HomeMy WebLinkAboutBudget FY 1994-1995CITY OF LODI, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30,1995
STEPHEN J. MANN, MAYOR
David Warner, MAYOR PRO TEMP
RAY G. DAVENPORT, COUNCIL MEMBER
PHILLIP PENNINO, COUNCIL MEMBER
JACK A. SIEGLOCK, COUNCIL MEMBER
H. DlXON FLYNN, CITY MANAGER
Prepared by the Department of Finance
Vicky McAthie, Finance DirectorKreasurer
Ruby Paiste, Acting Accounting Manager
Coriene Wadlow, Acting Accountant
TABLE OF CONTENTS
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PREFACE
INTRODUCTION
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
Certificate of Award Outstanding Financial Reporting
Organization of the City of Lodi
Directory of Officials and Advisory Bodies
FINANCIAL REPORTS
GENERAL PURPOSE FINANCIAL STATEMENTS
independent Auditors' Report
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
All Governmental Fund Types and Expendable Trust Funds
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - General and Special Revenue Funds
Combined Statement of Revenues, Expenses and Changes in Fund Equity - All Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary Fund Types
Notes to General Purpose Financial Statements
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SUPPLEMENTAL FINANCIAL STATEMENTS
General Fund
Overview
Comparative Balance Sheets
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Schedule of Expenditures by Department - Budgetary Level of Control - Budget and Actual Comparison
Overview
Combining Balance Sheet
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
Comparative Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Special Revenue Funds
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xiv
xvi
xvii
xv
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4
51
52
53
54
55
57
58
59
TABLE OF CONTENTS - continued
SINGLE AUDIT
Schedule of Federal Financial Assistance
Notes to Schedule of Federal Financial Assistance
Independent Auditors' Report on Compliance Based on an Audit of General Purpose Financial Statements
Independent Auditors' Report on the Internal Control Structure Based on an Audit of General Purpose Financial
Independent Auditors' Report on Compliance with the General Requirements Applicable to Federal Financial
Independent Auditors' Report on Compliance with Specific Requirements Applicable to Major Federal Financial
Independent Auditors' Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs
Schedule of Findings
Status of Prior Year Findings
Performed in Accordance with Government Auditing Standards
Statements Performed in Accordance with Government Auditing Standards
Assistance Programs
Assistance Programs
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112
113
114
116
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119
124
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PREFACE
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The Comprehensive Annual Financial Report (CAFR) has been prepared'in order to present the City of Lodi, California (City) monetary results of operations and
financiat condition as of June 30, 1995, as well as provide statistical information of general interest about the City. To achieve these goals, the City's CAFR was
organized into the following four major sections:
TRODUCTION
;!is section of the CAFR provides a comprehensive analysis of the City's financial position as of June 30, 1995 as well as summaries of significant policies and
practices which affect the City's management of its financial affairs. The Introduction section also includes a directory of City officials and advisory bodies and an
organization chart of the City.
FINANCIAL REPORT S
This section includes the primary financial statements of the City and is organized into three major areas:
* Independent Auditors' Report
* General Purpose Financial Statements including notes which summarize the City's financial position and results of operations at the
"Fund level.
Supplemental financial statements, which provide financial information for each of the City's funds and account groups organized by
generic fund type: Governmental Funds (General, Special Revenue, Capital Project and Debt Service), Enterprise Funds, Fiduciary Funds
and General Fixed Assets and General Long-Term Debt. An overview introduces each of these supplemental financial statements which
describes the purpose of each fund or account group.
In accordance with generally accepted accounting principles, the City's financial reporting system is organized on a "fund basis, which is described further on the
following pages of this Preface.
STATISTICAL TABLES
This section includes the following demographic and financial tables which provide current and historical trend information for the City and is organized into four
major areas:
* Statistical overview
* General financial trends of revenues, expenditures, property valuation and tax. sources for the last ten years
* Long-term indebtedness trends and characteristics
* Demographic and economic base trends and characteristics
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PREFACE - CONTINUED
SINGLE AUDIT
The City is required to undergo an annual single audit of its federal financial assistance in conformity with the provisions of the single Audit Act of
1984. Information related to this single audit, including the schedule of federal financial assistance, findings and recommendations, and auditors'
reports on the internal control structure and compliance with applicable laws and regulations, is also included in this report.
The City's financial reporting system is organized on a "fund" basis consisting of three major fund types - Governmental, Proprietary and Fiduciary - and two
self-balancing Account Groups. The City's various funds as summarized below have been established in order to segregate and identify those financial
transactions and resources associated with providing specific activities or programs in conformance with special regulations, restrictions or limitations.
GOVERNMENTAL FUNDS
Most of the City's programs and functions are provided a'nd financed through the following Governmental Funds, which are distinguished by their measurement
focus on determining financial position and changes in financial position, rather than upon determining net income:
General Fund'
Debt Service
Capital Project Funds
Equipment Fund
Library Capital
Subdivision Capital
Hutchins Street Square Capital
Capital Outlay Reserve Fund
Lodi Lake Capital
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Special Revenue Funds
Police Special Revenue Fund
Special Grants Fund
Streets Fund
Transportation Fund
Community Development Block Grants
PROPRIETARY FUNDS
Proprietary funds are distinguished from Governmental funds by their similarity to private sector enterprises, as the intent is that the cost of providing services -
whether this service is to the public (Enterprise Funds) or internally to the organization (Internal Service Funds) - is to be financed or recovered primarily through
user charges. Enterprise Funds may also be established to account for operations under which the City or an outside granting agency has decided that a
periodic determination of net income under full accrual accounting is appropriate for capital maintenance, public policy, management control, accountability or
other public purpose. The following five Enterprise Funds are used by the City: Camp Hutchins, Electric, Sewer, Water and Transit. The Internal Service Funds
are used to account for claims and benefits and equipment maintenance and motor pool.
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PREFACE - CONTINUED
FIDUCIARY FUNDS
Also known as Trust and Agency Funds, the following funds are used to account for assets maintained by the City in a trustee capacity for private individuals,
organizations or other governmental agencies: Expendable Trust Funds Agency Funds
Private Sector Trust Deferred Compensation
Hutchins Street Square Bequest
Miscellaneous Expendable Trust
Special Assessments
ACCOUNT GROUPS
Except for assets and liabilities associated with the Proprietary or Fiduciary fund types, the following self-balancing account groups are used for accounting
control and accountability for the City's general fixed assets and the unmatured portion of principal outstanding on its general long-term obligations.
General Fixed Assets Account Group
General Long-term Obligations Account Group
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CITY COUNCIL
STEPHEN J. MANN, Mayor
DAVID P. WARNER
Mayor Pro Tempore
RAY G. DAVENPORT
PHILLIP A. PENNINO
JACK A. SIEGLOCK
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209) 333-6706
FAX (209) 333-6795
H. DIXON FLYNN
JENNIFER M. PERRIN
RANDALL A. HAYS
City Manager
City Clerk
City Attorney
October 13, 1995
To the Honorable Mayor, Members of the City Council
and Manager of the City of Lodi:
The Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30,1995 is hereby submitted. This report is provided to present the financial
position, results of operations and cash flows of the City's funds as of June 30, 1995, in conformity with generally accepted accounting principles. The report
conforms to the highest standards of financial reporting as established by the Governmental Accounting Standards Board (GASB), for reporting by State and
local governments. The responsibility for the accuracy, fairness and completeness of the report rests with the City.
We believe that the information is accurate in all material respects and that it is presented in a manner designed to fairly present the financial position of the City.
In addition, we believe that all disclosures necessary to enable the reader to gain full understanding of the City's financial activities has been included.
The CAFR is presented in four sections: introductory, a financial section, a single audit section and statistical section. The introduction includes the transmittal
letter, the City's organization chart and a list of principal officials. The financial section includes the auditors' report on the general purpose financial statements,
the financial statements and notes to the fmancial statements. The single audit section includes the auditors' report on the schedule of federal financial
assistance, notes to the schedule and reports on compliance and internal control structure on financial assistance programs. The statistical section includes
selected financial and demographic information presented on a multi-year basis.
THE REPORTING ENTITY AND SERVICES PROVIDED
The hnds and account groups included ht the CAFR are those deemed dependent upon the City and controlled by the City Council and reflect the City's
financial reporting entity in accordance with the Governmental Accounting Standards Board (GASB) Statement 14.
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The City provides a wide range of municipal services including public safety (police, fire and graffiti abatement), public utilities services (electric, water grid
sewer), transportation services (streets, flood control and transit) leisure, cultural and social services (parks and recreation, library, community center and child
care service), and general government services (management, personnel administration, financial administration, building maintenance and equipment
maintenance).
Several municipal services are provided through other government agencies, private companies or public utility companies, including:
Number of
Facilities
Elementary and Secondary Schools
Sanitation (solid waste) and Cable Television
Ambulance
Gas and Telephone
ECONOMIC CONDITION AND OUTLOOK
Overview
The City is located in the San Joaquin Valley between Stocdon, 10 miles to the sou..., an1
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Sacramento 35 miles to LA north, an, adjacent to I S. Highway 99.
The CiG population is 54,700 andis contained in an area of 12 square miles. The City has grown steadily since incorporation in 1906 and is projected to grow
to 70,500 people by the year 2007. The City’s growth is provided for in both the General Plan and the City’s growth control ordinance that allows an increase in
population of 2% per year until the growth limits are reached.
The average and mean income of Lodi residents are the second highest in the County. Sales tax per capita is the highest in the County. Lodi is built on a strong
and broad based agricultural industry with national and industrial markets for its commodities and products. Wines, processed foods, nuts, fruit and milk are
major commodities of the Lodi area and provide the basic material for food processing and packaging. These commodities support the operations of General
Mills, Guild Winery and Pacific Cost Producers to name just three companies in the business of processing local agricultural commodities.
In addition, Lodi has a wide range of small, financially sound businesses that add to the economic strength of the City. These companies range in size from 10 to
150 employees and produce a wide variety of products, services and commodities. ’
Economic Development
Lodi is committed to promoting economic development (business retention and attraction) to expand the tax base to fund city services rather than increase taxes
to pay for these services. The City developed long and short term economic development goals in conjunction with the Chamber of Commerce and began
developing revitalization plans for the downtown and Cherokee Lane.
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ConferenceRerforming Art Center
The City and in partnership with the Old Lodi Union High School Site Foundation evaluted the demand for a conference/ performing arts center.
This involves the renovation of the old auditorium that can be restored as an 800 seat capacity facility.
Indoor Sports Facility
The City has developed a Parks, Recreation and Open Space Master Plan that identified the need to build an indoor sports facility to meet current demand for
indoor space for indoor recreation activities. The estimated cost for a facility of the size considered is between $4 million and $6 million. .
FINANCIAL INFORMATION, MANAGEMENT AND CONTROL
A detailed understanding of the financial position and operating results of the City is provided in the following sections of this report. The following is a brief
description of the City’s financial condition, management practices and control techniques.
Basis of Accounting
Basis of accounting refers to the policy as to when revenues, expenditures or expenses are recognized in the financial accounts and reported in the financial
statements. The City’s accounting records for general government operations are maintained on a modified accrual basis. Revenues are recorded when available
and measurable. Expenditures are recorded when the services or goods are received and the liability incurred. For proprietary find types, the City uses the
accrual basis of accounting. As such, the measurement focus is on net income in addition to financial position and changes in financial position. Revenues are
recognized when earned and expenses are recognized as the liability is incuqed. We believe that the City’s internal accounting controls adequately safeguard
assets and provide reasonable assuraqce of proper recording of financial transactions.
Accounting System and Budgetary Control
In developing the City’s accounting system, consideration is given to the adequacy of the internal controls. The objective of the City’s internal accounting
controls is to provide reasonable, but not absolute, assurance that the assets are safeguarded against loss from unauthorized use or disposition; and to ensure that
transactions are properly recorded to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of
reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived and that estimates and judgments are required to be
made by management in evaluating these costs and benefits.
In addition, the City maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Council. The budget is adopted annually. The City Manager is responsible for the preparation of the budget and its
implementation after adoption. The City Council has the authority to amend the budget at any time during the year. The City Manager has the authority to make
adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end balances. During fiscal year 1994-95,
several supplemental budget appropriations were made by the City Council and City Manager.
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In addition to revitalization plans, the City is reviewing a number of incentives to retain and attract new businesses. Among the incentives being considered are
infrastructure improvements, property tax abatement, regulatory flexibility, tax credits, utility rate incentives and public financing and/or grants.
MAJOR INITIATIVES
Overview
As discussed above, economic development was the leading initiative of the City in 1994-95. Other significant initiatives included: 1) form a Street Crimes
Unit; 2) execute a long term lease with California Youth Soccer Association; 3) residential neighborhood improvements; 4) building a conference and
performing arts center and; 5) plan to provide an indoor sports facility. The City issued a Certificate of Participation in September 1995 to help hnd these
goals.
Central City Revitalization
The revitalization program was approved by the Council to focus additional City effort and resources on improving the local economy by enhancing community
pride in the downtown and promoting the downtown as the historical, pedestrian and socializing center of the City.
Cherokee Lane Beautification
Cherokee Lane parallels Highway 99 and is the preferred route for north-south intercity travel in the Central Valley. Before the Highway 99 bypass was built,
Cherokee Lane was Highway 99 with a mix of businesses that catered to highway traffic. Over time however, Kettleman Lane became a preferred location for
commercial development and disinvestment along Cherokee Lane became a problem. To improve Cherokee Lane, the City Council adopted three objectives: 1)
improve streetscape and lighting conditions; 2) establish development standards and guidelines that improve the appearance of buildings and businesses and; 3)
encourage and accommodate lodging, auto and support businesses.
Street Crimes Unit
Overall crime in Lodi has declined in the last year. However, criminal activity in certain neighborhoods and areas of the City exist at unacceptable levels. The
continued efforts of the City to remove criminals from the streets and neighborhoods are a top priority. Recognizing the fiscal constraints which the City faces,
the Police Department believes a Street Crimes Unit concept provides the Police Department with the necessary resources to concentrate police personnel in
specific problem areas to free patrol officers to‘respond to general service calls.
In 1993-94 the Lodi Police Department initiated the Community Oriented Policing (COPS) program which implemented a “ Partners” program for senior
volunteers to assist the Police Department with non-emergency and non-criminal activities to allow officers to focus on crime prevention. The Partners Program
is so successful that it was nominated and was awarded the 1995 California Cities Helen Putnam Award for Excellence.
Residential Neighborhood Improvements
The City Council has developed an action plan to revitalize the Eastside residential area to prevent the area from hrther deterioration. A Code enforcement
officer was hired to help accomplish the effort to eliminate blight and to ensure safe neighborhood conditions in the eastside.
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Fund Balance
It is the City's goal to maintain an unreserved, undesignated fund balance in the General Fund and working capital balances in the Electric, Water and Sewer
enterprise funds of at least 15% of operating expenditures. This goal was achieved in fiscal year 1994-95.
Cash Management
The City has written investment policies that address a wide range of investments. These policies describe the City's investment objectives, investment
authority, allowable investment vehicles, maturity terms and eligible financial institutions. These policies describe the City's capital preservation and cash
management objectives. As provided in the policy, investments are intended to be held until maturity and investment terms are to be consistent with the City's
cash flow needs. Investment reports are issued monthly to the City Manager and City Council to provide detailed information regarding the City's investments
and compliance with City policy. An important objective of the City's investment policy is to achieve a reasonable rate of return on public funds while
minimizing risks and preserving capital. In evaluating the performance of the City's investment portfolio, investments are expected to yield a rate of return that
regularly meets or exceeds an average rate of return on a three-month U.S. Treasury Bill.
Appropriation Limitation
Article XI11 B of the Constitution of the State of California (Proposition 9) provides for the limitation of expenditures by state and local governments. Under
the provisions of this article, City appropriations funded through tax sources may not exceed Fiscal year 1979 appropriation levels except as adjusted for
increases in population and the cost of living. Excluded from the limitation are appropriations funded through charges for services, fines and forfeitures, grants,
transfers of service responsibilities between government agencies and indebtedness incurred prior to Fiscal Year 1979. Pursuant to subsequent legislation
adopted after Article XI11 B, the City is required to annually establish and adopt its appropriations limit by resolution. For 1994-95, the City's appropriations
subject to limit were $17,292,960 and the appropriation limit was $36,515,234, a favorable variance of $ 19,222,274.
Debt Administration
The ratio of net general bonded debt to assessed valuation and the amount of bonded debt per capita is useful indicators of the City's debt position to municipal
management, citizens and investors. This ratio for the fiscal year 1994-95 is:
Net Direct Bonded Debt
Percent of Net
Bonded Debt to Debt Per
Amount Assessed Ful 1 Cash Value CaDita $290,000 0.01 17% $5.30
At June 30, 1995, the City had outstanding general obligation bonds of $290,000, special assessment bonds of $160,000 and Certificates of Participation of
$10,174,023. These liabilities are discussed in Note 8 of the General Purpose Financial Statements.
The City's debt management policy includes a commitment to monitor all forms of debt annually during the preparation of the City's Financial Plan and Budget
to ensure compliance. Also, the City will generally conduct financing on a competitive basis and will seek an investment grade rating on any direct debt and
will obtain credit enhancements such as letters of credit or insurance when necessary for marketing purposes, availability and cost effectiveness.
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Interim Financial Reporting
Monthly financial reports are prepared to present the City’s financial condition and results of operation. These reports are organized using the “pyramid“
approach. As such, the highest level of summary data is presented first, followed by progressively greater levels of detail. The reports provide current period
and year to date revenues, expenditures and encumbrances for all activities and funds, including year to date estimates and variances.
Single Audit
The City is subject to financial and compliance reporting required by the Single Audit Act of 1984 which is a requirement of all local and state governments
receiving federal financial assistance. As part of the Single Audit, tests are made to determine the adequacy of internal controls, including that portion related to
federal financial assistance, as well as to determine that the City has complied with applicable laws and regulations governing federal funds. The result of the
City’s single audit for the fiscal year ended June 30, 1995, provided no instance of material weaknesses in the internal control structure or significant violations
of applicable laws and regulations.
Competitive Bidding Policy
All purchases for materials, equipment and services during 1994-95 were made pursuant to competitive bidding procedures as established under the City’s
purchasing ordinance. Contracts for construction projects were awarded pursuant to competitive bidding procedures established by the State of California for
projects in excess of $5,000.
Risk Management
The City is self-insured for dental care, chiropractic, worker’s compensation, general liability and unemployment insurance. General liability and worker’s
compensation are administered by an outside agency. Unemployment, chiropractic and dental care are administered by the City. Self-insurance transactions are
accounted for under the City’s Claims and Benefits Fund. At June 30,1995, the Claims and Benefits Fund had a deficit of $2,183,276. To correct this situation,
an actuary was hired to look at the City’s worker’s compensation liability and evaluate rates used to fund this program.
FINANCIAL HIGHLIGHTS
As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for effectively
managing the financial resources of the City.
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General Government Functions
The following table presents a summary of the general fund, special revenue funds, capital projects funds, expendable trust funds and debt service fund
revenues for the fiscal year ended June 30, 1995, and the amount of increases and decreases in relation to prior year revenues. As provided and discussed below,
revenues increased by $4,625,997 or 21.30 % over 1994.
REVENUES
1995 1994 Variance Variance
Taxes
Licenses and Permits
Intergovernmental Revenue
Charges for Services
Fines, Forfeitures and Penalties
Interest and Rental Income
Other Revenues
TOTAL
Amount 'YO of Total
$ 16,208,812 6 1.52%
633,961 2.41%
5,928,167 22.50%
405,8 18 1.54%
840,256 3.19%
20 1,696 0.76%
2,128,551 8.08%
$ 26,347,261 100.00% -
Amount 'YO of Total by Amount
$ 12,579,665 57.91% $ 3,629,147
127,43 1
4,756,564 2 1 .go% 1,171,603
2,099,832 9.67% 28,719
1,172,337 5.40% (332,081)
199,168 0.92% 2,528
$ 21,721,264 100.00% $ 4,625,997
506,530 2.33%
407,168 1.87% (1,350)
by Percent
28.85%
25.16%
24.63%
, 1.37%
-0.33%
-28.33%
1.27%
2 1.30%
1.
2.
3.
4.
Factors contributing to material changes in general government revenues from the prior year are provided below:
Taxes, Tax revenues increased by 28.85% or $3,629,147 in 1995 over 1994. The large increase was attributed to the franchise in lieu tax of
$4,160,000 from Electric, $609,000 from Sewer.and $53 1,400 from Water that were treated as contributions to the general fund and were
recorded as operating transfers in 1994. A decrease in property taxes of $682,529 and increase in accrued sales tax of $974,896 to fiscal year 1994
as a result of the implementation of GASB 22 (note 1) offset the increase.
Licenses and perm its, The increase of $127,43 1 occurred due to a rate increase in business licenses and an increase in construction activity, Business
license revenues increased by $77,376. The remaining increase was from fees for building permits, electrical permits, plumbing permits and mechanical
permits.
rdovernmental - revenue, The increase of $1,171,603 reflects a credit from the Public Employees Retirement System (PERS) of $553,476, an
increase in reimbursement earnings of $448,354 for projects financed by the Department of Housing and Urban Development and an increase of
allocation from the Transportation Development Fund (TDA) of $1363 19. The PERS'credit represents City fbnds paid into PERS that were
determined to be in excess of actuarial requirements.
Interest and rental income . The. decrease of $332,081 is the result of the decrease in acreage fees.
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Expenditures
The following table presents a summary of general fund, special revenue funds, capital project funds, expendable trust funds and debt service fund expenditures
for the fiscal year ended June 30,1995, and the increases and decreases in relation to prior year amounts. As discussed below, current expenditures grew
$909,447 or 3.65% in 1995 over 1994.
EXPENDITURES
Variance
Amount YO of Total Amount YO of Total by Amount by Percent
1995 1994 Variance
General Government $ 4,822,689 21.10% $ 4,907,807 21.97% $ (85,118) -1.73%
Public Protection 10,40 1,420 45.50% 9,949,056 44.53% 452,364 4.55%
Public Works 4,381,541 19.17% 4,296,220 19.23% 85,321 1.99%
Library 956,120 4.18% 88 1,274 3.94% 74,846 8.49%
$ 22,860,951 100.00% $ 22,341,714 100.00% $ 519,237 2.32%
Parks and Recreation 2,299,18 1 10.05% 2,307,357 10.33% (8,176) -0.35%
Capital Outlays
Debt Service
TOTAL
2,652,333
345,498
$ 25,858,782
2,202,46 1 449,872 20.43%
405,160 (59,662) -14.73%
$ 24,949,335 $ 909,447 ' 3.65%
Factors contributing to material changes in expenditures from the prior year include:
1. Public Protect ion. An increase of $452,364 in Public Protection is due to salary increases and reclassification of positions.
2 -a1 Outlay . An increase of $449,872 in Capital Outlay expenses can be attributed to the net effect of the City Hall remodel project of $1,208,95 1 and
a decrease overall in the various projects.
Enterprise Activities
Enterprise funds are used to finance and account for the acquisition, operation and maintenance of City facilities and services that are entirely or predominantly
supported by user charges. Enterprise operations are accounted for in such a manner as to show profit or loss as in comparable private enterprises. At June 30,
1995, the city operated five enterprise funds which include electric, sewer, water, Camp Hutchins (child care) and transit. Total fiscal year net income was
$2,512,946 with fund equity ending at $55,566,877. This represents a 7.24% increase over fiscal year 1993-94 in total fund equity. Additional enterprise fund
financial information can be found in Note 19 of the general purpose financial statements.
Internal Service Activities
Internal service funds are used to account foi financing goods or services provided by one department or agency to another on a cost reimbursement basis. At
June 30,1995, the city maintained two internal service funds, one for claims and benefits and one for the City equipment maintenance and motor pool. The total
fiscal year 1994-95 net operating loss before transfers was $1,324,687 with a retained deficit balance of $2,149,952. Additional information can be found in
Note 18 of the general purpose financial statements.
Fiduciary Fund Operations
The City maintains Expendable Trusts Funds to account for and administer bequests for the Hutchins Street Square and the Library. Agency Funds are used to
account for and administer the Deferred Compensation and Special Assessment finds.
INDEPENDENT AUDIT
The City Council requires an annual audit of the records and accounts of the City by an independent certified public accountant. The accounting firm of KPMG
Peat Marwick LLP was selected to perform this audit. The auditors' report precedes the general purpose financial statements and concludes that the City's
general purpose financial statements are presented fairly in all material respects in accordance with generally accepted accounting principles.
CERTIFICATE OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA) and the California Society of Municipal Society of Municipal Finance
Officers (CSMFO) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report
(CAFR) for the fiscal year ended June 30,1994. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest
standards for preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized CAFR, whose contents
conform to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the last two years (fiscal years ended
June 30, 1993 and 1994). We believe our current report continues to conform to the Certificate of Achievement program requirements and we are submitting it
to GFOA and CSMFO.
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ACKNOWLEDGMENTS
I would like to thank the staff of the Finance Department, in particular the Accounting staff whose professionalism, dedication and efficiency are responsible for
the timely preparation of this report. A special expression of appreciation goes to Ruby Paiste, Acting Accounting Manager and Coriene Wadlow, Acting
Accountant, whose support, encouragement and hard work enabled a smooth fiscal year-end closing.
I would also like to thank you for your interest and support in planning and conducting the financial operations of the City in a responsible and progressive
manner.
