the Historic City Hall. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2014 10 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) 2010 Bond Debt Service Fund – The 2010 Bond Debt Service Fund accounts for all of the advances receivable from the Successor Agency and the debt service payments for the Lease Revenue Bonds that were issued on September 1, 2010. At June 30, 2014, the total fund balance was $17,434,628, which reflects $16 million in advances receivable from the Successor Agency. See Notes 7 and 15 to the financial statements for additional information on the Successor Agency and the bond issue. 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, 2014, these funds had an aggregate fund balance of $9,044,771. Of this total, $730 is non- spendable and $327,927 is assigned for specific uses. The Restricted Fund Balance is $8,968,528. The remaining unassigned fund balances in the amount of ($252,414) is the amount in the General Government Facilities Fees Fund and the Law Enforcement Facilities Fees Fund, in which purchases were incurred prior to the receipt of long-term reimbursing 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, decreased in FY 2013-2014 by $116,564. During the year, the PERS side fund liability decreased by $150,308, compensated absences increased by $47,593, and Other Post-Employment Benefits decreased by $13,849. Debt of the business-type activities increased by $2,696 in FY 2013-2014 due to an increase 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, 2014, net capital assets of the governmental activities totaled $129,378,816 and the net capital assets of the business-type activities totaled $16,969,875. Depreciation on capital assets is recognized in the Government-wide Financial Statements. The City has elected to depreciate its infrastructure assets. In order to depreciate the infrastructure assets, an estimated useful life for each type of asset was determined using engine ering standards, industry standards, as well as discussions with City staff regarding the City’s maintenance program for each asset type. This allowed the estimated useful life of each asset type to be tailored to include the unique attributes of the City of Atascadero. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2014 11 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) The following table presents summary information on the City’s capital assets: 2013-2014 Governmental Activities 2013-2014 Business-Type Activities 2013-2014 Total 2012-2013 Governmental Activities 2012-2013 Business-Type Activities 2012-2013 Total Non-Depreciable: Land 40,855,264$ 442,044$ 41,297,308$ 40,795,264$ 442,044$ 41,237,308$ Construction in progress 1,558,467 1,482,822 3,041,289 29,357,438 1,801,272 31,158,710 Depreciable: Vehicles and equipment 8,622,032 705,651 9,327,683 8,620,881 809,179 9,430,060 Structures and improvements 49,413,492 27,409,578 76,823,070 17,456,374 25,293,306 42,749,680 Infrastructure 63,234,141 - 63,234,141 61,588,154 - 61,588,154 Accumulated Depreciation (34,304,580) (13,070,220) (47,374,800) (33,709,688) (12,335,614) (46,045,302) Net investment in capital assets 129,378,816$ 16,969,875$ 146,348,691$ 124,108,423$ 16,010,187$ 140,118,610$ General Fund Budgetary Highlights A detailed budgetary comparison schedule for the fiscal year ended June 30, 2014, 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 2013-2014 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 2013-2014. General Fund Original Budget Final Budget Actual Variance Positive (Negative) Revenues 16,267,380$ 16,967,600$ 18,015,689$ 1,048,089$ Expenditures 17,934,350 18,704,570 17,764,765 939,805 Other Sources (Uses)362,850 362,850 362,520 (330) Fund Balance, beginning 8,007,068 8,007,068 8,007,068 - Fund Balance, ending 6,702,948$ 6,632,948$ 8,620,512$ 1,987,564$ ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 City of Atascadero Management’s Discussion and Analysis Fiscal Year Ended June 30, 2014 12 FINANCIAL ANALYSIS OF THE CITY’S FUNDS (continued) Both revenues and expenditure budgets were increased during the year, primarily reflecting the increases in activity in development, mutual aid , other grants, and a Council authorized increase for the Lake Dredging Project . Although the final budget reduced the fund balance of the General Fund when compared to the original budget, the actual activity during the year increased the fund balance by almost $2 million over the final budget. Economic Factors and Next Fiscal Year’s Budget The City continues to pursue the Council top goals despite the challenges that arise due to the economy, the actions of the State Legislature, and ever increasing environmental regulation. The City has been facing the retracting economy over the last few budget cycles, and now is beginning to see evidence of improvement. This state of the economy is exacerbated by the California Legislature’s 2012 actions to dissolve redevelopment across the state. The City has effectively used redevelopment funding in the past to stimulate local economic development, but now that redevelopment is dissolved, this task is much more challenging. Additionally, increasing demands by other agencies to meet certain environmental regulations can put undue strain on local agencies. However difficult it may be, the Council is maintaining its commitment to its top priorities and continues to brainstorm new ways to further th ese goals. The City has been successful at facilitating synergistic energy in the City’s retail and industrial s ectors. This is great news for the City, socially and financially. While revenue gains from these new projects are starting to come in, they will not be fully realized for a few years into the future. The Council has held steadfast to the same fiscal strategy for over a decade now, a plan that has paid off. The framework of this strategy has guided the City to save 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 op erations and long-term financial sustainability even during the time the economy hit bottom, and continues now as the economy begins to recover. The 2014-2015 budget is the result of significant team work and represents steady and consistent spending. The easing up of the economy has allowed slightly more flexibility in formulating the budget than has been the case in the prior two budget cycles. T he budget is fair, smart, and achievable. 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 priorities are:  Promote the Atascadero Lake Park, Pavilion, Veterans Memorial, and Zoo as an Event Center  Pursue more connection between the City Council and Community  Promote Common Sense Regulations and Reform  Promote Environmental Stewardship  Pursue Economic Development  Provide High Quality Public Safety Services To accomplish all of these goals, the 2014-2015 budget includes the planned use of $662,000 in reserves, in accordance with the Council’s financial strategy. CONTACTING THE CITY’S FINANCIAL MANAGEMENT TEAM This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overv iew of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the inform ation provided in this report or requests for additional financial information should be addressed to the City of Atascadero, Administrative Services Department, 6500 Palma Avenue, Atascadero, CA 93422. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 BASIC FINANCIAL STATEMENTS ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO STATEMENT OF NET POSITION June 30, 2014 Governmental Activities Business-Type Activities Total ASSETS Cash and investments 19,670,656$ 9,158,214$ 28,828,870$ Restricted cash and investments: Cash with fiscal agents 1,411,278 - 1,411,278 Certificates of deposit 133,723 - 133,723 Receivables: Federal distributions due 3,578,496 227,491 3,805,987 Due from State of California 2,225,439 1,810 2,227,249 Due from County of San Luis Obispo 837,276 71,732 909,008 Accrued interest 30,115 13,513 43,628 Accrued interest receivable- 2010 bonds 188,510 - 188,510 Other receivables 557,906 133,886 691,792 Internal balances 107,650 (107,650) - Prepaid expenses 41,239 - 41,239 Notes receivable 4,713,161 - 4,713,161 Advance receivable- Successor Agency 17,385,175 - 17,385,175 Capital assets: Non-depreciable: Land 40,855,264 442,044 41,297,308 Construction in progress 1,558,467 1,482,822 3,041,289 Depreciable: Vehicles and equipment 8,622,032 705,651 9,327,683 Structures and improvements 49,413,492 27,409,578 76,823,070 Infrastructure 63,234,141 - 63,234,141 Accumulated depreciation (34,304,580) (13,070,220) (47,374,800) Total assets 180,259,440 26,468,871 206,728,311 The notes to the basic financial statements are an integral part of this statement. 13 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO STATEMENT OF NET POSITION (continued) June 30, 2014 Governmental Activities Business-Type Activities Total LIABILITIES Accounts payable 809,924$ 176,423$ 986,347$ Accrued salaries and benefits 730,776 23,963 754,739 Accrued interest payable 188,510 - 188,510 Other payables 45,019 15,113 60,132 Deposits payable 58,768 - 58,768 Unearned revenue 2,566,965 11,059 2,578,024 Noncurrent liabilities: Due within one year 212,982 - 212,982 Due in more than one year 20,995,937 23,526 21,019,463 Total liabilities 25,608,881 250,084 25,858,965 NET POSITION Net investment in capital assets 117,005,394 16,969,875 133,975,269 Restricted for: Restricted for parks and recreation 2,308,753 - 2,308,753 Restricted for streets, roads and drainage 4,963,559 - 4,963,559 Restricted for public safety 907,161 - 907,161 Restricted for redevelopment & housing 6,820,776 - 6,820,776 Restricted for debt service 17,656,028 - 17,656,028 Unrestricted 4,988,888 9,248,912 14,237,800 Total net position 154,650,559$ 26,218,787$ 180,869,346$ The notes to the basic financial statements are an integral part of this statement. 14 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO STATEMENT OF ACTIVITIES For the Fiscal Year Ended June 30, 2014 Program Revenues Expenses Charges for Services Operating Contributions and Grants Capital Contributions and Grants Net Governmental Activities Net Business-type Activities Total Governmental activities: General government 2,439,944$ 265,834$ 37,291$ 653,910$ (1,482,909)$ -$ (1,482,909)$ Public safety 10,204,254 904,714 200,892 159,457 (8,939,191) - (8,939,191) Community development 1,862,897 1,488,376 52,483 1,559,843 1,237,805 - 1,237,805 2,293,532 815,835 59,375 1,777,775 359,453 - 359,453 Parks & open space 781,090 40,094 8,553 2,530,478 1,798,035 - 1,798,035 Public works 3,143,873 196,914 903,272 1,701,402 (342,285) - (342,285) Interest on long-term debt 761,531 - - - (761,531) - (761,531) Total governmental activities 21,487,121 3,711,767 1,261,866 8,382,865 (8,130,623) - (8,130,623) Business-type activities: Sewer 2,035,872 2,250,500 85,086 - - 299,714 299,714 Transit 711,430 81,232 482,751 83,502 - (63,945) (63,945) Total business-type activities 2,747,302 2,331,732 567,837 83,502 - 235,769 235,769 Total government 24,234,423$ 6,043,499$ 1,829,703$ 8,466,367$ (8,130,623) 235,769 (7,894,854) General revenues Taxes: Secured and unsecured property taxes 8,185,022 - 8,185,022 Sales tax and payments in lieu of sales tax 3,510,813 - 3,510,813 Transient lodging tax 771,019 - 771,019 Franchise taxes 1,058,736 - 1,058,736 Business license tax 155,978 - 155,978 Property transfer tax 113,706 - 113,706 Other taxes 187,103 - 187,103 Motor vehicle in lieu 12,170 - 12,170 Investment income 185,225 85,951 271,176 Interest from Successor Agency 769,122 - 769,122 Total general revenues 14,948,894 85,951 15,034,845 Change in net position 6,818,271 321,720 7,139,991 Net position at beginning of fiscal year 148,086,867 25,897,067 173,983,934 Prior period adjustment-change in accounting principle (254,579) - (254,579) Adjusted net position at beginning of fiscal year 147,832,288 25,897,067 173,729,355 Net position at end of fiscal year 154,650,559$ 26,218,787$ 180,869,346$ Net (Expense) Revenue and Changes in Net Position Community, recreation & zoo services The notes to the basic financial statements are an integral part of this statement. 15 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET June 30, 2014 General Fund In Lieu Low / Moderate Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund Historic City Hall Rehabilitation Fund 2010 Bond Debt Service Fund Totals ASSETS Cash and investments 7,047,570$ 472,085$ 1,926,130$ -$ -$ 13,330$ 6,197,492$ 15,656,607$ Restricted cash and investments: - - - - - 1,411,278 - 1,411,278 Certificates of deposit 133,723 - - - - - - 133,723 Receivables: Federal distributions due 82,122 - - - 1,195,152 - 390,177 1,667,451 Due from State of California 563,126 - - - 419,388 - 605,875 1,588,389 229,310 - - - - - 607,966 837,276 Accrued interest 11,492 718 2,878 - - 20 8,878 23,986 Other receivables 509,886 - - - - - 48,020 557,906 Due from other funds 1,385,738 - - - - - 2,338,664 3,724,402 Deposits, prepaid items and inventory 34,842 - - - 910 - 730 36,482 Notes receivable - 4,713,161 - - - - - 4,713,161 Advances receivable- Successor Agency 1,375,175 - - - - 16,010,000 - 17,385,175 Total assets 11,372,984$ 5,185,964$ 1,929,008$ -$ 1,615,450$ 17,434,628$ 10,197,802$ 47,735,836$ Other NonMajor Governmental Funds Cash and investments with fiscal agent Due from County of San Luis Obispo The notes to the basic financial statements are an integral part of this statement. 16 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GOVERNMENTAL FUNDS BALANCE SHEET (continued) June 30, 2014 General Fund In Lieu Low / Moderate Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund Historic City Hall Rehabilitation Fund 2010 Bond Debt Service Fund Totals LIABILITIES AND FUND BALANCES Liabilities: Accounts payable 505,512$ -$ 28,615$ -$ 25,492$ -$ 177,342$ 736,961$ Accrued salaries and benefits 690,109 - - - - - 17,236 707,345 Due to other funds - - - 860,324 2,077,910 - 678,518 3,616,752 Unearned revenue 1,453,064 - 833,966 - - - 279,935 2,566,965 Deposits 58,768 - - - - - - 58,768 Other payables 45,019 - - - - - - 45,019 Total liabilities 2,752,472 - 862,581 860,324 2,103,402 - 1,153,031 7,731,810 Fund Balances: Nonspendable 1,410,017 - - - - 16,010,000 730 17,420,747 Restricted - 5,185,964 1,066,427 - - 1,424,628 8,968,528 16,645,547 Assigned for road projects - - - - - - 327,927 327,927 Unassigned 7,210,495 - - (860,324) (487,952) - (252,414) 5,609,805 Total fund balances 8,620,512 5,185,964 1,066,427 (860,324) (487,952) 17,434,628 9,044,771 40,004,026 Total liabilities and fund balances 11,372,984$ 5,185,964$ 1,929,008$ -$ 1,615,450$ 17,434,628$ 10,197,802$ 47,735,836$ Other NonMajor Governmental Funds The notes to the basic financial statements are an integral part of this statement. 17 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO RECONCILIATION OF THE GOVERNMENTAL FUNDS - BALANCE SHEET TO THE STATEMENT OF NET POSITION Total fund balances - governmental funds 40,004,026$ In governmental funds, only current assets are reported. In the statement of net position, all assets are reported, including capital assets and accumulated depreciation. Capital assets at historical cost 106,208,205$ Accumulated depreciation (25,371,207) Net 80,836,998 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.(188,510) In governmental funds, the receivable from the Successor Agency related to interest on the 2010 long-term debt is 188,510 Long-term liabilities: In governmental funds, only current liabilities are reported. In the statement of net position, all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental activities consist of: Bonds payable 16,010,000 Workers' Compensation estimated claims liability in excess of deposits 86,686 Compensated absences payable 1,408,709 PERS side fund 3,435,075 Other Post Employment Benefits 145,177 (21,085,647) In governmental funds, premiums are recognized when the bonds are issued. In the government-wide statement of activities, these are recorded as a liability and amortized over the life of the bond.(78,348) Internal service funds are used by management to charge the costs of various City activities to individual governmental and enterprise funds. The unrestricted net position of the internal service funds are included in the Governmental Activities in the Statement of Net Position.54,973,530 Total net position, governmental activities 154,650,559$ June 30, 2014 not recognized until the period in which is paid. In the government-wide statement of activities, it is recognized in the period that it is incurred. The notes to the basic financial statements are an integral part of this statement. 18 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Fiscal Year Ended June 30, 2014 General Fund In Lieu Low / Moderate Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund Historic City Hall Rehabilitation Fund 2010 Bond Debt Service Fund Other NonMajor Governmental Funds Totals Revenues: Secured and unsecured property taxes 7,551,887$ -$ -$ -$ -$ -$ 775,459$ 8,327,346$ Taxes based on sales and use 3,510,813 - - - - - - 3,510,813 Franchise tax 1,058,736 - - - - - - 1,058,736 Other taxes 1,040,723 - - - - - - 1,040,723 Licenses and permits 648,501 1,386,392 363,721 417 - - 879,816 3,278,847 Intergovernmental revenues: 12,170 - - - - - - 12,170 Grants 87,674 - - - 898,351 - 1,145,124 2,131,149 Other governmental revenues 73,393 - - - - - 1,777,034 1,850,427 Charges for services: Public safety 822,933 - - - - - - 822,933 Development 1,001,012 - - - - - - 1,001,012 Recreation, parks, pavilion and zoo 857,639 - - - - - - 857,639 Other services 54,906 - - - - - - 54,906 Fines and forfeitures 66,550 - - - - - - 66,550 Use of money and property 61,127 4,528 18,440 - (28,743) 787,097 81,694 924,143 Other revenues 1,167,625 - - - 73,185 - 9,911 1,250,721 Total revenues 18,015,689 1,390,920 382,161 417 942,793 787,097 4,669,038 26,188,115 Motor vehicle in lieu The notes to the basic financial statements are an integral part of this statement. 19 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For the Fiscal Year Ended June 30, 2014 General Fund In Lieu Low / Moderate Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund Historic City Hall Rehabilitation Fund 2010 Bond Debt Service Fund Other NonMajor Governmental Funds Totals Expenditures: Current: General government 2,457,295$ -$ -$ -$ 52,937$ -$ 7,734$ 2,517,966$ Public safety 10,075,822 - - - - - 84,447 10,160,269 Community development 1,693,401 39,082 - - 30,350 1,750 10,111 1,774,694 1,838,970 - - - 7,028 - 57,360 1,903,358 Parks and open space 616,356 - - - - - 63,315 679,671 Public works 1,004,954 - - - 7,843 - 1,025,455 2,038,252 Capital outlay 77,967 - 238,169 - 3,060,755 - 1,842,133 5,219,024 Debt service: Interest - - - - - 764,513 - 764,513 Total expenditures 17,764,765 39,082 238,169 - 3,158,913 766,263 3,090,555 25,057,747 Excess of revenues over (under) expenditures 250,924 1,351,838 143,992 417 (2,216,120) 20,834 1,578,483 1,130,368 Other Financing Sources (Uses): Transfers in 363,600 - - - - - 175,181 538,781 Transfers out (1,080) - - - - - (537,701) (538,781) Total other financing sources and uses 362,520 - - - - - (362,520) - Net change in fund balances 613,444 1,351,838 143,992 417 (2,216,120) 20,834 1,215,963 1,130,368 Fund balances - June 30, 2013 8,007,068 3,834,126 922,435 (860,741) 1,728,168 17,413,794 7,828,808 38,873,658 Fund balances - June 30, 2014 8,620,512$ 5,185,964$ 1,066,427$ (860,324)$ (487,952)$ 17,434,628$ 9,044,771$ 40,004,026$ Community, recreation, and zoo services The notes to the basic financial statements are an integral part of this statement. 