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Agenda Report - May 6, 1992 (70)
a" AW CITY of LODI] COUNCIL COMMUNICATION AGENDA TITLE: COMPREHENSIVE ANNUAL FINANCIAL REPORT - 1394-91 NIEETING DATE: May 6. 1992 PREPARED BY: Finance Director RECOMMENDED ACTION: That the City Council receive for filing the Comprehensive Annual Financial Report (CAFR) and the Single Audit Report for the fiscal year ended June 30, 1991. BACKGROUND INFORMATION: The purpose of the CAFR and Single Audit Report is to apart the City's monetary results of operation and financial condition to the City Council and staff, and other interested parties (Federal and State Agencies. constituents, creditors. suppliers, and other persons or institutions conducting business with the City). The CAFR was prepared by the Finance Department in accordance with standards set by the Government Accounting Standards Board. It is presented in five (5) separate sections to promote better communication and analysis. These sections are: • Introductory Section Financial Section * General Purpose Financial Statements (Combined Statements Overview) Combining and Individual Fund and Account Group Statements Statistical Tables Section In the future, additional information will be included in the Introduction and Statistical Sections to better describe and highlight the City's financial operations and to provide the reader with important demographic and statistical information regarding the City of Lodi, AUDITORS OPINION AND REPORT The City's financial records and reports for the fiscal year ending June 30, 1991 correctly reflect the financial condition of the City except for fixed assets and depreciation in the enterprise funds and in contributed capital of the general fund. This finding is based on the observation of the auditors that the City does not maintain adequate records and controls of City property (equipment, structures, land, and infrastructure). Accordingly, the auditor's opinion (KPMG Peat Marwick) is a "qualified opinion" which indicates that material adjustments are required to correctly reflect the financial condition of the City. Other findings provided in the Management Letter were not considered material; however. it was the opinion of the auditors that these findings and recommendations should be brought t o the attention of the City Council and staff. APPROVED `� 'fir �s1r► THOMAS A PETERSON recy0ed a&pe' City Manager Oft MANAGEMENT LEITER Under separate cover is a list of findings and recommendations required to improve financial reporting, ac comting procedures and intemal controls. The Management Letter consists of two separate letters addressed to Council and staff. In summary, these reports contain the findings of KPMG Ptat Marwick needed to improve accounting and reporting of the City's financial position, to i m p rc v e i n t e mal control of certain financial transactions and to ensure compliance with the terms and conditions of agreements made by the City to obtain monies by debt financing and grants or subventions from Federal and State sources. The Management letter is considered "Confidential'. Accordingly, the Management Letter is provided to the City Council under separate cover. FUNDING None Dixon Flynn Finance Direcior Attachments Comprehensive Annual Financial Report Single Audit Report KPMG Peat Marwick CITY OF LODI. CALIFORNIA Single Audit Reports Year Ended June 30, 1991 A A,. CITY OF LODI. CALIFORNIA Single Audit Reports Year Ended June 30, 1991 fta lhdelxndent Auditors' Report on Schedule of Federal F rmwial Asasurice 1 Schedule ofFedesaJ Financial Assistance 2 l!bm iDSchedule cfFederal Financia] Assistance 3 lr&pendent Auditors' Report on Compliance at the General Purpose Financial Statement Level 4 Independent Auditors' Rqmrt on Internal Controls at the General Purpose Financial Sit Leve1 5-6 Independent Audlm' Report on compliancevath General Requirements Applicable to Nonwjor Ftda-.l Financial Assistance Progr-anis 7-a Independent Auditors' Report on CagDliance with Specific Requimn-Bents Applicable tDNonmajor Fedeol FinwwWFederal Assistance Pmg nms 9 independknt Auditon' Report on the Internal Accounting and Administradvc Controls at the Federal Financial Assistance Program Level 10-12 Summary of Findings and Rexmnxndadon s 13 Status cf Prior Year Findings and Recommendations 14 Peat Marwick Candied Public Accountants 2495 Natomas Park Dfive Sacramento. CA 95833 2936 INDEPENDENT AUDITORS' REPORT ON SCIIERLMJLOF Tho l *rx ble Members of City Council City ofLc , lifirrrnia; We haveaudsttd the general purpose f4axialstatc"nis cf the City of Lodi, Oalifomis as of and for the year aided June 30, 1991, and have issued our report dxwwn dated November 8, 1991. Which was qualified because adequate historical cost rrcords of general and proprietary funds fixed assets and proprietary funds contributed capital were not available for audit and as such we are unable to satisfy oumlves vath respect to these accounts, These general purpose financial statements are the responsibility of the management of the City. Our responsibility is to express an opinion an these general purpo-5e f rancial statementsbased on aa: audit We conducted our audit in accordance with generally accepted auditing ktandards and issued by the Comptroller Genera] 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 arc frtc 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 bel ie vc that ax audit provides a reason able basis for cur opi ni on , Our audit was made for the p urpose of forming an opinion on the general