Respectfully submitted,
Vicky Mc Athie
Finance Director
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2WunicipaZ 3inance Officers
Certificate of Award
Y Presented to -
1993-94
%is certificate is issued in recognition of meeting pro$&mul standarh and criferiu in reporting which reflect CL high level of qualifp
in the annual financial statements and in he underlping accounting spstemfiom which he reports were prepared.
Certificate of
Achievement
for Excellence
in pinanciai
Reporting
Presented to
City of Lodi,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30,1994 ,
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A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
The Government Finance Officers Association of the United States and Canada (GFOA)
Certificate of Achievement for Excellence in Financial Reporting
President
- irec
The Government Finance officers Association of the United States and
Canada (GFOA) awarded a Certificate of Achievement for Excellence in
Financial Reporting to the City of Lodi for its comprehensive annual financial
report for the fiscal year ended June 30,1994. The Certificate of Achievement
is a prestigious national award recognizing conformance with the highest
standards for preparation of state and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must
publish an easily readable and efficiently organized comprehensive annual
financial report, whose contents conform to program standards. Such
reports must satis9 both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. 1994 was
the second year that the City of Lodi received a Certificate of Achievement.
We believe our current report continues to conform to the program
requirements, and we are submitting it to GFOA.
!B
I
I
-p1
iB
IB
~- .. ...... .. .... ............................ ..... - ^I-,....-....-..-......-..--'
DIRECTORY OF OFFICIALS AND ADVISORY BODIES
CITY COUNCIL
Stephen J. Mann
David Warner
Ray G. Davenport
Phillip Pennino
Jack A. Sieglock
ADVISORY BODIES
Library Systems Advisory Board
Council of Governments (COG) Citizens Advisory Committee
Lodi Solid Waste Management Task Force
Lodi Ad Hoc Transportation Committee
Site Plan and Architectural Review Committee
Old Lodi Union High School Site Foundation Board
Lodi Senior Citizen’s Commission
PRINCIPAL ADMINISTRATIVE OFFICERS
Thomas A. Peterson
Jerry Glenn
Bob Mc Natt
Jennifer M. Perrin
Kathleen Andrade
H. Dixon Flynn
Hank Howard
Charlene Lange
Joanne Narloch
Jack Ronsko
Henry Rice
James Sch’roeder
Larry Hansen
Ron Williamson
Mayor
Mayor Pro Temp
Council Member
Council Member
Council Member
Library Board
Planning Commission
Recreation Commission
Lodi Arts Commission
Personnel Board of Review
East Side Task Force
Gang Task Force
City Manager
Assistant City Manager
City Attorney
City Clerk
Librarian
Finance Directorflreasurer
Fire Chief
Community Center Director
Personnel Director
Public Works Director
Electric Utility Director
Community Development Director
Police Chief
Parks & Recreation Director
kbh&Peat Marwick LLP
400 Capitol Mall
Sacramento, CA 95814
Independent Auditors' Report
The Honorable Members of City Council
We have audited the general purpose financial statements of the City of Lodi, California, as of and for the year ended June 30, 1995, as listed in
the accompanying table of contents. These general purpose financial statements are the responsibility of the management of the City of Lodi,
California. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for
our opinion.
City of Lodi, California:
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City
of Lodi, California, as of June 30, 1995, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in
conformity with generally accepted accounting principles.
As further described in the notes to the general purpose financial statements, the City adopted the provisions of the Governmental Accounting
Standards Board (GASB) Statement No. 22, Accounting for Taxpayer-Assessed Tax Revenues in Governmental Funds (note 1).
In accordance with Government Accounting Stundurds, we have also issued a report dated October 13, 1995, on our consideration of the City's
internal control structure and a report dated October 13, 1995, on its compliance with laws and regulations.
Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The accompanying
supplemental financial statements and Schedule of Federal Financial Assistance listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Lodi, California. Such
information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is
fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. The information contained in the
statistical section has not been subjected to the auditing procedures applied in the examination of the general purpose financial statements and,
accordingly, we express no opinion thereon.
October 13,1995
Assets and Other Debih
Cash and investments (note 3)
Receivables:
Accounts
Property taxes (note 4)
Special assessments
Water loan (note 5)
Interest
Due from other funds or
governmental agencies (note 9)
Inventory
Deferred financing costs
Other assets
Fixed assets (note 6)
Other debits:
Amount to be provided for general
Amounts available in debt service
Total assets and other debits
long-term debt obligations
CITY OF LODl
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
June 30,1995
Fiduciary
Governmental Fund Type Proprietary Fund Type Fund Type
Special Debt Capital Internal Trust and
General Revenue Service Projects Enterprise Service Agency
$ 3,885,767 5,488,397 260,298 3,795,720 13,967,908 1,616,925 12,274,104
1,196,904 459,030 123.666 2,775,259 188 152
26,359 2.181 4,651
35,000
3,936,191
67,170 53.807 535 42,857 212,530 27,802 3,171
59,631 245,443
33.650
8,235
166,562 681,463 11,033
967,966 75,047
252,264
2,345 641
50,019,525 131 ,I 92
$, 5,277,916 6,246,677 , 298,014 4,133,678 I , 73,015,451 . 1,862,187 12,276,348
(continued on next page)
Account Groups
General General
Fixed Long-Term Total
Assets Obligations (Memorandum Only)
45,505,527
$ 41,289,199
4,555,401
33,191
35,000
3,936,191
407,872
1,364,352
1.076,663
252,264
11,421
95,656,244
4.552.805 4,552,805 ..
263,014 263,014
45,505,527 4,815,619 $ 153,433,617
--9
See accompanying notes to general purpose financial statements. 2
g-3 rri
Liabilities:
Accounts payable and other liabilities
Accrued salarles and wages
Accrued interest
Due to other funds (note 9)
Accrued compensated absences (note 8)
Deferred compensatlon benefits payable (note 13)
Deferred revenue
Self-insurance reserve (notes 15 and 17)
Capitalized lease obligations (note 8)
Certificates of participatlon payable,
net of discount (note 8)
Water loan payable (note 5)
General obligation bonds payable (note 8)
Special assessment district bonds payable,
with governmental commitment (note 8)
Total liabllitles
Fund Equity :
Contributed capital (notes 10 and 20)
Investment In general fixed assets
Retained eamlngs (deficit) (notes 10 and 18)
Fund balances: (note 10)
Reserved for library
Reserved for encumbrances
Reserved for inventory
Unreserved-designated
Unreserved
Total fund equity (deficit) and other credits
Commitments and contingent llabllities
(notes 7,17and 21)
Total liabilities. fund equity and other credits
CITY OF LODI
COMBINED BALANCE SHEET -ALL FUND TYPES AND ACCOUNT GROUPS -continued
June 30,1995
Fiduciary
Governmental Fund Type Proprietary Fund Type Fund Type Account Groups
Special Debt Capital Internal Trust and Flxed Long-Term Total
General General
General Revenue Service Projects Enterprise Service Agency Assets Obligations (Memorandum Only)
$ 477,969 253,713
507,506 119
161,640
300,000
35.000
28,306 890,702 95,760 392,259
158,373 9,256
358,684
173,003 164,278 11,033
930,266
16,248
11,519,999
3,764,898
1,285,475 41 5,472 35,000 201,309
242,795
159,438 165,792 470,937
33.850
16,385 5,665,413 263,014 3,461,432
10,174,023
4,758,000
17,448.574 3,880,947
1,299,212 131,192
54,267,665 (2,149,952)
11,912,258
366.090
$.
4,068,678
299,141
2,138,709
673,254
358,684
509,954
5,296,944
11,519,999
51,248
3.764,898
299.141
10,174,023
4,758,000
2 9 0,O 0 0 290.000
160,000 180,000
4,815,819 39,994,854
45,505,527
1,430,404
45,505,527
52,117,713
242,795
796,185
33,650
9,772.334
3,540,175 3,540,175
11 3,438,763 3,992,441 5,831,205 263,014 3,932,369 55,566,877 (2,018,760) 366,090 45,505,527
$, 5,277,916 6246,677 . 298,014 4,133,678 , 73,015,451 -1,862,187 12,278,348 ~ 45,505,527 4,815,819- $ 153,433,817
4 , F
3 See accompanying notes to general putpose financial statements.
CITY OF LODl
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
Year ended June 30,1995
Revenues:
Taxes
Licenses end permils
Intergovernmental revenues
Charges for services
Fines, forfeits end penalties
Interest and renlal income
Miscellaneous revenue
Tolal revenues
Expenditures:
Current:
General government
Public protection
Public works
Library
Perks and recreelion
Capital oulley
Debt service:
Interest end fiscal charges
Principal payments
. Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Olher financing sources (uses): ,
Operating transfers in (nole 11)
Operating lrensfers out (note 11)
Capital lease proceeds
Tolal olher financing sources (Uses)
Excess (deficiency) of revenues and other financing sources
over (under) expendilures and other financing uses
Fund balance. June 30, 1994, es reslated (nole 1)
Fund balance. June 30,1995
General
8 14,952,724
633,961
2,752,171
421,745
405.818
393.118
130,710
19,690,247
Governmental Fund Type
Special Deb1 Capilel
Revenue Service Projecls
468.435 176,539 611,114
3,175,996
463,554 1,243,252
239.565 2,512 172.860
70,986
4,418,536 179,051 2,027.226
, 4,822,669
10,274,500 126,920
3,628,448 753,093
956,120
2,299.181
148,148 676,232 1,827,953
35,498
310.000
22.129.086 1,556,245 345,498 1,827,953
(2,438,839) 2,862,291 (166,447) 199,273
3,779.891 2,086,547 174,933 2,534,074
(1,536,326) (3,614.81 3) (2.566,2W
148.148
2,391,713 (1,528,266) 174,933 (32,126)
Sea accompanying not- 10 general purpose financial statements. ~
(47,126) 1,334,025 8,466 167,147
4,039,567 4,497,180 254,528 3,765,222
$ 3,992,441 5.831.205 263,014 3,932,369
Fiduciary
Fund Type
Expendable
Trust
32,201
32,201
32,201
(4,348)
27,853
338.237
368,090
P
Told
(Memorandum Only
$ 16,208,812
633,961
5,928,167
2,128.551
405,818
840.256
201,696
26,347,261
4,822,689
10,401,420
4,381,541
956,120
2,299,181
2,652,333
35,498
310,Mx)
25,858,782
488,479
8,576,047
(7,722,289)
148,148
l,M)1,906
1,490,385
12,894,734
$ 14,385.119
4
CITY OF LODl
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
Year ended June 30,1995
BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUNDS
Tolal (Memorandum Only)
Variance
Revised Favorable
Budgel Actual (Unfavorable)
Special Revenue Funds
Variance
Revised Favorable
Budge1 Aclual (Unfavorable)
507,200 468,435 (38,765)
General Fund
Variance
Revised Favorable
Budget Aclual (Unfavorable)
$ 14,956,900 14,952,724 (4,176)
Revenbas:
Taxes
Licenses and permits
lnlergovernmenlal revenues
Charges for services
Fines, forfells end penallies
lnleresl and renlal income
Miscellaneous revenue
Total revenue
15,464,100 15,421,159 $ (42,941)
445,600 633,961 188,361
5,518,277 5,928,167 409,890
1,238,031 885.299 (350,732)
380,400 405,818 25,418
801,750 632,683 (169.087)
445,600
2,092.000
718.031
380.400
680,500
188,361
660,171
(296.286)
25,418
(287,382)
(I 19,590)
166,516
633,961
2,752,171
421,745
405,818
393,118
130,710
19,690,247
3,426,277 3,175,996 (250,281)
518.000 463,554 (54,446)
121,250 239,565 118,315
70.986 70,986
4,572,727 4,418,538 , (154,191)
250,300 201.696 (48.604)
12,325 24.096.458 24,108,783
250,300
19,523.731
Expendilures:
Cunenl:
General government
Public proleclion
Public works
librery
Parks and recreation
Capilal oullay
Tolal expenditures
5,048,055
10,444,526
3,835,461
1,015,878
2,443,312
4,822,689
10,274,500
3.628.448
956,120
2,299,181
225,366
170,026
207,013
59.758
144,131
5,048,055 4,822.689 225,365
10,509,919 10,401,420 188.499
5,122,423 4,381,541 740.882
1,015,878 956,120 59,758
2,443,312 2,299,181 144.131
145,393 126,920 18,473
1,286,962 753,093 533.869
4,468,363 824,380 3,643,983
28.687.950 23.685.331 5,002,619
676.232 3,643,983 4,320,215
5,752,570 1,556,245 4,195,325
148,148
22,129,086
148,148
22,935,380 806.294
972,810 (2,438,839) (1,179.843) 2,862,291 4,042,134 (4,591,492) 423,452 5,014,944 Excess (deficiency) of revenues over (under) expendilures (3.41 1.649)
Other finenclng sourc~s (uses):
Operaling tenders In
Operaling transfers oul
Capilal lease proceeds
Total olher financing sources (uses)
5,866,438 5,866,438
(5,151,139) (5,151,139)
148.148 148,148
863,447 663.447
2,086,547 2,086,547
(3,614,813) (3,614,813)
(1,528.266) (1,528,266)
3,779.891
(1,536,326)
148,148
2,391,713
3,779,891
(1,536,326)
148,148
2,391,713
Excess (deficiency) of revenues and olher
financing sources over (under) expandilures
and olher financing uses
Fund balance. June 30, 1994, as restated (note I)
(I ,019,936) (47,126) 972,810 (2,708,109) 1,334,025 4,042,134 (3,728.045) 1,286,899 5,014,944
4,039.567 4,039,567 4,497,180 4,497.180 8,526,747 8,536,747
3,019,631, 3,992,441 972,810 1,789,071 5,831,205 4,042,134 4,808.702 9,823,646 $ 5,014.944 $- - - 4. Fund balance, June 30,1995
See scmmpsnying mtu 10 general purpose financial statemen& 5
m ~rn~rnm~~rnrnrnwm~~~m
CITY OF LODl
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY
ALL PROPRIETARY FUND NPES
Year ended June 30,1995
Operaling revenues:
Charges for services
Operaling expenses:
Personal servicas
Supplies, materials end services
Utilities
Deprecialion and amortization
Claims payments
Total operating expenses
Enterprise
$ 40,587,961
4,956,725
7,558.144
1,584,055
38.920.658
24,841,734
Operaling income (loss) 1,667,303
Nonoperating revenues (expenses):
Sewer bond lexes
Interest revenue (expenses), net
Rent
Olher, net
Total nonoperaling revenues
186,361
73,312
164,267
2,122,320
2,546,260
Income (loss) before operatin@ lransfers 4,213,563
Operating transfers in (nole 11)
Operating Iransfers out (note 11)
Tolal operating transfers
1,594,830
(3,295,447)
(1,700,617)
Net income (loss) 2,512,946
Add: Depreclalion on contributed essels
Net increase (decrease) to relained earnings 2,626,491 ,
Relained earnings (deficit), June 30,1994, as resletad (nole 1)
Retained earnings (deficit), June 30,1995
Contributed capital, June 30, 1994, as reslaled (nole 20)
Deprecielion on canlributed essels
Conlribuled cspilal, June 30, 1995
113,545
51,641,173
54,267,665
1,079,002
(1 13,545)
1,299,212
t 55,566,877
Conbibuled assets 333,755
Total fund aquily (deficit), June 30, 1995 (nole 18)
Internal
servica
3.443,428
586,703
3,741,323
479
15.822
590,259
4,934.586
(I ,491,158)
91.621
74,850
166,471
(1,324,687)
846.860
846.860
(477~)
15,822
(462.005)
(1,687,947)
(2,149,952)
151,677
(15,822)
(4,663)
131,192
(2,018,760)
I_
Tola1
(Memorandum Only)
$ 44,031.389
5,543,428
I 1,299.467
24,842,213
1,579,877
590,259
43.855.244
176.145
186,361
164,933
164,267
2,197,170
2,712,731
2,441,690
(3,295,447)
(853,757)
2,035,119
129.367
2,164.486
49,953,226
52,117,713
1,230,679
(1 29,367)
329,092
1,430,404
$ 53,548,117
6 See accompanying not- to general purpose financial statements.
CITY OF LODl
COMBINED STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPES
Year ended June 30,1995
Cash flows from operatlng actlvitles:
Operatlng Income (loss):
Adjustments to reconcile operating Income (loss) to
Depreclallon and amortlratlon
Changes In assets and Ilablitlles:
net cash provlded by (used In) operating activities:
Decrease In water loan recelvable
Increase In accounts recelvable
Decrease In property taxes receivable
Increase In Interest recelvable
(Increase) decrease In due from other funds
Decrease (Increase) In Inventory
Decrease In other assets
(Decrease) Increase In accounts payable and other llabilitles
Increase in accrued salaries and wages
Decrease In awed Interest
Decrease In due to other funds
Increase in accrued compensated absences
Increase In deferred revenue
Decrease In self-Insurance reserve
Net cash provlded by (used In) operating actlvtles
Enterprise
$ 1,667,303
1,564,055
41,082
(226,637)
34,926
(53,600)
(340,350)
654,046
33,483
(147,720)
39,234
(3,728)
(44,640)
79.938
16,248
3,313,640
Cash flows from noncapnal flnanclng activities:
Operatlng transfers In 1,594,830
Operatlng lransfers out (3,295,447)
Other cash flows from noncapital activitles 2.357.000
656,383 Net cash (used in) provlded by non-capftal flnanclng actlvitles
Cash flows from capital flnancing actlvitles:
Aqulstion and constructlon of captal assets (net) (2,648,650)
(110,~)
Interest payments - Certlflcates of Partlclpationtwater loan (735,620)
Sewer bond taxes-general obligation bonds 186.361
Capltal contributed 326,434
(2,981,475)
Princlpal payments - Certlflcates of Partlclpatlon long-term
Net cash used In CapHal flnanclng actlvitles
Cash flows from Investing acllvities:
Rent of CHy properly
Interest on Investments
Net cash provlded by Investing actlvitles
164,262
808,932
973.194
Net Increase In cash and cash equivalents 1,961,742
Cash and cash equivalents at beglnning of year . 12,006,166
Cash end cash equivalents at end of year 8 13,967,908
Internal
SeNh
(1,491.158)
15,822
(63)
(2,571)
10,976
(21,148)
28.732
338
(1 0,976)
(44,635)
(1,514,683)-
846,860
74,850
921.710
91,621
91,621
(501,352)
2,118,277
1,616,925
L
Total
(Memorandum Only)
$ 176,145
1,579,877
41,082
(226,700)
34,926
(56,171)
(329.374)
632,898
33,483
(118,988)
39,572
(3,728)
(55,616)
79,938
16,248
(44,635)-
1,798,957
2,441,690
(3.295.447) .-
2,431 ;a50
1,578.093
(2,648,650)
(735,620)
186,361
(1 10,000)
326,434
(2,981.475)
164,262
900,553
1,064,815
1,460,390
14,124,443
$ 15.584.833
CITY OF LODI
Notes to General Purpose Financial Statements .
June 30, 1995
(1) Sumniary of Significant Accounting Policies
The City of Lodi (City) was incorporated on December 6, 1906, as a municipal corporation under the General Laws of the State of California. The City
operates under a CounciEManager form of government and provides the following services: general government, public works, public protection
(police and fire), library, parks and recreation.
The accounting policies of the City conform to generally accepted accounting principles (GAAP) as applicable to governments. The Governmental
Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles.
The following is a summary of the more significant policies:
(a) Reporting Entity
The City of Lodi is governed by an elected five member council. As required by GAAP, these financial statements present the City and its component unit,
an entity for which the City is considered to be financially accountable. The component unit, although a legally separate entity, is, in substance, part of the
City's operations and therefore, its activities are blended with data of the City. The City has no discretely presented component units, which would be
reported in a separate column in the accompanying combined financial statements.
The blended component unit of the City is as follows:
The Lodi Public Improvement Corporation (LPIC) was formed on April 26, 1988 for the purpose of rendering financial
assistance to the City in the issuance of the 1988 Certificates of Participation (refunded by the issuance of the 1991 Certificates
of Participation) to finance the expansion of the City's White Slough Pollution Control Facility. The City Council constitutes
the Board of Directors of LPIC. The funds of LPIC have been included in the Enterprise (Sewer) find in the accompanying general purpose
financial statements.
(b) Basis of Presentation - Fund Accounting
The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The
operations of each fund are accounted for in a separate set of self-balancing accounts that comprise its assets, liabilities, find equity, revenues and
expenditures or expenses as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for
which they are to be spent and the means by which spending activity are controlled. The various funds are summarized by type in the general
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
purpose financial statements. The following fund types and account groups are used by the City:
Governmental Fund TvDea
Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use and balances of the City's
expendable financial resources and the related liabilities (except those accounted for in proprietary funds) are accounted for through governmental
funds. The measurement focus is upon determination of and changes in financial position, rather than upon net income determination. The following are
the City's governmental fund types:
General Fund :
resources except those required to be accounted for in another fund.
The General Fund is the general operating fund of the City. It is used to account for all financial
Special Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources
(other than expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes.
Debt Serv ice Fund: The Debt Service Fund is used to account for the accumulation of resources for, and the payment
of, general long-term debt principal, interest and related costs,
Capital Pro iects Funds: The Capital Projects Funds are used to account for financial resources to be used for the acquisition
or construction of major capital facilities (other than those financed by proprietary funds and trust funds).
Proprietarv Fund TvDes
Proprietary Funds are used to account for the City's on-going organizations and activities which are similar to those often found in the private sector. The
measurement focus is upon determination of net income and capital maintenance. The following are the City's proprietary fund types:
Enterprise Funds: Enterprise Funds are used to account for operations that are (a) financed and operated in a manner
similar to private business enterprises - where the intent is that the costs (expenses, including depreciation) of providing
goods or services to the general public on a continuing basis be financed or recovered primarily through user charges;
or (b) where the governing body has decided that periodic determination of revenues. earned, expenses incurred, andlor
net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.
Enterprise funds have been established for Camp Hutchins and the Electric, Water, Sewer and Transit Divisions of the City.
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
Internal Service Funds: Internal Service Funds are used to account for the financing of goods or services provided by
one department or agency to other departments or agencies of the City or to other governmental units, on a cost-reimbursement
basis. Internal Service Funds have been established for the City's Claims and Benefits and Equipment Maintenance and Motor Pool.
Fiduciary Fu nd Types
Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other
governmental units and/or other funds.
Ayencv Funds: Agency funds are usedprincipally to account for collection of bond proceeds with no governmental
obligation and payment of related bond principal and interest. Agency funds are custodial in nature and do not involve
measurement of results of operations.
F- n : Expendable Trust Funds are used primarily to account for hnds held by the governmental
unit in a trustee capacity for individuals, private organizations, other governmental units and/or other funds. Expendable
trust funds are accounted for in essentially the same manner as governmental funds.
Account Grouas
Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term debt. The following are
the City's account groups:
General F ixed Assets Acco unt Group: This account group is established to account for fixed assets of the City,
other than those accounted for in the proprietary funds.
GeneralLo nP-Term - Debt Account Group: This account group is established to account for all long-term
obligations of the City except those accounted for in the proprietary funds.
(c) Basis ofAccounting
Governmental fund types are accounted for by using the modified accrual basis of accounting and the flow of current financial resources measurement focus.
Revenues are recorded when they become both measurable and available. Revenues not considered available are recorded as deferred revenues.
Expenditures are recorded when the liability is incurred, except for (a) unmatured interest on general long-term obligations which are recorded when due;
10
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June30, 1995 ’
and (b) the noncurrent portion of accrued vacation and sick leave, which is recorded in the General Long-term Debt Account Group,
In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual funds are
used as guidelines. There are, however, essentially two types of revenues. In one, moneys must be expended on the specific purpose or project
before any amounts will be paid to the City; therefore, revenues are recognized based upon the expenditures incurred. In the other, moneys are virtually
unrestricted as to purpose of expenditure and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are
reflected as revenues at the time of receipt or earlier if the susceptible to accrual criteria are met.
Property taxes are recognized as revenue in the year for which taxes have been levied, provided they are collected within 60 days after year end, Special
assessments are recorded as revenue in the year the individual installments are due.
The City has adopted the provisions of GASB Statement No. 22 (GASB 22) Accounting for Taxpayer Assessed Tax Revenues in Governmental Funds as it
relates to sales tax revenues collected by the State on behalf of the City. Under this new standard, sales tax revenues are recorded using the modified accrual
basis of accounting, Prior to adoption of GASB 22, sales tax revenues were accounted for as received. The cumulative effect of applying this Statement
has been reported retroactively as a restatement of fund balance at June 30, 1994 in the accompanying financial statements in the amount of $974,896.
Licenses and permits, charges for services, fines and forfeitures and miscellaneous revenues (except investment earnings) are recorded as revenues when
received in cash since they are generally not measurable until actually received. Investment earnings are recorded as earned since they are measurable and
available.
Proprietary fund types are accounted for by using the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized
when the liability is incurred. Unbilled service revenue is accrued in proprietary funds.
Fiduciary find types are accounted for according to the nature of the fund. The City has Agency type funds which are purely custodial in nature
(assets equal liabilities) and thus do not involve measurement of results of operations. In addition, the City has Expendable Trust funds which are
accounted for in the same manner as are other governmental funds. All of these funds are accounted for on the. modified accrual basis of accounting.