20 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Total net change in fund balance - governmental funds 1,130,368$ 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 $5,219,024 is greater than depreciation expense $(1,494,791) in the period.3,724,233 The donation or contribution of capital assets is not recorded in the governmental financial statements. In the statement of activities, however, the donation is recorded as an appropriate capital grant.489,730 In governmental funds, the issuance premiums associated with long-term debt are reported as revenue in the fiscal year debt is issued. In the government-wide statements, the issuance premiums are recorded as liabilities and are amortized over the life of the related debt.2,982 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 amounts earned exceeded the amounts used by $43,938.(43,938) In governmental funds, the repayments of the PERS side fund debt is reported as a retirement expense. In the government-wide statements, repayments are reported as a decrease in the long-term liabilities. This is the amount by which interest incurred of $254,016 is less than contributions made of $404,324 in the period.150,308 In the statement of activities, changes to some claims and judgment liabilities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. 78,441 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.13,849 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 position 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 position $4,798,217 less the contributions of capital assets from other governmental funds ($3,525,919).1,272,298 Changes in net position - governmental activities 6,818,271$ The notes to the basic financial statements are an integral part of this statement. 21 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION June 30, 2014 Wastewater Fund Transit Fund Totals ASSETS Current Assets: Cash and investments 9,158,214$ -$ 9,158,214$ 4,014,049$ Receivables: Federal distributions due 5,429 222,062 227,491 1,911,045 Due from State of California 1,810 - 1,810 637,050 Due from County of San Luis Obispo 22,730 49,002 71,732 - Accrued interest 13,973 (460) 13,513 6,129 Other receivables 131,908 1,978 133,886 - Due from other funds 231,796 - 231,796 - Prepaid expenses - - - 4,757 Total current assets 9,565,860 272,582 9,838,442 6,573,030 Capital Assets: Non-depreciable: Land 442,044 - 442,044 - Construction in progress 1,482,822 - 1,482,822 496,030 Depreciable: Vehicles and equipment 355,542 350,109 705,651 8,535,280 Structure and improvements 25,989,945 1,419,633 27,409,578 48,443,881 Accumulated depreciation (12,608,407) (461,813) (13,070,220) (8,933,373) Net capital assets 15,661,946 1,307,929 16,969,875 48,541,818 Total assets 25,227,806 1,580,511 26,808,317 55,114,848 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 22 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO PROPRIETARY FUNDS STATEMENT OF NET POSITION (continued) June 30, 2014 Wastewater Fund Transit Fund Totals LIABILITIES Current Liabilities: Accounts payable 151,984$ 24,439$ 176,423$ 72,963$ Accrued salaries and benefits 21,968 1,995 23,963 23,431 Unearned revenue - 11,059 11,059 - Due to other funds - 339,446 339,446 - Other payables 13,368 1,745 15,113 - Noncurrent Liabilities: Compensated absences 23,526 - 23,526 44,924 Total liabilities 210,846 378,684 589,530 141,318 NET POSITION Net investment in capital assets 15,661,946 1,307,929 16,969,875 48,541,818 Unrestricted 9,355,014 (106,102) 9,248,912 6,431,712 Total net position 25,016,960$ 1,201,827$ 26,218,787$ 54,973,530$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 23 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2014 Wastewater Fund Transit Fund Totals Operating Revenues: Service fees 1,806,807$ 81,232$ 1,888,039$ 1,215,430$ Installation, extension and connection fees 443,453 - 443,453 - Other 240 - 240 - Total operating revenues 2,250,500 81,232 2,331,732 1,215,430 Operating Expenses: Salaries and benefits 490,646 39,413 530,059 481,896 Office expense 1,056 1,026 2,082 1,109 Advertising - 154 154 - Computer maintenance and replacement 19,713 9,390 29,103 2,220 Insurance 22,215 9,685 31,900 18,782 Occupancy and rental costs 8,240 1,240 9,480 85,866 Utilities 240,974 - 240,974 73,110 Communications 6,175 249 6,424 6,665 Operating supplies 75,464 364 75,828 42,840 Vehicle and equipment operating costs 62,492 142,125 204,617 5,306 Contract services 77,752 225,553 303,305 85,345 Professional development 8,854 460 9,314 13,443 Recruitment - - - 684 Franchise fees 35,050 - 35,050 - Administrative charges 197,520 123,011 320,531 36,960 Special projects:- Manhole rehabilitation projects 67,440 - 67,440 - Sewer line trench settlement repair 16,628 - 16,628 - Lift station water meter relocation 306 - 306 - Salt & Nutrient Management Program 15,748 - 15,748 - Sewer System Management Plan Audit 375 - 375 - Sewer System Management Plan 9,850 - 9,850 - Exterior Painting - Fire Station #2 - - - 8,500 HVAC Units - - - 3,454 Small Printers - - - 1,146 Internal Service Funds Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 24 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2014 Wastewater Fund Transit Fund Totals Operating Expenses (continued): Special projects (continued): Storage capacity upgrades -$ -$ -$ 13,481$ Monitors - Replacement - - - 5,282 Depreciation 679,374 110,448 789,822 1,386,837 Total operating expenses 2,035,872 663,118 2,698,990 2,272,926 Operating income (loss)214,628 (581,886)(367,258) (1,057,496) Non-Operating Revenues (Expenses): Transportation Development Act Funds - Operations - 260,689 260,689 - Section 5307 Revenues - Operations - 222,062 222,062 - Interest income 87,628 (1,677) 85,951 41,004 Insurance reimbursement 85,086 - 85,086 - Gain / (loss) on sale of capital assets - (48,312) (48,312) (29,327) Total non-operating revenues 172,714 432,762 605,476 11,677 Change in net position prior to capital contributions 387,342 (149,124) 238,218 (1,045,819) Capital Contributions: Capital contributions from other funds - - - 3,525,919 Capital contributions from successor agency - - - 2,138,117 Capital contributions from community donations - - - 180,000 Prop 1B Grant- Transit Center - 83,502 83,502 - Total capital contributions - 83,502 83,502 5,844,036 Change in net position 387,342 (65,622) 321,720 4,798,217 Total net position, June 30, 2013 24,629,618 1,267,449 25,897,067 50,175,313 Total net position, June 30, 2014 25,016,960$ 1,201,827$ 26,218,787$ 54,973,530$ Enterprise Funds Internal Service Funds The notes to the basic financial statements are an integral part of this statement. 25 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2014 Wastewater Fund Transit Fund Totals Cash Flows From Operating Activities: Receipts from customers 2,175,034$ 33,491$ 2,208,525$ -$ Internal activity - payments from other funds - - - 1,215,430 Payments to suppliers of goods and services (1,349,684) (536,268) (1,885,952) (361,338) Payments for employee services (485,854) (39,838) (525,692) (472,217) Net cash provided (used) by operating activities 339,496 (542,615) (203,119) 381,875 - 416,205 416,205 - - 222,611 222,611 - Net cash provided (used) by non-capital related financing activities - 638,816 638,816 - Acquisition of capital assets (1,703,017) (94,805) (1,797,822) (157,573) Insurance reimbursement 85,086 - 85,086 - Capital grant proceeds - - - (2,046,527) Proceeds from sale of capital assets - - - 3,096 Net cash provided (used) by capital and related financing activities (1,617,931) (94,805) (1,712,736) (2,201,004) Internal Service Funds Enterprise Funds Receipts from intergovernmental agencies Cash Flows From Non-Capital Financing Activities: Cash Flows From Capital and Related Financing Activities: Loans / repayments to other funds The notes to the basic financial statements are an integral part of this statement. 26 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO PROPRIETARY FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2014 Wastewater Fund Transit Fund Totals Cash Flows From Investing Activities: Interest income 90,929$ (1,396)$ 89,533$ 44,513$ Principal loaned on due to/ due from 48,638 - 48,638 - Net cash provided (used) by investing activities 139,567 (1,396) 138,171 44,513 Net increase (decrease) in cash and cash equivalents (1,138,868) - (1,138,868) (1,774,616) Cash and cash equivalents - June 30, 2013 10,297,082 - 10,297,082 5,788,665 Cash and cash equivalents - June 30, 2014 9,158,214$ -$ 9,158,214$ 4,014,049$ Operating income (loss)214,628$ (581,886)$ (367,258)$ (1,057,496)$ Depreciation expense 679,374 110,448 789,822 1,386,837 Change in assets and liabilities: Receivables, net (75,466) (47,741) (123,207) 1,800 Prepaid expenses - - - 343 Accounts payable (488,474) (24,756) (513,230) 40,712 Accrued salaries and benefits 2,096 (425) 1,671 6,024 Other payables 4,642 1,745 6,387 - Compensated absences 2,696 - 2,696 3,655 Net cash provided (used) by operating activities 339,496$ (542,615)$ (203,119)$ 381,875$ Internal Service Funds Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Reconciliation of operating income (loss) to net cash provided (used) by operating activities: Enterprise Funds The notes to the basic financial statements are an integral part of this statement. 27 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF FIDUCIARY NET POSITION June 30, 2014 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals ASSETS Cash and investments 2,325,723$ -$ 2,325,723$ Restricted cash and investments: 859,660 - 859,660 Receivables: Accrued interest 2,607 - 2,607 Other receivables 5,350 - 5,350 Notes receivable - 200,000 200,000 Due from Successor Agency - 1,335,322 1,335,322 Capital assets: Non-depreciable: Land 413,791 - 413,791 Depreciable: Structures and improvements 2,369,216 - 2,369,216 Accumulated depreciation (125,938) - (125,938) Total assets 5,850,409 1,535,322 7,385,731 LIABILITIES Accounts payable 2,811 - 2,811 Interest payable 362,227 - 362,227 Due to Successor Agency Housing Fund 1,335,322 - 1,335,322 Loans payable to City of Atascadero 1,375,175 - 1,375,175 Premium on Bonds Payable 34,197 - 34,197 2004 Bonds Payable 11,015,000 - 11,015,000 16,010,000 - 16,010,000 Total liabilities 30,134,732 - 30,134,732 NET POSITION Held in trust for taxing agencies (24,284,323)$ 1,535,322$ (22,749,001)$ Successor Agency to the Atascadero Community Redevelopment Agency Cash with fiscal agent 2010 Bond Reimbursement Agreement Payable to City of Atascadero The notes to the basic financial statements are an integral part of this statement. 28 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO PRIVATE PURPOSE TRUST FUNDS STATEMENT OF CHANGES IN FIDUCIARY NET POSITION For the Fiscal Year Ended June 30, 2014 Successor Agency to the Community Redevelopment Agency of Atascadero Housing Successor Agency to the Community Redevelopment Agency of Atascadero Totals Additions Contributions: RPTTF Distributions 1,587,496$ -$ 1,587,496$ Investment earnings: Rental income 62,266 - 62,266 Interest 32,589 - 32,589 Total additions 1,682,351 - 1,682,351 Deductions Payment on outstanding services contracts 2,300 - 2,300 Asset maintenance costs 20,949 - 20,949 Administrative costs 250,000 - 250,000 2004 Bond Interest Expense 524,325 - 524,325 2010 Bond Reimbursement Interest Expense 769,122 - 769,122 Depreciation expense 82,336 - 82,336 Loss on Sale of Assets 2,627,853 - 2,627,853 Total deductions 4,276,885 - 4,276,885 Change in net position (2,594,534) - (2,594,534) Net position - June 30, 2013, as previously reported (21,424,444) 1,535,322 (19,889,122) Prior period adjustment - change in accounting principle (265,345) - (265,345) Net position - June 30, 2013 (21,689,789) 1,535,322 (20,154,467) Net position - June 30, 2014 (24,284,323)$ 1,535,322$ (22,749,001)$ The notes to the basic financial statements are an integral part of this statement. 29 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 NOTES TO THE BASIC FINANCIAL STATEMENTS ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 30 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 . The reporting entity is the City of Atascadero. There are no component units included in this report which meet the reporting entity definition criteria of GASB Statement No. 14, The Financial Reporting Entity, as amended by GASB Statement No. 39 and GASB Statement No. 61. 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 St andards 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 on the following page be presented. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) 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. 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 , proprietary funds, and private purpose trust funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 31 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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 f und-type. Major funds are defined as funds that have either assets, liabilities, revenues, or expenditures/expenses equal to ten percen t of their fund-type total. The General Fund is always a major fund. The City may also select other funds it believes sh ould 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. In Lieu Low/Moderate Income Housing Fund This Fund accounts for fees that are paid by develope rs in lieu of building inclusionary (affordable) housing. These fees are expended on programs that provide and/or promote affordable housing within the City. Circulation System Fees Fund This Fund accounts for fees that are paid by developers 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 expended for the construction of new/increased/improved roadway and bridge facilities. Fire Aerial Vehicle Impact Fee Fund This fund accounts for impact fees imposed on commercial and multi-family residential developments for the purpose of contributing toward the purchase of the Aerial Fire Truck (Ladder Truck). The City purchased this truck in fiscal year 2007-2008 using future revenues. Historic City Hall Rehabilitation Fund This fund accounts for the rehabilitation of the historic City Hall building. 2010 Bond Debt Service Fund This fund accounts for the debt service payments for the Lease Revenue Bonds that were issued on September 1, 2010. 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. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 32 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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. Private Purpose Trust Funds Private Purpose Trust Funds are used to account for monies held on behalf of others in a fiduciary capacity. The City uses private purpose trust funds to account for the Successor Agency of the Former Redevelopment Agency which was dissolved on January 31, 2012, pursuant to stat e law. All resources of the funds are used to support specified activities. F. Basis of Accounting The government-wide, proprietary fund financial statements, and the private purpose trust 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 govern ment-wide, proprietary fund financial statements, and the private purpose trust fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments 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 acc ounting. 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 governm ental 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 Trans it 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. 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. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 33 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) F. Basis of Accounting (continued) 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. G. 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. H. Property Taxes California Constitution Article XIII A limits the combined property tax rate to one percent of a property’s assessed valuatio n. 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.) 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. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 34 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) I. Capital Assets Additions and Retirements Capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Contribu ted 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. In the Technology Fund, the City uses a lower cost threshold to capitalize assets due to the nature of the assets . 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. Th e 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 Statem ent 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 J. Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of A merica, 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. K. 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 subs tance, demand deposits and are, therefore, considered cash equivalents for purposes of the statement of cash flows. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 35 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) L. 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 amoun t of $18,862,768 was netted against the liability account of $18,916,988 in fiscal year 2014. The net balance in the performance bond deposits liability account at June 30, 2014, was $54,220 and is included in the “Deposits” liability reported in the basic financial statements. M. Short-Term Debt The City has no short-term debt. N. 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. O. 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 contract ual 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 Committed- includes amounts that can only be used for specific purposes pursuant to constraints imposed by the City Council. Assigned- includes fund balance amounts that are constrained for specific purposes by the City through formal action of the City Counci l 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 an d negative fund balances in other governmental funds Non-Spendable Fund Balance The non-spendable fund balance of $17,420,747 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. Restricted Fund Balance The restricted fund balance of $16,645,547 is comprised of $5,185,964 for affordable housing, $1,424,628 restricted for debt service, and $10,034,955 restricted for other Capital Project Funds and Special Revenue Funds. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 36 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) O. Fund Balance (continued) Assigned Fund Balance The assigned fund balance of $327,927 is held in the Capital Projects Fund for major road rehabilitation projects. These fun ds remain from the City Council’s action to move funds annually in fiscal years 2001/20 02 through 2007/2008 for these 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 spe cific future project; however, it is the City’s general policy to use restricted amounts first when both restricted and unrestrict ed amounts are available. Similarly, the City would typically first use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when expen ditures 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 e mergencies, the City’s general fund balance shall not fall below 20% of General Fund expenditures. The General Fund reserve met this criteria for fiscal year 2013-2014. Major Special Revenue and Capital Projects Funds The purpose for each major fund may be found in Note 1(C); however, each major special revenue and capital projects fund and its revenue source is listed below: Major Special Revenue and Capital Projects Funds Revenue Source In Lieu Low/Moderate Income Housing Fund New Developments Circulation System Fees Fund Development Impact Fees Fire Aerial Vehicle Impact Fund Development Impact Fees Historic City Hall Rehabilitation Fund Federal and State Grants 2010 Bond Debt Service Fund Successor Agency Tax Increment ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 37 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) O. Fund Balance (continued) Detailed Schedule of Fund Balances A detailed schedule of fund balances is provided below: General Fund In-Lieu Low Income Housing Fund Circulation System Fees Fund Fire Aerial Vehicle Impact Fees Fund Historic City Hall Rehabilitation Fund 2010 Bond Debt Service Fund Totals FUND BALANCES: Nonspendable Prepaid Items 34,842$ -$ -$ -$ -$ -$ 730$ 35,572$ Advances Receivable 1,375,175 - - 16,010,000 - 17,385,175 Restricted Public Safety - - - - - - 907,161 907,161 Streets, Roads and Drainage - - 1,066,427 - - - 3,896,402 4,962,829 Parks, Open Space & Recreation - - - - - - 2,308,753 2,308,753 - - - - - - 1,634,812 1,634,812 Affordable Housing - 5,185,964 - - - - 5,185,964 Debt Service - - - - - 1,424,628 221,400 1,646,028 Assigned Streets, Roads and Drainage - - - - - - 327,927 327,927 Unassigned 7,210,495 - - (860,324) (487,952) - (252,414) 5,609,805 Total Fund Balances 8,620,512$ 5,185,964$ 1,066,427$ (860,324)$ (487,952)$ 17,434,628$ 9,044,771$ 40,004,026$ Other NonMajor Governmental Funds Disclosure of Fund Balance Reported on Balance Sheet June 30, 2014 Community Development and Blight Elimination ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 38 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) P. New Accounting Pronouncements Governmental Accounting Standards Board Statement No. 65 For the fiscal year ended June 30, 2014, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 65, “Items Previously Reported as Assets and Liabilities.” This Statement is effective for periods beginning after December 15, 201 2. This Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously r eported as assets and liabilities. Implementation of the GASB Statement No. 65 and the impact on the City’s financial statements can be found in Note 14. Governmental Accounting Standards Board Statement No. 66 For the fiscal year ended June 30, 2014, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 6 6 “Technical Corrections – 2012.” This statement is effective for periods beginning after December 15, 2012. The objective of this Statement is to improve financial reporting by resolving conflicting guidance that resulted from GASB Statement No. 54 “Fund Balance Reporting and Governmental Fund Type Definitions”, and GASB Statement No. 62 “Codification of Accounting and Financial Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA Pronouncements.” Since the release of these Statements, questions have arisen concerning differences between the provisions in Statement No. 5 4 and Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues , regarding the reporting of risk financing activities. Questions also have arisen about differences between Statement No. 62 and Statements No. 13, Accounting for Operating Leases with Scheduled Rent Increases, regarding the reporting of certain operating lease transactions, and No. 48, Sales and Pledges of Receivables and Future Revenues and Intra- Equity Transfers of Assets and Future Revenues , concerning the reporting of the acquisition of a loan or a group of loans and the recognition of servicing fees related to mortgage loans that are sold. Implementation of the GASB Statement No. 66 did not have an impact on the City’s financia l statements for the fiscal year ended June 30, 2014. Governmental Accounting Standards Board Statement No. 67 For the fiscal year ended June 30, 2014, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 67 “Financial reporting for Pension Plans – an Amendment of GASB Statement No. 25.” This Statement is effective for periods beginning after June 15, 2013. The objective of this Statement is to improve financial reporting by state and local governmental pension plans. This Statement replaces the requirements of Statements No. 25, “Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans” and No. 50 “Pension Disclosures” as they relate to pension plans that are administered through trusts or equivalent arrangements (hereafter jointly referred to a s trusts) that meet certain criteria. The requirements of Statements No. 25 and No. 50 remain applicable to pension plans that are not administered through trusts covered by the scope of this Statement and to defined contribution plans that provide postemployment benefits other than pensions. Implem entation of the GASB Statement No. 67 did not have an impact on the City’s financial statements for the fiscal year ended June 30, 2014. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 39 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) P. New Accounting Pronouncements (continued) Governmental Accounting Standards Board Statement No. 70 For the fiscal year ended June 30, 2014, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 70 , “Accounting and Financial Reporting for Non-exchange Financial Guarantees.” This Statement is effective for periods beginning aft er June 15, 2013. The objective of this Statement is to improve the recognition, measurement, and disclosure guidance for state and local governments that have exten ded or received financial guarantees that are non-exchange transactions. Implementation of the GASB Statement No. 70 did not have an impact on the City’s financial statements for the fiscal year ended June 30, 2014. 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 her appointee. Budget modifications between funds, and increases or decreases to a fund’s overall budget, must be approved by the City Council. 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. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 40 NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (continued) B. Deficit Fund Balances Deficit fund balances in the following funds exist due to large purchase s incurred prior to the receipt of the long-term reimbursing revenues: Deficit Fund Balances Major Governmental Funds Historic City Hall Rehabilitation Fund (487,952)$ Fire Aerial Vehicle Impact Fees Fund (860,324) Nonmajor Governmental Funds General Government Facilities Fees Fund (231,796) Law Enforcement Facilities Fees Fund (20,618) C. Excess of Expenditures over Appropriations Excess Expenditures Nonmajor Governmental Fund Blight Elimination Projects Fund (1,663)$ The City budgeted $42,880 in fiscal year 2013-2014 in the Blight Elimination Projects Fund for the costs to place the Maiden Statue in the Sunken Gardens. However, costs to place the historic statue exceeded the amount budgeted by $1,663. NOTE 3 – CASH AND INVESTMENTS Cash balances from all funds are combined and invested to the extent possible, pursuant to the Investment Policy and Guidelin es approved by the City Council, as well as State Government Code. The earnings from these investments are allocated monthly to each fund, based on an average of monthly opening and closing balances of cash and investments. Investments are stated at fair value. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 41 NOTE 3 – CASH AND INVESTMENTS (continued) Cash and investments at June 30, 2014, consisted of the following: Pooled Cash and Investments Cash in bank and on hand 291,027$ Investments 18,150,524 Local Agency Investment Fund (State Pool)12,846,765 Total Pooled Cash and Investments 31,288,316 Funds with Fiscal Agents: United States Treasury Money Fund 2,270,938 Total Funds with Fiscal Agents 2,270,938 Total Cash and Investments 33,559,254$ Cash and investments are reflected in the accompanying financial statements as follows: Governmental Activities Business- Type Activities Private-Purpose Trust Funds Total Cash and investments 19,670,656$ 9,158,214$ 2,325,723$ 31,154,593$ Cash and investments held by fiscal agents 1,411,278 - 859,660 2,270,938 Restricted certificates of deposit 133,723 - - 133,723 Total Cash and Investments 21,215,657$ 9,158,214$ 3,185,383$ 33,559,254$ ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 42 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 t o 150% of the City’s deposits. At fiscal year end, the City’s bank account balance was $558,162. The first $250,000 was insured by federal depository insurance, and the remainder was 110% collateralized. Certificates of Deposit totaling $7,226,072 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 poo l 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, 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 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 Ci ty’s investments be carried at fair value instead of cost. Under GASB Statement No. 31, the City must adjust the carrying value of its investment s to reflect their fair value at each fiscal year end, and it must include the effects of these adjustments in income for that fis cal year. GASB Statement No. 31 applies to all City investments, even if held to maturity and redeemed at full face value. Since the Ci ty’s policy is to hold all investments to maturity, the fair value adjustments required by GASB Statement No. 31 result in accounti ng 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 l osses on an investment purchased at par will now reflect changes in its value at e ach 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. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 43 NOTE 3 – CASH AND INVESTMENTS (continued) E. Investments Investments for the City are summarized below: Investments Fair Value Percent of Portfolio Government Securities 10,924,452$ 35% Certificates of Deposit 7,226,072 23% Local Agency Investment Fund (State Pool)12,846,765 42% Total Investments Managed by City 30,997,289$ 100% Investments Held by Fiscal Agents United States Treasury Money Fund 2,270,938$ 100% Total Investments Held by Fiscal Agents 2,270,938$ 100% Fair Value On Demand Within One Month One Month to One Year One to Five Years Six to Ten Years Investments Government Securities 10,924,452$ -$ -$ -$ 10,924,452$ -$ Certificates of Deposit 7,226,072 - - 998,336 6,094,013 133,723 * Local Agency Investment Fund (State Pool)12,846,765 12,846,765 - - - - Total Investments Managed by City 30,997,289$ 12,846,765$ -$ 998,336$ 17,018,465$ 133,723$ Percentage of Portfolio 100%42%0%3%55%0% * $133,723 in certificates of deposit with a local bank, serving as collateral for the Local Road Improvement Loan Program, approved by Council June 14, 2005. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 44 NOTE 3 – CASH AND INVESTMENTS (continued) E. Investments (continued) Interest Rate Risk. This is the risk that the market value of securities in the portfolio will fall, due to changes in general interest rates. In accordance with its Investment Policy, the City mitigates interest rate risk by:  Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoi ding the need to sell securities on the open market prior to maturity.  Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pool. Credit Risk. This is the risk of loss due to the failure of the security issuer or backer. The City mitigates credit risk by:  Limiting investments to the safest types of securities.  Pre-qualifying the financial institutions, broker/dealers, intermediaries, and advisers with which the City will do business .  Diversifying the investment portfolio so that potential losses on individual securities will be minimized. State law limits investments in commercial paper and corporate bonds to the top two ratings issued by Nationally Recognized Statistical Rating Organizations (NRSROs). It is the City’s policy to limit its investments in these investment types to the top rating issued by NRSROs. The Ci ty does not hold any commercial paper or corporate bonds. Government securities held by the City are rated AAA, the top rating issued by NRSROs. The City’s investment in the State LAIF pool is unrated, as are the investments in Certificates of Deposit. Fair Value AAA Not Rated Investments Government Securities 10,924,452$ 10,924,452$ -$ Certificates of Deposit 7,226,072 - 7,226,072 Local Agency Investment Fund (State Pool)12,846,765 - 12,846,765 Total Investments Managed by City 30,997,289$ 10,924,452$ 20,072,837$ Rating as of June 30, 2014 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 45 NOTE 3 – CASH AND INVESTMENTS (continued) E. Investments (continued) 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 secur ities 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 n o 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 ot her 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 Secur ities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec 80a-l 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. F. Funds with Fiscal Agents The City had $1,411,278 in cash and investments as of June 30, 2014, held by fiscal agents pledged for the payment or security of the 2010 Lease Revenue Bonds. There was an additional $859,660 held by fiscal agents for the 2004 Redevelopment Agency Tax Allocation Bonds in the Successor Agency to the Community Redevelopment Agency of Atascadero Private Purpose Trust Fund. The California Government Code provides that these monies, in the absence of specific statutory provisions governing the issuance of bonds, certificates, or leases, may be inve sted in accordance with the ordinance, resolutions, or indentures specifying the types of investments its fiscal agents may make. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 46 NOTE 4 – ADVANCES RECEIVABLE – SUCCESSOR AGENCY Receivable Fund Payable Fund Amount General Fund Successor Agency General Fund 1,375,175$ 2010 Bond Debt Service Fund Successor Agency General Fund 16,010,000 Total 17,385,175$ Advances receivable of $1,375,175 consists of three separate loans made by the City General Fund to the former Redevelopment Agency. These funds are now liabilities of the Successor Agency. AB 1484 sets forth the criteria for repayment of these loans. S ee Note 15C – Successor Agency Trust for Assets of Former Redevelopment Agency, Loans Payable, for additional information. Advances receivable of $16,010,000 consists of a reimbursement agreement with the City for bond debt service. In September o f 2010, the City issued bonds on behalf of the former Redevelopment Agency and entered into a reimbursement agreement at that time whereby the City advanced the former Agency the proceeds of the bond and the former Agency was required to make annual payments to t he City in the amount of the debt service on the bonds. With the dissolution of redevelopment, this is now a debt of the Successor Agency and the Successor Agency will continue to make the required payment s. See Note 15D – Successor Agency Trust for Assets of Former Redevelopment Agency, Bond Reimbursement Agreement Payable, for additional information. This arrangement meets the criteria of ABX1 26, Section 34171(d)(G)(2):  Written agreement entered into o At the time of issuance, but no later than December 31, 2010, of indebtedness obligations; o Solely for the purpose of securing or repaying those indebtedness obligations  Section 34171(e) defines “indebtedness obligation”: bonds, notes, certificates of participation, or other evidence of indebtedness, issued or delivered by the redevelopment agency, or by a joint exercise of powers authority created by the redevelopment agency, to third -party investors or bondholders to finance or refinance redevelopment projects undertaken by the redevelo pment agency in compliance with the Community Redevelopment Law. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 47 NOTE 5 – CAPITAL ASSETS A. Capital Assets Additions and Retirements Capital assets activity in the Governmental Activities for the fiscal year ended June 30, 2014, was as follows: Balance June 30, 2013 Additions Deletions Transfers Between Assets Balance June 30, 2014 Governmental Activities Non-Depreciable Capital Assets Land 40,795,264$ 60,000$ -$ -$ 40,855,264$ Construction in progress 29,357,438 5,455,312 - (33,254,283) 1,558,467 Total non-depreciable capital assets 70,152,702 5,515,312 - (33,254,283) 42,413,731 Depreciable Capital Assets Vehicles and equipment 8,620,881 130,311 (181,158) 51,998 8,622,032 Structures and improvements 17,456,374 2,331,225 (2,138,001) 31,763,894 49,413,492 Infrastructure 61,588,154 207,596 - 1,438,391 63,234,141 Total depreciable capital assets 87,665,409 2,669,132 (2,319,159) 33,254,283 121,269,665 Less Accumulated Depreciation (33,709,688) (2,881,628) 2,286,736 - (34,304,580) Net depreciable capital assets 53,955,721 (212,496) (32,423) 33,254,283 86,965,085 Net governmental capital assets 124,108,423$ 5,302,816$ (32,423)$ -$ 129,378,816$ ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 48 NOTE 5 – 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, 2014, was as follows: Balance June 30, 2013 Additions Deletions Transfers Between Assets Balance June 30, 2014 Business-Type Activities Non-Depreciable Capital Assets Land 442,044$ -$ -$ -$ 442,044$ Construction in progress 1,801,272 1,671,823 - (1,990,273) 1,482,822 Total non-depreciable capital assets 2,243,316 1,671,823 - (1,990,273) 1,924,866 Depreciable Capital Assets Vehicles and equipment 809,179 - (103,528) - 705,651 Structures and improvements 25,293,306 125,999 - 1,990,273 27,409,578 Total depreciable capital assets 26,102,485 125,999 (103,528) 1,990,273 28,115,229 Less Accumulated Depreciation (12,335,614) (789,822) 55,216 - (13,070,220) Net depreciable capital assets 13,766,871 (663,823) (48,312) 1,990,273 15,045,009 Net business-type capital assets 16,010,187$ 1,008,000$ (48,312)$ -$ 16,969,875$ ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 49 NOTE 5 – CAPITAL ASSETS (continued) 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 281,538$ Public safety 380,412 Community development 197,947 Community, recreation & zoo services 321,845 Parks & open space 125,203 Public works 1,574,683 Total Depreciation Expense- Governmental Activities 2,881,628$ Sewer 679,374$ Transit 110,448 Total Depreciation- Business-Type Activities 789,822$ Business-Type Activities: C. Reversal of Impairment Loss The San Simeon earthquake that occurred on December 22, 2003 caused extensive damage to the City Hall Administration Building. The building was unfit for occupancy due to the extent of structural damage. At June 30, 2003, the building had a net book val ue of $2,592,442 and was removed from the City’s capital assets due to an impairment loss. The loss of the net book value appeared as an extraordinary item in the City’s 2003-2004 Financial Statements. The building has since undergone rehabilitation and is once again occupied as City H all. It has been added back to the City’s capital assets with a net book value at June 30, 2014, of $31,174,763. The value of the building is included in structures and improvements in the Building Maintenance and Replacement Fund in the Internal Service Funds. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 50 NOTE 6 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS A. Interfund Receivables and Payables Due to/due from other funds consist of short-term interfund loans made for the purposes of cash flows. They are expected to be repaid by the borrowing fund within one year. The composition of due to/due from balances at June 30, 2014, is as follows: Receivable Fund Payable Fund Amount General Fund Nonmajor Governmental Funds 446,722$ General Fund Transit Fund 339,446 General Fund Historic City Hall Rehabilitation Fund 599,570 Nonmajor Governmental Funds Fire Aerial Vehicle Impact Fees Fund 860,324 Nonmajor Governmental Funds Historic City Hall Rehabilitation Fund 1,478,340 Wastewater Fund General Government Facilities Fees Fund 231,796 Total 3,956,198$ B. Interfund Transfers Interfund transfers were made as follows: Actual Description 363,600$ Transfer from the Community Facilities District Fund to the General Fund for police, fire and park services 1,080 Transfer from the General Fund to the De Anza Landscape & Lighting Fund for open space maintenance 23,754 Transfer from the Amapoa Tecorida Fees Fund to the Storm Drain Facilities Fees Fund for the 2006 Marchant Avenue Drainage Project 347 Transfer from the Local Transportation Fund to the Capital Projects Fund for the Atascadero Creek Trail Enhancement Project 150,000 Transfer from the Law Enforcement Factilities Fees Fund to Supplemental Law Enforcement Services Fund for the Orbacom Radio System Upgrade Project 538,781$ Interfund Transfers June 30, 2014 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 51 NOTE 7 – 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, 2014, total $1,453,633 for governmental activities and $23,526 for business-type activities. B. 2010 Lease Revenue Bonds On September 1, 2010, the City of Atascadero issued $16,010,000 in Lease Revenue Bonds for the former 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 former Redevelopment Agency for use on the Historic City Hall Project and other redevelopment blight elimination projects. These bonds will mature between fiscal years 2015 and 2041, at interest rates ranging from 3.0% to 5.0%. The Successor 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 th e City using these revenues. The following is a summary of principal and interest payments to be made in future fiscal years: Fiscal Year Ending June 30,Principal Interest 2015 $ 210,000 $ 761,363 2016 215,000 754,450 2017 225,000 747,313 2018 235,000 743,825 2019 245,000 730,813 2020-2024 1,350,000 3,502,540 2025-2029 1,665,000 3,176,256 2030-2034 2,110,000 2,712,750 2035-2039 6,360,000 1,759,000 2040-2041 3,395,000 171,875 $ 16,010,000 $ 15,060,185 2010 Lease Revenue Bonds ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 52 NOTE 7 – LONG-TERM DEBT (continued) C. Changes in Long-Term Liabilities Long-term liability activity for the fiscal year ended June 30, 2014, was as follows: Balance June 30, 2013 Additions Payments Balance June 30, 2014 Due Within One Year Governmental Activities: Bonds Payable: 16,010,000$ -$ -$ $ 16,010,000 210,000$ Compensated Absences 1,406,040 910,767 (863,174) 1,453,633 - PERS Side Fund 3,585,383 254,016 (404,324) 3,435,075 428,947 Other Post Employment Benefits 159,026 - (13,849) 145,177 - Total Governmental Activities $ 21,160,449 1,164,783$ (1,281,347)$ $ 21,043,885 638,947$ Business-type Activities: Compensated Absences $ 20,830 $ 26,177 $ (23,481) $ 23,526 -$ Total Business-type Activity $ 20,830 $ 26,177 $ (23,481) $ 23,526 -$ 2010 Lease Revenue Bonds NOTE 8 - EMPLOYEE RETIREMENT BENEFITS A. Public Employees’ Retirement System Plan Description The City of Atascadero’s defined benefit pension plan, California Public Employees’ Retirement System (CalPERS), 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 the Public Agency portion of CalPERS, 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 CalPERS’ annual financial report may be obtained from the CalPERS Fiscal Services Division, Post Office Box 942703, Sacramento, CA 94229-2703 or on the website at www.calpers.ca.gov. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 53 NOTE 8 - EMPLOYEE RETIREMENT BENEFITS (continued) A. Public Employees’ Retirement System (continued) Funding Policy Benefits vest after five years of service. City employees who retire at the normal retirement age for their benefit plan are entitled to an annual retirement benefit in an amount equal to a fixed percentage of their highest annual salary formula as determ ined by the benefit program they participate in. The City maintains three retirement benefit levels which are described below by the level of benefits that are provided to employees. The first tier benefit program , or “classic” plan, includes members that were eligible City employees prior to July 1, 2012. The member contribution rate for miscellaneous members and non-sworn safety members was 8% of their annual covered salary, of which the City contributed 3.3% (of the 8%) on the employee’s behalf during fiscal year 2013-2014. The member contribution rate for sworn safety members was 9%, of which the City contributed 4.3% (of the 9%) during the fiscal year. Effective July 12, 2014, all safety members will pay the full employee contri bution. Miscellaneous and non-sworn safety members are provided benefits pursuant to the 2.5% @ 55 benefit formula. Sworn safety members are provided benefits pursuant to the 3% @ 50 benefit formula. The second tier benefit program includes members that became eligible City employees July 1, 2012 through December 31, 2012, or that were existing CalPERS members hired after December 31, 2012. The member contribution rate for the miscellaneous and non-sworn safety members in Tier 2 was 7%, of which the City contributed 3.3% (of the 7%) on the employee’s behalf during fiscal year 2013-2014. The member contribution rate for sworn safety members was 9%, of which the City contributed 4.3% (of the 9%) during the fiscal year. Effective July 12, 2014, all safety members will pay the full employee contribution. In Tier 2, miscellaneous and non-sworn safety members are provided benefits pursuant to the 2% @ 55 benefit formula. Sworn safety members in Tier 2 are provided benefits pursuant to the 3% @ 55 benefit formula. The third tier benefit program includes members that became eligible City employees January 1, 2013 and later and meet the Ca lPERS definition of a new member under the Public Employees’ Pension Reform Act (PEPRA). All active members of the Tier 3 benefit program pay 50% of the normal cost rate as determined by CalPERS. At this tier, m iscellaneous and non-sworn safety members are provided benefits pursuant to the 2% @ 62 benefit formula. Sworn safety members at this tier are provided benefits pursuant to the 2.7% @ 57 benefit formula. 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 2013-2014 was 18.042% for miscellaneous and non-sworn safety employees and 32.726% for sworn safety employees in the first tier benefit program. The employer contribution for the second tier program was 11.104% for miscellaneous and non -sworn safety employees and 20.774% for sworn safety employees. The third tier employer contribution was 6.700% for miscellaneous and non-sworn safety employees and 11.500% for sworn 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 years ending June 30, 2014, 2013, and 2012, were $1,906,560, $1,930,347, and $1,971,305, respectively, and equal 100% of the required contributions for each year. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 54 NOTE 8 - EMPLOYEE RETIREMENT BENEFITS (continued) A. Public Employees’ Retirement System (continued) Public Employees’ Retirement System Side Fund As of the June 30, 2003, risk valuation, the City’s benefit plans had less than 100 members each and were therefore combined in the CalPERS Risk Pools. At that time, two side funds were required (one for each of the benefit plans that existed at the time) to be created to account for the differences between the funded status of the pools and the funded status of the City’s plans, in addition to the existing plans unfunded liability. The side funds are credited, on an annual basis, with the actuarial investment return assumption which was 7.75% prior to July 1, 2012 and 7.5% after that date. A side fund liability will cause the City’s required CalPERS employer contribution rate to be increased by the amortization of the side fund. The side fund liability for the City’s plans as of June 30, 2014 was $3,435,075 and is included with Noncurrent Liabilities in the Government-Wide Statement of Net Position. Effective with the June 30, 2013, risk valuation, all CalPERS pooled plans were combined into two active pools, one for all miscellaneous groups and one for all safety groups. The new pools’ unfunded liabilities were allocated to each individual plan based on the plan’s total liability. Beginning wi th fiscal year 2015-2016, the City’s contributions will include payments to the unfunded liabilities in addition to those of the side fund create d in 2003. Actuarial Assumption Changes In addition to the changes resulting from PEPRA and the pooling discussed above, the CalPERS Board made the following changes:  On February 19, 2014, the Board adopted relatively modest changes to the current asset allocation that will reduce the expect ed volatility of returns. The adopted asset allocation continues to support a discount rate assumption of 7.5%.  Effective for fiscal year 2015-2016 rates, CalPERS will employ an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with increases or decreases in the rate spread directly over a 5-year period.  Effective for fiscal year 2016-2017 rates, demographic assumptions where changes to reflect actual experience in mortality improvements. Any resulting increase in liability due to the new assumptions will be amortized over a 20-year period with a 5-year ramp-up/down. 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 $16,719, and total contributions from the City were $8,360. Nationwide Retirement Solutions is the public employee plan subsidiary of Nationwide Financial Services, Inc. (NYSE: NFS). ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 55 NOTE 9 – 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 an d/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 are two people receiving benefits and thirteen 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, 2014, the City’s total contributions were $4,800. Annual OPEB Cost and Net OPEB Obligation The City‘s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC). The City has elected to calculate the ARC and related information using the alternative measurement method permitted by GASB Statement 45 for employers in plans with fewer than one hundred total plan members. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal costs each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the current year, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation for the postemployment healthcare benefits: Annual required contribution 20,876$ Interest on net OPEB obligation 627 Adjustment to annual required contribution (30,552) Annual OPEB cost (expense)(9,049) Contributions made (4,800) Increase (decrease in net OPEB obligation)(13,849) Net OPEB obligation, beginning of year 159,026 Net OPEB obligation, end of year 145,177$ ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 56 NOTE 9 – OTHER POST EMPLOYMENT BENEFITS (continued) The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal years 2012, 2013, and 2014 were as follows: For Year Ended June 30 Annual OPEB Cost % of Annual OPEB Cost Contributed Net OPEB Obligation 2012 6,363$ 37.7%154,226$ 2013 7,800$ 38.5%159,026$ 2014 (9,049)$ n/a 145,177$ Funded Status and Funding Progress As of June 30, 2014, the actuarial accrued liability for benefits was $145,177 all of which was unfunded. The covered payroll (annual payroll of active employees covered by the plan) was $ 802,548, and the ratio of the unfunded actuarial accrued liability to the covered payroll was 18.1 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). ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 57 NOTE 9 – OTHER POST EMPLOYMENT BENEFITS (continued) 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, 2014, was twenty- seven years. NOTE 10 – 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 fe es are subject to the voter initiative process and may be rescinded in the future years by the voters. NOTE 11 - 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 Agency (Authority). The Authority is composed of 119 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 purch ased insurance for property and other lines of coverage. The Authority 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 Each member pays an annual contribution 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. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 58 NOTE 11 - RISK MANAGEMENT (continued) B. Self-Insurance Programs of the Authority (continued) 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 s econd 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 deducti ble. The $2.5 million annual aggregate deductible is fully covered under a separate policy; as such no portion of it is retained b y the Authority. Costs of covered claims from $10 million to $15 million are paid under two reinsurance contracts subject to a combined $3 million annual aggregate deducti ble. The $3 million annual aggregate deductible is fully retained by the Authority. (6) Costs of covered claims from $15 million to $20 million are paid under reinsurance agreements. (7) Costs of covered claims from $20 million to $50 million are paid under excess insurance policies. 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 $30 million per occurrence. This $30 million subsidence sub-limit is composed of (a) $5 million retained within the pool’s SIR, (b) $15 million in reinsurance, subject to the same annual aggregate deductibles previously stated, and (c) $10 million in excess insurance. The excess insurance layer has a $10 million annual aggregate limit. 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 inc urred 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 ou tcome 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 $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 59 NOTE 11 - RISK MANAGEMENT (continued) 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 o wned 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, 2011 through July 1, 2014. 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 $49,939,403. 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. Crime Insurance The City of Atascadero purchases crime insurance coverage in the amount of $1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retrospective adjustments. Special Event Tenant User Liability Insurance The City of Atascadero further protects against liability damages by requiring tenant users of certain property to purchase low -cost tenant user liability insurance for certain activities on City property. The insurance premium is paid by the tenant user and is paid to the City of Atascadero according to a schedule. The City of Atascadero then pays for the insurance. The insurance is arranged by the Authority. D. Adequacy of Protection During the past three fiscal years, none of the above programs of protec tion experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2013-14. E. Unemployment The City is fully self-insured for unemployment claims. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 60 NOTE 11 - RISK MANAGEMENT (continued) F. Self Insurance The City retains the risk for losses incurred prior to joining the Authority. Several member agencies of the now dissolved Ce ntral Coast Cities Self- Insurance Fund continue to participate in a non-risk sharing arrangement for claims management and the purchase of excess insurance for claims prior to joining the Authority. Losses are debited and investment income is credited to specific member accounts . The City has not incurred any losses in exc ess of insurance coverage. Self-insurance activity as of and for the fiscal year ended June 30, 2014, is summarized as follows: Workers' Compensation Interest earnings and other income 1,622$ Claims expense 46,143 Estimated liability for reported claims and settlement expenses 595,328 Assets on deposit 508,642 Assets in excess of (less than) liabilities (86,686)$ Workers' Compensation Deposits June 30, 2012 30,670$ Claim payments and related expenditures (134,973) (Increase) in estimated claims liability June 30, 2013 (63,435) Deposits and interest earnings 2,028 Change in Fair Market Value 583 Deposits (unpaid claims liability) June 30, 2013 (165,127) Claim payments and related expenditures (46,143) (Increase) in estimated claims liability June 30, 2014 122,572 Deposits and interest earnings 1,622 Change in Fair Market Value 390 Deposits (unpaid claims liability) June 30, 2014 (86,686)$ Changes in the balances of claim liabilities during the past two fiscal years are as follows: ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 61 NOTE 12 – CONTINGENCIES AND COMMITMENTS The U.S. Department of Homeland Security, Office of Inspector General (OIG), issued a report to the Federal Emergency Management Agency (FEMA) in April 2012 regarding reimbursement funding for repair/rehabilitation projects resulting from the 2003 San Sim eon Earthquake. The report questioned $8,014,375 of funding that the FEMA determined as eligible. The OIG report was issued to FEMA and requires that FEMA respond to OIG directly. The City disagrees with OIG’s findings and believes that the expenses were eligible and in compliance with all local, state, and federal regulations. FEMA responded to OIG on December 3, 2012, and disagreed with OIG’s findings to disallow funding of $8,013,063. In that response, FEMA reaffirmed the eligibility of $2,654,978 for City Hall relocation funding, $2,377,185 for replacement of the Printery Building, clarified that $2,980,900 of architecture and engine ering costs are still being negotiated by FEMA and the City, and agreed that $1,312 of Printery Building replacement costs will be charged to the Historic City Hall Project instead. On July 29, 2013, the City received formal notice from the Governor’s Office of Emergency Services that FEMA approved a Project Worksheet to deo bligate $2,654,978. The City formally appealed the decision on September 17, 2013. In a similar case, the United States District Court for the Southern District of Florida recent ruled in favor of South Florida Water Mana gement District (District). The Court ordered FEMA to reinstate $21.8 million in previously deobligated funding to the District citing Section 705(c) of the Stafford Act. This Section of the Stafford Act was enacted by Congress in 2003 to protect recipients of disaster assistance fr om this type of FEMA retroactive claw back of funds. Atascadero’s appeal of the deobligation also cites Section 705(c) of the Stafford Act as a key argument. The full significance of the Florida District Court’s ruling on Atascadero’s appeal is yet to be determined, but this ruling could be beneficial. The City anticipates that it may take years to receive a final decision on the matter. The City had received state and federal funds for specific purposes that are subject to review and audit by the grantor agencies. Although such audits could generate expenditure disallowances under terms of the grants, it is believed that other than the above mentioned issue, any r equired reimbursements will not be material. According to the City's attorney, no contingent liabilities are outstanding and no lawsuits of any significant financial consequence are pending or the risks are covered by the City’s insurance programs. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 62 NOTE 12 – CONTINGENCIES AND COMMITMENTS (continued) Construction and other significant commitments as of June 30, 2014, including encumbrances outstanding at fiscal year end, are as follows: Capital Commitments Fiscal Year 2013/2014 100 General Fund 252,675$ 201 Community Facilities District Fund 2,310 202 Apple Valley Street & Storm Drain Assessment District Fund 1,495 203 Apple Valley Landscape & Lighting Assessment District Fund 1,887 204 Las Lomas Street & Storm Drain Assessment District Fund 1,495 205 Las Lomas Landscape & Lighting Assessment District Fund 1,887 206 De Anza Street & Storm Drain Assessment District Fund 1,495 207 De Anza Landscape & Lighting Assessment District Fund 1,887 214 Supplemental Law Enforcement Services Fund 33,311 240 Community Development Block Grant Fund 23,908 260 Gas Tax Fund 4,470 281 Circulation System Fees Fund 326,193 285 Fire Impact Fees Fund 5,181 310 Capital Projects Fund 16,694 370 Historic City Hall Rehabilitation Fund 559,482 527 Wastewater Fund 167,514 527 Transit Fund 62,809 680 Vehicle & Equipment Replacement Fund 40,671 820 Successor Agency General Fund 16,505 Total 1,521,869$ NOTE 13 – NET POSITION GASB Statement No. 63 requires that the difference between assets added to the deferred outflows of resources and liabilities added to the deferred inflows of resources be reported as net position. Net position is classified as either net investment in capital assets, restricted, or unrestricted. Net position that is net investment in capital assets consist of capital assets, net of accumulated depreciation, and reduced by the outstan ding principal of related debt. Restricted net position is the portion of net position that has external constraints placed on it by creditors, grantors, contributors, laws, or regulations of other governments, or through constitutional provisions or enabling legislation. Unrestricted net position consists of net position that does not meet the definition of net investment in capital assets or restricted net position. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 63 NOTE 13 – NET POSITION (continued) Net Position Net Position is the excess of all the City’s assets over all its liabilities, regardless of fund. Net Position are divided into three captions under GASB Statement No. 34. These captions apply only to Net Position, which is determined only at the government-wide level, and are described below: Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets. Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include fees received for use on capital projects, debt service requirements, and redevelopment funds restricted to low and moderate income purposes. Restricted Net Position includes $32,475,634 restricted by enabling legislation. Unrestricted describes the portion of Net Position which is not restricted as to use. NOTE 14 – PRIOR PERIOD ADJUSTMENTS A prior period adjustment of $(254,579) was made which affects the government-wide statement of activities. This reflects a change in accounting principle as required by GASB 65. The City previously amortized Bond Issuances Costs over the life of the bonds, however, since adopting GASB 65 beginning this fiscal year, the City recognized the prior period adjustment to effectively expense these Bond Issuance Costs . NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the California Supreme Court upheld Assembly Bill 1x 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Atascadero, which had previously reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that, upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 2012, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City Resolution Number 2012 -002. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter i nto new project, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforce able obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). Successor agencies are only allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 64 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other publ ic bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed t o a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settl ed law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011), all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. The assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012), from governmental funds of the City to fiduciary funds , was reported in the governmental funds as an extraordinary loss in the governmental fund financial statements in fiscal year 2011-2012. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private purpose trust fund as an extraordinary gain in the fiscal year 2011-2012. The Successor Agency received a Finding of Completion (FOC) from the State Department of Finance on March 8, 2013. In order to be eligible for the FOC, the Successor Agency had to meet the following requirements:  pay the housing fund balance as determined by Due Diligence Review;  pay the non-housing fund balance as determined by Due Diligence Review; and  pay the balance of any outstanding passthrough obligations and residual payments . A. Notes Receivable The Housing Successor Agency is holding $200,000 in Notes Receivable as part of the Downtown Stimulus Program. The former Redevelopment Agency used the Downtown Stimulus Program as a tool to encourage investors to provide affordable housing in the downtown area. Neither the principal nor interest shall be payable under the Note for the term of 55 years; or until such time as the Program Participant sells or otherwise transfers the site. The Notes will be forgiven in full after the period of 55 years. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 65 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) B. Capital Assets Capital assets activity in the Private Purpose Trust Funds for the fiscal year ended June 30, 2014, was as follows: Balance June 30, 2013 Additions Deletions Balance June 30, 2014 Fiduciary Funds Non-Depreciable Capital Assets Land 473,791$ -$ (60,000)$ 413,791$ Construction in progress 244,305 20,080 (264,385) - Total non-depreciable capital assets 718,096 20,080 (324,385) 413,791 Depreciable Capital Assets Structures and improvements 4,590,239 - (2,221,023) 2,369,216 Infrastructure 186,071 - (186,071) - Total depreciable capital assets 4,776,310 - (2,407,094) 2,369,216 Less Accumulated Depreciation (147,228) (82,336) 103,626 (125,938) Net depreciable capital assets 4,629,082 (82,336) (2,303,468) 2,243,278 Net business-type capital assets 5,347,178$ (62,256)$ (2,627,853)$ 2,657,069$ C. Loans Payable The City General Fund loaned three separate advances to the former Redevelopment Agency. The total of these three loans is $1,375,175 and is now a liability of the Successor Agency. AB 1484 sets forth the criteria for repayment of these loans:  California Department of Finance must issue the Successor Agency a Finding of Completion  Oversight Board must find that the loans were for legitimate redevelopment purposes  Repayment is subject to certain restrictions, including a reduction of the interest rate to the LAIF rate, restrictions on the timing and amount of annual repayments, and a requirement that 20% of the repayment amount must be deposited into a restricted housing set-aside fund  Loan repayments shall not be made prior to the 2013-14 fiscal year. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 66 NOTE 15 – SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY (continued) D. Bond Reimbursement Agreement Payable In September of 2010, the City issued $16,010,000 in bonds on behalf of the Redevelopment Agency in order for the Agency to achi eve 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. Annu al principal payments on the advance are required between fiscal years 201 5 and 2041, at interest rates ranging from 3.0% to 5.0%. See Note 7B – Long Term Debt, 2010 Lease Revenue Bonds, for additional information. E. 2004 Redevelopment Agency Tax Allocation Bonds The former Atascadero Community Redevelopment Agency (Agency) issued $12,490,000 in Tax Allocation bonds for improvements to the downtow n core. These bonds mature between fiscal years 2011 and 2035, at interest rates ranging from 3.00% to 5.00%. Since the Agenc y was dissolved effective February 1, 2012, the bonds are now a liability of the Successor Agency. The liability is now reflected on the private purpose trust financial statements of the Successor Agency and is no longer found on the financial statements of the City and its component unit. The bonds will be repaid with the Successor Agency’s Tax Allocation Revenues. The following is a summary of principal and interest payments to be made in future fiscal years: Fiscal Year Ending June 30,Principal Interest 2015 $ 325,000 $ 517,523 2016 340,000 504,223 2017 355,000 490,323 2018 365,000 475,375 2019 380,000 459,168 2020-2024 2,180,000 2,014,311 2025-2029 2,755,000 1,427,188 2030-2034 3,505,000 657,625 2035 810,000 20,250 $ 11,015,000 $ 6,565,986 2004 Redevelopment Agency Tax Allocation Bonds F. Prior Period Adjustments A prior period adjustment of $(265,345) was made which affects the Successor Agency’s statement of net position. This reflects a change in accounting principle as required by GASB 65. The Successor Agency previously amortized Bond Issuance Costs over the life of the bonds, however, since adopting GASB 65 beginning this fiscal year, the Successor Agency recognized the prior period adjustment to effectively expense these Bond Issuance Costs. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NOTES TO THE BASIC FINANCIAL STATEMENTS June 30, 2014 67 NOTE 16 – SUBSEQUENT EVENTS Management has evaluated subsequent events through the date of the financial statements were available for issuance which is December 15, 2014. ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 REQUIRED SUPPLEMENTARY INFORMATION ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - SUMMARY BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Revenues: Secured and unsecured property taxes 7,132,250$ 7,132,250$ 7,551,887$ 419,637$ Taxes based on sales and use 3,242,020 3,242,020 3,510,813 268,793 Franchise tax 1,012,170 1,012,170 1,058,736 46,566 Other taxes 956,900 956,900 1,040,723 83,823 Licenses and permits 327,880 427,580 648,501 220,921 Intergovernmental revenues: Motor vehicle in-lieu and related payments - - 12,170 12,170 Grants 49,420 90,730 87,674 (3,056) Other governmental revenues 79,740 79,740 73,393 (6,347) Charges for services: Public safety 451,160 820,460 822,933 2,473 Development 860,670 973,460 1,001,012 27,552 Recreation, parks, pavilion and zoo 872,190 904,210 857,639 (46,571) Other services 43,500 43,500 54,906 11,406 Fines and forfeitures 76,100 76,100 66,550 (9,550) Use of money and property 34,960 34,960 61,127 26,167 Other revenues 1,128,420 1,173,520 1,167,625 (5,895) Total revenues 16,267,380 16,967,600 18,015,689 1,048,089 Expenditures: Employee services 12,432,940 12,750,380 12,286,188 464,192 Operating supplies & services 4,556,490 4,703,350 4,555,813 147,537 Special purchases, projects and community funding 902,910 1,147,810 844,797 303,013 Capital outlay 42,010 103,030 77,967 25,063 Total expenditures 17,934,350 18,704,570 17,764,765 939,805 Excess of revenues over (under) expenditures (1,666,970) (1,736,970) 250,924 1,987,894 Budget Variance with Final Budget Positive (Negative) 68 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - SUMMARY (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Other Financing Sources (Uses): Transfers in 363,930$ 363,930$ 363,600$ (330)$ Transfers out (1,080) (1,080) (1,080) - Total other financing sources and uses 362,850 362,850 362,520 (330) Net changes in fund balance (1,304,120)$ (1,374,120)$ 613,444 1,987,564$ Fund balance - June 30, 2013 8,007,068 Fund balance - June 30, 2014 8,620,512$ Budget Variance with Final Budget Positive (Negative) 69 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Revenues: Taxes: Property taxes: Secured property tax 4,746,140$ 4,746,140$ 4,994,945$ 248,805$ Property tax in lieu of VLF 2,151,080 2,151,080 2,188,349 37,269 Unsecured property taxes 127,660 127,660 135,414 7,754 Supplemental property taxes 70,000 70,000 88,566 18,566 57,370 57,370 150,565 93,195 Prior year secured and unsecured (20,000) (20,000) (5,861) 14,139 Property tax penalties and interest - - (91) (91) Taxes based on sales: Sales and use taxes 2,449,900 2,449,900 2,613,709 163,809 Sales tax in-lieu payments 792,120 792,120 897,104 104,984 Transient occupancy tax 691,900 691,900 771,019 79,119 Franchise taxes: Cable television franchise fees 199,480 199,480 213,537 14,057 Electricity franchise fees 226,870 226,870 231,972 5,102 Garbage disposal franchise fees 372,640 372,640 380,663 8,023 Landfill franchise fees 38,390 38,390 43,277 4,887 Recycling franchise fees 21,410 21,410 19,050 (2,360) Gas franchise fees 118,000 118,000 135,187 17,187 Wastewater franchise fees 35,380 35,380 35,050 (330) Business licenses 155,000 155,000 155,978 978 Property transfer tax 110,000 110,000 113,706 3,706 Other miscellaneous taxes - - 20 20 Total Taxes 12,343,340 12,343,340 13,162,159 818,819 Licenses and Permits: Construction permits 281,380 351,380 572,486 221,106 Grading and drainage permits 9,240 30,140 30,148 8 Encroachment permits 29,400 38,200 38,223 23 Tree application fees 7,000 7,000 6,790 (210) Planning Inspections 860 860 854 (6) Total Licenses and Permits 327,880 427,580 648,501 220,921 Redevelopment Agency Dissolution- residual distribution Budget Variance with Final Budget Positive (Negative) 70 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Revenues (continued): Intergovernmental Revenues: Motor vehicle in-lieu (VLF)-$ -$ 12,170$ 12,170$ Homeowners' tax relief 44,710 44,710 44,759 49 State mandated costs 8,000 8,000 18,957 10,957 P.O.S.T. reimbursement 27,030 27,030 9,677 (17,353) Grants: 2011-2013 Fire personnel SAFER grant 8,570 9,670 9,673 3 Fire Safe Council grant 11,500 25,030 25,032 2 Fire Safe Council Wildland Urban Interface - 4,000 3,871 (129) Off Highway Vehicle Grant - 15,230 15,225 (5) 2013 OTS Traffic Enforcement Grant 10,490 10,490 8,430 (2,060) 2013 OTS DUI Enforcement Grant 13,950 13,950 13,949 (1) Avoid the 14 grant - 7,450 7,458 8 Bulletproof Vest Grant 3,760 3,760 4,036 276 FEMA earthquake funding 860 860 - (860) CalEMA earthquake funding 290 290 - (290) Total Intergovernmental Revenues 129,160 170,470 173,237 2,767 Charges for Services: Public safety: First response charges 108,180 108,180 108,104 (76) Weed abatement services 98,000 98,000 79,187 (18,813) Mutual Aid 220,930 590,230 590,311 81 Police false alarms 1,500 1,500 1,890 390 Fingerprints 11,000 11,000 12,758 1,758 Vehicle release fees 7,150 7,150 16,170 9,020 Other public safety services 4,400 4,400 14,513 10,113 Budget Variance with Final Budget Positive (Negative) 71 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Revenues (continued): Charges for Services (continued): Development: Zoning fees 15,000$ 15,000$ 52,733$ 37,733$ Subdivision fees- Planning 9,090 9,090 37,176 28,086 Subdivision fees- Public Works 1,400 9,200 9,287 87 General and specific plans 3,630 3,630 11,310 7,680 EIR and annexations fees 476,820 491,110 364,283 (126,827) Appeals 710 710 460 (250) Assessment District Formation & Annexes - - - - Planning review 24,400 24,400 43,302 18,902 Building plan check fees 252,910 277,910 291,681 13,771 Public Works plan check fees 23,100 88,800 88,893 93 Fire plan check & inspection fees 36,120 36,120 69,299 33,179 Public improvements revenue 13,500 13,500 30,363 16,863 Other planning fees 3,990 3,990 2,225 (1,765) Recreation: Aquatics 26,550 29,250 30,150 900 Adult sports 45,300 45,300 45,841 541 Youth sports 40,000 61,500 61,567 67 Classes 122,580 122,580 123,549 969 Special events 26,150 31,850 33,203 1,353 Special events- Zoo 2,500 2,500 500 (2,000) Teen Center membership 2,500 2,500 2,870 370 Rentals & concessions: Pavilion facility rentals 110,900 110,900 110,167 (733) Other Pavilion rents and concessions 30,500 30,500 38,910 8,410 Colony Park Community Center rentals 25,600 25,600 18,008 (7,592) Historic City Hall Rentals - 2,120 8,500 6,380 Other facility rentals 10,400 10,400 1,391 (9,009) Park charges 30,890 30,890 33,304 2,414 Zoo: Zoo admissions 266,870 266,870 235,908 (30,962) Zoo educational programs 20,000 20,000 12,476 (7,524) Zoo gift shop 109,450 109,450 99,570 (9,880) Other Zoo revenues 2,000 2,000 1,725 (275) Budget Variance with Final Budget Positive (Negative) 72 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Revenues (continued): Charges for Services (continued): Administrative: Copy and mailing fees 5,260$ 5,260$ 5,542$ 282$ Document imaging fee 20,740 20,740 31,067 10,327 Business license application fees 17,500 17,500 18,297 797 Total Charges for Services 2,227,520 2,741,630 2,736,490 (5,140) Fines and Forfeitures: Motor vehicle fines 50,000 50,000 46,106 (3,894) Traffic school fines 10,000 10,000 2,652 (7,348) Misdemeanor and other minor fines 7,500 7,500 8,401 901 Parking fines 1,100 1,100 1,657 557 Fire and code enforcement fines 500 500 400 (100) Business license penalties 6,500 6,500 7,134 634 Other penalties 500 500 200 (300) Total Fines and Forfeitures 76,100 76,100 66,550 (9,550) Use of Money and Property: Interest 34,960 34,960 61,127 26,167 Total Use of Money and Property 34,960 34,960 61,127 26,167 Other Revenues: Interfund administrative charges General overhead charges 268,730 268,730 268,730 - Staffing charges for other funds 373,730 373,730 354,954 (18,776) Staffing charges for capital projects 133,900 133,900 99,948 (33,952) Staffing charges for CDBG administration 11,510 11,510 7,368 (4,142) Administrative charges- Successor Agency 250,000 250,000 250,000 - Workers' comp reimbursement 15,000 15,000 47,718 32,718 Miscellaneous revenue 9,050 9,050 24,366 15,316 Dove Creek commercial agreement 40,000 40,000 40,000 - Budget Variance with Final Budget Positive (Negative) 73 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Revenues (continued): Other Revenues (continued): Donations: Police 1,500$ 1,520$ 20$ (1,500)$ Fire - 4,600 6,153 1,553 Other donations 1,000 14,480 14,471 (9) Friends of Zoo- memberships 22,000 22,000 25,043 3,043 Zoo Wine Festival donations New Wallaby Exhibit - 15,000 15,000 - Rehabilitation of Lemur Holding Roof - 12,000 12,000 - Other Zoo donations 2,000 2,000 1,854 (146) Total Other Revenues 1,128,420 1,173,520 1,167,625 (5,895) Total Revenues 16,267,380 16,967,600 18,015,689 1,048,089 Budget Variance with Final Budget Positive (Negative) 74 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures: City Council: Salaries and benefits 26,390$ 26,890$ 26,881$ 9$ Office expense 850 280 275 5 Advertising 750 520 516 4 Computer maintenance and replacement 3,260 3,260 3,260 - Occupancy 30,210 30,210 30,210 - Communications 350 310 306 4 Operating supplies 3,200 4,550 4,543 7 Vehicle & equipment operating costs 200 - - - Contract services 36,000 36,310 36,300 10 Professional development 21,700 17,830 17,821 9 Community outreach 51,000 45,740 35,923 9,817 Chamber of Commerce 67,400 69,250 69,243 7 Business development 16,260 16,260 6,260 10,000 LAFCO contribution 13,000 13,710 13,707 3 Special projects & community funding: Promotions 177,290 177,290 176,667 623 Community events 8,200 8,200 2,108 6,092 Sales Tax Measure Process 60,000 60,000 18,500 41,500 Total City Council 516,060 510,610 442,520 68,090 City Clerk: Salaries and benefits 2,960 3,050 3,050 - Office expense 600 1,690 1,687 3 Advertising 5,000 7,960 7,959 1 Contract services 1,500 5,050 5,044 6 Professional development 2,910 420 415 5 Municipal election 150 180 179 1 Total City Clerk 13,120 18,350 18,334 16 Budget Variance with Final Budget Positive (Negative) 75 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures (continued): City Treasurer: Salaries and benefits 10,000$ 10,410$ 10,402$ 8$ Office expense 50 - - - Contract services 9,280 9,640 9,640 - Professional development 580 80 78 2 Total City Treasurer 19,910 20,130 20,120 10 City Attorney: Office expense 200 120 115 5 Communications 50 60 56 4 Contract services 245,000 280,800 280,800 - Special Litigation - 14,290 14,288 2 Total City Attorney 245,250 295,270 295,259 11 City Manager: Salaries and benefits 641,240 581,310 577,652 3,658 Office expense 8,130 9,890 9,864 26 Computer maintenance and replacement 34,240 34,260 34,260 - Insurance 14,170 14,170 14,165 5 Occupancy 20,720 20,720 20,720 - Communications 2,900 2,250 2,241 9 Operating supplies 10,200 7,420 7,419 1 Vehicle & equipment operating costs 6,250 6,450 6,445 5 Contract services 29,000 10,010 10,006 4 Professional