purpose financial statements of the City of Lodi, California, taken as a whole. The accompanying schedule of federal financial assistance is prtstn ted for purposes of additional analysis and is not a required pan of the general purpose financial statements. The information in that schedule has been subjected to the auditing procuiures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. K P �c-r November 8.1991 =W CITY OF LO D I, CALIFORNIA Schedule of Federal Financial Assistance Year Ended June 30, 1991 Federal CFDA or Grantor's Pass -Through NMMhCr Releam E�IY�f�YCSI! US. Department of Housing and Urban Development: ©omaiigt Devek*a nt Block Grards: 1990-1991 Pwo )her 14.228 $ 16,732 $ 16.732 1989-1990 Program Year 1988-1989 Program Year 14.228 14.228 106.036 90.476 106,036 90.476 1987-1988 Pham Year 14.228 48.029 48.029 1985-1987 Program Year 14.228 _ 7.52s 7,526 268,799 268.799 US. Department of Transportation: Federal Urban Aid 20.205 - 99,658 US. Department of Transportation: (Pass-through Calif. Office of Traffic Safety): AL 9110 20.500 - 8.417 U.S. Department of Education: (1&w - State Office of CrimWd Justice Planning): Drug Suppression Program DS 89037235-00 84.186 14.190 32,168 U.S. Department of Justice: (Pass-through State Offim cf Criminal Justice Planning): Cru -Net DC 90010390 16.579 59124 161196 Total federal financial assistance 342.863 $470,228 See accompanying notes 10 schedule of federal financial assistance. N (1) (2) (3) (4) ME CITY OF LODI, CALIFORNIA Notes to Schedule of Federal Financial Assistance June 30, 1991 General The accompanying Schedule cf Feral Financial Assistance prose n is the activity of all federal financial assistance programs cf the City cf Lada, California (City). The City reporting entity is defined in note 1 to the City's general purpose financial statements. Federal financial assistance is received &i tl y from federal agencies and through other government agencies. Basis 01 Accounting , Grant Ptrognm The Schedute cf Federal Flra ckkAssWaneehasbftn plod on themadifitd x-,z=l basis of accounting which is described in note 1 to the City's gerferal purpose financial stattmcnts, Relationship to General Purpose Financial Statements Fbderal financial assistance revenues arc rt ported in the City's general purpose financial statements for the year ended June 30, 1991. as follows: Revenue General Fund aecdal revcnuc fund Total $ 342,863 Tt& ftd=] assi eta ncc revc n ues do got ague with ex pendi tures reported on the schedule of federal financial assistance due to the timing of the submission cf claims for reimbursernent of expenditures. Relationship to Federal Financial Reports Amxounts reported ind-c accompanying whcdule agree with the amountsreNrtcd in the rotated federal rmanc-ial reports 3 AWPeatMarwick Cert4aed Public Accountants 7495 Natomas Park Drove Sacramento. CA 95833 2936 INDEPENDENT AUDITORS REPORT ON COMPLIANCE T'he Honorable Membtrs cf City Council City of L o& , California: We have audited the general purpose financial sademeffiu cf the City of Lodi, California as of uid for the y car e n d ed June 30, 1991, and have issued OUT report thereon dated November 8, 1991, which was qualified because adequate historical cost records of general and proprietary fund fixed assets and proprietary funds contributed capital wem not available for audit and as such we arc unable to satisfy ourselves with respect to these accounts. We conducted our audit in accordance with generally accepted auditing standards and issued by the Comptml1er General of the United Stales. Those standards require that we plan and perform the audit to obtain reasonable assurance about w he thcr dte general purpose financials to tenx n is are free cf 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 reason a b I e assurance about w h e th er the general p rho se fin anc-i al statements arc ff= of material misstatement. Ae performs -d tests of the City of Lodi, California's compliance with certain provisions of laws, regulations. contracts. and grants. However. our objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not upness such an opinion. The msu its of our tests indicate that. v,� respect to dot items tested, the City cf Lodi, California complied, in all material respects. with the provisions mferrcd to in the prtceding paragraph. With respcct to items not tested, nothing came to OUT attention that caused us to believe that the City of Lodi, California had not comp iic4 in all material respects. with those provisions. This report is intended for the information of the City Council, managern-ent, and the U.S. Depam cnt cf Housing and Urban Developmcnt. This restriction is not intended to limit the distribution cf thus report, which i." a matter cf public record, Kjtbm&r- Pee Novcrnber 8, 1991 2 l Peat Marwick Certified Pubk Accountants 2495 Natornas Park Drive Sacrarnento. CA 95833 2936 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROLS The Honcrabk Members cf City Council city of Lodi,1(',cL_frrrrta' We: have audited the general purpose fin w-sc-i al statements of the City of Lod, California as of and for the year ended June 30, 19'91, and have issued our report thereon dated N o v e m bcr 8.19914 which was qualified becausa adequate historical cost records of general and proprietary fund fixed assets and proprietary funds contributed capital Wert not available for audit and as such we are unable to satisfy ourselves with respect to these accounts. We conducted cur audit in accordance with generally accepted auditing standards and issued by the Comptroller General of the United States. 