(d) Government Accounting Standards Board Statement No. 20 (GASB 20)
The City has elected under GASB 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary
Fund Accounting, to not apply all Financial Accounting Standards Board (FASB) Statements and Interpretations issued after November 30, 1989. As
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
required under GASB 20, the City will continue to apply all applicable GASB pronouncements as well as Statements of Interpretations of FASB, Accounting
Principles Board (APB) Opinions and Accounting Research Bulletins (ARBS) of the Committee on Accounting Procedure issued on or before November 30,
1989, unless those pronouncements conflict or contradict GASB pronouncements.
(e) Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of funds are recorded to reserve that
portion of the applicable appropriation, is employed in the governmental funds. Open encumbrances are reported as reservations of fund balances since
the commitments will be honored through subsequent years' budget appropriations. Amounts encumbered at year-end are reappropriated in the
following year. Encumbrances do not constitute expenditures or liabilities.
(0 Cash and Investments
The City maintains a cash and investment pool that is available for all finds of the City for the purpose of increasing interest earnings through investment
activities. Each fund's portion of this pool is shown on the combined balance sheet as "cash and investments". Interest earned on the pooled investments is
allocated to various funds based on quarter end cash balances in accordance with California code section 53647. Investments are stated at cost or
amortized cost (which approximates market) with the exception of deferred compensation investments which are recorded at market.
(g) Inventory
General fund inventories are recorded at cost and expensed when consumed rather than when purchased. For the Proprietary fund types, inventories are
recorded at cost using a method which approximates first in first out (FIFO) and expense is recognized when inventories are consumed in operations.
(h) General Fixed Assets
General fixed assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the General Fixed Assets Account
Group. Capital leases for buildings, improvements and equipment are recorded in the General Fixed Asset Account Group and capital lease payable is
recorded in the General Long-term Debt Account Group. Contributed fixed assets are recorded at estimated fair market value at the time received. The costs
of normal maintenance and repairs that do not add to the value of the asset or materially extend asset useful lives are not capitalized.
Improvements considered to be infrastructure such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not
capitalized as these assets are normally immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is
12
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
satisfied without recording these assets. Depreciation has not been provided on general fixed assets, nor has interest been capitalized.
(i) Fixed Assets - Proprietary Fund Types
Fixed assets owned by the Proprietary Funds are stated at cost. Contributed fixed assets are recorded at estimated fair market value at the time received.
Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows:
Buildings and improvements
Machinery and equipment
Vehicles .
Years
3 -40
2-40
5- 15
Depreciation recognized on contributed fixed assets is charged to contributed capital.
(j) Compensated AbsencesNacation and Sick Leave
Noncurrent accumulated vacation and vested sick leave benefits for governmental funds are recorded in the General Long-Term Debt Account Group as a
liability and also as an amount to be provided by future operations. The amount to be provided by future operations represents the total amount that would
be required to be provided from the general operating revenues of the City if all the benefits were to be paid. The current portion, the amount expected to
be paid in the next twelve months, is recorded as a liability of the responsible governmental fbnd.
Enterprise Funds record vacation and sick leave as an expense and liability when earned by employees.
(k) Self-Insurance
The City is self-insured for general liability, workers' compensation, dental benefits, chiropractic, unemployment and long-term disability. Various City
funds are charged premiums for the City's self-insurance reserve, which is accounted for as an internal service fund. The accrued liability for estimated self
insured claims represents an estimate of the eventual loss on claims arising prior to year end including claims incurred but not reported.
13
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
(1) Total (Memorandum Only) Columns
Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data
in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Such
data are not comparable to a consolidation since interfind eliminations have not been made.
(m) Statement of Cash Flows
For purposes of reporting cash flows, the City considers all highly liquid investments (including restricted assets) with a maturity of three months or less
when purchased and investments maintained in the pool to be cash equivalents.
(n) Reclassifications
Certain 1994 amounts have been reclassified to conform to the financial statement presentation for the 1995 fiscal year.
The City has determined that fees collected and remitted for refiise services (Sanitation) to the refuse contractor are more appropriately reported
as net franchise fee revenue ihstead of gross revenue and expenditure of the City. Accordingly, revenue and expenditures, and related accounts receivable
and accounts payable balances, have been reduced for the prior year to match the current year's presentation.
The annual contributions from the Electric, Sewer and Water Funds to the General Fund were budgeted and recorded as in-lieu taxes in the current year.
These contributions were recorded as operating transfers in the prior year.
(0) Fund Equity Restatement
Certain operations of the City have been reclassified between finds through residual equity transfers. The 1994 fiscal year operating statements of these
funds have been restated in the accompanying general purpose financial statement to conform to the 1995 fiscal year presentation. The effect on the fund
balance and retained earnings at June 30, 1994 are as follows:
4
14
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
Fund balanceshetained earnings at June 30, 1994,
as previously reported
Residual equity transfers: - from Gas Tax Fund
to Streets Fund - from Development Impact Mitigation Fund
to Streets, Capital Outlay Reserve, Sewer and
Water Funds
to Streets Fund
to Streets and Transit Funds
- from Master Storm Drain Fund
- from Transportation Fund
Total transfers
Fund balanceshetained earnings at June 30, 1994,
as restated
Special Revenue
Fund
Capital Projects
Fund
$ 5,243,730
(1,008,460)
1,008,460
(2,413 1,640)
1,348,201
869,190
(1,672,286)
1,189,985
$ (746,550)
$ 4,497,180
Enterprise
Fund '
$ 3,620,854 $51,038,990
1,013,558
(869,190)
144,368 $
119,883
482,300
$ 602,183
$ 3,765,222 $51,641,173
Operations of the Gas tax Fund previously reported in the Special Revenue Fund are reported as activities of the Streets Special Revenue Fund.
Operations of the Development Impact Mitigation Fees Fund previously reported in the Special Revenue Fund are reported as activities of the Streets Special
Revenue Fund, Capital Outlay Reserve Capital Projects Fund, and Sewer and Water Enterprise Funds.
Operations of the Master Storm Drain Fund previously reported in the Capital Projects Fund are reported as activities of the Streets Special Revenue Fund.
Certain operations of the Transportation fund previously reported in the Special Revenue Fund are reported as activities of the Streets Special Revenue Fund
are reported as activities of the Streets Special Revenue Fund and Transit Enterprise .
15
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
(2) Budgetary Data
The City adopts an annual budget for the general and special revenue funds. These budgets are prepared on a generally accepted accounting principles
basis. As part of the City's internal control structure, the City maintains budgetary controls. The objective of these budgetary controls is to ensure
compliance with the legal provisions embodied in the annual appropriated budget approved by the City Council. The accompanying financial statements
present budget and actual data only of finds for which an annual budget was adopted. The budgets of capital projects are primarily "long-term" budgets
which emphasize the major programs and capital project plans extending over a number of years. Due to the long-term nature of these projects, "annual"
budget and actual comparisons are not considered meaningful. Formal budgetary integration is not employed for Debt Service Funds since effective
budgetary control is alternatively achieved through the bond indenture provisions. Accordingly, no budgetary information is included in the accompanying
general purpose financial statements for capital project and debt service funds.
The City Council follows the following procedures in establishing the budgetary data reflected in the accompanying general purpose financial statements:
On or prior to the first regular Council meeting in June of each year, the City Manager submits to the City Council a proposed Financial Plan and
Budget for the fiscal year commencing July 1. The budget includes proposed expenditures and the means of financing them.
Public hearings are conducted during meetings of the City Council to obtain citizens' comments.
Prior to July 1 , the budget is legally enacted through passage of an ordinance.
Budgeted revenues are adopted by the City Council at the time the budget is approved. Budgeted revenues are modified when the tax base changes,
when fees are modified or when new revenue sources are identified.
Budgeted expenditures represent original appropriations adjusted by budget transfers and appropriation amendments. The legal level of budgetary
control (that is, the level at which expenditures can not legally exceed the appropriated amount) is at the department level. The operating budget
is prepared and controlled at the department level (e.g., city clerk, city manager, etc.) for the General Fund. Special revenue fund expenditures,
including transfers out, are approved by Council at the fund level. The City Manager may transfer appropriations from one activity to
another within a department without approval from the City Council. All other appropriation adjustments during the year, whether transfers,
increases or decreases, require City Council approval.
Appropriations lapse at the close of the fiscal year to the extent that they have not been expended or encumbered.
16
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
(3) Cash and Investments
The following is a detail summary of cash and investments at June 30, 1995:
Pooled cash and investments:
Demand deposits
Certificates of deposit
Investments
Total pooled cash and investments
Deferred compensation:
Pooled investments
Library Private Sector Fund:
Shares of stocks
$ 6,380,880
1,889,000
21,442,235
29,712,115
11,519,999
57,085
Total cash and investments $ 41,289,199
(a) Cash
The City's Ldmand deposits and certificates of deposit at year end are covered by either federal depository insurance or by collateral ..eld by the
custodial bank. Collateral pool of the custodial bank is equal to 110% of the uninsured deposits.
(b) Investments
The City has adopted an investment policy pursuant to Government Code Section 53601 which authorizes the City to invest in obligations of the U.S.
Treasury, agencies and instrumentalities, commercial paper rated A- 1 by Standard & Poor's or P- 1 by Moody's Commercial Paper Record, bankers'
acceptances, repurchase agreements, mutual funds and the State of California Local Agency Investment Fund (LAIF). The City is also authorized to enter
into reverse repurchase agreements. The deferred compensation plan funds are also authorized to be invested in corporate bonds rated AA or better by
Moody's Bond Ratings or AA or better by Standard and Poor's. The City selects its investments based on safety, liquidity and yield. At no time during
the year did the City borrow funds through the use of reverse repurchase agreements.
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
(c) Custodial Credit Risk, Carrying Amount and Market Value of Cash and Investments
In accordance with GASB 3, cash and investments are classified as to custodial credit risk by three categories as follows:
Category 1
Insured or collateralized with securities held by the City or by its agent in the City's name; .
Category 2
Collateralized with securities held by the pledging financial institution's trust department or agent in the City's name;
Category 3
Uncollateralized. (Includes any bank balance that is collateralized with securities held by the pledging financial
institution, or by its trust department or agent but not in the City's name.)
Jnves tmen ts;
Category 1
Insured or registered, or securities held by the City or its agent in the City's name;
Category 2
Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name;
Category 3
Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the City's name.
I8
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
Cash and investments of the City as of June 30, 1995 are summarized below:
Deposits:
Demand deposits
Certificates of deposit
Total deposits
Category Not Subject Carrying Market
1 2 3 to Categorization Amount Value
$ 300,000 6,080,880 6,380,880 $ 6,380,880
1,290,000 1,889,000 1,889,000
8,269,880 8,269,880
599,000
899,000 7,370,880
Pooled investments:
U.S. Treasury Notes 2,987,634 2,987,634 2,966,880
Federal Agency Issues
Federal Home Loan Mortgage 999,844 999,844 997,500
State of California
Local Agency Investment Fund (LAIF) 17,454,757 17,454,757 17,454,757
Total pooled investments 3,987,478 17,454,757 21,442,235 21,419,137
Deferred compensation
Investments held in trust:
Shares of stocks
11,519,999 11,519,999 11,519,999
57,085 57,085 181,031
Total cash and investments $ 4,943,563 7,370,880 28,974,756 41,289,199 $ 41,390,047
The risk level indicated above is generally reflective of the risk assumed by the City during the year ended June 30, 1995.
The LAIF is a special fund of the California State Treasury through which local governments pool investments. Each governmental agency may
invest up to $20,000,000 per account in LAIF. The City maintains two LAIF accounts. Investments in LAIF are highly liquid, as deposits can be
converted into cash within twenty hours without loss of interest. Investments in LAIF are secured by the full faith and credit of the State of California.
Information is not available to the City to assess the amount of LAIF and deferred compensation invested by trustees in derivatives.
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
(4) Property Taxes
San Joaquin County is responsible for assessing, collecting and distributing property taxes in accordance with enabling legislation. Revenue received is
based on an allocation factor calculated by the County under the provisions of Proposition 13 plus a percentage of the increase in market value in
specific areas. The City's property tax is liened based on the assessed value listed as of the prior March 1st for all real and personal property located in the
City. Property sold after the assessment date (March 1st) is reassessed and the amount of property tax assessed is prorated. The assessed value at
March 1, 1994, upon which the 1995 levy was based, was $2,471,754,000.
Secured property taxes are levied on October 1 and are due in two installments on November 1 and February 1. The tax becomes delinquent on
December 10 and April 10, respectively. Unsecured properly tax is levied on July 1, due on July 3 1 and becomes delinquent on August 3 1.
Property taxes levied for the year ended June 30, 1995 are recorded as receivables, net of estimated uncollectible amounts. Property taxes paid to the City
by the County within 60 days of the fiscal year end are considered "available',' and are, therefore, recognized as revenue. The remaining uncollected
balance will be recorded as revenue when received,
(5) Water Loan Receivablemayable
California Safe Drinking Water Bond Note Payable
The City entered into a $4,758,000 contract on October 16, 1991 with the State of California Department of Water Resources to assist the City in
financing the construction of water wells enabling the City to meet safe drinking water standards established by the State. The bonds are secured by the
project and a pledge of user fees collected by the Water Enterprise Fund. During fiscal year 1995, the contract was amended to require the first loan payment
to begin on October 1, 1996. Semiannual payments of $173,313, including interest at 3.4% are payable each October 1 and April 1 through 2015.
Interest payments are made on the amount reimbursed from loan proceeds.
Loan receivable available to City $ 3,936,191
821.809
Loan payable to State of California Department of Water Resources $ 4.758,OOQ
Amount reimbursed from loan proceeds
20
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
(6) Fixed Assets
Fixed assets owned by the City ate either recorded in the General Fixed Assets Account Group or in the Proprietary Fund types. Activity for the year
ended June 30, 1995, consists of the following:
Ending
Balance
Beginning
Balance Transfers Additions Retirements
~~
$ 16,469,241
23,033,623
2,476,864
2,68 1,070
138,705
706,024
$ 45,505,527
~
$ 16,469,241
22,801,577
2,148,969
2,499,245
232,046
722,862
$ 44,873,940
General Fixed Asset Account Group
Land
Buildings and improvements
Machinery and equipment
Vehicles
Construction in progress
Capital lease assets
Total
232,046
374,274
469,168
138,705
124,725
1,338,918 -
(36,996) (9,383)
(287,343)
(232,046)
(14 1,563)
(410,605) (296,726)
rise Funds
Land
Buildings and improvements
Machinery and equipment
Construction in progress
Vehicles
Less accumulated depreciation
Subtotal
Net enterprise fbnds fixed assets
lnternal Service Fund
Buildings and improvements
Machinery and equipment
Vehicles
Less accumulated depreciation
Subtotal
Net internal service fbnds fixed assets
$ 4,725,287
22,989,3 18
37,362,280
1,147,287
2,292,895
68,517,067
$ 4,725,287
22,989,3 18
35,862,018
204,19 1
1,778,901
65,559,7 15
(16,964,563)
$ 48,595,152
14,046 ,486,2 16
943,096
332,492
2,76 1,804
(1,564,055)
1,197,749
287,343
301,389
105,84 1)
105,841)
3 1,076
(74,765)
(1 8,497,542)
$ 50,019,525 301,389
$ 57,889
58,068
47,812
163,769
(32,577)
131,192 $
$ 57,889
62,73 1
47,8 12
168,432
(16,755)
'$ 15 1,677
(4,663 1
(4,663)
(1 5,822)
(15,822) (4,663)
21
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
(7) Operating Leases
The City is obligated under various operating leases for the use of buildings and office space. Future minimum lease payments required by lease agreements
that have initial or remaining noncancellable lease terms of one year or more as of June 30, 1995 are as follows:
Fiscal Years Ending
1996 $ 109,493
1997 82,893
1998 82,893
1999 82,893
2000
thereafter
under operating leases
Total minimum lease payments required
64,893
129,787
$ 552,852
22
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
(8) Long-Term Obligations and Capitalized Lease Obligations
The following is a summary of debt transactions of the City for the year ended June 30, 1995: .
Interest
Rates June 30,1994 Additions Retirements June 30,1995
General long-term obligation account group:
Compensated absences
General obligation bonds:
1965 Municipal Improvement Bonds
Series A
Special assessment district bonds with
governmental commitment
Lodi United Downtown
Capitalized lease obligations:
IBM Corporation
IBM Corporation
IBM Corporation
Emergency One
Farmers and Merchants Bank
LaSalle Financial
Total General long-term obligations account group
$ 3,637,283 429,395 $ 4,066,678
3.50 - 4.30% 5 7 0 , 0 0 0 280,000 290,000
8.75 - 9.90% 190,000 30,000 160,000
7.72% 15,717 15,717
7.44% 28,338 28,338
110,188 7.40% 24,45 1 99,898 14,161
7.49% 120,3 1 1 57,984 62,327
5.75% 48,250 48,250
5.81% 114,366 35,990 78,376
299,14 1 303,183 148,148 152,190
4,8 158 19 $ 4,700,466 P 577,543 462,190 $
Enterprise Funds: Certificates of participation, net of $455,977 discount 4.50 - 6.60% $ 10,269,548 95,525 $ 10,174,023
23
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
Long-term debt payable at June 30, 1995 is comprised of the following individual issues:
1965 Municipal Improvement Bonds - Series A -
These bonds were issued on October 1, 1965 to finance the construction of sewer and drainage facilities and a public safety building.
'The bonds are secured by a pledge of property taxxevenues. Annual principal payments, with semiannual interest payments of 4.3%
to 3.5% are payable on April 1 and October 1 through 1995.
Special Assessment District Bonds with Governmental Commitment -
The City is obligated under the terms of the Lodi United Downtown special assessment bond indentures, in the absence of any other
bidder, to be the purchaser of property upon which any special assessments are levied and are delinquent.
Certificates of Participation -
$1 1,170,000 Certificates of Participation (1991 Wastewater Treatment Plant Expansion Refunding Project), were sold in December 1991
to refinance the 1988 Wastewater Treatment Plant Expansion Project at a lower interest rate with approximately $1,400,000 of
additional proceeds. Principal is payable annually on August 1 in amounts from $100,000 to $760,000 with final payment due
August 1,2026. Interest rates range from 4.50% to 6.60%.
The annual principal and interest requirements to amortize all debt outstanding as of June 30, 1995 are as follows:
Year Ending
June 30,
1996
1997
1998
1999
2000
thereafter
General Obligation Bond Special Assessment Bonds Certificates of Participation
Principal Interest Principal Interest Principal Interest
$ 290,000 10,150 35,000 15,785 1 10,000 694,855
40,000 12,355 I 15,000 688,8 18
40,000 8,4 15 120,000 682,2 18
45,000 4,455 125,000 675,030
140,000 666,770
10,020,000 11,212,805
$ 290,000 10,150 160,000 41,010 10,630,000 14,620,496
Grand Total
Principal &
Interest
$ 1 , 155,790
856,173
850,633
849,485
806,770
2 1,232,805
$ 25,751,656
24
CITY OF LODI
Notes to General Purpose Financia Statements (continued)
June 30,1995
The various indentures contain significant limitations and restrictions on annual debt service requirements, maintenance of and flow of moneys through various
restricted accounts and minimum revenue bond coverages. The City is in compliance with all such significant limitations and restrictions.
The present value of future minimum capital lease payments as of June 30, 1995 are as follows:
Fiscal Years Ending
1996
1997
1998
1999
2000
Total minimum lease payments
Less amounts representing interest
Present value of minimum capital lease payments
$ 156,970.
89,975
47,090
29,600
9,867
333,502
34,36 1
$ 299,141
Special Assessment District
In accordance with the Governmental Accounting Standards Board Statement No. 6, the special assessment district “Industrial Way and Beckman Road”
debt service for which the City has no obligation is recorded in an Agency Fund. These bonds were issued under the 191 1 Act during 1979 and mature in
the year 2000. The amount outstanding as of June 30,1995 is $134,700. The City is not obligated in any manner in the event of default on the debt.
Industrial Development Bonds
The City of Lodi has lent its name to the City of Lodi Industrial Development Authority for the purpose of issuing the following industrial development
bonds and original issue amounts: Minton Corporation $5,000,000; Dart Corporation $8,000,000; and Wallace Computer Services $3,000,000 Industrial
Development Bonds. These bonds are special obligation bonds only, payable solely out of the bond revenues or other sources of the above companies and
are not a pledge of the general credit of the City. The City is not obligated for the redemption or administration of these industrial development bonds.
25
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
(9) Due To/From Other Funds or Governmental Agencies
Individual find interfind receivable and payable balances, as well as amounts due from governmental agencies, by fund type at June 30, 1995 are as
follows:
Due From
Fund Other Funds Other Funds Agencies
County of San Joaquin - grant $ $ 14,648
State of California-Haz Mat grant 35,000
California Library Foundation 10,183
59,83 1
Community Development Block Grant 155,833 233,829
State of Califomia-Parks special grants 5,807 5,807 5,807
Sub Total Special Revenue Funds 16 1,640 5,807 239,636
Due To Due From Other
General Fund:
Sub Total General Fund
Special Revenue Funds:
Capital Projects Funds:
Hutchins Street Square Capital
Capital outlay reserve
Sub Total Capital Projects Funds
Enterprise Funds:
Electric fund
Sewer find
Water find
Transit Fund
Sub Total Enterprise Funds
Internal Service Funds:
Equipment maintenance and motor pool find
Claims and Benefits find
Sub Total Internal Service Funds
Total
120,000
53,003 166,582
173,003 166,582
217,282
70,400
38,850
164,278 554,93 1
164,278 326,532 554,93 1
11,033
11,033
1 1,033 11,033
$ 509,954 509,954 $ 854,398
26
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
Amounts due to other finds from the Community Development Block Grants, Parks Special grants, Transit and Equipment maintenance funds represent an
interfund payable/receivabfe for overdraws of their share of a pooled cash account. Amounts due from State of CalifornidFederal Government represent
expenditures made by the City for various grant programs not reimbursed prior to June 30, 1995.
(10) Nature and Purpose of Reported Fund Equity
The following is a summary of restricted, reserved, unreserved-designated and unreserved undesignated fund balances and/or retained earnings at June 30,
1995:
Reserved for:
Library
Encumbrances
Inventory
Total Reserved
Unreserved-Designated for:
Prior Year Obligations
Plant Replacement ,
Debt Service
Specific projects and programs
Total Designated
Unreserved - Undesignated Fund Balance
Retained earnings (deficit)
Contributed Capital
Total Fund BalancesRetained earnings (deficit)
Governmental Fund Types Proprietary Fund Type
Internal Trust & Special Debt ' Capital
General Revenue Service Projects Enterprise Service Agency Total
$ 242,795 $ 242,795
159,436 165,792 470,937 796,165
33,650 33,650
1,072,610 ' 435,881 165,792 470,937
16,385 5,115,724 2,869,640 8,OO 1,749
16,545 16,545
246,469 246,469
1,50737 1
16,385 5,665,413 263,014 3,461,432 366,090 9,772,334
549,689 59 1,792 366,090
3,540,175 3,540, I75
54,267,665 (2,149,952) 52,117,713
1,430,404
$ 3,992,441 5,831,205 263,014 3,932,369 55,566,877 (2,018,760) 366,090 $ 67,933,236
1,299,212 131,192
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
Reserved Fund Balance and/or Retained Earnings
Reserved represents that portion that is legally segregated for specific purposes and is not available for discretionary appropriation.
Unreserved-Designated Fund Balance
Designated represents that portion for which the City has made tentative plans.
Unreserved-Undesignated Fund Balance
Undesignated represents that portion which is available for budgeting in future periods.
(11) Operating Transfers
Total operating transfers by fund at June 30, 1995 are as follows:
Operating
Fund Transfers In
General Fund
Special Revenue Funds
Debt Service Fund
Capital Projects Funds
Enterprise Funds
Internal Service Funds
Trust and Agency Funds
$ 3,779,891
2,086,547
174,933
2,534,074
1,594,830
846,860
602
$ 11,017,737
Operating
Transfers Out
$ 1,536,326
3,6 14,8 13
2,566,200
3,295,447
4,950
$ 11,017,737
28
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
(12) Defined Benefit Pension Plan
(a) Plan Description
The City contributes to the California Public Employees' Retirement System (PERS or System), an agent-multiple employer public employee retirement
system that acts as a common investment and administrative agent for participating public entities within the State of California. The City's payroll for
employees covered by the System for the year ended June 30, 1995 was $15,498,63 1 which is 88.94% of the City's total payroll of $17,425,674.
The System covers essentially all employees, except elected officials and those employees compensated on an hourly basis who were hired after May 3 1 ,
1966, and related benefits vest after five years of service.
City safety employees who retire at age 50 are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 2% per year
times years of service based on the average monthly pay during the last twelve consecutive months of service or another period of twelve consecutive
months if the average pay rate was higher. The benefit rate increases by retirement age up to a maximum of 2.7% after age 54.
All other City employees hho retire at age 60 are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to 2% per year
times ye;rs of service based on the average monthly pay during the last 36 consecutive months of service or another 36 consecutive month period if the
average pay rate was higher. The benefit rate fluctuates depending on the employee's retirement age. The lowest rate of 1.092% is received at retirement age
after 50. The maximum rate is 2.418% at a retirement age after 62.
The System also provides death and disability benefits. These benefit provisions and all other requirements are established by state statute and City
resolution.
Certain safety employees are required to contribute 9% of their annual salary to the System. All other employees are required to contribute 7%. The City
is required to contribute the remaining amounts necessary to fimd the benefits for its members, using the actuarial basis recommended by the PERS
actuaries and actuarial consultants and adopted by the Board of Administration.