development 22,050 16,120 16,117 3 Citywide training 4,000 2,040 2,036 4 Recruitment 500 890 889 1 Employee Development 1,650 1,600 1,593 7 Contingency 100,000 - - - Capital outlay: Tablet Computers 600 760 754 6 Total City Manager 895,650 707,890 704,161 3,729 Budget Variance with Final Budget Positive (Negative) 76 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures (continued): Administrative Services: Salaries and benefits 760,690$ 752,820$ 623,844$ 128,976$ Office expense 16,450 11,660 11,657 3 Advertising 320 650 648 2 Computer maintenance and replacement 68,610 68,850 68,841 9 Insurance 18,830 18,850 18,850 - Occupancy 25,410 32,080 32,074 6 Communications 950 360 359 1 Operating supplies 50 250 247 3 Vehicle & equipment operating costs 3,650 3,190 3,190 - Contract services 158,300 157,390 157,386 4 Professional development 5,550 2,140 2,131 9 Recruitment - 2,520 2,512 8 Safety Committee 500 500 - 500 Contingency 5,000 - - - Special purchases: Coast Allocation Study Update 25,000 28,580 28,573 7 Development Impact Fee Study 25,000 25,000 - 25,000 Capital outlay: Tablet Computers 600 760 754 6 Total Administrative Services 1,114,910 1,105,600 951,066 154,534 Police: Salaries and benefits 4,652,440 4,647,930 4,467,060 180,870 Office expense 13,750 16,830 16,830 - Computer maintenance and replacement 251,780 252,990 252,989 1 Insurance 281,080 280,740 280,739 1 Occupancy 38,170 34,510 34,501 9 Utilities 44,600 34,690 34,684 6 Communications 36,980 26,520 26,515 5 Operating supplies 16,980 20,690 20,683 7 Vehicle & equipment operating costs 249,330 253,540 253,538 2 Contract services 280,250 289,550 270,782 18,768 Professional development 6,900 6,900 5,853 1,047 Recruitment 7,450 14,510 13,385 1,125 Contingency 10,000 - - - Budget Variance with Final Budget Positive (Negative) 77 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures (continued): Police (continued): Capital outlay: Tablet Computers 1,200$ 1,510$ 1,509$ 1$ Software 15,000 15,000 - 15,000 5,905,910 5,895,910 5,679,068 216,842 Police Grants: Salaries and benefits 20,220 27,670 25,957 1,713 Office expense 500 500 - 500 Operating supplies 1,900 1,920 1,174 746 Contract services 1,980 1,980 1,250 730 Professional development 35,910 35,910 23,937 11,973 Special purchases: Red light notification devices 210 210 - 210 Personal protective vests 7,530 7,530 5,967 1,563 Capital outlay: Computers-Replacement 10 10 - 10 Vehicles- New - 15,230 15,225 5 68,260 90,960 73,510 17,450 Total Police 5,974,170 5,986,870 5,752,578 234,292 Fire: Salaries and benefits 3,135,000 3,181,300 3,181,245 55 Office expense 6,430 9,440 9,435 5 Advertising - 250 247 3 Computer maintenance and replacement 162,510 162,150 162,150 - Insurance 69,620 68,740 68,736 4 Occupancy 25,150 27,760 27,753 7 Utilities 22,600 21,870 21,863 7 Communications 12,100 10,930 10,926 4 Operating supplies 37,850 41,580 41,580 - 131,750 181,400 181,394 6 Contract services 10,250 14,090 14,087 3 Professional development 19,010 22,260 22,259 1 Recruitment 1,400 2,780 2,778 2 Contingency 10,000 - - - Vehicle and equipment operating costs Budget Variance with Final Budget Positive (Negative) 78 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures (continued): Fire (continued): Special purchases, projects & studies: Washing Machine/Dryer -$ 80$ 75$ 5$ Fire Station #1 Bathroom Repairs - 13,880 13,861 19 Capital outlay: Tablet Computers 600 760 754 6 3,644,270 3,759,270 3,759,143 127 Mutual Aid Program: Salaries and benefits 135,760 481,670 429,046 52,624 Office expenses 30 30 - 30 Operating supplies 25,000 48,390 38,382 10,008 Contract services 1,000 1,000 - 1,000 161,790 531,090 467,428 63,662 Weed Abatement and Other Fire Programs: Salaries and benefits 8,710 26,850 26,688 162 Office expense - 2,960 2,837 123 Advertising - 1,070 1,064 6 Operating supplies - 3,230 3,220 10 Vehicle & equipment operating costs - 2,500 2,490 10 Contract services: Weed abatement 74,000 73,280 70,285 2,995 Community Outreach - 360 360 - Special purchases, projects & studies: Rayar road fuel modification for access 2,000 2,000 - 2,000 San Marcos shaded fuel break 9,500 9,500 7,217 2,283 94,210 121,750 114,161 7,589 Total Fire 3,900,270 4,412,110 4,340,732 71,378 Budget Variance with Final Budget Positive (Negative) 79 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures (continued): Community Development: Salaries and benefits 904,230$ 904,370$ 850,914$ 53,456$ Office expense 13,600 20,200 20,196 4 Advertising 4,000 8,560 8,209 351 Computer maintenance and replacement 89,990 91,370 91,366 4 Insurance 18,170 18,170 18,165 5 Occupancy 33,130 33,130 33,130 - Communications 1,800 2,460 2,453 7 Operating supplies 800 9,920 1,436 8,484 Vehicle operations 14,340 17,890 17,881 9 Contract services 134,000 184,280 179,884 4,396 Professional development 11,800 6,200 6,198 2 Recruitment 1,000 2,460 2,452 8 Contingency 5,000 - - - Special purchases, projects & studies: Update Housing Element 30,000 30,000 16,605 13,395 Eagle Ranch EIR 433,470 433,470 280,391 153,079 Eagle Ranch EIR - 24,670 24,631 39 Microfilm Scanning 20,000 20,670 20,665 5 Capital outlay: Tablet Computers 1,600 2,590 2,585 5 Total Community Development 1,716,930 1,810,410 1,577,161 233,249 Central Reception: Salaries and benefits 68,710 71,490 71,485 5 Office expense 1,090 400 395 5 Computer maintenance and replacement 5,620 5,210 5,201 9 Insurance 1,270 1,270 1,265 5 Occupancy 24,180 24,180 24,181 (1) Communications 350 330 326 4 Operating Supplies - 260 254 6 Vehicle & equipment operating costs 200 50 42 8 Professional development 150 - - - Recruitment 100 - - - Total Central Reception 101,670 103,190 103,149 41 Budget Variance with Final Budget Positive (Negative) 80 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures (continued): Recreation: Salaries and benefits 257,840$ 268,320$ 264,860$ 3,460$ Office expense 4,100 5,700 5,354 346 Advertising 1,200 1,680 1,673 7 Computer maintenance and replacement 10,920 11,340 11,339 1 Insurance 9,070 9,370 8,846 524 Occupancy 40,420 40,770 40,369 401 Utilities 5,100 5,100 3,860 1,240 Communications 550 420 277 143 Operating supplies 24,360 33,410 27,273 6,137 Vehicle and equipment operating costs 1,590 870 868 2 Contract services 131,290 139,330 125,355 13,975 Professional development 1,300 1,690 1,690 - Recruitment 800 1,310 1,081 229 Contingency 2,500 - - Special purchases, projects & studies: Youth Scholarships - 3,450 3,441 9 Skate Park Repairs 18,400 29,510 17,322 12,188 Total Recreation 509,440 552,270 513,608 38,662 Community Center: Salaries and benefits 51,970 45,820 40,498 5,322 Office expense 1,000 1,000 646 354 Advertising 400 400 - 400 Computer maintenance and replacement 8,640 8,640 8,640 - Insurance 5,570 5,570 4,489 1,081 Occupancy 95,100 95,100 95,100 - Utilities 43,500 43,500 37,050 6,450 Communications 1,750 1,750 1,332 418 Operating supplies 14,800 14,800 9,643 5,157 Vehicle and equipment operations 2,030 2,030 1,667 363 Contract services 17,600 14,080 8,473 5,607 Professional development 1,200 1,200 - 1,200 Recruitment 250 250 159 91 Capital outlay: Ice Machine - 3,520 3,515 5 Total Community Center 243,810 237,660 211,212 26,448 Budget Variance with Final Budget Positive (Negative) 81 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures (continued): Pavilion Salaries and benefits 117,840$ 116,300$ 116,287$ 13$ Office expense 1,270 870 863 7 Advertising 5,000 5,310 5,302 8 Computer maintenance and replacement 6,460 6,460 6,460 - Insurance 4,130 3,850 3,849 1 Occupancy 29,660 29,660 29,660 - Utilities 19,700 25,260 25,254 6 Communications 630 1,250 1,244 6 Operating supplies 8,310 6,460 6,455 5 Vehicle and equipment operating costs 1,150 1,970 1,970 - Contract services 23,000 20,360 20,359 1 Professional development 850 400 395 5 Recruitment - 70 64 6 Special purchases, projects & studies: Flooring repairs - 5,970 5,966 4 Total Pavilion 218,000 224,190 224,128 62 Zoo: Salaries and benefits 615,090 564,940 564,899 41 Office expense 2,040 1,880 1,871 9 Advertising 1,000 970 965 5 Computer maintenance and replacement 29,700 26,200 26,200 - Insurance 11,930 11,710 11,702 8 Occupancy 14,800 12,400 12,396 4 Utilities 38,900 43,180 43,166 14 Communications 480 1,000 992 8 Operating supplies 59,360 83,670 83,660 10 Vehicle and equipment operating costs 5,770 9,270 9,268 2 Contract services 49,500 54,300 54,296 4 Professional development 7,290 11,690 11,690 - Recruitment - 840 838 2 Gift Shop retail 33,560 34,260 34,260 - Special purchases, projects & studies: Animal acquisition - 2,080 2,079 1 Deferred Maintenance Improvements - 29,530 29,524 6 Budget Variance with Final Budget Positive (Negative) 82 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures (continued): Zoo (continued): Capital outlay: Exhibit Improvements -$ 39,210$ 39,205$ 5$ Total Zoo 869,420 927,130 927,011 119 Historic City Hall Rentals Salaries and benefits - 820 815 5 Insurance - 230 222 8 Operating supplies - 490 484 6 Contract services - 580 580 - Total Historic City Hall Rentals - 2,120 2,101 19 Public Works Administration: Salaries and benefits 549,970 595,780 592,754 3,026 Office expense 6,600 5,840 5,834 6 Advertising 400 - - - Computer maintenance and replacement 51,770 51,730 51,730 - Insurance 11,320 11,320 11,317 3 Occupancy charges 13,580 13,580 13,580 - Communications 2,400 1,850 1,843 7 Operating supplies 13,450 17,460 12,461 4,999 Vehicle operations 8,560 7,470 7,470 - Contract services 44,500 81,010 65,792 15,218 Professional development 4,000 3,190 3,188 2 Recruitment 550 990 989 1 Contingency 7,000 - - - Special purchases, projects & studies: Storm Water Permits 24,200 24,200 - 24,200 Millhollin Mine Restoration - 3,810 3,805 5 Dormant project public improvements 10,000 30,400 30,374 26 Capital outlay: Tablet Computers 2,400 2,690 2,683 7 Total Public Works Administration 750,700 851,320 803,820 47,500 Variance with Final Budget Positive (Negative) Budget 83 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures (continued): Public Works Operations: Salaries and benefits 160,200$ 164,230$ 164,208$ 22$ Office expense 3,350 3,280 3,279 1 Computer maintenance and replacement 7,710 7,710 7,710 - Insurance 4,140 3,980 3,971 9 Occupancy charges 10,200 9,310 9,304 6 Utilities 8,100 9,000 8,994 6 Communications 650 290 286 4 Operating supplies 400 1,210 1,206 4 Vehicle & equipment operating costs 1,150 670 663 7 Professional development 1,350 150 146 4 Total Public Works Operations 197,250 199,830 199,767 63 Parks: Salaries and benefits 313,680 278,410 247,643 30,767 Computer maintenance and replacement 6,370 6,370 6,370 - Insurance 9,750 9,650 9,647 3 Occupancy 5,890 5,890 5,890 - Utilities 165,370 155,170 155,168 2 Communications 1,450 1,530 1,509 21 Operating supplies 38,130 38,710 38,698 12 Vehicle and equipment operations 24,140 22,620 22,616 4 Contract services 9,750 21,110 21,106 4 Professional development 1,150 1,350 1,350 - Recruitment - 40 32 8 Special purchases, projects & studies: Memorial Park Benches 1,000 1,260 1,251 9 Veteran's Memorial Repairs - 7,810 7,810 - Lake Water Quality Improvements - 97,270 97,266 4 Capital outlay: Paloma Park Test Water Well 10,000 10,000 - 10,000 Total Parks 586,680 657,190 616,356 40,834 Budget Variance with Final Budget Positive (Negative) 84 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - DETAIL (continued) BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Expenditures (continued): Non-Departmental: Special purchases, projects & studies: Moving into & furnishings for City Hall 33,540$ 44,430$ 44,428$ 2$ Sound Equipment - 4,120 4,120 - Security Camera Equipment 14,900 14,900 831 14,069 Earthquake recovery- relocation 2,670 7,990 1,320 6,670 Capital outlay: Postage Machine/Folder Inserter 10,000 10,990 10,983 7 Total Non-Departmental 61,110 82,430 61,682 20,748 Total expenditures 17,934,350 18,704,570 17,764,765 939,805 Excess of revenues over (under) expenditures (1,666,970) (1,736,970) 250,924 1,987,894 Other Financing Sources (Uses): 363,930 363,930 363,600 (330) (1,080) (1,080) (1,080) - Total other financing sources (uses)362,850 362,850 362,520 (330) Excess of revenues and other sources over (under) expenditures and other uses (1,304,120)$ (1,374,120)$ 613,444 1,987,564$ Fund balance, June 30, 2013 8,007,068 Fund balance, June 30, 2014 8,620,512$ Transfer to De Anza Landscape & Lighting District for open space maintenance Budget Variance with Final Budget Positive (Negative) Transfer from Community Facilities District Fund 85 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO IN LIEU LOW/MODERATE INCOME HOUSING FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Affordable Housing In Lieu Fees -$ -$ 90,992$ 90,992$ Affordable Housing Program Loans - - 1,295,400 1,295,400 Interest income 3,490 3,490 4,528 1,038 Total revenues 3,490 3,490 1,390,920 1,387,430 Expenditures: Contract services 5,000 4,560 - 4,560 Administrative charges 37,130 37,570 37,570 - Special projects: Housing Element Implementation 9,710 9,710 1,512 8,198 Total expenditures 51,840 51,840 39,082 12,758 Net change in fund balance (48,350)$ (48,350)$ 1,351,838 1,400,188$ Fund balance, June 30, 2013 3,834,126 Fund balance, June 30, 2014 5,185,964$ Budget Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2014 86 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Impact fees 140,860$ 140,860$ 363,721$ 222,861$ Interest income 10,200 10,200 18,440 8,240 Total revenues 151,060 151,060 382,161 231,101 Expenditures: Special projects and studies: Minor interchange improvements 31,670 31,670 - 31,670 Capital outlay: 101 @ Del Rio Interchange Project 711,000 711,000 238,169 472,831 Santa Rosa Rd Operational Improvements 25,000 25,000 - 25,000 Total expenditures 767,670 767,670 238,169 529,501 Net change in fund balance (616,610)$ (616,610)$ 143,992 760,602$ Fund balance, June 30, 2013 922,435 Fund balance, June 30, 2014 1,066,427$ Budget Variance with Final Budget Positive (Negative) 87 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Impact fees 1,210$ 1,210$ 417$ (793)$ Total revenues 1,210 1,210 417 (793) Net change in fund balance 1,210$ 1,210$ 417 (793)$ Fund balance, June 30, 2013 (860,741) Fund balance, June 30, 2014 (860,324)$ Budget Variance with Final Budget Positive (Negative) 88 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS For the Fiscal Year Ended June 30, 2014 The following table provides required supplementary information regarding the City's postemployment healthcare benefits. SCHEDULE OF FUNDING PROGRESS Valuation Date Actuarial Asset Value Actuarial Accrued Liability (AAL) Unfunded Liability (Excess Assets)Funded Ratio Annual Covered Payroll UAAL as a % of Covered Payroll 6/30/2012 -$ 154,226$ 154,226$ 0.0%1,169,882$ 13.2% 6/30/2013 -$ 159,026$ 159,026$ 0.0%735,418$ 21.6% 6/30/2014 -$ 145,177$ 145,177$ 0.0%802,548$ 18.1% 89 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 OTHER SUPPLEMENTARY INFORMATION ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: California Cultural Historical Endowment Grant- Mitigation 46,230$ 163,530$ 159,865$ (3,665)$ CalEMA- Earthquake Repair Funds 419,820 419,820 - (419,820) CalEMA- Earthquake Mitigation Grant 184,620 184,620 184,621 1 FEMA- Earthquake Repair Funds 1,259,450 1,259,450 - (1,259,450) FEMA- Earthquake Mitigation Grant 553,870 553,870 553,865 (5) Donations 33,440 33,440 73,185 39,745 Interest income - - (28,743) (28,743) Total revenues 2,497,430 2,614,730 942,793 (1,671,937) Expenditures: Special projects: Fundraising Expenditures 20,000 20,000 23,978 (3,978) Community Outreach - - 4,429 (4,429) FEMA Administration 22,490 22,490 69,751 (47,261) Capital outlay: Historic City Hall - Earthquake Repairs 1,507,980 1,507,980 1,326,402 181,578 Historic City Hall - Rehabilitation 2,798,920 2,916,220 1,734,353 1,181,867 Total expenditures 4,349,390 4,466,690 3,158,913 1,307,777 Net change in fund balance (1,851,960)$ (1,851,960)$ (2,216,120) (364,160)$ Fund balance, June 30, 2013 1,728,168 Fund balance, June 30, 2014 (487,952)$ Budget Variance with Final Budget Positive (Negative) 90 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Interest income- cash & investments 140$ 140$ 17,975$ 17,835$ 764,520 764,520 764,513 (7) 2,000 2,000 4,609 2,609 Total revenues 766,660 766,660 787,097 20,437 Expenditures: Contract Services 2,000 2,000 1,750 250 Interest 764,520 764,520 764,513 7 Total expenditures 766,520 766,520 766,263 257 Net change in fund balance 140$ 140$ 20,834 20,694$ Fund balance, June 30, 2013 17,413,794 Fund balance, June 30, 2014 17,434,628$ Budget Variance with Final Budget Positive (Negative) Interest income- 2010 reimbursement agreement with the Successor Agency to the RDA Other 2010 Lease Revenue from Successor Agency 91 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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. Atascadero Tourism Business Improvement District The City established the Atascadero Tourism Business Improvement District (ATBID)effective June 1,2013 for the purpose of funding tourism promotion and increasing stays at the lodging businesses in Atascadero.A two percent (2%)assessment is placed on the nightly rent of all occupied rooms or spaces for all transient occupancies in Atascadero. 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. 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. 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 are 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. 92 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) 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 preventive 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 preventive 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. 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. 93 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) 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. Library Expansion Facilities Fees Fund The County Public Library System currently owns and maintains a 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 expanded library services 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 are 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.In December 2010,the County purchased a new library facility at 6555 Capistrano Avenue.The City contributed a total of $315,180 toward the library expansion during the period spanning December 2010 through June 2014. This amount was a combination of impact fees and other funds that had been set aside for library expansion. 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 a 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. 94 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS OVERVIEW (continued) SPECIAL REVENUE FUNDS (continued) AND CAPITAL PROJECTS FUNDS Apple Valley Landscape & Lighting Assessment District Fund This fund is used to account for fees assessed in a 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 a 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 a 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 a 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 a 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. Blight Elimination Projects Fund This fund is used to complete the Identified Blight Elimination Projects so indicated by the Executive Board of the former Community Redevelopment Agency of Atascadero.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. Youth Center Construction Fund This fund accounts for funds received for and expended on the construction of the new Colony Park Community Center. 95 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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. 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 $180,000 in aggregate principal bonds on September 2, 1995. 