(b) Funding Status and Progress
The amounts shown below as the "pension benefit obligation'' is a standardized disclosure measure of the present value of pension benefits, adjusted
for the effects of projected salary increases and step-rate benefits, estimated to be payable in the fbture as a result of employee services to date. The
measure is intended to help users assess the funding status of the System on a going-concern basis, assess progress made in accumulating sufficient
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
assets to pay benefits when due and make comparisons among employers. The measure is the actuarial present value of credited projected benefits and is
independent of the finding method used to determine contributions to the System.
The pension benefit obligation was computed as part of an actuarial valuation performed as of June 30, 1994. The actuarially assumed investment return
used in the valuation is 8.5% per annum. The salary scale used assumes salary increases that vary by length of service. The total increase in any future year
includes an assumed 4.5% inflation rate, a 0.0% across the board increase and merit increases that vary by length of service.
Total pension benefit obligation and assets available for benefits applicable to the City's employees was $7,088,225 at June 30, 1994 which is the most
recent information available, as follows:
Pension benefit obligation:
Retirees and beneficiaries currently receiving benefits and terminated employees not yet receiving benefits
Current employees:
Accumulated employee contributions including allocated investment earnings
Employer-financed vested
Employer-financed nonvested
Total pension benefit obligation
Net assets available for benefits, at actuarial value (market value $65,796,832 )
Assets available for benefits in excess of pension benefit obligation
$ 32,347,253
13,968,460
1 1,946,234
644,645
58,906,592
65,994,817
$ 7,088,225
The pension benefit obligation decreased by approximately $1 million during 1994 due to changes in noneconomic actuarial assumptions. The method for
determining the net assets available for benefits was changed by PERS from cost basis to actuarial smoothed market basis. This change resulted in an
increase in net assets available for benefits of approximately $7 million.
(c) Actuarially Determined Contribution Requirements and Contribution Made
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected benefit cost method. That is, it takes into account those benefits that are
expected to be earned in the future as well as those already accrued.
30
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
According to this cost method, the normal cost for an employee is the level amount which would fund the projected benefit if it were paid annually from
date of employment until retirement. PERS uses a modification of the Entry Age Cost Method in which the employer's total normal cost is expressed as a
level percentage of payroll. PERS also uses the level percentage of payroll method to amortize any unfunded actuarial liabilities. The amortization period
of unfunded actuarial liability ends on June 30,2000.
The significant actuarial assumptions used to compute the actuarially determined contribution requirement are the same as those used to compute the
pension benefit obligation as previously described.
The contribution to the System for 1995 of $2,671,541 was made in accordance with actuarially determined requirements computed through an
actuarial valuation performed as of June 30, 1994. The contributions consisted of: (a) $2,494,573 normal cost ( 16. I0 % of current covered payroll) and;
(b) $176,968 amortization of the unfunded actuarial accrued payroll liability (1.14% of current covered payroll). The City contributed $1,464,365 of
total (9.45% of current covered payroll) and the employees contributed $1,207,176 (7.79 % of current covered payroll).
this
(d) Trend Information
Trend information gives.an indication of the progress made in accumulating sufficient assets to pay benefits when due. For fiscal years after 1987,
PERS began to provide the City, as well as all other system members, information necessary to comply with actuarial disclosure requirements. Until ten
years of data can be accumulated, as many years as are available will be presented.
1988 is the fvst year that the actuarial information was made available by PERS. Actuarial information is computed through an actuarial valuation
performed as of June 30 of the previous year.
31
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
The trend information for fiscal year ended June 30, 1987 through 1994 are as follows:
City's Contribution
Unfunded Actual Unfunded Pension Made in Accordance with Actuarially
Net Assets Pension Pension Annual Benefit Obligation Determined Requirements, as a
Fiscal Available Benefit Percentage Benefit Covered As A Percentage Percentage of Covered Payroll
Year For , Obligations Funded Obligation Payroll of Covered Payroll As Employer On behalf of
Benefits Employee
1987
1988
1989
1990
1991
1992
1993
1994
28,784,100
32,566,900
37,248,900
4 1,873,300
45,043,300
49,570,000
54,692,800
65,994,800 *
34,242,600
37,522,800
40,65 1,700
45,347,800
48,402,600
54,184,200
56,707,200
58,906,500
84.10%
86.80%
9 1.60%
92.30%
93.10%
91.50%
96.40%
112.00%
5,458,500
4,955,800
3,402,800
3,474,500
3,359,300
4,614,200
2,014,400
(7,088,300)
9,606,000
10,472,500
11,184,300
12,736,600
14,466,000
15,416,500
15,872,200
15,712,100
56.80%
47.30%
30.40%
27.30%
23.20%
29.90%
12.70%
(45.10%)
15.60%
1 1.90%
1 1 SO%
10.20%
11.50%
10.60%
10.20%
10.00%
7.90%
7.80%
7.80%
7.80%
7.80%
7.80%
7.80%
7.80%
* Prior to 1994, assets are reported at cost. The 1994 assets are reported at actuarial value (smoothed market value).
(13) Deferred Compensation Plan
The City offers its employees a deferred compensation plan (Plan) created in accordance with Internal Revenue Code Section 457. The Plan, available to all
City employees, permits them to defer a portion of their salary until hture years up to a maximum of $7,500 per year or 1/3 of their base salary whichever is
less. The Plan also provides that this amount may be increased during the last three years of an employee's employment. Participation is optional. The
deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency.
All amounts of compensation deferred under the Plan, all property and rights purchased with those amounts and all income attributable to those
amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the City subject only
to the claim of the City's general creditors. .Participants' rights under the Plan are equal to those of general creditors of the City in an amount equal to the
fair market value of the deferred account for each participant. The City does have the duty of due care that would be required of an ordinary prudent
investor.
Investments are managed by the Plan's two trustees under several investment options. The choice of investment option(s) is made by the participants.
32
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
(14) Post-Retirement Health Care Benefits
The City provides no post-employment benefits for its employees. However, employees who retire with at least ten years of service may elect to
convert all accrued sick leave at the time of retirement to establish an individual medical insurance account. Depending on the bargaining unit of the
employee, the value of the insurance account shall be determined by the following options:
a) Option I (available to Management and Mid-management Employees only)
The number of accumulated hours shall be reduced by 16-213% and the remaining balance converted into days. The days are then multiplied by the
current monthly premium being paid for the employee and, if applicable, hisker dependents. Fifty percent of that amount will be placed into an
account to be used by the City to pay medical insurance premiums for the employee and, if applicable, hisker dependents. For each year of employment
over ten years, 2.5% will be added to the 50% used in determining the account amounf. Total premiums shall be paid from the account until its depletion, at
which time the benefit ceases.
b) Option I1 ( available to all employees)
Calculation is the same as Option I except that any increase in premiums must be paid by the employee.
c) Option 111 (available to all employees)
A retiring employee will be able to choose a cash pay-off of accumulated sick leave at the rate of 30% of base pay per hour.
(15) Claims and Benefits
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and
natural disasters. The City is self-insured up to certain limits for certain losses as discussed in the following paragraphs for which reserves are recorded in
the Internal Service Fund.
The City is self-insured for general liability up to the first $500,000 per occurrence with claims from $500,000 to $10,000,000 per occurrence and in the
aggregate insured through the California Joint Powers Risk Management Authority. (See note 17)
The City is self-insured for worker's compensation up to the first $250,000 per occurrence with claims from $250,000 to $10,000,000 per occurrence and
in the aggregate insured through the Local Agency Worker's Compensation Excess Joint Powers Authority. (See note 17)
33
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
The City is fully self-insured for dental, chiropractic, unemployment and long-term disability for its employees.
General liability and workers' compensation claims are administered by an outside agency and all other claims are administered by the City.
The City has accrued a liability of $3,764,898 at June 30, 1995 for all self-insured claims in the Internal Service Fund which includes an amount for
incurred but not reported claims. The reserve amount is based on the requirements of Governmental Accounting Standards Board Statement No. 10,
which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a
liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. The self-insurance reserve
is based on estimates determined by the insurance administrators for known claims and the City's estimate for incidents incurred but not reported and adverse
claim development. The City does not use an actuary to determine the liability. In the opinion of the City, the amounts accrued are adequate to cover claims
incurred but not reported in addition to known claims.
Changes in the self-insurance reserve for fiscal year ended June 30, 1995 are as follows:
Current-Year
Claims and Changes Claims
June 30.1994 Pavments June30.1995
$3.809.533 1.473.830 -lLs&wJ $3.764.898
(16) Participation in Joint Ventures
Northern California Power Agency
The City, along with thirteen other public agencies, is a member of the Northern California Power Agency (NCPA) which was formed in 1968 as a joint
powers agency. Its membership consists of eleven cities with publicly-owned electric utility distribution systems, one irrigation district, one public
utility district and one associate member, a rural electric cooperative. NCPA is generally empowered to purchase, generate, transmit distribute and sell
electric energy. Members participate in the projects of NCPA on an elective basis. Therefore, the participation percentage varies for each project.
NCPA is governed by a commission comprised of one representative from each member. The commission is responsible for the general management of the
affairs, property and business of NCPA. Under the direction of the general manager, the staff of NCPA is responsible for providing various administrative,
operating and planning services for NCPA and its associated power corporations.
34
,
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
Project Financ ing and Constru ction
NCPA’s project construction and development programs have been individually financed by project revenue bonds collateralized by NCPA’s assignment of
all pa\rr-. ’ 4 <- revenues and proceeds associated with its interest in each project. Each project participant has agreed to pay its proportionate share of debt
servic
for any ir:clsun. Certain of the revenue bonds are additionally supported by municipal bond insurance credit enhancements.
<ier costs of the related project, notwithstanding the suspension, interruption, interference, reduction or curtailment of output from the project
brease in Non-defaultin? Project Participant’s Original Project Entitlement Percentage
Upon the failure of any Project Participant to make any payment, which failure constitutes a default under the Member Agreement for the projects, and
except as sales and transfers are made pursuant thereto, the Member Agreements provide that Project Entitlement for each non-defaulting Project Participant
shall be automatically increased for the remaining term of the Member Agreement; pro rata with those of the non-defaulting Project Participant thereunder;
provided, however, that the sum of such increase for any non-defaulting Project Participant shall not exceed, without written consent of such non-defaulting
Project Participant, an accumulated maximum of 25% of the non-defaulting Project Participant’s original Project Entitlement Percentage Share.
The NCPA members and their percentage share at June 30, 1994, which is the most recent available data, are as follows:
Hydro Combustion Multiple
Geothermal Electric Turbine Capital
Project Project Project #1 Facilities
Alameda
Biggs
Gridley
Healdsburg
Lodi
Lompoc
Palo Alto
Plumas-Sierra Rural Electric Cooperative
Redding
Roseville
Santa Clara
Turlock Irrigation District
Ukiah
16.8825 10.00 13.092 9.33
0.1090 0.120
0.2225 0.2 13
2.8515 1.66 3.500
9.5025 10.37 34.780 27.12
3.6810 2.30 3.500 2.46
22.92
0.4645 1.69 1.090
3.6695 12.00 13.251 17.92
44.3905 37.02 25.000
13.9620 43.17
4.2645 2.04 5.454
CITY OF LODI ’
Notes to General Purpose Financial Statements (continued)
June 30,1995
Truckee-Donner Public Utility District a member since 1989, obtains its power and dispatch services from Sierra Pacific Power, but relies on NCPA for
legislative representation and other utility services.
Bulk power purchased by the City through NCPA amounted to $23,533,460 during the year ended June 30,1995.
NCPA G eothermal Pro! ‘ect
A purchase power agreement with NCPA obligates the City for a 9.50% share of the operating costs and debt service of two of NCPA’s 110 megawatt
steam powered plants, Project Number 2 and Project Number 3. Outstanding long-term debt related to this project was approximately $936 million at June
30, 1994.
A long-standing NCPA program of scientific steam field and plant management paid off in improved performance for NCPA’s Geothermal Project in 1993-
94 fiscal year. Steam production has been improved by operating at lower steam pressures and by reinjecting water into the stream wells. These strategies
have enabled NCPA to increase the geothermal plant operating levels. Starting in August, 1994, average annual generation was boosted from 150 to 155
megawatts. Maximum monthly average generation was increased from 170 to 175 MW. However, this project is still not producing the level of power
originally anticipated at the time of debt issuance.
NCPA continues to improve the efficiency of the geothermal power plants. Low pressure modifications to one of the geothermal generating units are
underway. The unit will go into low-pressure operation in January 1996.
Based on an internal assessment of the melded cost of power from NCPA’s projects and all other resources available to the members, NCPA management
believes its members will continue to operate their electric utilities on a competitive basis, when compared to local investor-owned utility rates, while
meeting all electric system obligations including those to NCPA.
Calaveras Hydroelectr ic Project
NCPA contracted to finance, manage, construct and operate Hydroelectric Project Number One for the licensed owner, Calaveras County Water District. In
exchange, NCPA has the right to the electric output of the project for 50 years from February 1982. NCPA has also the option to purchase power from the
project in excess of the District’s requirements for the subsequent 50 years, subject to regulatory approval. The operating portions of the project were
declared substantially complete and commercially operable in February 1990. The resumption of drought conditions in California may also result in an
increased per unit cost of power generated by the project.
Under a power purchase agreement the City is obligated to pay 10.37% of the debt service and operating costs. At June 30, 1994 approximately $576
million in long-term debt used to finance this project was outstanding.
36
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
NCPA Combustion Turbine Project
In October 1984, NCPA financed a five-unit, 125-megawatt combustion turbine project. The project, built in three member cities, began full commercial
operation in June 1986, providing reserve and peak power. Under the NCPA power agreement, the City is obligated to pay 34.78% of the debt service and
operating costs. At June 30, 1994 approximately $65 million in long-term debt was outstanding.
Multit>le-Caoital Facilities Project
The Project consists of three separate components: (1) A 49.9 megawatt combustion turbine, “Unit One”, located in Lodi, California and owned and
operated by the NCPA; (2) A 49.9 megawatt combustion turbine “Unit Two”, to be located in Ceres, California and owned and operated by the Turlock
Irrigation District; and (3) Improvements to the electric system owned and operated by the City of Lodi. Each of these three components are supported by
separate and unrelated member participation agreements.
Combustion Units One and Two are being built under a lump sum turnkey contract with a guaranteed complete price for construction, as currently planned,
of $152.3 million. Under a power purchase agreement, the City is obligated to pay 27.12% of the debt service and operating costs. Construction of the two
turbine units is estimated to be completed by December 1995.
The following are the most recent available condensed financial statements of NCPA:
Combined Balance Sheet
June 30,1994
Assets Liabilities and Capitalization
Current assets $ 43,609,000 Current portion of long-term debt $ 32,825,000
Restricted assets 649,049,000 Other current liabilities 67,038,000
Electric plant, net 737,445,000 Other liabilities and deferred credits 8 1,980,000
Other Assets and deferred charges 424,982,000 Long-term debt 1,657,977,000
15,265,000
Total assets $ 1,855,085,000 Total liabilities and capitalization $ 1,855,085,000
Accumulated net revenues
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
Combined Statement of Revenue and Expenses
Year ended June 30,1994
Sales to participants for resale $ 184,334,000
Operating expenses (99,867,000)
Other revenues (expenses) (83,503,000)
Future recoverable costs 13,554,000
Net revenues before refunds 14,5 18,000
Refunds to participants (9,635,000)
Net revenues 4,883,000
Accumulated net revenues,
beginning of year 10,382,000
Accumulated net revenues,
end of year $ 15,265,000
At June 30, 1994, NCPA’s total outstanding long-term debt was $1,690,8
June 30, 1994 was $32,825,000.
Combined Statement of Cash Flows
Year ended June 30,1994
Net cash provided by operating activities $ 1 16,22 1,000
Net cash provided by investing activities 5 1,928,000
Net cash used in capital and related
financing activities (192,104,000)
Net cash provided by noncapital
and related financing activities 2,127,000
Decrease in cash and cash equivalents (2 1,828,000)
Cash and cash equivalents beginning
of year 116,853,000
Cash and cash equivalents end of year $ 95,025,000
0 at an average interest rate of 7%. The current portion of long-term de )tat
Complete financial information for NCPA may be obtained at the following administration office:
Northern California Power Agency
180 Cirby Way
Roseville, CA 95678
Transmission Agency of Northern California
The Transmission Agency of Northern California (TANC) was organized under the California Government Code pursuant to a joint powers agreement
entered into by fifteen Northern California utilities including the City of Lodi. The purpose of TANC is to provide electric transmission or other facilities for
the use of its members through its authority to acquire, construct, finance, operate and maintain facilities for electric power transmission. The joint powers
agreement provide that the costs of TANC’s activities can be financed or recovered through assessment of its members or user charges through
transmission contracts with its members. Each TANC member has agreed to pay a pro rata share of the costs to operate TANC and has the right to
38
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
participate in hmre project agreements. The joint powers agreement remains in effect until debt obligations and interest thereon have been paid, unless
otherwise extended by the members.
hcrease in Non-defaultin- ~g Pro je ct ParticiDant’s Or&inal Proiect Entitlement Percentage
Upon the failure of any Project Participant to make any payment, which failure constitutes a default under the Member Agreement for the projects, and
except as sales and transfers are made pursuant thereto, the Member Agreements provide that Project Entitlement for each non-defaulting Project Participant
shall be automatically increased for the remaining term of the, Member Agreement; pro rata with those of the non-defaulting Project Participant thereunder;
provided, however, that the sum of such increase for any non-defaulting Project Participant shall not exceed, without written consent of such non-defaulting
Project Participant, an accumulated maximum of 25% of the non-defaulting Project Participant’s original Project Entitlement Percentage Share.
Califomia-Ore yon Transm ission Project
TANC is a participant and also the Project Manager of the California-Oregon Transmission Project (Project), a 339 mile long, 500 kilovolt alternating
current transmission project between Southern Oregon’ and Central California. As a Project Manager, TANC is responsible for the overall direction and
coordination of all project development, construction work, operations and maintenance and for general and administrative support.
The project was declared commercially operable on March 24, 1993 and provides a third transmission path or “intertie”, between the electric systems of the
Pacific Northwest and those in California. The major environmental requirements for the Project have been successfully met and completed.
In connection with its participation in the Project, TANC has an entitlement percentage in Project transfer capability and construction cost sharing of
85.2557%. TANC has incurred costs for Project construction of approximately $430 million as of September 30, 1994. These costs have been capitalized
by TANC since they are expected to be recovered through reimbursement from Project participants and the successful operation of the Project’s transmission
lines. The Project agreement among the participating members provides that each member agrees to make payments, from its revenues, to TANC for Project
costs incurred and for the payment of debt service. .As of September 30, 1994, TANC has received $59.1 million from the other signatories to the Interim
participation Agreement as contributions toward Project construction costs.
Under the TANC joint powers agreement, the City is obligated to pay 1.89% of its debt service and operating costs. At September 30, 1994, approximately
$518 million in long-term debt was outstanding.
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
The following are the most recent available condensed financial statements of TANC:
BALANCE SHEET
September 30,1994
Assets
Electric Utility Plant, net $ 425,102,988
Restricted Funds 83,018,502
Current Assets 8,020,269
Noncurrent assets and deferred charges 32,833,834
Total Assets !$ 548,975,593
Capitalization and Liabilities
Total members' equity
Long-term debt
Current liabilities
Total capitalization
260,190
4 13,286,544
413,546,734
130,593,835
STATEMENT OF INCOME
Year Ended September 30,1994
Revenues:
Operating $ 44,622,644
revenues
Interest income 5,990,888
Total revenues $ 50,613,532
Costs and Expenses
Noncurrent liability and deferred credit 4,835,024
Total capitalization and liabilities $ 548,975,593
Complete financial information for TANC may be obtained at the following administration office:
Transmission Agency of Northern California
3 100 Zinfandel Drive, Suite 600
Sacramento, CA 95670
General and other operating costs $ 10,62 1,559
Interest and other financing costs 29,506,344
Depreciation and amortization 10,457,843
Total costs and expenses 50,585,746
Net income $ 27,786
40
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
(17)- Membership in Insurance Pools
California Joint Powers Risk Management Authority
The City is a member, along with 23 other public agencies, of California Joint Powers Risk Management Authority (CJPRMA) organized under a Joint
Powers Agreement pursuant to the California Government Code for the purpose of sharing the risk of catastrophic general liability, automobile liability and
public officials' errors and omissions losses because adequate insurance is not available in the commercial insurance market.
CJPRMA has a twenty-one member Board-of Directors, including a director from the City of Lodi. Officers of CJPRMA are elected every two years by the
Board members.
The ultimate cost of the program to the City depends on the catastrophic losses of all members, as well as the City's own loss experience and will be
determined retrospectively five years after the end of the current program year. The City periodically pays deposits to the CJPRMA. These deposits are
recorded as expenditures in the year paid as they are a reasonable estimate of the actual cost of the program. During the year ended June 30, 1995,
deposits of approximately $158,700 were paid to CJPRMA.
The most recent condensed fmancial information of CJPRMA as of June 30, 1995 follows:
Balance Sheet
June 30,1995
Statement of Revenues, Expenses and Retained Earnings
Total Assets, primarily investments $ 40,790,2 17 Total Revenues $ 8,28 1,592
Liabilities Total Expenses (7,652,406)
Reserve for losses, Liability program S 23,739,222 Operating Income 629,186
Reserve for losses, Worker's Compensation program 549,206
Year Ended June 30,1995
Accrued liabilities
Deferred compensation payable
Total liabilities
Unrealized gain on investments
Retained earnings
Fund Equity
Total Liabilities and Equity
352,266 Investment Income 2,368,362
66,955 Net Income 2,997,548
14,791,411
15,481,680 Refunds to members (2,307,279)
$ 40,790,217 Retained earnings, end of year $ 1548 1,680
24,707,649
600,888
Retained Earnings, beginning of year
41
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
The participants and their percentage shares at June 30, 1995, are as follows: Alameda 4.03%, CCCMRMIA 1.99%, Chico 1.8%, Central San Joaquin
Valley Risk Management Authority 14.73%, Fairfield 3.07%, Fremont 6.95%, Livermore 2.68%, Lodi 2.57%, Manteca 1.64%, NCCSIF 1.53%, Petaluma
1.84%, Redding 4.03%, Redwood Empire Municipal Insurance Fund 6.18%, Roseville 3.36%, San Leandro 3.13%, San Rafael 3%, Santa Barbara Area
Joint Powers Insurance Authority 1.29%, Santa Rosa 6.28%, Small Cities Organized Risk Effort 1.25%, Stockton 8.27%, Sunnyvale 6.98%, Vacaville
2.02%, Vallejo 3.32%, and Yo10 County Public Agencies Risk Management Insurance Authority 8.06%.
Local Agency Workers' Compensation Excess Joint Powers Authority
The City, along with 22 other public agencies, is a member of the Local Agency Workers' Compensation Excess Joint Powers Authority (LAWCX)
which was formed July 1992, for the purpose of sharing the risk of workers' compensation losses. All members are self-insured up to $250,000 per
occurrence.
LAWCX members pool resources to pay claims from $250,000 to $500,000 per occurrence and then use group purchasing power to obtain excess
coverage through a commercial insurance company up to statutory limits.
The most recent condensed financial statement information of LAWCX follows:
Balance Sheet
June 30,1994
Total Assets, primarily investments
Liabilities:
Accounts Payable/Claims reserve
Administrative Runoff Liability
. Claims Incurred But Not Reported
Total liabilities
Contingency Margin
Undesignated
Retained Earnings:
Total Retained Earnings
Total Liabilities and Equity
$ 1,077,182
Statement of Revenues, Expenses and Retained Earnings
Total Revenues $ 1,181,762
Year Ended June 30,1994
$ 45,697
10,000
616,847
672,544
22 1,6 10
183,028
404,638
$ 1,077,182
Total Expenses (969,736)
Net Income 2 12,026
Retained Earnings, beginning of year 192,612
Retained earnings. end of year $ 404,638
42
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
The City paid $29,000 in deposits to LAWCX during the fiscal year ended June 30, 1995.
The participants and their percentage shares at June 30, 1995 are as follows: Alameda 4.71%, Albany 0.84%, Central San Joaquin Valley Risk Mgmt
Authority 20.38%, Clovis 2.52%, Coachella Valley Joint Power Insurance Authority 10.09%, East Bay Regional Park District 3.98%, Emeryville 1.27%,
Fremont 7.31%, Livermore 2.94%, Lodi 2.71%, Merced 2.58%, Los Gatos 1.28%, Morgan Hill 1.12%, Newark 1.66%, Palm Springs 3.14%, , PARSAC
10.53%, Piedmont 0.85%, Roseville 5.95%, Small Cities Org. Risk Effort (SCORE) 1.98%, Union City 1.46%, Vacaville 3.90%, Vallejo 5.72% and
Vector Control JPA 3.08%.
California Transit Insurance Pool
The City, along with 26 other public agencies is a member of California Transit Insurance Pool (CalTIP), a joint powers insurance authority which was
formed for the purpose of sharing the risk of property damage, bodily injury, personal injury and public officials errors and omissions losses for
public transit systems.
Liability protection coverage is provided under two programs:
Program I applies to member.properties with a pre-funded deductible or a self-insured retention of less than $100,000, per
occurrence. Under this program, claims administration services are provided by CalTIP’s claim administrator.
Proyram I1 applies to all member properties with self-insured retentions of $100,000 or greater per occurrence. Under
this program, claims administration services are performed at the discretion of the member agency, subject to CalTIP bylaws.
CalTIP is responsible for funding member claims in excess of applicable self-insured retentions from the self-insurance pool limit of $500,000. Claims
in excess of the pool limit are covered by overlying insurance purchased by CalTIP, covering all member agencies up to $5.5 million. Claims in excess
of $5.5 million are covered by additional overlying insurance up to a $10 million limit for certain member agencies, at the option and expense of those
agencies.
43
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
The schedule below reflects the liability protection coverage at April 30, 1995, which is the most recent available data, for each of CalTIP’s member
agencies:
Self-Insured Limit
Agency Program Retention (in millions)
Arcata Mad River Transit System I $ Prefunded $ 10
City of Azusa Transit System
Butte County Transit System
Central Contra Costa Transit Authority
Culver City Municipal Bus Lines
City of Dixon Transit System
El Dorado County Transit
City‘of Folsom Transit System
Humbolt Transit
City of Lincoln Transit System
City of Lodi Transit System
Mendocino Transit Authority
Monterey-SaIinas Transit
Morongo Basin Transit Authority
Napa Valley City Bus
Nevada County Transit District
Placer County Transit
Riverside Transit Agency
Santa Cruz Metropolitan Transit District
Santa Rosa County Transit
Siskiyou County Transit
San Luis Obispo Regional Transit Authority
Vallejo Transit Lines
Western Contra Costa County Transit Authority
City of Whittier Transit System
Yo10 County Transit Authority
I1
I
I
I1
I
I
I1
I
I1
I
I
I1
I
I
I
I1
I
11
I1
I
I
I
I
I1
I
25,000
25,000
25,000
2 5 0,O 0 0
Prefunded
25,000
250,000
25,000
250,000
Pre funded
25,000
250,000
Prefunded
Prefunded
25,000
100,000
25,000
100,000
100,000
Prefunded
Prefunded
25,000
Prefunded
250,000
Prefunded
10
10
10
5.5
10
10
5.5
10
5.5
5.5
5.5
5.5
5.5
5.5
10
10
10
10
10
10
10
10
10
5.5
10
44
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
The most recent condensed financial information of CalTIP as of April 30, 1995 is disclosed as follows:
Balance Sheet
April 30,1995
Total Assets, primarily investments
and member premiums receivable
Total Liabilities
Retained earnings
Total Liabilities and Retained Earnings
Statement of Revenues, Expenses and Retained Earnings
Year Ended April 30,1995
$ 7,923,289 Total Revenues $ 2,244,156
$ 4,774,779
3,1483 10
Total Operating Expenses
Net Income
(1,4 1 5,374)
828,782
$ 7,923,289
Retained earnings, beginning of year
Retained earnings, end of year
2,3 19,728
$ 3,148,510
(18) Deficit in Fund Equity
Xnternal Service Fund - Claims and Benefa - A deficit in fund equity at June 30, 1995, in the amount of $2,018,760 in the Internal Service Fund is due to
the self-insurance reserves in the Claims and Benefits Fund established to cover both incurred and incurred-but-not-reported (IBNR) claims.
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 1995
(19) Segments of Enterprise Activities
There are five services provided by the City which are financed by user charges - Camp Hutchins, electric, sewer, water and transit. Selected financial data
for these five services for the year ended June 30,1995 are as follows:
Camp
Hutchins Electric Sewer Water Transit Total
Operating revenues
Operating expenses:
Depreciation and amortization
Other
Operating Income (loss)
Nonoperating revenue (expense)
Operating transfers, net
Net income (loss)
Current capital contributions
$ 127,464 34,047,6 10 3,596,3 13 2,712,164 $ 104,410 $ 40,587,961
(500,745) (668,716) (30 1,2 15) (93,379) (1,564,055)
(1 17,739) (31,699,586) (2,489,307) (2,026,851) (1,023,120) (37,356,603)
(1 ,O 12,089) 1,667,303
902 1,284,604 (9, 197) 67 1,239 598,7 12 2,546,260
640 (1 ,OO 1,775) (562,416) (364,605) 227,540 (1,700,6 17)
(1 33,323) ,690,732 $ (185,837) $ 2,512,946
9,725 1,847,279 438,290 384,098
$ 1 1,267 2,130,108
I
$ 7,321 $ 326,434 $ 333,755
Property, plant and equipment additions (deletions)
627,824 $ 2,957,352 (including construction in progress), net $ 7,32 1 1,5 17,060 39,973 765,174 $
Net working capital
Total assets
Certificates of participation, net
Total equity
$ 11,599 9,6 1 1,287 5,151,736 ' 1,126,457 $ 389,842 $ 16,290,921
$ 25,569 22,243,529 33,720,352 15,920,949 $ 1,105,052 $ 73,015,451
$ 10,174,023 $ 10,174,023 $
$ 18,920 2 1,087,476 22,881,300 10,654,894 $ 924,287 $ 55,566,877
46
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
(20) Contributed Capital .
Contributions of property, plant and equipment for the proprietary funds increased as follows :
Balance at
Transfer Depreciation Balance at Beginning of Year Adjustment Balance at Contributions
as Previously to Contributed Beginning of Year, from Grants & from/to on End
Stated Capital As Restated Other Funds Other Funds Contributions of Year
Enterprise Fund
Water Fund !$ 777,612 777,612 (20,166) $ 757,446
Transit 301390 30 1,390 326,434 (93,379) 534,445
Camp Hutchins 7,32 1 7,32 1
Total Enterprise Fund 777,612 301,390 1,079,002 326,434 7,321 (1 13,545) 1,299,212
Equipment Maintenance 15 1,677 151,677 (4,663) (15,822) 131,192
$ 929,289 301,390 1,230,679 326,434 2,658 (129,367) $ 1,430,404
Internal Service Fund
I i
(21) Commitments and Contingencies
Litigation and clairns- The City is a defendant in various lawsuits and is a party to various claims including environmental exposure. The City Attorney
estimates that the potential claims against the City resulting from such litigation would not materially affect the financial condition of the City.
Proposition No, 62 - The California Supreme Court recently upheld the constitutionality of Proposition 62, a 1986 initiative which required voter approval
of all new or increased taxes. The Court’s ruling could invalidate certain taxes previously collected by the City and disallows these taxes from being
collected in the future. The likelihood and amount of such an adverse effect upon the financial position of the City is currently unknown and has not been
reflected for in the general purpose financial statements.
47
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30,1995
Arbitrage Earnings Rebate Liability - Arbitrage earnings are defined as income earned on the unexpended tax exempt bond proceeds in excess of that
which would have been earned had the moneys been invested in securities with a yield of the effective rate of the bond anticipation notes. Currently,
arbitrage earnings must be rebated to the United States Treasury every five years from the date of August 1, 1988. Due to the advance refunding of the 1988
Certificates of Participation, bond counsel has calculated the City will owe no arbitrage earnings for 1995. This is primarily due to a Change in the
Internal Revenue Service regulation in 1992 that allows inclusion of refunding escrows in the rebate calculation. As the investments earned a yield which
was much lower than the bond yield, substantial negative rebate was generated resulting in a reduction of the rebate to zero. Consistent with the prior year,
there is no liability in the current year.
(22) Subsequent Events
On July 7, 1995, the City signed a contract for the renovation of City Hall. This project which will bring the building in compliance with the Americans
with Disabilities Act will cost the City approximately $1.9 million.
On September 28, 1995, the City issued $5 million in Certificates of Participation to finance a number of capital projects including the Performing Arts
Facility and Downtown Renovation. Installment payments will be budgeted from the 30% of property taxes allocated to the Capital Outlay Fund.
Annual maturities of $1 50,000 to $405,000 are payable from October 1, 1996 to October 1,20 15. Interest rates range from 4.0% to 6.375%.
48
OVERVIEW
The General Fund is maintained to account for all financial resources that are not restricted as to their use. This includes property and sales taxes,
business tax, receipts, franchise taxes and various subventions such as Motor Vehicle In-Lieu fees received from the State of California. With the
exception of grant programs, General Fund resources can be utilized for any legitimate governmental purpose.
Due to the scale and flexibility of General Fund revenues, a broad range of municipal services are provided through this fund. The following is a
summary of the services primarily financed through the General Fund by Department:
Office of the City Manager
Implementation of City Council policies
Intergovernmental relations Facilities Administration
Community Promotion Senior Activities
Risk Management and InsuranceCultural Activities
Salary and Benefits Administration
Budget Administration Patrol
Transit Operations Crime Prevention
Disaster Preparedness Animal Control
Solid Waste Management Investigations
Telecommunications Drug Suppression
Safety Fire Department
Office of the City Attorney Emergency Response
Legal Advisor to the City Council Hazard prevention
Contract Review Weed Abatement
Litigation Parks and Recreation Department
Office of the City Clerk Park Maintenance
Official City RecordkeepinglElections Youth Programs
Council Meeting Agendas and Minutes Adult Programs
Chamber of Commerce Pre-school Programs
Personnel Office Senior Activities
Employee Relations Aquatics
Recruitment, Selection and Classification
Affirmative Action Library
Benefits Administration
Community Center Office
Aquatics for Seniors
Police Department
Trips and Classes
Adult and Youth Reading Material
Research Services
Department of Finance
Revenues and Collections
Financial Reporting
Debt and Investment Management
Data Processing
Parking Enforcement
Utility Billing
Purchasing
Department of Public Works
Engineering Services
Street Paving and Sweeping
Sidewalk Maintenance
Traffic Signal & Sign Maintenance
Storm Drain Maintenance
Tree Maintenance
Street Maintenance
Building Maintenance
Parking Lot Maintenance
Department of Community Development
Development Review
Environmental Impact Reporting
Demographic Information
Design Review
Building and Safety
. General Plan
Although several of the activities listed above may be partially financed through other funds, the primary source of funding for these services is
the General Fund. For example, central support services provided by the Department of Finance are organized in the General Fund, these
services are provided to Enterprise Fund Activities, Special Revenue Fund Activities and Capital Outlay Fund Activities. Reimbursement
transfers are made from the other funds to the General Fund based on a formula calculated each year as compensation for these services.
50
CITY OF LODl
GENERAL FUND
SCHEDULE OF EXPENDITURES BY DEPARTMENT
Year ended June 30,1995
BUDGETARY LEVEL OF CONTROL - BUDGET AND ACTUAL COMPARISON
1995
VARIANCE-
GENERAL GOVERNMENT and CAPITAL OUTLAY
City Council
City Manager
City Clerk
City Attorney
Personnel Department
Community Development
Finance Department
Non Departmental
Total General Government and Capital Outlay
PUBLIC PROTECTION
PUBLIC WORKS
LIBRARY
PARKS AND RECREATION
TOTAL GENERAL FUND EXPENDITURES
BUDGET
$ 77,124
1,197,991
144,329
229,244
233,917
797,609
2,052,239
463,750
5.196.203
10,444,526
3,835,461
1,015,878
2,443,312
$ 22,935,380
ACTUAL
$ 71,432
1,142,402
136,007
225,902
233,456
757,598
1,995,630
408,410
4,970,837
10,274,500
3,628,448
956,120
2,299,181
$ 22,129,086
Favorable
(Unfavorable)
5,692
55,589
8,322
3,342
461
40,011
56,609
55,340
225,366
170,026
207,013
59,758
144,131
806,294
See accompanying independent auditors' report. 53
OVERVl EW
The City has established the following five special revenue funds in order to account for the proceeds from revenue sources that are restricted to
expenditures for specific purposes.
Police Special Revenue Fund
This fund was established to account for the revenues and expenditures related to the City's share of property forfeited by persons convicted of
possession and selling illegal drugs and the State of California auto theft prosecution moneys.
Special Grants Fund
This fund has been established to account for the receipt of smaller grants from Federal and State sources.
Streets Fund
This fund was established to account for the following:
Gas Tax
To account for revenues and expenditures apportioned to the City under the Streets and Highway Code. Portions
of the tax rate levied by the State of California on all gasoline purchases are allocated to cities throughout the State on a population basis. These
funds are restricted for expenditure by the State of California for street related purposes only.
Development Impact Mitigation Fees
To account for impact fees charged to provide for the building of various storm drain and street improvements needed to serve new
development. The fees are calculated on a per acre basis and are collected at subdivision final map approval or with building permit stage
effective November 4,1991.
Master Storm Drain
To account for the funding of construction or modification of the City's storm drain system.
Measure K Sales Tax
To account for revenues and expenditures apportioned to the City for sales tax collecions under Measure K. Expenditures for administration,
maintenance and construction must be for street -related projects.
lntermodal Surface Transportation Efficiency Act (ISTEA)
To account for revenues from the federal highway administration for programs including surface transportation program(STP) for streets and roads,
54
OVERVIEW -continued
Transportation Fund
This fund was established to account for the receipt of moneys from the State of California apportioned to the City for transportation purposes.
The State has designated 114% of the 6% sales tax levied statewide for local transportation purposes. Funding for this program was provided
during the 1971 legislative session with the enactment of the Transportation Development Act, which extended the 6% sales tax to include
purchases of gasoline. Revenues allocated to the City of Lodi under this program are divided into two categories: Article 8 funds, which are
restricted for the improvement and maintenance of street systems: and Article 4 funds, which are restricted for public transit systems.
Community Development Block Grants
This fund was established to account for Federal moneys provided to the City principally for low and moderate income residents to develop a
suitable living environment and expand economic opportunities.
CITY OF LODl
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30,1995
(with comparative totals for June 30,1994)
Community
Development
Block
Grants
Police Special
Revenue
Cash and Investments $ 29,668
Receivables:
Accounts 3,750
Interest 61 0
ASSETS
Special
Grants Streets
Totals
1995 1994* Transportation
5,123,441 335,288
178,028
52,985
277,252
212
459,030 I I 3,289
53,807 48,404
245,443 17,643
$ 6,246,677 $ 4,515,146
Due from other funds or governmental agencies 5,807 5,807
TOTAL ASSETS $ 39,835 5,807 5,354,454 61 2,752
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and other liabilities $ 973
TOTAL LIABILITIES 973
Accrued salaries and wages
Due to other funds
174,744
119
77,996 $ 253,713 $ 755
119 .
161,640 17,211
415,472 17,966
155,833
233,829
5,807
5,807 174,863
FUND EQUITY
Fund balances:
Reserved for encumbrances 13,292
Unreserved-designated for :
Prior year's obligation
Specific projects and programs 25,570
TOTAL FUND BALANCE 38,862
TOTAL LIABILITIES AND FUND BALANCE $ 39,835
152,500 165,792
5,027,091 5,115,724 441,375
549,689 4,055,805
5,831,205 4,497,180
88,633
524,119
612.752 5,179,591
5,807 5,354,454 $ 6,246,677 $ 4,515,146 233,829 612,752
* Restated for hd reclassifications.
See accompanying independent auditors' report.
56
REVENUES
Texes
lnlergovernmenlel revenues
Charges for services
Inleresl end renlal income
Miscellaneous revenue
Tolal revenues
EXPENDITURES
Cunent
Generel governmenl
Public proleclion
Public works
Capital ouliey
Total expendilures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Opereling transfers In
Operaling transfers wt
Total olher Cnanclng sources (uses)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
CITY OF LODl
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
Year ended June 30,1995
(with cornparatlve totals for the year ended June 30,1994)
Community
Developmenl Developmenl
Police Special Special Gas lmpacl Block Totals
Revenue Granls TaX Streels Transportelion Miligation Fees Granls 1995 1994.
468,435 16 468,435 16 2,457,468 448,343
463,554 463,554 387,995
1,304 237,064 1,197 239,565 155.136
65,259 5,727 70,986 3,447
31,494 41,860 2,525,549 1,066,540 753,093 4,418,536 3.452.389
30,190 41,860 1,291,237 1,059,616 753,093 3,175.996 $.
126,920
859
126,920 9,498
753.093 753.093 316.310
676,232 676.232 1,397,561
126,920 676,232 753,093 1,556,245 1,724,228
(95,426) 41,860 1.849,317 1.066,540 2,862,291 1,728.161
14,368 1,895,430 176,749 2,086,547 2,608,405
(l8.OW (41,860) (2,980,992) (573,961) (3.614.813) (1,819,371)
(3,632) (41,860) (1,085,562) (397,212) (1,528,266) 789,034
FINANCING SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES (99.058) 763,755 669.328 1,334,025 2,517.195
FUND BALANCE AS PREVIOUSLY REPORTED, BEGINNING OF YEAR 137,920 5,243,730 2,481,640 1,008,460 1,615,710 1,938,947
ADJUSTMENT TO FUND BALANCE (1,008.4W 4,415,836 (1,672,286) (2,481.640) (746,550) 41.038
FUND BALANCE. BEGINNING OF YEAR, AS RESTATED 137,920 4,415.836 (56,576) 4,497,180 1,979.985
FUND BALANCE, END OF YEAR s, 38,862 5,179,591 612,752 $ 5.831,205 $ 4,497,180 -- D
Restated for fund roelassificntions.
See accompanying independent auditon' report.
57
CITY OF LODI
SPECIAL REVENUE FUNDS
COMPARATIVE STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Year ended June 30,1995
REVENUES
Taxes
Intergovernmental revenues
Charges for services
Interest and rental Income
Miscellaneous charges
Total Revenue
EXPENDITURES
Current
Public protectlon
Public works
Capital oullay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUE OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers In
Operating transfers out
Total other financing sources (uses)
POLICE SPECIAL REVENUE
VARIANCE-
Favorable
BUDGET ACTUAL (Unfavorable)
$
12,000 30.190 18,190
4.000 1,304 (2.696)
16,000 31,494 15,494
145.393 126,920 18.473
145,393 126,920 16,473
(129,393) (95,426) 33,967
14.368 14.368
(18.000) (18,000)
(3,632) (3,632)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES (133.025) (99,058) 33,967
FUND BALANCE, BEGINNING OF YEAR, AS RESTATED 137.920 137,920
FUND BALANCE, END OF YEAR $ 4.895 38,862 33,967
SPECIAL GRANTS
VARIANCE-
Favorable
BUDGET ACTUAL (Unfavorable)
$
61.500 41,860 (19,640)
61,500 41,860 (19,640)
61,500 41,860 (19,640)
(41,860) (41,860)
(41,860) (41,860)
19,640 (19,640)
$ 19,640 (19,640)
continued
58
REVENUES
Taxes
Intergovernmental revenues
Charges for services
Interest and rental Income
Miscellaneous charges
Total Revenue
EXPENDITURES
Current
Public protection
Public works
Capital outlay
Total Expenditures
CITY OF LODI
SPECIAL REVENUE FUNDS
COMPARATIVE STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Year ended June 30,199s
TRANSPORTATION STREETS
VARIANCE- VARIANCE-
EXCESS (DEFICIENCY) OF REVENUE OVER
(UNDER) EXPENDITURES
Favorable Favorable
BUDGET ACTUAL (Unfavorable) BUDGET ACTUAL (Unfavorable)
$ 507.200 468,435 (38,765) $
1,750,800 1,291,237 (459,563) 973,500 1,059,616 86,116
518,000 463,554 ( 5 4,M 6 )
107.550 237.064 129.514 9,700 1,197 (8,503)
65.259 65,259 5,727 5,727
2,883,550 2,525,549 (3 5 8,0 0 1 ) 983,200 1,066,540 83,340
4,320,215
4,320.215
(1,436,665)
OTHER FINANCING SOURCES (USES) Operating transfers in 1,895,430
Operating transfers out (2.980.992)
(1,085.562) Tofal other financing sources (uses)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (2,522,227)
FUND BALANCE, BEGINNING OF YEAR, AS RESTATED 4,415,836
$ 1,893,609 FUND BALANCE, END OF YEAR
676.232 3,643,983
676,232 3,643.983
1,849,317 3,285,982 983,200 1,066,540 83.340
1.895.430 176,749 176.749 -. ..
(2.980.992) (573.961) (573,961)
(397.2121 (397.212) (1,085,562)
continued
J9
763.755 3,285,982 585,988 669,328 83,340
4,4?5,836 (56.576) (56.576)
5,179,591 3,285,982 $ 529,412 612,752 83,340
CITY OF LODI
SPECIAL REVENUE FUNDS
COMPARATIVE STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Year ended June 30,1995
REVENUES
Taxes
Intergovernmental revenues
Charges for services
Interest and rental income
Miscellaneous charges
Total Revenue
EXPENDITURES
Current
Public protection
Public works
Capital ouUay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUE OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Total other financing sources (uses)
COMMUNITY
DEVELOPMENT BLOCK GRANTS
VARIANCE-
Favorable
BUDGET ACTUAL (Unfavorable)
8
628,477 753.093 124,616
628,477 753.093 124,616
1,286,962 753,093 533.869
1,286,962 753.093 533.869
(658,485) 658,485
EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINAN.CING USES (658,485) 658,485
' FUND BALANCE, BEGINNING OF YEAR, AS RESTATED
FUND BALANCE, END OF YEAR $ (658.485L 658,485
TOTALS
VARIANCE-
Favorable
BUDGET ACTUAL (Unfavorable)
$ 507,200 468,435 (38,765)
3,426,277 3,175,996 (250,281)
518,000 463,554 (54,446)
121.250 239,565 118,315
70,986 70,986
(154;191) 4,572,727 4,418,536
145,393 126,920 18,473
1,286.962 753,093 533,869
4,320,215 676,232 3,643.983
5,752,570 1,556.245 4.196.325
(1.179.843) 2.862,291 ' 4,042,134
2.086.547 2.086.547 ..
(3,614,813) (3,614,813)
(1,528,266) (1,528.266)
(2,708,109) 1,334,025 4,042,134
' 4,497,180 4,497,180
$ 1,789.071 5,831,205 4,042,134
OVERVIEW
The City has established a debt service fund to account for the payment and accumulation of resources related to general long-term debt
principal and interest for the following debt issues:
1965 Municipal Improvement Bonds - Series A
These bonds were issued in 1965 to finance the construction of sewer, storm drainage and a public safety building. These bonds are
secured by a pledge of property tax revenues.
Special Assessment District Bonds
These bonds were issued in 1984 to finance a downtown beautification program and are secured by an assessment of properties in the District.
62
ASSETS
Cash and Investments
Receivables:
Property taxes
Special Assessments
Interest
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Deferred revenue
TOTAL LIABILITIES
CITY OF LODl
DEBT SERVICE FUND
COMPARATIVE BALANCE SHEETS
June 30,1995 and 1994
1995
FUND BALANCE
Fund balances:
Unreserved-designated for plant replacement
Unreserved-designated for debt sewice
TOTAL FUND BALANCE
TOTAL LIABILITIES AND FUND BALANCE
$ 260,298
2,181
35,000
535
$ 298,014
$ 35,000
35,000
16,545
246,469
263,014
$ 298,014
1994
$ 243,550
10,239
' 30,000
739
$ 284.528
30,000
30,000
16,545
237,983
254,528
$ 284,528
See accompanying independent auditors' report. 63
CITY OF LODl
DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
Years ended June 30,1995 and 1994
REVENUES
Taxes
Interest and rental income
Total Revenues
EXPENDITURES '
Interest and fiscal charges
Principal payments
Total Expenditures
DEFICIENCY OF REVENUES UNDER EXPENDITURES
OTHER FINANCING SOURCES
Operating transfers in
Total other financing sources
EXCESS OFREVENUESANDOTHERSOURCES
OVER EXPENDITURES AND OTHER USES
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
See accompanying independent auditors' report;
1995
$ 176,539
2,512
179.051
35,498
310,000
345,498
(1 66,447)
174,933
174,933
8,486
254,528
$ 263,014
1994
$ 65,041
2,149
67.190
80,160
325,000
405,160
(337,970)
352,563
352.563
14,593
239,935
$ 254,528
64
OVERVIEW
The following funds were used by the City in order to account for the financial resources used in the construction and acquisition of major capital
facilities or equipment (with the exception of those financed primarily through enterprise funds):
Equipment Fund
This fund was established to account for the financing and replacement of equipment for all funds of the City with the exception of the
Enterprise Funds. Financing is primarily provided through operating transfers from other funds, interest earnings and sales of surplus
property.
Library Capital
This fund is used to account for the acquisitioni construction and installation of capital facilities for the Library.
Subdivision Capital
This fund is used to account for construction and installation projects dealing with subdivision work for others.
Hutchins Street Square Capital
When the old Lodi High School burnt down, the City purchased the property and renamed it Hutchins Street Square. The Old Lodi High Site
Foundation was established, and this organization organizes events to raise money for the capital restoration of Hutchins Street Square.
Capital Outlay Reserve Fund
This fund was established to account for all the City’s construction projects and capital purchases in excess of $10,000 with the exception of those
funded through Enterprise Funds. Financing is provided primarily by operating transfers from other funds and from State and Federal grants.
Lodi Lake Capital
This fund was established to account for moneys charged for activities held at Lodi Lake. The Council designated the moneys to be used for Lodi
Lake capital projects.