96 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET June 30, 2014 Supplemental Law Enforcement Services Fund Atascadero Tourism Business Improvement District Community Development Block Grant Fund Tree Plant Fund Gas Tax Fund Local Transportation Fund ASSETS Cash and investments 79,405$ 109,756$ -$ 332,887$ 626,732$ 1,297,954$ Receivables: Federal distributions due - - 81,823 - - - Due from State of California 21,500 - - - - - Due from County of San Luis Obispo - - - - - 453,594 Accrued interest 125 166 - 524 883 2,004 Other receivables - 46,838 363 - 11 - Due from other funds - - - - - - Prepaid items - - - - 730 - Total assets 101,030$ 156,760$ 82,186$ 333,411$ 628,356$ 1,753,552$ LIABILITIES AND FUND BALANCES Accounts payable 9,830$ 288$ 56,004$ 7,081$ 70,323$ -$ Accrued salaries and benefits 1,630 - - - 15,606 - Due to other funds - - 26,182 - - - Unearned revenue 88,643 - - - - - Total liabilities 100,103 288 82,186 7,081 85,929 - Fund Balances: Nonspendable - - - - 730 - Restricted 927 156,472 - 326,330 541,697 1,753,552 Assigned for road projects - - - - - - Unassigned - - - - - - Total fund balances 927 156,472 - 326,330 542,427 1,753,552 Total liabilities and fund balances 101,030$ 156,760$ 82,186$ 333,411$ 628,356$ 1,753,552$ Special Revenue Funds 97 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2014 Special Revenue Funds Street Assessment Fund General Government Facilities Fees Fund Storm Drainage Facilities Fees Fund Amapoa/ Tecorida Drainage Impact Fees Fund Law Enforcement Facilities Fees Fund Fire Facilities Fees Fund ASSETS Cash and investments 63,379$ -$ 359,949$ -$ -$ 29,029$ Receivables: Federal distributions due - - - - - - Due from State of California - - - - - - Due from County of San Luis Obispo 66 - - - - - Accrued interest 98 - 539 - - 44 Other receivables - - - - - 299 Due from other funds - - - - - 860,324 Prepaid items - - - - - - Total assets 63,543$ -$ 360,488$ -$ -$ 889,696$ LIABILITIES AND FUND BALANCES Accounts payable -$ -$ 360$ -$ -$ 923$ Accrued salaries and benefits - - - - - - Due to other funds - 231,796 - - 20,618 - Unearned revenue - - - - - - Total liabilities - 231,796 360 - 20,618 923 Fund Balances: Nonspendable - - - - - - Restricted 63,543 - 360,128 - - 888,773 Assigned for road projects - - - - - - Unassigned - (231,796) - - (20,618) - Total fund balances 63,543 (231,796) 360,128 - (20,618) 888,773 Total liabilities and fund balances 63,543$ -$ 360,488$ -$ -$ 889,696$ 98 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2014 Open Space Acquisition Fees Fund Parkland Facilities Fees Fund Public Facilities Fees Fund Library Expansion Facilities Fees Fund Community Facilities District Fund ASSETS Cash and investments 595,290$ 580,404$ 343,665$ 17,540$ 4,565$ Receivables: Federal distributions due - - - - - Due from State of California - - - - - Due from County of San Luis Obispo - - - - 12,896 Accrued interest 898 830 - 26 - Other receivables - - 509 - - Due from other funds - - - - - Prepaid items - - - - - Total assets 596,188$ 581,234$ 344,174$ 17,566$ 17,461$ LIABILITIES AND FUND BALANCES Accounts payable -$ -$ -$ -$ -$ Accrued salaries and benefits - - - - - Due to other funds - - - - - Unearned revenue - - - - - Total liabilities - - - - - Fund Balances: Nonspendable - - - - - Restricted 596,188 581,234 344,174 17,566 17,461 Assigned for road projects - - - - - Unassigned - - - - - Total fund balances 596,188 581,234 344,174 17,566 17,461 Total liabilities and fund balances 596,188$ 581,234$ 344,174$ 17,566$ 17,461$ Special Revenue Funds 99 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2014 Apple Valley Street & Storm Drain Assessment District Fund Apple Valley Landscape & Lighting Assessment District Fund Las Lomas Street & Storm Drain Assessment District Fund Las Lomas Landscape & Lighting Assessment District Fund De Anza Street & Storm Drain Assessment District Fund De Anza Landscape & Lighting Assessment District Fund ASSETS Cash and investments 285,545$ 171,668$ 256,143$ 226,327$ 269,534$ 119,531$ Receivables: Federal distributions due - - - - - - Due from State of California - - - - - - Due from County of San Luis Obispo - - 2,852 9,631 1,806 791 Accrued interest 433 263 390 342 407 182 Other receivables - - - - - - Due from other funds - - - - - - Prepaid items - - - - - - Total assets 285,978$ 171,931$ 259,385$ 236,300$ 271,747$ 120,504$ LIABILITIES AND FUND BALANCES Accounts payable 742$ 4,909$ 742$ 4,305$ 741$ 1,260$ Accrued salaries and benefits - - - - - - Due to other funds - - - - - - Unearned revenue - 75,000 - - - - Total liabilities 742 79,909 742 4,305 741 1,260 Fund Balances: Nonspendable - - - - - - Restricted 285,236 92,022 258,643 231,995 271,006 119,244 Assigned for road projects - - - - - - Unassigned - - - - - - Total fund balances 285,236 92,022 258,643 231,995 271,006 119,244 Total liabilities and fund balances 285,978$ 171,931$ 259,385$ 236,300$ 271,747$ 120,504$ Special Revenue Funds 100 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING BALANCE SHEET (continued) June 30, 2014 Capital Projects Fund Blight Elimination Projects Fund Youth Center Construction Fund Assessment District #4 Debt Service Fund 1992 Street Assessment Improvement Fund TOTALS ASSETS Cash and investments 207,129$ -$ -$ 50,457$ 170,603$ 6,197,492$ Receivables: Federal distributions due 4,530 - 303,824 - - 390,177 Due from State of California 483,100 - 101,275 - - 605,875 Due from County of San Luis Obispo 126,330 - - - - 607,966 Accrued interest 384 - - 78 262 8,878 Other receivables - - - - - 48,020 Due from other funds - 1,478,340 - - - 2,338,664 Prepaid items - - - - - 730 Total assets 821,473$ 1,478,340$ 405,099$ 50,535$ 170,865$ 10,197,802$ LIABILITIES AND FUND BALANCES Accounts payable 19,834$ -$ -$ -$ -$ 177,342$ Accrued salaries and benefits - - - - - 17,236 Due to other funds - - 399,922 - - 678,518 Unearned revenue 111,115 - 5,177 - - 279,935 Total liabilities 130,949 - 405,099 - - 1,153,031 Fund Balances: Nonspendable - - - - - 730 Restricted 362,597 1,478,340 - 50,535 170,865 8,968,528 Assigned for road projects 327,927 - - - - 327,927 Unassigned - - - - - (252,414) Total fund balances 690,524 1,478,340 - 50,535 170,865 9,044,771 Total liabilities and fund balances 821,473$ 1,478,340$ 405,099$ 50,535$ 170,865$ 10,197,802$ Debt Service FundsCapital Projects Funds 101 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For Fiscal Year Ended June 30, 2014 Supplemental Law Enforcement Services Fund Atascadero Tourism Business Improvement District Community Development Block Grant Fund Tree Plant Fund Gas Tax Fund Local Transportation Fund Revenues: Taxes and assessments -$ 142,324$ -$ -$ -$ -$ Licenses and permits - - - 1,550 - - Intergovernmental revenues 52,691 - 229,991 - 894,659 882,375 Use of money and property 508 1,029 - 3,473 5,501 11,855 Other revenues - - - - 1,127 - Total revenues 53,199 143,353 229,991 5,023 901,287 894,230 Expenditures: Salaries and benefits 21,069 - - - 322,937 - Supplies and services 18,215 1,711 7,734 52,867 424,921 - Special projects and studies 2,963 - 25,760 10,340 61,758 9,636 Capital outlay 160,859 - 196,497 - 3,675 130,474 Total expenditures 203,106 1,711 229,991 63,207 813,291 140,110 Excess of revenues over (under) expenditures (149,907) 141,642 - (58,184) 87,996 754,120 Other Financing Sources (Uses): Transfers in 150,000 - - - - - Transfers out - - - - - (347) Total other financing sources (uses)150,000 - - - - (347) Net change in fund balances 93 141,642 - (58,184) 87,996 753,773 Fund balance, June 30, 2013 834 14,830 - 384,514 454,431 999,779 Fund balance, June 30, 2014 927$ 156,472$ -$ 326,330$ 542,427$ 1,753,552$ Special Revenue Funds 102 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2014 Street Assessment Fund General Government Facilities Fees Fund Storm Drainage Facilities Fees Fund Amapoa/ Tecorida Drainage Impact Fees Fund Law Enforcement Facilities Fees Fund Fire Facilities Fees Fund Revenues: Taxes and assessments 2,140$ -$ -$ -$ -$ -$ Licenses and permits - 51,276 83,875 642 46,319 86,637 Intergovernmental revenues - - - - - - Use of money and property 620 (2,638) 3,698 (26) 452 11,173 Other revenues - - - - - - Total revenues 2,760 48,638 87,573 616 46,771 97,810 Expenditures: Salaries and benefits - - - - - - Supplies and services - - - - - - Special projects and studies - - - - - 37,518 Capital outlay - - 372,153 - - 15,287 Total expenditures - - 372,153 - - 52,805 Excess of revenues over (under) expenditures 2,760 48,638 (284,580) 616 46,771 45,005 Other Financing Sources (Uses): Transfers in - - 23,754 - - - Transfers out - - - (23,754) (150,000) - Total other financing sources (uses)- - 23,754 (23,754) (150,000) - Net change in fund balances 2,760 48,638 (260,826) (23,138) (103,229) 45,005 Fund balance, June 30, 2013 60,783 (280,434) 620,954 23,138 82,611 843,768 Fund balance, June 30, 2014 63,543$ (231,796)$ 360,128$ -$ (20,618)$ 888,773$ Special Revenue Funds 103 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2014 Open Space Acquisition Fees Fund Parkland Facilities Fees Fund Public Facilities Fees Fund Library Expansion Facilities Fees Fund Community Facilities District Fund Revenues: Taxes and assessments -$ -$ -$ -$ 375,141$ Licenses and permits 100,736 360,085 108,509 40,187 - Intergovernmental revenues - - - - - Use of money and property 5,687 4,970 3,173 109 16 Other revenues - 1,000 - - - Total revenues 106,423 366,055 111,682 40,296 375,157 Expenditures: Salaries and benefits - - - - - Supplies and services - - - - 4,682 Special projects and studies - - - 40,000 - Capital outlay - 10,880 - - - Total expenditures - 10,880 - 40,000 4,682 Excess of revenues over (under) expenditures 106,423 355,175 111,682 296 370,475 Other Financing Sources (Uses): Transfers in - - - - - Transfers out - - - - (363,600) Total other financing sources (uses)- - - - (363,600) Net change in fund balances 106,423 355,175 111,682 296 6,875 Fund balance, June 30, 2013 489,765 226,059 232,492 17,270 10,586 Fund balance, June 30, 2014 596,188$ 581,234$ 344,174$ 17,566$ 17,461$ Special Revenue Funds 104 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2014 Apple Valley Street & Storm Drain Assessment District Fund Apple Valley Landscape & Lighting Assessment District Fund Las Lomas Street & Storm Drain Assessment District Fund Las Lomas Landscape & Lighting Assessment District Fund De Anza Street & Storm Drain Assessment District Fund De Anza Landscape & Lighting Assessment District Fund Revenues: Taxes and assessments 42,000$ 52,500$ 23,741$ 81,649$ 40,090$ 15,874$ Licenses and permits - - - - - - Intergovernmental revenues - - - - - - Use of money and property 2,648 1,557 2,475 2,129 2,555 1,163 Other revenues - - - - - - Total revenues 44,648 54,057 26,216 83,778 42,645 17,037 Expenditures: Salaries and benefits - - - - - - Supplies and services 5,086 63,502 4,753 58,751 5,431 16,894 Special projects and studies 35,177 - - - - - Capital outlay - - - - - - Total expenditures 40,263 63,502 4,753 58,751 5,431 16,894 Excess of revenues over (under) expenditures 4,385 (9,445) 21,463 25,027 37,214 143 Other Financing Sources (Uses): Transfers in - - - - - 1,080 Transfers out - - - - - - Total other financing sources (uses)- - - - - 1,080 Net change in fund balances 4,385 (9,445) 21,463 25,027 37,214 1,223 Fund balance, June 30, 2013 280,851 101,467 237,180 206,968 233,792 118,021 Fund balance, June 30, 2014 285,236$ 92,022$ 258,643$ 231,995$ 271,006$ 119,244$ Special Revenue Funds 105 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO NONMAJOR GOVERNMENTAL FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (continued) For Fiscal Year Ended June 30, 2014 Capital Projects Fund Blight Elimination Projects Fund Youth Center Construction Fund Assessment District #4 Debt Service Fund 1992 Street Assessment Improvement Fund TOTALS Revenues: Taxes and assessments -$ -$ -$ -$ -$ 775,459$ Licenses and permits - - - - - 879,816 Intergovernmental revenues 862,442 - - - - 2,922,158 Use of money and property 3,093 14,291 - 498 1,685 81,694 Other revenues - 7,676 108 - - 9,911 Total revenues 865,535 21,967 108 498 1,685 4,669,038 Expenditures: Salaries and benefits - - - - - 344,006 Supplies and services - - 108 - 25 664,680 Special projects and studies 16,584 - - - - 239,736 Capital outlay 907,765 44,543 - - - 1,842,133 Total expenditures 924,349 44,543 108 - 25 3,090,555 Excess of revenues over (under) expenditures (58,814) (22,576) - 498 1,660 1,578,483 Other Financing Sources (Uses): Transfers in 347 - - - - 175,181 Transfers out - - - - - (537,701) Total other financing sources (uses)347 - - - - (362,520) Net change in fund balances (58,467) (22,576) - 498 1,660 1,215,963 Fund balance, June 30, 2013 748,991 1,500,916 - 50,037 169,205 7,828,808 Fund balance, June 30, 2014 690,524$ 1,478,340$ -$ 50,535$ 170,865$ 9,044,771$ Debt Service FundsCapital Projects Funds 106 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: S.L.E.S.F. Grant 99,430$ 123,930$ 52,691$ (71,239)$ Interest income 200 200 508 308 Total revenues 99,630 124,130 53,199 (70,931) Expenditures: Employee services 18,970 27,340 21,069 6,271 Communications - 200 191 9 Operating Supplies 4,200 15,700 15,624 76 Contract Services 2,000 2,330 1,455 875 Recruitment - 1,000 945 55 Special projects and purchases: Lidar/Radar Equipment - 1,900 1,822 78 Software - 1,100 1,100 - Night Vision Optics - 100 41 59 Capital outlay: Orbacom Radio System Upgrade Project 225,000 225,000 160,859 64,141 Total expenditures 250,170 274,670 203,106 71,564 Excess of revenues over (under) expenditures (150,540) (150,540) (149,907) 633 Other Financing Sources (Uses): 150,000 150,000 150,000 - Total other financing sources (uses)150,000 150,000 150,000 - Net change in fund balance (540)$ (540)$ 93 633$ Fund balance, June 30, 2013 834 Fund balance, June 30, 2014 927$ Transfer from the Law Enforcement Facilities Fees Fund for Orbacom Radio System Upgrade Project Budget Variance with Final Budget Positive (Negative) 107 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO ATASCADERO TOURISM BUSINESS IMPROVEMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2014 Original Final Actual Amounts Revenues: Tourism Assessments 129,980$ 129,980$ 142,324$ 12,344$ Interest Income 170 170 1,029 859 Total revenues 130,150 130,150 143,353 13,203 Expenditures: Office Expense 2,000 2,000 - 2,000 Advertising 8,000 8,000 288 7,712 Contract Services 90,000 90,000 - 90,000 Administration 1,300 1,300 1,423 (123) Total expenditures 101,300 101,300 1,711 99,589 Net change in fund balance 28,850$ 28,850$ 141,642 112,792$ Fund balance, June 30, 2013 14,830 Fund balance, June 30, 2014 156,472$ Budget Variance with Final Budget Positive (Negative) 108 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Community Development Block Grant 346,150$ 469,510$ 229,991$ (239,519)$ Total revenues 346,150 469,510 229,991 (239,519) Expenditures: Administration: CDBG General Administration 14,290 29,750 7,734 22,016 Special projects and studies: El Camino Homeless Organization - 3,700 - 3,700 North County Women's Shelter Projects 3,200 15,340 - 15,340 Loaves & Fishes Groceries - 7,800 7,800 - Youth Scholarships - 8,000 8,000 - People's Self Help Housing Projects 8,400 8,400 8,400 - North County Connection 55,000 55,000 - 55,000 North County Adaptive Sports & Recreation 1,560 2,290 1,560 730 Capital outlay: Lake Park Walkway Barrier Removal 263,700 339,230 196,497 142,733 Total expenditures 346,150 469,510 229,991 239,519 Net change in fund balance -$ -$ - -$ Fund balance, June 30, 2013 - Fund balance, June 30, 2014 -$ Budget Variance with Final Budget Positive (Negative) 109 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Permits and fees 5,000$ 5,000$ 1,550$ (3,450)$ Interest income 2,950 2,950 3,473 523 Total revenues 7,950 7,950 5,023 (2,927) Expenditures: Office Expense 600 600 - 600 Utilities 700 700 370 330 Contract Services 54,000 54,000 45,747 8,253 Administrative charges 7,100 7,100 6,750 350 Special projects and studies: Native Tree Re-Planting Project 92,220 92,220 10,340 81,880 Total expenditures 154,620 154,620 63,207 91,413 Net change in fund balance (146,670)$ (146,670)$ (58,184) 88,486$ Fund balance, June 30, 2013 384,514 Fund balance, June 30, 2014 326,330$ Budget Variance with Final Budget Positive (Negative) 110 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Section 2103 highway users tax 405,680$ 405,680$ 379,728$ (25,952)$ Section 2105 highway users tax 133,900 133,900 188,559 54,659 Section 2106 highway users tax 93,560 93,560 119,741 26,181 Section 2107 highway users tax 199,350 199,350 200,631 1,281 Section 2107.5 highway users tax 6,000 6,000 6,000 - Interest income 5,930 5,930 5,501 (429) Other revenues - - 1,127 1,127 Total revenues 844,420 844,420 901,287 56,867 Expenditures: Salaries and benefits 337,230 340,640 322,937 17,703 Office expense - 10 7 3 Computer maintenance & replacement 3,560 3,560 3,560 - Insurance 13,110 13,110 12,958 152 Utilities 68,700 77,220 77,219 1 Communications 1,750 2,070 2,050 20 Operating supplies and equipment 43,400 39,720 21,411 18,309 Vehicle and equipment operations 48,910 48,910 47,825 1,085 Contract services 110,400 80,430 66,592 13,838 Professional development 3,300 3,300 2,219 1,081 Administrative charges 191,080 191,080 191,080 - Special projects: Traffic Loop Detector Projects 11,000 11,000 6,869 4,131 Traffic Signal LED Light Replacement 62,000 62,000 108 61,892 Citywide Skin Patch Repair Program 75,000 75,000 36,968 38,032 Traffic Signal Emergency Back-up Program 24,000 24,000 108 23,892 Pavement Management Studies - 17,710 17,705 5 Capital outlay: Pavement Paint Sprayer - 3,680 3,675 5 Total expenditures 993,440 993,440 813,291 180,149 Net change in fund balance (149,020)$ (149,020)$ 87,996 237,016$ Fund balance, June 30, 2013 454,431 Fund balance, June 30, 2014 542,427$ Budget Variance with Final Budget Positive (Negative) 111 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Local Transportation Tax- Article 3 Bike Paths 28,400$ 28,400$ 26,974$ (1,426)$ Local Transportation Tax- Article 8 Streets 733,660 733,660 855,401 121,741 Interest income 5,020 5,020 11,855 6,835 Total revenues 767,080 767,080 894,230 127,150 Expenditures: Special projects: Minor Bridge Repair 40,360 40,360 9,636 30,724 Capital outlay: El Camino Real CIR Rehabilitation Project 250,000 250,000 1,910 248,090 San Anselmo CIR Rehabilitation Project 157,500 157,500 - 157,500 Santa Barbara Road West Overlay Project 24,000 24,000 1,772 22,228 San Luis Avenue Surface Treatment Project 141,110 141,110 120,024 21,086 San Lucas Road Landslide Repair 100,000 100,000 - 100,000 East Front Overlay 245,760 245,760 6,768 238,992 Total expenditures 958,730 958,730 140,110 818,620 Excess of revenues over (under) expenditures (191,650) (191,650) 754,120 945,770 Other Financing Sources (Uses): (12,010) (12,010) (347) 11,663 Total other financing sources (uses)(12,010) (12,010) (347) 11,663 Net change in fund balance (203,660)$ (203,660)$ 753,773 957,433$ Fund balance, June 30, 2013 999,779 Fund balance, June 30, 2014 1,753,552$ Budget Variance with Final Budget Positive (Negative) Transfer to Capital Projects Fund for the Atascadero Creek Trail Enhancement Project 112 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts 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 180 180 180 - Taxes and special assessments- Cayucos 220 220 220 - Taxes and special assessments- Falda 240 240 240 - Interest income 620 620 620 - Total revenues 2,760 2,760 2,760 - Net change in fund balance 2,760$ 2,760$ 2,760 -$ Fund balance, June 30, 2013 60,783 Fund balance, June 30, 2014 63,543$ Budget Variance with Final Budget Positive (Negative) 113 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Impact fees 20,500$ 20,500$ 