66
. ASSETS
Cash and investments
Receivables:
Accounts
Property taxes
Interest
Due from other funds
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and other liabilities
Accrued salaries and wages
Due to other funds
TOTAL LIABILITIES
CITY OF LODl
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
June 30,1995
(with cornparatlve totals for June 30,1994)
Hutchins Capital
Library Subdivision Street Square Outlay
Equipment Capital Capital Capital Reserve
$ 190,288 364,652 300,339 3,577 2,745,333
120,000 868
4,651
39,577
166,582 $*190,288 1 364 652 ___ 300,339 123 577 2,957,011
$ 75 28,231
120,000 53,003
75 120,000 81,234
Lodi
Lake
Capital
191,531
3,000
3,280
197,811
Totals
1995 1994*
$ 3,795,720 $ 3,895,470
123,868 126,123
42,857 33,664
4,651
166,582 27,961
$ 4,133,678 $ 4,083,218
$ 28,306 $ 92,714
823
173,003 224,459
201,309 317,996
FUND BALANCE
Fund balances: 72,388 398,549 470,937 239,851
Prior year's obligation 27.760 364,652 2,477,228 2,869,640 1,762,567
90,065 300,339 3,577 197,811 591,792 1,762,804 Specific projects and programs
3,932,369 3,765,222
123,577 2,957,011 , 197,811 $ 4,133,678 $ 4,083,218
Reserved for encumbrances
Unreserved-designated for :
197,811 TOTAL FUND BALANCE 190,213 364,652 300,339 3,577 2,875,777
300,339 TOTAL LIABILITIES AND FUND BALANCE $ 190,288 . 364,652 I
Restated for fund reclassifications.
See accompanying independent auditors' report.
61
. . ..
CITY OF LODI
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
Year ended June 30,1995
(with comparative totals for June 30,1994)
REVENUES
Taxes
Charges for sewices
Interest and rental income
Miscellaneous revenue
Total revenue
EXPENDITURES
Current
General government
Public works
Capital outlay
Total expenditures
Hutchins Capital Lodi Master
Library Subdivision Street Outlay Lake Storm Totals
Equipment Capital Capital Square Capital Reserve Capital Drain 1995 1994'
611,114 611,114
$ 1,243,252 $ 1,243,252 $ 1,060,813
159,794 13,066 172,860 557,429
104,153
2,014,160 13,066 2,027,226 1,722,395
8.007
71,670
6,223 1,827,953 804,592 397.641
397,641 1,424,089 6,223 1,827,953 884,269
1,424,089
(397,641) 590,071 6,843 199,273 838,126 EXCESS (DEFICIENCY) OF REVENUE OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Total other financing sources (Uses)
244.185 2,209,468 80,421 2,534,074 4,101,462
(8,242) (7,000) (2,476,440) (74,517) (2,566,200) (6.274,045
235,943 (7,000) (266.972) 5,904 (32,126) (2,172,583
EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES (161.698) (7.000) 323,099 12,747 167,147 (1,334,457 OVER (UNDER) EXPENDITURES AND OTHER USES
364,652 307,339 3,577 1,539,121. 185,064 869,190 3,620,854 5,570,526
1.013.558 (869,190) 144,368 (470,847
351,911 364,652 307,339 3,577 2,552,679 185,064 3,765,222 5,099,679
$ 3,932,369 $ 3,765,222
FUND BALANCE AS PREVIOUSLY REPORTED, BEGINNING OF YEAR
ADJUSTMENT TO FUND BALANCE
FUND BALANCE, BEGINNING OF YEAR, AS RESTATED
FUND BALANCE. END OF YEAR
351,911
$ 190,213 364,652 300,339 3,577 2.875,777 197.81 I
P
* Restated for fund reclacrificslions.
See accompanying independent auditors' report.
68
OVERVIEW
Enterprise funds are distinguished by their similarity to private sector activities as the intent is to finance or recover the cost of providing services
primarily through user charges. As such, the measurement focus is on net income in addition to financial position and changes in financial
condition. An accrual basis of accounting with depreciation recorded as an expense, is utilized. Enterprise funds may also be established in order
to account for operations under which the City or an outside grantor agency has decided that a periodic determination of revenues earned,
expenses incurred andlor net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.
The City of Lodi uses the following five enterprise funds:
Camp Hutchins Fund
This fund was established by the City in order to account for the provision of licensed child care that is provided every day of the year except weekends and
school holidays. All activities necessary to provide such services are accounted for in this fund, including but not limited to, administration and management,
supplies for activities that provide socialization skills through activities in arts, crafts, drama, games, music and science, and qualified licensed child care services
for children from ages 6 to 12 years.
Electric Fund
This fund was established by the City in order to account for the provision of electric services to the residents of the City. All activities necessary
to provide such services are accounted for in tfiis fund, including but not limited to, source of supply, overhead, systems maintenance, customer
service, engineering, administration, capital improvements, maintenance and debt service.
Sewer Fund
This fund was established by the City in order to account for the provision of waste water collection and treatment services to the residents of the
City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations,
maintenance, improvements and debt service.
. Water Fund
This fund was established by the City in order to account for the provision of water to the residents of the City as well as some customers in the
County. All activities to provide such services are accounted for in this fund, including, but not limited to administration, operations, distribution,
maintenance, capital improvements and debt service.
Transit Fund
This fund is used to account for the operations of the Dial-A-ride and the Grapeline bus system.
70
CITY OF LODl
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
(wlth comparatlve totals for June 30,1994)
, June 30,1995
Tolals
1995 1994' TransH Water
1,111,607
Sewer
5,423,265
241,603
Camp Hulchlns Electric
$ 14,619 7,418,417
3,436 2,287,334
$ 13,967,908 $ 12,006,166
2,775,259 2,548,624
34.926
3,936,191 3,977,273
212,530 158,927
881,463 775,792
967.966 1,622,012
252,264 268,806
2.345 35.828
ASSETS
Cash and Investments
Recelvables:
Accounls
Property taxes
Water loan
Interest
Due from olher funds or governmental 8genCfeS
lnvenlory
Deferred flnanclng cosls
Olher assets
FLxed assels (net)
TOTAL ASSETS
LIABILITIES AND FUND EQUlN
LIABILITIES
Accounts payable and other llabllilles
Accrued salaries and wages
Accrued lnleresl
Due to other funds
Accrued compensated absences I
Deferred revenue
CertMcetes of partlclpallon payable, net of discount
Water loan payable
TOTAL LIABILITIES
FUND EQUITY
Conlribuled CapHal
Retained eamlngs
TOTAL FUND EQUlN
TOTAL LIABILITIES AND FUND EQUITY
4,664 238,222
3,936,191
12,173
38,850
233,569
90
11,012
554.931
193 127,208
217.282
717,099
61,944
70,400
17,298
252,264
2,255 48,896,542
$ 73.015.451 $ 70,324.895
50.019]525 27,651,323
33.720.352
7,321 11,476,189
0 25.569 22,243.529
890,702 $ 1,038,422
156,373 117,092
358.684 362,412
164,278 208,918
930,266 850.328
10.174.023 10,269,548
16,248
1,078
15,409
164,278
113,790
36,466
351,679
146,846
16,248
10,174,023
402,223
20,433
7,005
78,394
1,745 371,866
79,161 4,904
8
705,026
4;750;000 4,758.000
17,448.574 17,604,720 4,758,000
5.266.055 180,765 10,839,052 6.649 1,156,053
1.299.212 1,079,002 534,445 757,446 7.321 .- .
54,267,865 51,641,173
55,566.877 52,720,175
389.842
924,287
1,105,052
9,897.448
10,654,894
1 1 ;599 21,087,476
18.920 21.087,476
22,881,300
22,681.300
$ 73,015,451 $ 70,324,895 33.720.352 15,920.949 25,569 , 22,243,529 9
Ssc accompanying Independent auditors' report.
71
CITY OF LODl
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND EQUITY
Year ended June 30,1996
(wllh cornparallve totals for June 30,1994)
Totals
1995 1994' Camp Hutchins
S 127,464
Sewer
3.596.313
Electric
34,047,610
Waler
2,712,164
Transit
104,410
OPERATING REVENUES
Charges for services
OPERATING EXPENSES
Personal services
Supplies, materials and services
Ulililies
Depreciation and amortizalion
TOTAL OPERATING EXPENSES
8 40,587,961 S 41,133,638
99,165
17,476
1,096
960,435
1,188,551
340.321
4,622,668
27.456.598 2,241,659
2,853.241
4,973,282
23,673,063
500.745
32,200,331
569,262
833.681
623,906
301,215
2,328,066
474,622
545,154
3,344
93,379
1,116,499
4,956,725
7,558.144
24.841.734
1,564,055
38,920.658
666;716
3,158.023 117,739
OPERATING INCOME (LOSS) 9,725 1,847,279 438.290 384.098 (1,012,069) 1,667,303 5,343,204
NONOPERATING REVENUES (EXPENSE)
Sewer bond taxes
Inleresl. nel 902
Renl
Other, net
TOTAL NONOPERATING REVENUES (EXPENSE) 902
10,627
Operaling Transfers in 640
Operaling Transfers out
Nel Operaling Transfers in (01.11) 640
Nel income (loss) 11.267
INCOME (LOSS) BEFORE OPERATING TRANSFERS
Add Depreciation on contributed assets
Nel increase (decrease) to relained earnlngs
RETAINED EARNINGS - BEGINNING OF YEAR, AS PREVIOUSLY REPORTED
1 1,267
332
186.361
(459.426)
144.462
186,361
73,312
164.267
195,194
(178,751)
211,779
466,710
4.345
27,815
15.460
35.31 1
8111549
1,284.604
119406
(9,197)
627:W
671,239
563,401
598.712
2,122,320
2,546,260
1,514,462
1,742,704
3,131,883 429,093 1,055,337 (413,377) 4,213,563
1,594,830
7,085,906
6,977,292 152.392
(714.808)
(562,416r
610,747
(1,612,5221
(1,001.7751
502,035
(868,640)
(364,6051
329,017
(101,477)
227,540
(3,295,447)
(1.700.617)
(1 3,189,3481
(8,212,056L
2.1 30,108 (133.323) 690,732
20.166
710,896
9,118,722
67,628
9,166,550
9,897,448
(1 85,837)
93.379
(92,458)
2,512,946
113,545
2,626,491
51,038.990
602,183
51,641,173
54,267,665
873,852
20,456
694,306
50,317,055
429,810
50,746,865
51,641,173
2,130,108
18,957,368
(1 33,323)
22,962.568
52,055
23,014,623
22,881,300
Adjustment lo retained earnings
RETAINED EARNINGS -BEGINNING OF YEAR, AS RESTATED 332
462,300
482,300
369,842
18,957,366
21,007,476 RETAINED EARNINGS - END OF YEAR
CONTRIBUTED CAPITAL
Beginnlng of year, as prevlously reported
Adjuslmenl to conlribuled capital
Conlribuled capital-beginning of year, as restated
Depreciation on contributed assels
1 1,599
777.612 777,612
301.390
1,079,002
(113,545)
786.485
301,390
1,087,875
(20,456)
301,390
301,390
(93,379)
326,434
534,445
924,287
777.612
(20,IW
757,446
10,654,894
Conlributed essels 7,321
End of year 7,321
333,755
1,299,212
1 1,583
1,079,002
TOTAL FUND EQUITY S 18,920
Ratsled for Nnd feCl&fldON.
21,087.476
72
22.881.300 S 55.566.877 S 52,720.175
CITY OF LOO1
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year ended June 30,1995
(with comparative totals for the year ended June 30,1994)
Tntelr
Cash flows from operating activities:
Operating Income (loss)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation and amortization
Change In assets and liabilities:
Decrease in water loan receivable
Increase (decrease) in accounts receivable
Decrease (increase) in property taxes receivable
(Increase) decrease in interest receivable
Decrease (increase) in due from other funds
Decrease in inventory
(Increase) decrease in other assets
Increase (decrease) in accounts payable and other liabilities
Increase in accrued salaries and wages
(Decrease) increase in accrued interest
(Decrease) increase in due to other funds
Increase (decrease) in compensated absences
Increase (decrease) in deferred revenue
Net cash provided (used) by operating activities
.
Camp Hutchlns Electric Sewer Water Transit 1995 1994
$ 9,725 1,847,279
500,745
(3,436) (165,632)
(160) (44,406)
96,095
620,443
1,640 (556,802)
1.411 13,433
239,118
9,180 2,550,273
438,290
668,716
(40,078)
34,926
2,174
3,664
(655)
85,675
9,528
(4,011)
(1 14,857) ..
16,248
1,099,620
384.098
301,215
41,082
(18,327)
(1,937)
29,939
(90)
320,914
3,742
283
(208,918)
(44,323)
807,678
(1,012,089)
93,379
835
(9.271)
(436,445)
34,228
853
11.120
164.278
(1 ,153,112)
$ 1,667,303 $ 5,343,204
1,564.055 1,469,307
41,082
(226,637)
34,926
(53,600)
(340,350)
654,046
33,483
(147,720)
39,234
(3,728)
(44,640)
79.938
161248
3,313,640
127,731
(487,675)
(34,926)
(42,787)
(73,592)
180,848
7,820
472,661
14,099
(2,191)
(209,062)
15,731
(16,248)
6,764.900
Cash flows from noncapital financing activities:
Operating transfers in 640 610,747 152,392 502,035 329,017 1,594,830 6,977,292
Operating transfers out (1,612,522) (714,808) (866,640) (101,477) (3,295,447) (1 3,189,348)
1,514,482 Other cash flows from noncapilal activities 81 1,549 119,406 627,964 798,081
Net cash provided by (used in) noncapital financing activities 640 (190,226) (443,010) 263,359 1,025,621 656.383 (4,697,574)
2,357,000
Cash flows from capital financing activities:
(857,123) Acquisition and construction of capital assets, net (1,517,060) (39,973) (765,183) (326,434)
Interest payment -Certificates of Participationhater loan (707,911) (27,709) (735,620) (718,895)
Sewer bond taxes-general obligation bonds 186,361 186,361 195,194
Capital contributed 326,434 326,434 11,583
Net cash used by capital financing activities (1,517,060) (671,523) (792,892) (2,981,475) (1,469,241)
(2,648,650)
Principal payments- Certificates of Participation (110,000) (1 10,000) (100,000)
Cash flows from investing activities:
Rent of City property 4,345 144,462 15,455 164,262 211,779
Interest on investments 902 468,710 248,485 55,524 35,311 808,932 540,144
Net cash provided by investing activities 902 473,055 392,947 70,979 35,311 973,194 751,923
Net increase (decrease) in cash and cash equivalents 10,722 1,316,041 378,034 349,125 (92,180) 1,961,742 1,350,008
Cash and cash equivalents at beginning of year 3,897 6,102,376 5,045,23,1 762,482 92,180 12,006,166 10,656,158
Cash and cash equivalents at end of year $ 14,619 7.418,417 5,423,265 1,111,607 0 $ 13,967.908 $ 12,006,166
OVERVl EW
Internal Service Funds are maintained fa account for the internal transfer of goods and services between operating units of the City. The purpose
of an Internal Service Fund is to achieve a level of operating efficiency that may not be available if the same activities were performed by
multiple organizations.
Equipment Maintenance and Motor Pool
The equipment maintenance and motor pool is:used to account for the operation, maintenance and timely replacement of the City's fleet of
vehicles which serves the transportation needs of all city departments and divisions.
Claims and Benefits Funds
The City of Lodi maintains an internal service fund to account for the following insurance and certain employee benefits:
General Liability Employee assistance program
Workers Compensation Employee recognition program
Dental Unemployment insurance
Chiropractic Flexible spending program
Life/accidental insurance Long Term Disability
Medical Vision
74
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Due from other funds
Inventory
Fixed assets (net)
TOTAL ASSETS
CITY OF LODl
INTERNAL SERVICE FUNDS
COMBINING BALANCE SHEET
June 30,1995
(with comparative totals for June 30,1994)
Equipment
Maintenance Claims and
and Benefits Totals
Motor Pool Fund 1995 1994
$ 1,616,925 $ 1,616,925 $ 2,118,277
188 188 125
27,802 27,802 25,231
1 1,033 11,033 22,010
75,047 75,047 53,903
131,192 131,192 151,677
$ 206.239 1.655.948 $ 1.862.187 $ 2.371.223 .. ,. ..
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts payable and other liabilities
Accrued salaries and wages
Due to other funds
Self-insurance reserve
TOTAL LIABILITIES
FUND EQUITY (DEFICIT)
Contributed capital
Retained earnings (dehcit)
TOTAL FUND EQUITY (DEFICIT)
$ 21,434 74,326 $ 95,760 $ 67,031
9,256 9,256 8,919
11,033 11,033 22,010
3,764,898 3,764,898 3,809,533
41,723 3,839,224 3,880,947 3,907,493
131,192 131 ,I 92 151,677
33,324 (2,183,276) (2,149,952) (1,687,947)
164,516 (2,183,276) (2,018,760) (I ,536,270)
TOTAL LIABILITIES AND FUND EQUITY (DEFICIT) $ 206,239 1,655,948 $ 1,862,187 $ 2,371,223
See accompanying independent auditors' report. 75
meeslln'e~m~~mrnwm.rw~--~
CITY OF LODl
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND EQUITY (DEFICIT)
Year ended June 30,1995
(wlth comparatlve totals for the year ended June 30,1994)
OPERATING REVENUES
Charges for servlces
OPERATING EXPENSES
Personal services
Supplies, materials and services
utiinies
Depreclatlon
Claims payments
TOTAL OPERATING EXPENSES
Equipment
Malntenance
and
Motor Pool
$ 791.958
341,335
433.528
479
15,822
791,164
OPERATING INCOME (LOSS) 794
NONOPERATING REVENUES
Interest revenue
Other, net
TOTAL NONOPERATING REVENUES
INCOME (LOSS) BEFORE OPERATING TRANSFERS 794
Operatlng transfers In
Operatlng transfers out
Net operating transfers
15,872
15.872
Claims and Benefits Totals
Funds 1995 1994
2,651,470 $ 3,443,428 $ 1,736,705
16.666
15,822
32,488
836
33,324
Net Income ( loss)
Add: Depreclatlon on contributed assets
Net Increase (decrease) to retained eamlngs
RETAINED (DEFICIT) EARNINGS - BEGINNING OF YEAR
RETAINED (DEFICIT) EARNINGS - END OF YEAR
CONTRIBUTED CAPITAL:
151,677 Beginning of year Depreciatlon on contrlbuted assets (15,822)
(4,663) Contrlbuted assets-transferred to General Fund
131,192 End of year
TOTAL FUND EQUITY (DEFICIT) 0, 164,516
245,368 586,703 421,364
1,970,868
479 438
15.822 16.755
3,307,795 3.741,323
590,259 590,259 463.435
4,143.422 4,934,586 2,872.860
(1,491,952) (1.491.158) (1,136,155)
91,621 91,621 88,804
74,850 74,850 179,335
166,471 166,471 268.139
(1,325,481) (I ,324.687) (868,016)
830.988 846.860 . 341,057 - -.
(114,385)
830.988 846,860 226,672
(494,493) (477,827) (641.344)
15,822 16,755
(494,493) (462,005) (624.589)
(1,063,358). (1,688,783) (I ,687.947)
(2,183,276) (2,149,952) (1,687,947)
151,677
(15.822) (1 6.755)
(4,663) 168.432
131.192 151,677
(2,183,276) $ (2,018.760L 0 (1,536.270)s
b
16 Scc scurmpanying indepcndcnt auditon' npon.
CITY OF LODl
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year ended June 30,1995
(with comparative totals for the year ended June 30,1994)
~
Cash flows from operating activities:
Operating income (loss)
Adjustments to reconcile operating loss to net cash used in operating activities:
Depreciation
Changes in assets and liabilities:
(Increase) decrease in accounts receivables
Increase in interest receivables
Decrease (increase) in due from other funds
Increase in inventory
(Decrease) increase in accounts payable and other liabilities
Increase in accrued salaries and wages
(Decrease) increase in due to other funds
(Decrease) increase in self-insurance reserve
Net cash used in operating activities .
Cash flows from noncapital financing activities:
Operating transfers in
Operating transfers out
Other cash flows from noncapital activities
Net cash provided by noncapital financing activities
Cash flows from investing activities:
Interest on investments
Net cash provided by investing activities
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
See accompanying independent auditors' report
Equipment
Maintenance Claims and
and Benefits
Motor Pool Funds
$ 794 (1,491,952)
15,822
(63)
(2,571 1
10,976
(21,148)
(702) 29,434
338
(10,976)
(44,635)
(1 5,872) (1,498,811)
15,872 830,988
Totals
1995 1994
$ (1,491,158) $ (1,136,155)
15,822 16,755
(63)
(2,571)
10,976
(21,148)
28,732
338
(1 0,976)
(44,635)
(1,514,683)
244
(4,932)
(22,OI 0)
(53,903)
31,811
8,919
22,010
71 8,852
(41 8,409)
846,860 341,057
(1 14,385)
74,850 74,850 179,335
15,872 905,838 921,710 406,007
91,621
91,621
(501,352)
2,118,277
91,621 88,804
91,621 88,804
(501,352) 76,402
2,118,277 2,041,875
$ 1,616,925 $ 1,616,925 $ 2,118,277
I1
OVERVIEW
The City has established the following expendable trusts and agency funds, which are used to account for funds held by the City in a trustee
capacity or as an agent for private individuals, organizations or other governmental agencies:
Expendable Trust Funds
Private Sector Trust Fund
This fund was established to account for assets held and invested by the Library Board as trustee. The funds can be spent by the Library
in accordance with trust agreements.
Hutchins Street Square Bequest
This fund was established to account for assets held by the City as trustee. The principal and earnings of the trust can be spent by the City
in accordance with the trust agreement on behalf of Hutchins Street Square.
Miscellaneous Expendable Trust
This fund was established to account for nominal sums of moneys held by the City as trustee. It is believed that these sums will be spent
within a short span of time.
Agency Funds
Deferred Compensation Fund
This fund was established to account for assets held by the City's agent on behalf of City employees under a Section 457 Plan of the
Internal Revenue Code.
Special Assessments
This fund was established to account for special assessments collected on the property tax roll by the City on behalf of the property within
the Industrial Way Beckman Districts.
78
ASSETS
Cash and Investments
Receivables:
Accounts
Interest
Other assets
TOTAL ASSETS
CITY OF LODl
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
June 30,1995
(with comparative totals for June 30,1994)
Expendable Trust Funds Agency Funds
Private Hutchins Street Miscellaneous Deferred Special Totals
Sector Square Bequest Expendable Trust Compensation Assessments 1995 1994
$ 346,123 19,729 76,876 11,519,999 311,457 $ 12,274,184 $ 10,837,237
238
152
841
152 147
2,933 3,171 3,991
841 750
$ 346,123 19,967 77,869 11,519,999 314,390 $ 12,278,348 $ 10,842,125
I
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and other liabilities $ 77,869 314,390 $ 392,259 $ 351,740
Deferred compensation benefits payable 11,519,999 11,519,999 10,152,148
TOTAL LIABILITIES 77,869 11,519,999 314,390 11,912,258 10,503,888
FUND BALANCE
Fund balance unreserved-designated for:
338,237 Specific projects and programs 346,123 19,967 366,090
TOTAL LIABILITIES AND FUND BALANCE $ 346,123 19,967 77,869 11 ,51 9,999 314,390 $ 12,278,348 !§ 10,842,125
See accompanying independent auditors' report. 79
---------mmn----1.m=
CITY OF LODI
EXPENDABLE TRUST FUNDS
Year ended June 30,1995
(with comparative totals for the year ended June 30,1994)
COMANING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
REVENUES
Interest and rental income
Total revenues
EXPENDITURES
Current
Capital outlay
Total expenditures
EXCESSOFREVENUEOVEREXPENDITURES
OTHER FINANCING SOURCES
Operating transfers in
Operating transfers out
Total other financing sources
EXCESS OF REVENUE AND OTHER FINANCING
SOURCES OVER EXPENDITURES
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
See accompanying independent auditors' report.
Private
Sector
$ 22,767
22,767
22,767
22,767
323,356
$ 346,123
80
Miscellaneous
Hutchins Street Expendable Totals
Square Bequest Trust 1995 1994
5,086 $ 4,348 $ 32,201 $ 16,752
5,086 4,348 32,201 16,752
308
308
5,086 4,348 32,201 16,444
602 602
(4,950) (4,950)
(4,348) (4,348)
5,086 27,853 16,444
14,881 338,237 321,793
19,967 $ 366,090 $ 338,237
-.I
ASSETS
Cash and investments
Interest receivable
TOTAL ASSETS
CITY OF LODl
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year ended June 30,1995
(with comparatlve totals for June 30,1994)
Deferred Compensation Special Assessments Totals
Balance Balance Balance Balance
7/1\94 Additions Deductions 6/30/95 7/1/94 Additions Deductions 6/30/95 1995 1994
$ 10,152,148 2,313,133 945,282 11,519,999 $ 298,136 13.321 31 1,457 $ 1 1,831,456 10,450,284
3,804 2,933 3,804 2,933 2,933 3,804
16,254 3,804 314,390 $ 11,834,389 10,454,088
LIABILITIES
Accounts payable and other liabilities $ $ 301,940 12,450 314,390 $ 314,390 301,940
Deferred compensation benefits payable 10,152,148 2,313.133 945,282 11,519,999 11,519,999 10,152,148
TOTAL LIABILITIES $ 10,152,148 2,313,133 945,282 11,519,999 $ 301,940 12,450 314,390 $ P 1 1,834,389 10,454,088 P
Sea accompanying independent auditors' report. 81
mmmm~m~m'~mmm~mmm~~mm
OVERVIEW
General Fixed Assets Account Group
All of the City's fixed assets of a tangible nature, except those relating to the proprietary fund types, are accounted for in this Account Group. As
these assets are not financial resources available for expenditure or appropriation, they are not accounted for with Governmental Funds, but as an
account group; and exist solely as accounting records of the City's fixed assets. The City's general fixed assets have been accounted for at cost,
and do not include public domain or infrastructure fixed assets such as roads, bridges, storm drains or sidewalks, as these assets are immovable
and only of value to the City.