51,276$ 30,776$ Interest income (expense)(2,820) (2,820) (2,638) 182 Total revenues 17,680 17,680 48,638 30,958 Net change in fund balance 17,680$ 17,680$ 48,638 30,958$ Fund balance, June 30, 2013 (280,434) Fund balance, June 30, 2014 (231,796)$ Variance with Final Budget Positive (Negative) Budget 114 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Impact fees 38,260$ 38,260$ 83,875$ 45,615$ Interest income 3,520 3,520 3,698 178 Total revenues 41,780 41,780 87,573 45,793 Expenditures: Special projects: Atascadero Creek Corps of Engineering 24,960 24,960 - 24,960 Capital projects: 2006 Marchant Avenue Drainage 447,260 447,260 372,153 75,107 El Camino Real Culvert Relining 95,000 95,000 - 95,000 Total expenditures 567,220 567,220 372,153 195,067 Excess of revenues over (under) expenditures (525,440) (525,440) (284,580) 240,860 Other Financing Sources (Uses): 23,570 23,570 23,754 184 Total other financing sources (uses)23,570 23,570 23,754 184 Net change in fund balance (501,870)$ (501,870)$ (260,826) 241,044$ Fund balance, June 30, 2013 620,954 Fund balance, June 30, 2014 360,128$ Transfer from Amapoa Tecorida Drainage Impact Fee Fund for the Marchant Drainage Project Budget Variance with Final Budget Positive (Negative) 115 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO AMAPOA/TECORIDA DRAINAGE IMPACT FEES FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Licenses and permits -$ 640$ 642$ 2$ Interest income 80 80 (26) (106) Total revenues 80 720 616 (104) Excess of revenues over (under) expenditures 80 720 616 (104) Other Financing Sources (Uses): (23,570) (24,210) (23,754) 456 Total other financing sources (uses)(23,570) (24,210) (23,754) 456 Net change in fund balance (23,490)$ (23,490)$ (23,138) 352$ Fund balance, June 30, 2013 23,138 Fund balance, June 30, 2014 -$ For the Fiscal Year Ended June 30, 2014 Budget Variance with Final Budget Positive (Negative) Transfer to the Storm Drainage Facilities Fees Fund for the Marchant Drainage Project 116 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Impact fees 25,160$ 25,160$ 46,319$ 21,159$ Interest income - - 452 452 Total revenues 25,160 25,160 46,771 21,611 Excess of revenues over (under) expenditures 25,160 25,160 46,771 21,611 Other Financing Sources (Uses): (150,000) (150,000) (150,000) - Total other financing sources (uses)(150,000) (150,000) (150,000) - Net change in fund balance (124,840)$ (124,840)$ (103,229) 21,611$ Fund balance, June 30, 2013 82,611 Fund balance, June 30, 2014 (20,618)$ Transfer to SLESF Fund for Orbacom Radio System Upgrade Project Budget Variance with Final Budget Positive (Negative) 117 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Impact fees 47,400$ 47,400$ 86,637$ 39,237$ Rental income 10,800 10,800 10,800 - Interest income - - 373 373 Total revenues 58,200 58,200 97,810 39,610 Expenditures: Special projects and studies: Personal Protective Equipment 39,000 39,000 37,518 1,482 Capital projects: Upgrade to Priority Repeater System 30,000 30,000 15,287 14,713 Total expenditures 69,000 69,000 52,805 16,195 Net change in fund balance (10,800)$ (10,800)$ 45,005 55,805$ Fund balance, June 30, 2013 843,768 Fund balance, June 30, 2014 888,773$ Variance with Final Budget Positive (Negative) Budget 118 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Impact fees 48,430$ 48,430$ 100,736$ 52,306$ Interest income 4,830 4,830 5,687 857 Total revenues 53,260 53,260 106,423 53,163 Expenditures: Capital Projects Acquisition of Open Space 20,000 20,000 - 20,000 Total expenditures 20,000 20,000 - 20,000 Net change in fund balance 33,260$ 33,260$ 106,423 73,163$ Fund balance, June 30, 2013 489,765 Fund balance, June 30, 2014 596,188$ Variance with Final Budget Positive (Negative) Budget 119 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Impact fees 183,510$ 183,510$ 360,085$ 176,575$ Fire Safe Council Grant 2,190 2,190 - (2,190) Interest income 1,950 1,950 4,970 3,020 Donations - - 1,000 1,000 Total revenues 187,650 187,650 366,055 178,405 Expenditures: Capital Projects Lake Fountains 20,000 20,000 10,880 9,120 Centennial Plaza Project 50,000 50,000 - 50,000 Total expenditures 70,000 70,000 10,880 59,120 Excess of revenues over (under) expenditures 117,650 117,650 355,175 237,525 Net change in fund balance 117,650$ 117,650$ 355,175 237,525$ Fund balance, June 30, 2013 226,059 Fund balance, June 30, 2014 581,234$ Budget Variance with Final Budget Positive (Negative) 120 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Impact fees 61,900$ 61,900$ 108,509$ 46,609$ Interest income 2,160 2,160 3,173 1,013 Total revenues 64,060 64,060 111,682 47,622 Net change in fund balance 64,060$ 64,060$ 111,682 47,622$ Fund balance, June 30, 2013 232,492 Fund balance, June 30, 2014 344,174$ Variance with Final Budget Positive (Negative) Budget 121 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Impact fees 19,980$ 19,980$ 40,187$ 20,207$ Interest income - - 109 109 Total revenues 19,980 19,980 40,296 20,316 Expenditures: Special projects Library Expansion Contribution 30,000 40,000 40,000 - Total expenditures 30,000 40,000 40,000 - Net change in fund balance (10,020)$ (20,020)$ 296 20,316$ Fund balance, June 30, 2013 17,270 Fund balance, June 30, 2014 17,566$ Budget Variance with Final Budget Positive (Negative) 122 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO COMMUNITY FACILITIES DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 359,970$ 359,970$ 375,141$ 15,171$ Interest income - - 16 16 Total revenues 359,970 359,970 375,157 15,187 Expenditures: Contract services 5,500 5,500 4,682 818 Total expenditures 5,500 5,500 4,682 818 Excess of revenues over (under) expenditures 354,470 354,470 370,475 16,005 Other Financing Sources (Uses): (363,930) (363,930) (363,600) 330 Total other financing sources (uses)(363,930) (363,930) (363,600) 330 Net change in fund balance (9,460)$ (9,460)$ 6,875 16,335$ Fund balance, June 30, 2013 10,586 Fund balance, June 30, 2014 17,461$ For the Fiscal Year Ended June 30, 2014 Budget Variance with Final Budget Positive (Negative) Transfer to the General Fund for police, fire and parks services 123 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO APPLE VALLEY STREET & STORM DRAIN ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 42,000$ 42,000$ 42,000$ -$ Interest income 2,480 2,480 2,648 168 Total revenues 44,480 44,480 44,648 168 Expenditures: Advertising 600 600 741 (141) Contract services 6,760 6,760 2,803 3,957 Administration 1,200 1,200 1,542 (342) Special projects: Slurry seal 48,950 48,950 35,177 13,773 Total expenditures 57,510 57,510 40,263 17,247 Net change in fund balance (13,030)$ (13,030)$ 4,385 17,415$ Fund balance, June 30, 2013 280,851 Fund balance, June 30, 2014 285,236$ Variance with Final Budget Positive (Negative) Budget For the Fiscal Year Ended June 30, 2014 124 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO APPLE VALLEY LANDSCAPE & LIGHTING ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 52,500$ 52,500$ 52,500$ -$ Interest income 1,210 1,210 1,557 347 Total revenues 53,710 53,710 54,057 347 Expenditures: Advertising 900 900 536 364 Utilities 12,680 12,680 14,602 (1,922) Operating supplies 1,800 1,800 74 1,726 Contract services 55,160 55,160 45,917 9,243 Administration 1,400 1,400 2,373 (973) Total expenditures 71,940 71,940 63,502 8,438 Net change in fund balance (18,230)$ (18,230)$ (9,445) 8,785$ Fund balance, June 30, 2013 101,467 Fund balance, June 30, 2014 92,022$ For the Fiscal Year Ended June 30, 2014 Budget Variance with Final Budget Positive (Negative) 125 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO LAS LOMAS STREET & STORM DRAIN ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 23,640$ 23,640$ 23,741$ 101$ Interest income 2,380 2,380 2,475 95 Total revenues 26,020 26,020 26,216 196 Expenditures: Advertising 600 600 741 (141) Contract services 11,100 11,100 2,803 8,297 Administration 1,200 1,200 1,209 (9) Total expenditures 12,900 12,900 4,753 8,147 Net change in fund balance 13,120$ 13,120$ 21,463 8,343$ Fund balance, June 30, 2013 237,180 Fund balance, June 30, 2014 258,643$ For the Fiscal Year Ended June 30, 2014 Budget Variance with Final Budget Positive (Negative) 126 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO LAS LOMAS LANDSCAPE & LIGHTING ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 81,650$ 81,650$ 81,649$ (1)$ Interest income 1,680 1,680 2,129 449 Total revenues 83,330 83,330 83,778 448 Expenditures: Advertising 1,000 1,000 412 588 Utilities 4,860 4,860 7,049 (2,189) Operating supplies 6,900 6,900 420 6,480 Contract services 84,540 84,540 47,269 37,271 Administration 1,220 1,220 3,601 (2,381) Special projects: Planting and landscape project 17,530 17,530 - 17,530 Total expenditures 116,050 116,050 58,751 57,299 Net change in fund balance (32,720)$ (32,720)$ 25,027 57,747$ Fund balance, June 30, 2013 206,968 Fund balance, June 30, 2014 231,995$ Variance with Final Budget Positive (Negative) For the Fiscal Year Ended June 30, 2014 Budget 127 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO DE ANZA STREET & STORM DRAIN ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 40,090$ 40,090$ 40,090$ -$ Interest income 2,370 2,370 2,555 185 Total revenues 42,460 42,460 42,645 185 Expenditures: Advertising 900 900 741 159 Contract services 9,970 9,970 2,803 7,167 Administration 1,400 1,400 1,887 (487) Total expenditures 12,270 12,270 5,431 6,839 Net change in fund balance 30,190$ 30,190$ 37,214 7,024$ Fund balance, June 30, 2013 233,792 Fund balance, June 30, 2014 271,006$ For the Fiscal Year Ended June 30, 2014 Budget Variance with Final Budget Positive (Negative) 128 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO DE ANZA LANDSCAPE & LIGHTING ASSESSMENT DISTRICT FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Original Final Actual Amounts Revenues: Taxes and assessments 15,880$ 15,880$ 15,874$ (6)$ Interest income 1,220 1,220 1,163 (57) Total revenues 17,100 17,100 17,037 (63) Expenditures: Advertising 980 980 536 444 Utilities 500 500 306 194 Operating supplies 800 800 74 726 Contract services 21,810 21,810 13,431 8,379 Administration 1,800 1,800 2,547 (747) Total expenditures 25,890 25,890 16,894 8,996 Excess of revenues over (under) expenditures (8,790) (8,790) 143 8,933 Other Financing Sources (Uses): 1,080 1,080 1,080 - Total other financing sources (uses)1,080 1,080 1,080 - Net change in fund balance (7,710)$ (7,710)$ 1,223 8,933$ Fund balance, June 30, 2013 118,021 Fund balance, June 30, 2014 119,244$ Transfer from the General Fund for open space maintenance For the Fiscal Year Ended June 30, 2014 Budget Variance with Final Budget Positive (Negative) 129 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Proposition 1B Funding- 2012 El Camino Slurry Seal Project 403,300$ 403,300$ 292,183$ (111,117)$ RSHA Grant- Highway 41 Multipurpose Pathway 125,000 126,330 126,330 - State River Parkways Grant- Creek Trail Project 418,560 418,560 - (418,560) Zoo & Lake Park Green Parking Lot Grant 526,560 526,560 443,929 (82,631) Interest income 5,110 5,110 3,093 (2,017) Total revenues 1,478,530 1,479,860 865,535 (614,325) Expenditures: Special projects and purchases: Annual Crack Fill Program 42,720 42,720 7,251 35,469 Llano Bridge 30,000 30,000 9,333 20,667 Capital outlay: 2012 El Camino Slurry Seal Project 403,300 403,300 292,183 111,117 Lake View Overlay Project 375,000 375,000 10,018 364,982 Microsurfacing Roads Around City Hall - - 30,163 (30,163) Highway 41 Multipurpose Pathway Project 125,000 126,330 126,330 - Atascadero Creek Trail Enhancement Project 430,570 430,570 347 430,223 Zoo & Lake Park Green Parking Lot 526,560 526,560 448,724 77,836 Total expenditures 1,933,150 1,934,480 924,349 1,010,131 Excess of revenues over (under) expenditures (454,620) (454,620) (58,814) 395,806 Other Financing Sources: 12,010 12,010 347 (11,663) Total other financing sources (uses)12,010 12,010 347 (11,663) Net change in fund balance (442,610)$ (442,610)$ (58,467) 384,143$ Fund balance, June 30, 2013 748,991 Fund balance, June 30, 2014 690,524$ Transfer from the Local Transportation Fund for the Atascadero Creek Trail Enhancement Project Variance with Final Budget Positive (Negative) Budget 130 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Interest income 1,200$ 1,200$ 14,291$ 13,091$ Donations 20,000 20,000 7,676 (12,324) Total revenues 21,200 21,200 21,967 767 Expenditures: Capital outlay: Maiden statue placement 42,880 42,880 44,543 (1,663) Total expenditures 42,880 42,880 44,543 (1,663) Excess of revenues over (under) expenditures (21,680)$ (21,680)$ (22,576) (896)$ Fund balance, June 30, 2013 1,500,916 Fund balance, June 30, 2014 1,478,340$ Budget Variance with Final Budget Positive (Negative) 131 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Donations -$ 110$ 108$ (2)$ Total revenues - 110 108 (2) Expenditures: Youth Center fund raising expense - 110 108 2 Total expenditures - 110 108 2 Net change in fund balance -$ -$ - -$ Fund balance, June 30, 2013 - Fund balance, June 30, 2014 -$ Budget Variance with Final Budget Positive (Negative) 132 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Taxes and assessments (refunds)(45,280)$ (45,280)$ -$ 45,280$ Interest income 300 300 498 198 Total revenues (44,980) (44,980) 498 45,478 Expenditures: District Administration 5,200 5,200 - 5,200 Total expenditures 5,200 5,200 - 5,200 Net change in fund balance (50,180)$ (50,180)$ 498 50,678$ Fund balance, June 30, 2013 50,037 Fund balance, June 30, 2014 50,535$ Budget Variance with Final Budget Positive (Negative) 133 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 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, 2014 Original Final Actual Amounts Revenues: Interest income 600$ 600$ 1,685$ 1,085$ Total revenues 600 600 1,685 1,085 Expenditures: Services 2,050 2,050 - 2,050 Street repairs 117,600 117,600 25 117,575 Total expenditures 119,650 119,650 25 119,625 Net change in fund balance (119,050)$ (119,050)$ 1,660 120,710$ Fund balance, June 30, 2013 169,205 Fund balance, June 30, 2014 170,865$ Variance with Final Budget Positive (Negative) Budget 134 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION June 30, 2014 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals ASSETS Current Assets: Cash and investments 1,457,152$ 2,404,291$ 152,606$ 4,014,049$ Receivables: Federal distributions due 1,109 3,850 1,906,086 1,911,045 Due from State of California 406 1,284 635,360 637,050 Accrued interest 2,182 3,704 243 6,129 Prepaid expenses 4,757 - - 4,757 Total current assets 1,465,606 2,413,129 2,694,295 6,573,030 Capital Assets: Non-depreciable: Construction in progress - 239,610 256,420 496,030 Depreciable: Vehicles - 3,686,939 - 3,686,939 Equipment 2,263,219 2,564,098 21,024 4,848,341 Structure and improvements - - 48,443,881 48,443,881 Accumulated depreciation (1,843,878) (3,796,993) (3,292,502) (8,933,373) Net capital assets 419,341 2,693,654 45,428,823 48,541,818 Total assets 1,884,947 5,106,783 48,123,118 55,114,848 LIABILITIES Current Liabilities: Accounts payable 56,010 - 16,953 72,963 Accrued salaries and benefits 16,756 - 6,675 23,431 Noncurrent Liabilities: Compensated absences 21,875 - 23,049 44,924 Total liabilities 94,641 - 46,677 141,318 NET POSITION Net investment in capital assets 419,341 2,693,654 45,428,823 48,541,818 Unrestricted 1,370,965 2,413,129 2,647,618 6,431,712 Total net position 1,790,306$ 5,106,783$ 48,076,441$ 54,973,530$ 135 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the Fiscal Year Ended June 30, 2014 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating Revenues: Charges for services 695,260$ 139,870$ 380,300$ 1,215,430$ Total operating revenues 695,260 139,870 380,300 1,215,430 Operating Expenses: Salaries and benefits 323,004 - 158,892 481,896 Office expense 1,109 - - 1,109 Computer maintenance, software and replacement - - 2,220 2,220 Insurance - - 18,782 18,782 Occupancy and rental costs 23,600 - 62,266 85,866 Utilities - - 73,110 73,110 Communications 4,893 - 1,772 6,665 Operating supplies and services 11,747 - 31,093 42,840 Vehicle and equipment operating costs 68 - 5,238 5,306 Contract services 44,720 - 40,625 85,345 Professional development 13,443 - - 13,443 Recruitment 684 - - 684 Administrative charges - - 36,960 36,960 Special projects: Exterior Painting - Fire Station #2 - - 8,500 8,500 HVAC Units - - 3,454 3,454 Small Printers 1,146 - - 1,146 Storage capacity upgrades 13,481 - - 13,481 Monitors - Replacement 5,282 - - 5,282 Depreciation 150,031 327,392 909,414 1,386,837 Total operating expenses 593,208 327,392 1,352,326 2,272,926 Operating income (loss)102,052 (187,522) (972,026) (1,057,496) 136 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (continued) For the Fiscal Year Ended June 30, 2014 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Non-Operating Revenues (Expenses): Interest income 13,787$ 23,769$ 3,448$ 41,004$ Gain (loss) on sale of capital assets - (29,327) - (29,327) Total non-operating revenues (expenses)13,787 (5,558) 3,448 11,677 Change in net position prior to capital contributions 115,839 (193,080) (968,578) (1,045,819) Capital Contributions: Capital contributions from other funds 9,039 209,544 3,307,336 3,525,919 Capital contributions from successor agency - - 2,138,117 2,138,117 Capital contributions from community donations - - 180,000 180,000 Total capital contributions 9,039 209,544 5,625,453 5,844,036 Change in net position 124,878 16,464 4,656,875 4,798,217 Total net position, June 30, 2013 1,665,428 5,090,319 43,419,566 50,175,313 Total net position, June 30, 2014 1,790,306$ 5,106,783$ 48,076,441$ 54,973,530$ 137 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2014 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Cash Flows From Operating Activities: Internal activity - payments from other funds 695,260$ 139,870$ 380,300$ 1,215,430$ Payments to suppliers of goods and services (78,280) (927) (282,131) (361,338) Payments for employee services (319,502) - (152,715) (472,217) Net cash provided (used) by operating activities 297,478 138,943 (54,546) 381,875 Acquisition of capital assets (29,563) (124,699) (3,311) (157,573) Capital grant proceeds - - (2,046,527) (2,046,527) Proceeds from sale of capital assets - 3,096 - 3,096 Net cash provided (used) by capital and related financing activities (29,563) (121,603) (2,049,838) (2,201,004) Cash Flows From Investing Activities: Interest income 13,566 23,983 6,964 44,513 Net cash provided (used) by investing activities 13,566 23,983 6,964 44,513 Net increase in cash and cash equivalents 281,481 41,323 (2,097,420) (1,774,616) Cash and cash equivalents - June 30, 2013 1,175,671 2,362,968 2,250,026 5,788,665 Cash and cash equivalents - June 30, 2014 1,457,152$ 2,404,291$ 152,606$ 4,014,049$ Cash Flows From Capital and Related Financing Activities: 138 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1 CITY OF ATASCADERO INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS (continued) For the Fiscal Year Ended June 30, 2014 Technology Fund Vehicle and Equipment Replacement Fund Building Maintenance and Replacement Fund Totals Operating income (loss)102,052$ (187,522)$ (972,026)$ (1,057,496)$ Depreciation expense 150,031 327,392 909,414 1,386,837 Receivables, net - 1,800 - 1,800 Prepaid expenses 343 - - 343 Accounts payable 41,550 (2,727) 1,889 40,712 Accrued salaries and benefits 2,183 - 3,841 6,024 Compensated absences 1,319 - 2,336 3,655 Net cash provided (used) by operating activities 297,478$ 138,943$ (54,546)$ 381,875$ Reconciliation of operating income (loss) to net cash provided (used) by operating activities Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Change in assets and liabilities: 139 ITEM NUMBER: C-3 DATE: 01/27/15 ATTACHMENT: 1