General Long Term Obligations Account Group
The City's long term obligations, except those relating to the proprietary fund types, are accounted for in this Account Group. These liabilities are
backed by the full faith and credit of the City, which means that the debt is secured by the general taxing authority of the City. Included
in long-term obligations are: . .
* General obligation bonds
* . Special assessment district bonds
Compensated absences
* Capitalized lease obligations
82
CITY OF LODI
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS
June 30,1995 and 1994
General fixed assets: 1995
Land
Buildings and improvements
Machinery and equipment
Vehicles
Construction in progress
Capital lease assets
Total
Investment in general fixed assets:
Prior year balances (as of June 30,1991)
General fund
Special revenue funds
Capital projects funds
Total
$ 16,469,241
23,033,623
2,476,864
2,681,070
138,705
706.024 -
$ 45,505,527
1994
$ 16,469,241
22,801,577
2,148,969
2,499,245
232,046
722,862
$ 44,873,940
$ 42,965,286 $ 42,965,286
1,436,324 874,099
7,800 309,189
1,096,117 725,366
$ 45,505,527 fi 44,873,940
See accompanying independent auditors' report. 83
-Irntm-
CITY OF LODl
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
June 30,1995
Buildings and Machinery and Capital Lease Construction
Function and Activity
General Government:
City clerk
City manager
Finance
Total General Government
Public protection
Public works
Library
Parks and recreation
Non-departmental
Total general fixed assets
allocated to functions
Total general fixed assets
Land Improvements Equipment Vehicles Assets in Progress Total
$ 20,291 $ 20,291
55,178 38,287 93,465
A 475,391 137,237 612,628
$ 550,860 175,524 $ 726,384
$ 3,718,520
158,453 2,778,952 429,188 708,540 461,922 1,020,849
205,286 328,524 8,581 542 , 39 1
11,346,407 20,627,690 317,365 224,753 32,516,215
4,229,857 629,532 224,971 138,705 5,223,065
$ 258,503 739,337 913,165 1,259,944 547,571
$ 16,469,241 23,033,623 1,926,004 2,505,547 138,705 706,024 $ 44,779,143
$ 16,469,241 23,033,623 2,476,864 2,681,070 706,024 138,705 $ 45,505,527
P P 3
See accompanying independent auditors' report. 84
CITY OF LODl
FOR THE FISCAL YEAR ENDED JUNE 30,1995
SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS - BY FUNCTION AND ACTIVITY
Function and Acti 'V' ity
General Government:
City clerk
City manager
Finance
Total General Government
Public protection
Public works
Library
Parks and recreation
Non-departmental
Total general fixed assets
allocated to functions
Total general fixed assets
$
General Fixed
J!Kwmuw
Assets .
24,584
89,786
570,353
$ 684,723
3,190,361
2,619,465
542,391
32,451,251
5,385.749
Additions
3,679
47,920
51,599
528,159
179,220
72,285
138.705
$ 44,189,217
$ 44,873,940
918,369
969,968
General Fixed
Assets
Deduct ions s!lmaum
20,291 (4,293) $
93,465
(5,645) 612,628
$ 726,384
3,718,520
(19,733) 2,778,952
542,391
(7,321) 32,516,215
(301,389) 5,223,065
(328,443) $ 44,779,143
(338,381) $ 45,505,527
See accompanying independent auditors' repon. 85
CITY OF LODl
June 30,1995 and 1994
COMPARATIVE SCHEDULES OF GENERAL LONG-TERM OBLIGATIONS
1995 1994
Amount to be provided for retirement
of general long-term obligations $ 4,552,805 $ 4,445,938
Amount available in debt service 263,014 254,528
Total $ 4,815,819 $ 4,700,466
General Long-term Obligations
Compensated absences $ 4,066,678 $ 3,637,283
Capitalized lease obligations 299,141 303,183
General obligation bonds payable 290,000 570,000
Special assessment district bonds payable
160,000 190,000 with government commitment .
Total
See accompanying independent auditors' report.
$ 4,815,819 I $ 4,700,466
86
CITY OF LODl
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Amounts in Thousands)
u) U c 10.000 I’ 3
I-
2 8,000
6,000
4,000
2,000
0
1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95
is3 Taxes Licenses/ Permits la Inter - Governmental
Charges Services E Fines, Forfeits/ Penalties Money & Property
II Misc. Revenue
Use of
Fiscal Licenses1 Inter - Charges Fines, Forfeits/ Money & Misc.
Year
1985-86 $
1986-87
1987-88
1988-89
1989-90
1990-91
1991 -92
1992-93
1993-94
1994-95
- Taxes
7,724 $
8,297
9,079
9,393
10,409
10,623
11,556
1 1,462
12,579
16,209 **
Permits Governmental
367 $ 4,035 $
’ 371 3,592
427 3,067
470 3,261
460 3,984
545 4,134
420 5,213
317 5,049
507 4,756
634 5,928
Services
2,390 $
2,478
3,027
3,770
3,966
4,062
5,003
5,975
2,100 *
2,517 *
Penalties
216 $
. 311
316
338
282
34 1
252
338
407
406
Property Revenue Total
2,048 $ 273 $ 17,053
1,667 628 17,344
1,675 44 1 18,032
1,558 679 19,469
1,438 699 21,238
1,406 1,341 22,452
1,380 1,139 24,963
1,136 649 24,926
1,157 199 21,705
840 201 26,735
General Governmental Revenues includes General, Special Revenue, Debt Service and Capital Projects Funds. Excludes Expendable Trusts.
SOURCE: City Finance Department
* Due to change in accounting for refuse revenue.
**Due to in-lieu taxes from Enterprise Funds.
88
CITY OF LODl
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(Amounts in Thousands)
10,ooo
8,000
$ 6,000
s
4,OGU
2,000
1985.86 1986-87 1987-88 198889 1989-90 199C-91 1991-92 1992-93 1993-94 . 1994-95
BGeneral Government BBI Public Protection Public Works El Public Sanitation
Libpry k3 Parks & Recreation ll Debt Seyice 0 Capital Outlay
Fiscal General Public Public Parks & Debt Capital
Year Government
1985-86 $ 2,296 $
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
2,346
3,082
2,837
3,839
4,209
5,186
5,033
4,908
5.21 1
Protection
5,462 $
6,098
6,796
7,574
7,956
9,141
9,903
9,903
9,949
10,401
Works
2,048
1,991
2,182
4,446
3,284
4,301
4,204
5,128
4,296
4.382
Sanitation
'$ 1,824 $-
2,202
2,757
3,164
3,385
3,449
3,424
4,063 o* o*
Library
695
635
654
738
788
904
949
852
956
881
Recreation Service
'$ 1,394 $ 524
1,503 451
1,695 456
2,084 475
2,265 399
2,485 406
2,632 395
2,487 396
2,307 405
2,299 345
General Governmental Expenditures includes General, Special Revenue, Debt Service and Capital Projects Funds.
Excludes Expendable Trusts.
SOURCE: City Finance Department
* Due to change in accounting for refuse expenditures. 89
Outlay
'$ 4,508 $
3,938
3,235
2,457
?1,651
1,243
1,519
941
2,203
2.652
Total
18,751
19,164
20,857
23,775
23,567
26,138
28,212
28,803
24,949
26,246
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
f $0
i?
CITY OF LODI
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Amounts in Thousands)
1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95
. Ei Properly !l# Sales & Use U Transient Occupancy Franchise II Documentary Transfer
Motor Veh . in Lieu E Cigarette Public Protection E Business License E In Lieu Franchise (2)
Fiscal Sales Transient Documentary Motor Veh . Public Business In Lieu
1986-87
1987-88
1988-89
1989-90
1990-91
1991 -92
1992-93
1993-94
1994-95
2,762
3,158
3,356
3,902
4,348
4,620
4,618
4,950
3,466
3,925
4,264
4,526
4,970
4,962
4,909
4,968
5,221
5,320
110
119
136
144
151
200
236
247
248
155
164
192
210
238
235
447
508
506
Year Property & Use Occupancy Franchise Transfer in Lieu Cigarette Protection License Franchise (2) Total (I)
8,551 83 1,298 133 85
85 1,460 123 89 9,462
100 1,666 117 91 10,184
112 1,746 107 96 I 1,287
98 1,787 90 93 11,767
79 1,799 43 95 11,980
58 1,868 7 95 12,297
68 1,972 98 92 13,156
68 1,885 149 169 5,300 17,111
1985-86 $ 2,392 $ 3,616 $ 76 $ 177 $ 72 $ 1,181 $ 133 $ -$ 78 $ - $ 7,725
(1) General government; tax revenues are included in taxes, licenses and
(2) First year of In-Lieu Tax.
SOURCE: City Finance Department
ermits, intergovernmental revenues and miscellaneous revenue of the City's General Fund.
90
CITY OF LODl
SECURED TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Amounts in Thousands)
SM)
fi Y------ 0 19k 1987 1988 1989 1990 1991 1992 1993 1994 1995
+Tax Lovy -TaxCdsotio~ 1
Total Current Year's
Fiscal Tax Tax
Year Levy Collections
1986 $ 2,545 s 2,133
1987 2,883 2,404
1 988 3,153 2,693
1989 3,569 2,886
1990 3,985 3,296
1991 4,286 3,847
1992 4,175 4,105
1993 3,829 3,809
1994 3,994 3,461
1995 4.028 3.516
Percent of Delinquent Total
Collections Tax Tax
to Tax Levy
83.8% t 97 t 2,230
83.4% 112 2,516
85.4% 191 2,884
80.9% 90 2,976
82.7% 204 3,500
89.8% 351 4,198
98.3% 169 4,274
99.5% 90 3,899
86.7% 624 4,085
87.3% 9 3,525
Collections Collections
Percent
of Total
Collections
to Tax Levy
87.6%
87.3%
91 5%
83.4%
87.8%
97.9%
102.4%
101.8%
102.3%
87.5%
SOURCE: City Finance Deparbnent
91
CITY OF LODl
Fiscal
Year
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
Fiscal
Year
Secured
Roll
$ 1,171,959
1,323,239
1,442,628
1,615,433
1,799,281
1,948,698
2,097,616
2,200,557
2,305,937
2,353,069
Land
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
$ 303,161
330,484
374,723
415,277
459,095
507,046
561,505
597,785
639,421
663,227
ASSESSED FULL CASH VALUE OF ALL TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Amounts In Thousands)
Mineral
Roll
, 72
12
12
12
12
lmbrovements
$ 870,166
972,458
1,059,697
I ,I 18,903
1,237,487
1,461,124
1,524,596
1,575,675
1,608,564
iI358,a4i
Utlllty
Roll
$ 36,845
39,917
41,897
4,294
4,190
2,712
2,748
2,782
2,736
3,504
Personal
property
$ 103,200
124,425
133,988
174,889
223,193
184,649
180,665
181,952
200,740
199.962
Unsecured
Roll
$ 67,723
72,211
83,883
89,342
116,232
99,114
102,918
100,982
107,151
115,180
Total
$ 1,276,527
1,435,367
1,568,408
1,709,069
1,919,775
2,050,536
2,203,294
2,304,333
2,415,836
2,471,753
Tax
Roll
$ 1,276,527
1,435,367
1,568,408
1,709,069
1,919,775
2,050,536
2,203,294
2,304,333
2,415,836
2,471,753
Less
Exemptlons
$ 105,657
11 0,029
123,842
127,256
143.267
145,148
152,569
160,068
125,486
164,592
Less
Exemptions
$ 105,657
110,029
123,842
127,256
143,267
145,148
152,569
160,068
125,486
164,592
Net Assessed
Value
$ 1,170,870
1,325,338
1,444,566
1,581,813
1,776,508
1,905,388
2,050,725
2,144,265
2,290,350
2,307,161
Net Tax
Roll
$ 1,170,870
1,325,338
1,444,566
1,581,813
1,776,508
1,905,388
2,050,725
2,144,265
2,290,350
2,307,161
92
CITY OF LODl
ASSESSED FULL CASH VALUE OF ALL TAXABLE PROPERTY
LAST TEN FiSCAL YEARS
(Amounts in Thousands)
1,800,000
1,600,000
1,400,000
1,200;000
u) 1,000,000
I
7J
0
800,000
600,000
400,000
200,000
1985-86 1986-87 1987-88 1908-09 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95
13 Exemptions 7 [I1 Land rn Improvements Ul Property
-__--
93
CITY OF LODI
LAST TEN FISCAL YEARS
Per $100.00 of Assessed Value
PROPERTY TAX RATES - DIRECT & OVERLAPPING GOVERNMENTS
I I 1994-95
I I mLevy BCity USchool BAIl Other I County-Wide
- Basic
Fiscal County-Wide
Year City
1985-86 1 .oooo 0.0355
1986787 1 .oooo
1987-88 1 .oooo
1988-89 I .oooo
1989-90 1 .oooo
1990-91 1 .oooo
1991 -92 1 .oooo
1992-93 1 .oooo
1993-94 1 .oooo
1994-95 1 .oooo
0.0281
0.0281
0.0281
0.0177
0.0170
0.0153
0.0150
0.0146
0.0126
School
0.0248
0.0248
0.0248
0.0248
0.0248
0.0248
0.0248
0.0248
0.0248
0.0140
All Other
0.0034
0.0034
0.0034
0.0034
0.0034
0.0034
0.0034
0.0034
0.0034
0.0034
- Total
1.0637
1.0563
1.0563
I .0563
1.0459
1.0452
1.0435
1.0432
1.0428
1.0300
SOURCE: San Joaquin County Auditor/Controller's Office
94
CITY OF LODl
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
LAST TEN FISCAL YEARS
(Amounts in Thousands)
Current Current
Fiscal Assessments Assessments
Year Due Collected
1985-86 $ 308 $
1986-87 294
1987-88 284
1988-89 269
1989-90 183
1990-91 1 82
1991 -92 178
1992-93 49
1993-94 52
1994-95 49
SOURCE: City Finance Department
277
263
277
247
177
178
140
46
52
48
95
Total
Collection
As Percent of
Current
Assessments
Due
89.9%
89.5%
97.5%
91.8%
96.7%
97.8%
78.7%
93.9%
100.0%
98.0%
Total
Outstanding
Current and
Delinquent
Assessments
$ 31
31
7
22
6
4
38
3
0
1
CITY OF LODI
RATIO OF NET GENERAL BONDED DEBT
TO TAXABLE ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(Amounts in Thousands)
Debt
Payable
Gross Gross From Net Percent of Net Net
Fiscal Assessed Bonded Enterprise Bonded Bonded Debt to Bonded Debt
Year Population Value Debt Revenue Debt Assessed Value Per Capita
1985-86 41 $ 1,276,527 $ 3,482 $ .$ 3,482 0.2728% $ 84.35
1986-87 43 1,435,367 3,133 3,133 0.2183% 72.37
1987-88 46 1,568,408 2,759 2,759 0.1759% 60.25
1988-89 48 1,709,069 11,287 8,917 2,370 0.1387% 49.33
1989-90 49 1,919,775 10,912 8,834 2,078 0.1082% 42.22
1990-91 53 2,050,536 10,247 8,746 1,501 0.0732% 28.57
1991-92 53 2,203,294 12,375 11,170 1,205 0.0547% 22.74
1992-93 53 2,304,333 11,250 10,355 895 0.0388% 16.79
1993-94 54 2,415,837 10,840 10,270 570 0.0236% 10.58
1994-95 55 2,471,754 10,464 10,174 290 0.01 17% 5.30
SOURCE: State Controller's Office
City Finance Department
96
CITY OF LODl
COMPUTATION OF DIRECT AND OVERLAPPING GENERAL BONDED DEBT
June 30,1995
DIRECT DEBT:
GENERAL OBLIGATION BONDS
OVERLAPPING DEBT:
NONE
Total
$
Total
G.O. Bond Percent City’s Share
Debt Applicable of Debt
290,000 100.00% $ 290,000
0
$ 290,000
DEBT RATIOS
June 30,1995
Ratio of Direct Overlapping Debt to Assessed Full Cash Value = 290,00012,471,754,000
Direct and Overlapping Debt Per Capita = 290,000154,700
Taxable Assessed Full Cash Values Per Capita = 2,471,754,000154,700
SOURCE: City Finance Department
0
290,000 $
0.01%
$5
$45,187
CITY OF LOO1
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30,1995
Assessed Full Cash Value as of June 30,1995 (1) , $ 2,471,754,000
Debt Limit - 15 Percent of Assessed Full Cash Value (2) $ 370,763,100
0 Amount of Debt Applicable to Debt Limit
LEGAL DEBT MARGIN $ 370,763,100
(1) Assessed Value before exemptions applicable to 1994-95 Tax Roll
(2) Section 43605 California Government Code
SOURCE: San Joaquin County AuditodController's Office
City Finance Department
96
CITY OF LODl
Fiscal
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL FUND EXPENDITURES
LAST TEN FISCAL YEARS
(Amounts in Thousands)
Total Percent of
Total General Debt Service
Debt Fund to General Fund
Principal Interest Service ' Expenditures Expenditures
1985-86 $ 119 $ 58 $ 177 $ 12,840 1.38%
Year
1986-87 121 54 175 14,041 . 1.25%
1987-88 130 49 179 15,988 1.12%
1988-89 132 43 175 17,917 0.98%
1989-90 1 36 38 174 19,140 0.91%
1990-91 145 33 178 21,704 0.82%
1991-92 147 27 174 23,251 0.75%
1992-93 156 21 177 25,682 0.69%
1993-94 165 15 180 26,900 0.67%
1994-95 114 8 122 21,981 0.56%
SOURCE: City Finance Department
CITY OF LODi
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
Net
Revenue
Direct Available Current Fiscal Year's
Fiscal Gross Operating For Debt Debt Service Requirements
Year Revenue Expense Service Principal Interest Total Coverage
1985-86 $ 1,877,451 $ 1,118,111 $ 759,340 $ $ $
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
2,378,602
3,522,881
3,371,760
3,490,019
3,743,712
3,941,414
2,923,038
3,454,258
3,596,313
1,395,754
2,100,973
1,509,699
1,545,376
1,746,750
2,394,811
2,009,791
2,030,628
2,489,307
982,848
1,421,908
1,862,061
1,944,643
1,996,962
1,546,603
913,247
1,423,630
1,107,006
100,000 71 1,085 81 1,085 2.30
105,000 705,835 810,835 2.40
110,000 700,060 810,060 2.47
483,493 483,493 3.20
330,000 71 0,390 1,040,390 0.88
1.77 100,000 705,690
I1 0,000 700,355 810,355 1.37
805,690
SOURCE: City of Lodi Finance Department
100
CiTY OF LODl
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
600,000 1
500,000
400,000
300,000
200,000
100,000
0
1985-86 1986-87 1987-88 . 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95
-7 I I El City Population . EQB County Population
Population San Joaquin
Fiscal Square City Percent County
Year Miles Population Change Population
1985-86 9.30 41,281 4.6% 407,500
1986-87
1987-88
1988-89
1989-90
1990-91
1991 -92
1992-93
1993-94
1994-95
9.30
9.45
9.45
9.45
10.70
11.30
1 I .82
12.14
12.32
43,293
45,794
48,042
49,221
52,539
53,000
53,300
53,903
54.700
4.9%
5.8%
4.9%
2.5%
6.7%
0.9%
0.6%
1.1%
1.5%
423, I 54
435,700
451,000
460,227
470,934
480,628
503,400
521,500
530,700
SOURCE: State of California, Department of Finance, Demographic Research Unit.
City Finance Department Budget
101
Population
Percent
of County
10.1%
10.2%
10.5%
10.7%
10.7%
I 1.2%
11 .O%
10.6%
10.3%
?0.3%
Rank in Size
of California
Cities
116
115
113
112
111
113
113
120
124
121
CITY OF LODI
CONSTRUCTION ACTIVITY
LAST TEN FISCAL YEARS
Fiscal
Year
1986
1987
1988
1989
I990
1991
1992
1993
1994
1995
Building Permits Issued
1500
1000
500
0
1987 1988 1989 1990 1991 1992 1993 1994 1995
nt Department
Number of Estimated
Building Permits Percent
Issued Change
1079 9.77%
1230 13.99%
1249 1.54%
1218 - 2.48%
1332 9.36%
1279 - 3.98%
1300 1.64%
903 -30.54%
10.19% 995
994 - .lo%
Valuation
(in thousands)
$ 74,812
65,363
70,828
56,660
50,938
40,634
27,009
18,123
31,517
44,881
' SOURCE: City Community Devel
Percent
Change
95.85%
-12.63%
8.36%
-20.00%
-10.10%
-20.23%
-33.53%
-32.90%
73.91%
42.40%
102
CIN OF LODl
BANK DEPOSITS
LAST TEN FISCAL YEARS
(Amounts in Millions)
1,400,000 I
1,200,000
1,000,000
2 800,000 .- 0
I 600,000
400,000
- -
' 200,000
0 I 1990 1990 1990 1990 1990 1990 1990 1990 1990 2000
I
BANKS H SAVINGS & LOANS 0 CREDIT UNIONS
I
Fiscaf SAVINGS 8~ CREDIT
Year
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
BANKS
$ 436,060
458,250
480,454
492,636
691,677
649,252
666,342
627,132
643,109
540;545
LOANS
$ 1,058,496
980,062
1,228,694
282,339
267,501
183,936
198,756
191,014
186,159
159,276
Source: California State Department of Banking-
Licensing & Statistics Section
103
UNIONS
$ 9,220
12,439
15,418
14,111
12,813
12,465
13,993
15,405
I 5,689
16,036
CITY OF LODl
PRINCIPAL EMPLOYERS
JUNE 30,1995
Employer
Lodi Unified School Dist.
General Mills
Lodi Memorial Hospital
Pacific Coast Producers
City of Lodi
Wal-Mart
Canondaigua Winery
Target
Robertson-Ceco
Valley Industries
InterlakelLodi Fab
Activity
Education
Cereals and Food Mixes
Health Care
Can Manufacturer and Cannery
Government
General Merchant
Wines, Brandy and Champagne
General Merchant
Steel Buildings
Trailer Hitches
Machine Fabrication
Employees
2,247
852
650
530
379
226
220
200
150-200
191
170
SOURCE: Clty of Lodi
104
CITY OF LODI
PRINCIPAL TAXPAYERS
JUNE 30,1995
Property Owner Land Use Assessec lalua tion
General Mills, Inc.
Pacific Coast Producers
Daryl Geweke
Dart Container Corporation
Wells Fargo Bank
California Waste Removal System
Dayton Hudson Corp.
Wallace Computer Service
Willdon Land Co. Partnership
Lodi Fab Industries. Inc.
Food Processing
Manufacturing
Apartment Complex
Warehousing
Commercial
Industrial
Department Store
Warehousing
Apartment Complex
Industrial
$ 226,402,726
45,346,290
13,288,401
12,405,321
11,761,541
10,766,209
9,813,604
9,668,699
9,421,748
8,867,267
357.741.806
(1 ) Local Secured Assessed Valuation:
Source: San Joaquin County Assessor’s Office
$2,353,069,000
105
Percent of Total fl)
9.62%
1.93%
0.56%
0.53%
0.50%
0.46%
0.42%
0.41%
0.40%
0.38%
15.20%
CITY OF LODl
SURETY BONDS OF PRINCIPAL OFFICIALS
JUNE 1995
Ci Manager
Assistant Ci Manager
Ci Attorney
Ci Clerk
Public Works Director
Police Chief
Fire Chief
Finance Director
Community Development Director
Electric Utilities Director
Community Center Director
Parks and Recreation Director
Personnel Director
City employees are covered by a commercial fidelii bond
amounting to a maximun of $500,000 per loss.
SOURCE: Ci of Lodi
$500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
106
CITY OF LODI
G AN N APPRO P RlATlO N LlMlTATlO N
Last Ten Fiscal Years
FISCAL LIMIT
YEAR BASE
1985-86 $ 19,471,483
1986-87 21,015,572
1987-88 22,654,787
1988-89 24,'782,072
1989-90 27,223,106
1990-91 29,357,398
I991 -92 31,286,179
1992-93 33,441,797
1993-94 34,027,028
1994-95 35,697,755
CPI or POPULATION GROWTH APPROPRIATION BUDGET SUBJECT
VARIANCE
I .0374 I .0404 1.0793 $ 21,015,572 $ 11,066,825 $ 9,948,747
INCOME GROWTH FACTOR LIMITATION TO LIMIT
1.0538 1.0230 1.0781 22,654,787 15,386,513 7,268,274
1.0894 24,782,072 24,782,072 1.0304 1.0572
1.0393 1.0496 I .0908 27,223,106 16,178,704 11,044,402
29,357,398 16,746,795 12,610,603 1.0498 1.0252 1.0763
1.0421 I .0226 1.0657 31,286,179 17,847,059 13,439,120
1.0414 1.0264 1.0689 33,441,797 22,048,696 11,393,101
0.9936 1.0241 1.0175 34,027,028 17,255,606 16,771,422
1.0272 1.021 3 1.0491 35,697,755 16,646,590 19,051,165
1.0071 1.01 57 1.0229 36,515,234 17,292,960 19,222,274
* Not available
SOURCE: City Finance Department
CITY OF LODl
PERSONNEL AUTHORIZED LAST TEN YEARS
JUNE 1995
1994-95
Ea Administration BCommunity Development Electric Utility
Finance Department m Fire Department El Library
m Parks & Recreation La Police Department m Public Works Department
DEPARTMENT
Administration
1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95
12 12 12 13 15 17 17 17 22 19 ----------
Community Development 10
Electric Utility 28
Finance Department 28
. Fire Department 48
Library 13
Parks & Recreation 26
Police Department 75
Public Works Department 73
11 11 11 11 11 11
31 31 37 39 41 41
32 34 35 38 40 40
48 48 49 49 49 49
13 13 14 14. 15 15
28 29 31 32 34 35
84 91 94 98 104 105
76 80 81 90 95 95
--I__---
I1
41
39
49
15
36
105
97
I1
40
36
15
29
104
89
48
11
38
34
47
15
26
104
85
313 335 349 365 386 406 408 410 394 379
----_I_=---___.
Total
SOURCE: City of Lodi Finance Department
108
CITY OF LODl
SCHEDULE OF TAXABLE SALES AND PERMITS BY CATEGORY
LAST TEN YEARS
1992 1993 1994 1988 1989 1990 1991 1985 1986 1987
SALES (IN THOUSANDS OF DOLLARS):
Apparel Stores $
General Merchandise Stores
Drug Stores
Food Stores
Packaged Liquor Stores
Eating & Drinking Places
Home Furnishings & Appliances
Building Materials & Farm Tool
Auto Dealers & Supplies
Service Stations
Other Retail Stores -
Total Retail Stores
7,289 $
31,714
13,412
24,148
5,960
27,91 I
11,467
23,880
65,651
24,528
16.592
252,552
All Other Outlets
TOTAL
63.183
$ 315,735 $
7,737 $
33.630
13,504
25,140
5,669
32,166
15,988
27,902
87,179 .
19.220
17,822
285.957
64,778
350,735 S
PERMITS:
Apparel Stores
General Merchandise Stores
Drug Stores
Food Stores
Packaged Liquor Stores
Eating & Drinking Places
Home Furnishings & Appliances
Building Materials 81 Farm Tool
Auto Dealers & Supplies
Service Stations
Other Retail Stores
0 0 Total Retail Stores
All Other Outlets 0' 0' TOTAL
8,780 $
36,218
14,166
27,908
6,138
32,246
17,191
21,372
68,634
21,332
19.081
273,066
76.237
349,303 $
9,726 $
35,077
14,456
33,006
6,132
34,606
14,170
26,234
81,632
20.495
23,876
299.41 0
105,425
404,835 S
10,283 $
39,205
16.987
37,717
6,123
36.810
10,530
31,855
84.590
22,249
22,561
318,910
96,852
415.762 $
Not available
9,909 $
41,672
18,066
35,525
4,558
40,361
10,901
31,526
91,987
24,552
21,830
330.887
9,549 $
40.089
17,719
40,197
3,956
39,302
10,407
28,604
81.91 8
27,983
21,488
321,212
8,429 $
49,944
16,373
42,130
6,470
38.548
13,593
30,278
82.725
29,601
23,089
341.1 80
97.866 91.310 92.149
428,753 $ 412,522 $ 433,329 $
6,467 $
60,764
13,184
33,033
6,041
39,161
16,038
37,539
85.91 7
31,221
25,666
355,031
96.921
451,952 $
26
9
5
28
7
65
27
14
19
11
98
0 0 309
525
0' 0' 832
0 0
0' 0'
SOURCE: State Board of Equalization, State of California
109
6,105
73,765
13,673
28,692
5,932
39,714
14,327
34,250
93.198
30,519
26,547
366.722
29
17
10
42
8
135
43
38
63
19
186
590
987
1,577
32
14
9
44
8
132
44
38
56
18
182
577
929
I ,506
25
15
9
47
7
136
46
35
63
19
196
598
926
1.524
CITY OF LODI
SCHEDULEOFTAXABLESALES
LAST YEAR
I Apparel Stores rn General Merchandise Stores U Drug Sfores
El Food Stores Packaged Liquor Stores !&I Eating & Drinking Places
Home Furnishings & Appliances Building Materials & Farm Tool Auto Dealers & Supplies
Service Stations El Other Retail Stores
110
CITY OF LODl
SCHEDULE OF BUSINESS TAX RECEIPTS ISSUED
JUNE 30,1995
TYPE OF BUSINESS NO. OF BUSINESSES
Located in Lodi:
Agriculture, Forestry and Fishing
Construction
Manufacturing
Transportation and Public Utilities
Wholesale trade
Retail trade
Finance, Insurance and Real Estate
Services
Total
Located outside Lodi:
Agriculture, Forestry and Fishing
Construction
Manufacturing
Transportation and Public Utilities
Wholesale trade
Retail trade
Finance, Insurance and Real Estate
Services
Total
115
264
114
44
116
633
21 5
1,229 '
2,730
42
326
13
3
57
41
28
143
653
Grand Total 3,383
SOURCE: City Finance Records 111
PERCENT
4.20%
9.67%
4.18%
1.61 %
4.25%
23.19%
7.88%
45.02%
100.00%
6.43%
49.92%
1.99%
0.46%
8.73%
6.28%
4.29%
21.90%
100.00%
CITY OF LODl
CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM
FUNDING ANALYSIS
70,000,000
60,000,000
50,000,000
40,000,000
2 - ' 30,000,000
K 20,000,000
10,000,000
'0
(1 0,000,000)
v) S
1987 1988 1989 1990 1991 1992 1993
B PENSION BENEFIT OBLIGATION
UNFUNDED ANNUAL COVERED (sr PAYROLL
NET ASSETS AVAILABLE FOR BENEFITS
UNFUNDED PENSION BENEFIT OBLIGATION
___-
UNFUNDED
PERCENT OF
UNFUNDED PENSION '
CITY'S CONTRIBUTION TO THE SYSTEM
MADE IN ACCORDANCE WITH ACTUARIALLY
NET ASSETS PENSION PENSION ANNUAL BENEFIT OBLIGATION DETERMINED REQUIREMENTS, AS A
AVAILABLE BENEFIT PERCENT BENEFIT COVERED TO ANNUAL COVERED PERCENTAGE OF COVERED PAYROLL
AS EMPLOYER ON BEHALF OF EMPLOYEE PAYROLL YEAR OR BENEFITS OBLIGATION FUNDED OBLIGATION PAYROLL
1987
1988
1989
1990
1991
1992
1993
1994
28,784,100
32,566,900
37,248,900
41,873,300
45,043,300
49,570,000
54,692,800
65,994,800
34,242,600
37,522,800
40,651,700
45,347,800
48,402,600
54,184,200
56,707,200
* 58,906,500
84.1%
86.8%
91.6%
92.3%
93.1 %
91 5%
96.4%
112.0%
5,458,500
4,955,800
3,402,800
3,474,500
3,359,300
4,614,200
2,014,400
(7,088,300)
9,606,000
10,472,500
1 1,184,300
12,736,600
14,466,000
15,416,500
15,872,200
15,712,100
56.8%
47.3%
30.4%
27.3%
23.2%
29.9%
12.7%
(45.1 %)
15.6%
11.9%
11 5%
10.2%
11.5%
10.6%
10.2%
10.0%
7.9%
7.8%
7.8%
7.8%
7.8%
7.8%
7.8%
7.8%
SOURCE: California Public Employees Retirement System (PERS)
Note: 1988 is the first year that the actuarial information was made available by PERS.
* The method for determining net assets available for benefits was changed by PERS from cost basis to actuarial smoothed market basis. This change resulted in an
increase in net assets available of approximately $7 million.
112
CITY OF LODl
MISCELLANEOUS STATISTICS
JUNE 30,1995
POPULATION
Population
Assessed Value
Building Permits Issued
Date of Incorporation
Form of Government
Employees
Area
FIRE PROTECTION
Number of Stations
Number of Firefighters
Number of Reserve Firefighters
Number of Calls Answered
POLICE PROTECTION
Number of Stations
Number of Police Officers
Number of Reserve Officers
Number of Support Personnel
Number of Calls Answered
PUBLIC WORKS
Miles of Streets
Miles of Alley Ways
Number of Street Lights
Number of Traffic Signals
Miles of Water Mains
Miles of Wastewater Lines
Number of Wastewater Treatment Plants
Average Daily Treatment
Maximum Daily Capacity
WATEWASTEWATER
54,700
2.5m
1,415
December 6,1906
Council-Manager
379
12 SQ Miles
3
47
0
2.645
1
71
15
32
58,500
170
16
4,293
49
205
168
1
6.0 MG
8.5 MG
ELECTRIC UTILITY
Number of Customers 22,295
Energy Sales (MWH) 348,468
Peak Demand(KW) 103,437
PARKS & RECREATION
Parks Developed
Acres Parks Developed
Parks Undeveloped
Acres Parks Undeveloped
Community Center
Swimming Pools
Tennis Courts
Boat Ramp
Playgrounds
Ball Parks Various
Soccer Fields
Football Field
HandballlBasketballNolleyball Courts
Horseshoe Pits
EDUCATION
Elementary Schools
Middle Schools
High Schools
Elementary Enrollment
Middle School Enrollment
High School Enrollment
HOSPITALS
Number of Hospitals
Number of Patient Beds
21
263
4
107
1
3
11
1
16
17
21
1
6
12
8
2
3
5,390
1,675
4,008
1
101
CITY OF LODI, CALIFORNIA
Schedule of Federal Financial Assistance
Year Ended June 30,1995
Federal Grantor/Program Title
MAJOR PROGRAMS:
U.S. Department of Housing and Urban Development: (Pass-through San Joaquin County - Department of Planning and Building Inspection)
Community Development Block Grants: 1994-1 995 Program Year 1993-1994 Program Year
1992-1993 Program Year
U.S. Department of Transportation: (Pass-through California Department of Transportation) Federal Transit Assistance (UMTA) 1994-1995 Program Year
1993-1994 Program Year
NONMAJOR PROGRAMS:
US. Department of Transportation:
Federal Urban Aid
(Pass-through California Department of Transportation):
U.S. Department of Justice:
Crac-Net
DC 90010390
(Pass-through State Office of Criminal Justice Planning):
Total federal fin’ancial assistance
See accompanying notes to schedule of federal financial assistance. -114-
Federal CFDA
or Grantor’s
Pass-Through Number Expenditures
14.228 $ 477,759 14.228 268,842 14.228 6,501
753,102
20.507 253,573 20.507 309,830
563,403
20.205 59,661
16.579 73,821
$ 1,449,987
CITY OF LODI, CALIFORNIA
Notes to Schedule of Federal Financial Assistance
June 30,1995
(1) General
The accompanying Schedule of Federal Financial Assistance presents the activity of all federal financial assistance programs of the City of Lodi, California (City). The City reporting entity is defined in Note 1 to the City’s general purpose financial statements. Federal financial assistance is received directly from federal agetlcies and through other government agencies.
(2) Basis of Accounting - Grant Program
The Schedule of Federal Financial Assistance has been prepared on the modified accrual basis of accounting in the governmental funds and the accrual basis of accounting in the proprietary fund which is described in Note 1 to the City’s general purpose financial statements.
Relationship to General Purpose Financial Statements
Federal financial assistance revenues are reported in the City’s general purpose financial statements for the year ended June 30, 1995, as follows:
(3)
Intergovernmental/ Revenue Other Net Revenue
General fund
Special revenue fund Transit Enterprise fund
Total
$ 77,726
1,116,387
563,401
$ 1,757,514
Total federal assistance revenues do not agree with expenditures reported on the Schedule of Federal Financial Assistance due to the timing of the submission of claims for reimbursement of expenditures.
Relationship to Federal Financial Reports
Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports.
(4)
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kkddPeaat Marwick LLP
400 Capitol Mall
Sacramento, CA 9581 4
Independent Auditors’ Report on Compliance
Based on an Audit of General Purpose
Financial Statements Performed
in Accordance with Government Auditing Standards
The Honorable Members of City Council City of Lodi, California:
We have audited the general purpose financial statements of the City of Lodi, California as of and for the year ended June 30, 1995, and have issued our report thereon dated October 13,1995.
We conducted our audit in accordance with generally accepted auditing standards and Governnierit Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts, and grants applicable to the City of Lodi, California is the responsibility of the management of the City of Lodi, California. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material
misstatement, we performed tests of the City of Lodi, California’s compliance with certain provisions of laws, regulations, contracts, and grants.
However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards.
This report is intended for the information of the City Council, management, and grantor agencies. However, this report is a matter of public
record and its distribution is not limited.
October 13,1995
@&@Peat Manwick LLP
400 Capitol Mall
Sacramento, CA 95814
Independent Auditors’ Report on the Internal
Control Structure Based on an Audit of General
Purpose Financial Statements Performed in
Accordance with Government Auditing Standards
The Honorable Members of City Council
City of Lodi, California:
We have audited the general purpose financial statements of the City of Lodi, California, as of and for the year ended June 30, 1995, and have
issued our report thereon dated October 13,1995.
We conducted our audit in accordance with generally accepted auditing standards and Goventment Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general
purpose financial statements are free of material misstatement.
The management..of the City of Lodi, California, is responsible for establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure
policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance
that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management’s
duthorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted
accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be
detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because
of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements of the City of Lodi, California, for the year ended June 30, 1995,
we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the
design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our
auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the
internal control structure. Accordingly, we do not express such an opinion.
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Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which
the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that
errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the
internal control structure and its operation that we consider to be material weaknesses as defined above.
However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of the City
of Lodi, California, in a separate letter dated October 13, 1995.
This report is intended for the information of the City Council, management, and grantor agencies. However, this report is a matter of public
record and itsidistribution is not limited.
October 13,1995
Sacramento, California
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@&@Peat Marwick LLP
400 Capitol Mall
Sacramento, CA 95814
Independent Auditors’ Report on Compliance with
the General Requirements Applicable to Federal Financial Assistance Programs
The Honorable Members of City Council
City of Lodi, California:
We have audited the general purpose financial statements of the City of Lodi, California as of and for the year ended June 30, 1995, and have issued our report thereon dated October 13, 1995.
We have applied procedures to test the City of Lodi, California’s compliance with the following requirements applicable to its federal financial
assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995: political activity; Davis-Bacon Act; civil rights; cash management; relocation assistance and real property acquisition; federal financial reports; allowable costskost principles; Drug-Free Workplace Act; and administrative requirements.
Our procedures were limited to the applicable procedures described in the Office of Management and Budget’s Compliance Supplement for Single
Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of
an opinion on the City of Lodi, California’s compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express
such an opinion.
With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in
the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that the City of Lodi, California, had not complied, in all material respects, with those requirements. However, the results of our procedures disclosed immaterial
instances of noncompliance with those requirements, which are described in the accompanying Schedule of Findings.
This report is intended for the information of the City Council, management, and grantor agencies. However, this report is a matter of public
record and its distribution is not limited.
October 13,1995
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=Peat Marwick LLP
400 Capitol Mall
Sacramento, CA 9581 4
Independent Auditors’ Report on Compliance with
Specific Requirements Applicable to Major
Federal Financial Assistance Programs
The Honorable Members of City Council
City of Lodi, California:
We have audited the general purpose financial statements of the City of Lodi, California, as of and for the year ended June 30, 1995, and have
issued our report thereon dated October 13, 1995.
We have also audited the City of Lodi, California’s compliance with the requirements governing types of services allowed or unallowed;
matching, level of effort, or earmarking; reporting; special tests and provisions related to Community Development Block Grants and Urban Mass
Transportation; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its major
federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance for the year ended June
30, 1995. The management of the City of Lodi, California, is responsible for the City of Lodi, California’s compliance with those requirements.
Our responsibility is to express an opinion on compliance with those requirements based on our audit.
We conducted our audit of compliance with those requirements in accordance with generally accepted auditing standards; Governtnent Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-128, Audits of State and Local Governments. Those
standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material
noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the City of Lodi,
California’s compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion.
The results of our audit procedures disclosed immaterial instances of noncompliance with the requirements referred to above, which are described
in the accompanying Schedule of Findings. We considered these instances of noncompliance in forming our opinion on compliance, which is
expressed in the following paragraph.
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In our opinion, the City of Lodi, California, complied, in all material respects, with the requirements governing types of services allowed or
unallowed; matching, level of effort, or earmarking; reporting; special tests and provisions related to Community Development Block Grants and
Urban Mass Transportation; claims for advances and reimbursements; and amounts claimed or used for matching that are applicable to each of its
major federal financial assistance programs for the year ended June 30, 1995.
This report is intended for the information of the City Council, management, and grantor agencies. However, this report is a matter of public
record and its distribution is not limited.
October 13,1995
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!m
kbhddPeat Marwick LLP
400 Capitol Mall
Sacramento, CA 95814
Independent Auditors’ Report on the Internal
Control Structure Used in Administering Federal Financial Assistance Programs
The Honorable Members of City Council
We have audited the general purpose financial statements of the City of Lodi, California, as of and for the year ended June 30, 1995, and have
issued our report thereon dated October 13, 1995. We have also audited the City of Lodi, California’s compliance with requirements applicable to
major federal financial assistance programs and have issued our report thereon dated October 13, 1995.
City of Lodi, California:
We conducted our audits in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller
General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits ofstate and Local Governments. Those
standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose
financial statements are free of material misstatement and about whether the City of Lodi, California, complied with laws and regulations,
noncompliance with which would be material to a major federal financial assistance program.
In planning and performing our audits for the year ended June 30, 1995, we considered the City of Lodi, California’s internal control structure in
order to determine our auditing procedures for the purpose of expressing our opinions on the general purpose financial statements of the City of
Lodi, California, and on its compliance with requirements applicable to major programs and to report on the internal control structure in
accordance with OMB Circular A- 128. This report addresses our consideration of internal control structure policies and procedures relevant to
compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and
procedures relevant to our audit of the general purpose financial statements in a separate report dated October 13, 1995.
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*
The management of the City of Lodi, California, is responsible for establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure
policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance
that assets are safeguarded against loss from unauthorized use or disposition, transactions are executed in accordance with management's
authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted
accounting principles, and federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of
inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be
detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because
of changes in conditions or that the effectiveness of the design and operation of policies and procedures,may deteriorate.
For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal
financial assistance programs in the following categories:
Accounting Controls
- Expenditures and disbursements.
General Requirements - Political activity; - Davis-Bacon Act; - Civil rights; - Cash management; - Relocation assistance and real property acquisition; - Federal financial reports; - Allowable costs/cost principles; - Drug-Free Workplace Act; and - Administrative requirements.
Specific Requirements - Types of services allowed or unallowed; - Matching, level of effort, or earmarking; - Reporting; - Special tests and provisions related to: - Community Development Block Grants - Urban Mass Transportation; - Claims for advances and reimbursements; and - Amounts claimed or used for matching
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=Peat Marwick LLP
For all of the internal contrc, structure categollds listed huove, we obtained an understanding of the design of relevant policies and procedures and
determined whether they have been placed in operation, and we assessed control risk.
During the year ended June 30, 1995, City of Lodi, California, expended 91 percent of its total federal financial assistance under major federal
financial assistance programs.
We performed tests of controls, as required by OMB Circular A- 128, to evaluate the effectiveness of the design and operation of internal control
structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements,
general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are
applicable to each of the City of Lodi, California's major federal financial assistance programs which are identified in the accompanying Schedule
of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control
structure policies and procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure policies and procedures used in administering federal financial assistance programs would not
necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the
American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the
internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be
material to a federal financial assistance program may occur and not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material
weaknesses as defined above.
However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of City of
Lodi, California in a separate letter dated October 13, 1995.
This report is intended for the information of the City Council, management, and grantor agencies. However, this report is a matter of public
record and its distribution is not limited.
October 13,1995 Sacramento, California
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Attachment
CITY OF LODI, CALIFORNIA ’
Special Tests and Provisions
Year Ended June 30,1995
Program
Community Development Block GrantsEntitlement Grants (14.228)
Compliance Requirement
CDBG funds cannot be obligated or expended before receipt of HUD’s approval of a Request for
Release of Funds (RROF) and environmental certification.
Projects must have an environmental review made unless they meet criteria specified in the regulations that would exempt or exclude them from RROF and environmental certification requirements.
The grantee must accurately account for any program income generated from the use of CDBG funds
and must treat such income as additional CDBG funds subject to all program rules.
The grantee is required to enter into written agreements with its subrecipients that meet certain criteria
before disbursing funds to the subrecipients.
Urban Mass Transit Capital and Operating Assistance Formula Grants
(20.507)
Charter service provided after August 11, 1987, must conform to FTA’s new charter service regulations. An FTA recipient may not provide any charter service unless such service is incidental and either (1) the recipient has determined that there is no willing and able private operator in accordance with the procedures of the regulations; or (2) FTA has granted a hardship exception; or
(3) FTA has granted a special events exception; or (4) the recipient leases nonaccessible equipment to
a private operator that lacks capacity; or (5) the recipient leases accessible buses to a private operator that has exhausted its own capacity; or (6) all the private operators in the geographical area have
entered into an agreement with the recipient expressing the conditions under which the recipient may
provide specific charter service. The recipient must file two copies of a charter agreement reflecting the new requirements of the regulations.
The grantee will not engage in school bus operations exclusively for the transportation of students and
school personnel in competition with private school bus operators, except in accordance with the
exceptions delineated in 49 CJ3 605. if the grantee does engage in exclusive school bus operations, no ETA-funded equipment or facilities are to be used for the purpose. Tripper service may be
provided if (1) all service is open to the public; (2) trips serve the grantee’s regular service stops; and
(3) trips are delineated on the grantee’s route schedules and maps.
All applicants for Section 9 and 9A grants and any person or organization to receive benefits directly from such grants are subject to both the reporting system and the uniform system of accounts and
records prescribed under Section 15 of the Urban Mass Transportation Act of 1964, as amended.
(Continued)
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Attachment
CITY OF LODI, CALIFORNIA
Special Tests and Provisions
Year Ended June 30,1995
Program Compliance Requirement
Urban Mass Transit Capital and Operating Assistance Formula Grants
(20.507), Continued interested parties.
In the development of a program or project and in considering significant changes in service or routes,
the grantee must afford an adequate opportunity for a public hearing and must consider the views of
Disposals of realty and related transit equipment must be at current market value and a portion of the funds received must be returned to mA in proportion to the original percentage of federal funds contributed by FTA.
The grantee must undertake mitigation measures agreed to during environmental review of the project and committed in Environmental Assessments, Environmental Impact Statements, and the FTA Record of Decision prior to grant dpproval.
Grantees are required to ensure that the fares charged to elderly and handicapped persons and holders of Medicare cards during off-peak travel hours do not exceed one-half of the rates charged during peak hours.
For the acquisition of all rolling stock and communications equipment, traction power equipment, and train control equipment, the item being procured will be considered to comply with the “Buy America”
requirements if the cost of the components and subcomponents of the item that are produced in the
United States is more than 50 percent of the cost of all components and the final assembly takes place in the United States.
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..I_. .I_ .. .. . . . .. . . . - . -~
CITY OF LODI, CALIFORNIA
Schedule of Findings
Year Ended June 30,1995
Federal Transit Assistance (CFDA No. 20.507)
1. Finding: As noted in Finding 3 in the Status of Prior Year Findings, the first, second, and third quarter statements of revenues and expenses to the U.S. Department of Transportation for federal transit assistance for fiscal 1995 were filed late. The responsibility of filing
such statements was re-assigned to another employee during the fourth quarter of fiscal 1995. The fourth quarter statement was filed
timely.
Recommendation: We recommend the City comply with all reporting requirements. Failure to comply may jeopardize current and
future receipt of assistance.
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I
CITY OF LODI, CALIFORNIA
Status of Prior Year Findings
Year Ended June 30,1995
Federal Transit Assistance (CFDA No. 20.507)
1. Finding: Federal participation rates for the transit assistance are 50% and 80% for operating and capital expenditures, respectively. During the fiscal 1994 audit, we noted two expenditures totaling approximately $83,000, classified as operating expenditures which
should have been classified as capital expenditures. A correction was made prior to the request for reimbursement resulting in additional
funding of approximately $25,000.
Finding: During our fiscal 1994 audit, we noted federal transit assistance expenditures of $378,164 which had not been included in the
Schedule of Federal Financial Assistance. It was our understanding that the Finance Department had not been notified by the department which had incurred the cost that such expenditures were to be reimbursed by federal assistance. The schedule was adjusted to include
such expenditures.
Resolution to Findings 1 and 2: During the year ended June 30, 1995, the City appointed a Transit Manager. This employee is responsible for approving expenditures, monitoring expenditure classifications, preparing the administrative portion of the required quarterly status reports, and managing the operation of the transit program. The Accounting Manager is responsible for preparing the
financial portion of the required quarterly status reports, requests for reimbursement, and the Schedule of Federal Financial Assistance.
No findings relating to the classification of expenditures or exclusion of reimbursable expenditures from the Schedule of Federal Financial Assistance were noted during the fiscal 1995 audit.
2.
3. Finding: During fiscal 1994, the City was late in filing a required quarterly statement of revenue and expenses to the U.S. Department of Transportation for its federal transit assistance.
ResoIution: The City continued to be late in filing its first, second, and third quarter statements of revenues and expenses to the U.S. Department of Transportation for its federal transit assistance during fiscal 1995. During the fourth quarter of fiscal 1995, responsibility for filing of the statements was re-assigned to another employee. The fourth quarter statement for the current year was filed timely.
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