'i'hm standards rtq u i re that we p 1 an and perform the audit to obtain reasonable assurance about when= the genual purpose financial statements are Gee of nru s ial misstatement In planning and performing our audit of the general purpose financial statements of the City of Lol, California for the year ended June 30.1991. vve considered its internal control stzu-cturt in order to determine our auditing procedures for the purpose of expressing ax opinion on the general purpose financial statements and not to provide assurance on the internal control structure. The management of the City of Lodi, California is responsible for establishingbW maintaining an internal amtrol structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expcctcd benefits and related costs cf internal control structure policies and procedures, The objccuves of an internal control structure are to provide n=ag erne n t with reas-on a b l e, but not absolute, assurance that assets ue safeguarded against loss from unauthorized use or disposition, and that transactions art executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance viffi 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 tD the risk that procedures may become inadequate because of changes in conditions cr that the effectiveness of the design and cpemtim cf policies and p roccdure.s may deteriorate. Rr thepurpose of this report, we have classified the significant internal control struetanepolicies andum in one category : Accounting Applications- Expenditures and Disbursements. Ebr the internal control structure category listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have beers placed in operation and we assessed control risk. Our consideration of the interred control sttvct = would not rimccs ufly disclose all matters in the internal cona•ol suucwm that might be material weaknesses uncLex standards established by the American Institute of Certified Public Accountants. A material weakness is a reportable condition in which the design oroperation cfone cr most of the specific kkemalcontrol swactwe elements dots not rcduc-e toarelatively lowlevel theriskthatemmor irreguiarides inamounts that would be material in m1afion to the general purpose financial statetr�ents being audited may occur and not be detected within a timely period by employees in the normal course of peeomli.n g th eir assigned bunctions. We noted rto smatters involving the internal co n trot stru c tura and its opreradon that we cr nsWer to be material weaknesses as defused above. Ho w ev er, w'c noted certai n utters involving the i n t m al con trol s tructure and its o p z-, td ott s that we have reported to the management cf'the City ofL,odi, California, in a separate letter dated November 8, 1591. This report is intended for the i n f orm a d o n cf the City Council. management. and the U.S. Departmrcnt cf Housing and Urban Dtvelopment. This restriction is not intended to limit the distribution cf this repom which is a matter cf public rrcord. November 8.1991 6 mmmuft Peat Marwick Cert&ad "4c AocouMaMs 2495 Natormas Park Dere Sacramento, CA 95833 2936 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH GENERAL REQUIREMENTS APPLICABLE TO NONMAJOR The Hags" Members cf City Council City of Lodi, California: We have a udi tcd the general paposc fin wic i al statements of tine City of Lcdi, California as of turd for the year ending June 30.1991. and have issued our report thc7reon dated November 8. 1991. which was qualified because adequate historical cost records of general and proprietary fund fixed assets and proprietary funds contributed capital were not available for audit and as such we an unabk to satisfy ourselves with respect to these accounts. We have also applied procedures to test the City of L d, California's compliance viih the following requirements applicable to the following nonmajor federal financial assistance programs: Community Devclop"m Block Gmits. Federal Udm Aid, Traffic Safety, Drug Suppression Program, and Crac-Net, which arc identified in the Schedule of Federal Financial Assistance, for the year ended June 30. 1991: polidcai activity; Davis -Bacon Act; civil rights: cash management; relocation assistance and real property acquisition; federal financial reports; allowable cost kAw principles Dna g • Free Workplace Act; and administrative requirements. Ourpmccdures were lirrtitcd to the applicable proceduscs desc7ribcd in the Office of Managmx en and Budget's . Our praccd=s um substantially less in scope than an audit, the objective of which is the expression of an opinion on the City cf Lxh, California's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respeettodw iEtaw tested, the rzsults ofthose pmcedures disclo-sed notrtattrial instances of noncompliance with the require nts listed in the second paragraph of this rtport. With respect to items nor 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 summary of findings and recommendations, 7 This repon is intended for the information of the Cli Council. management. and the U.S. Deparnncnt of Housing and Urban Development_ This astriction is not intended to limit the distribution of this report, which i s a matter cf public record. November 8, 1991 8 Peat Marwick Certified Public Accoumerft, 2495 Natomas Park I>rve Sacramento CA 95833 2936 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR The Honorable Mem bets of City Co=il City cf L.cdi, Californ is In contfcc6ott vd& aa~ auditcf the 1991 Vmral pwpow fu) ancia`l nawments cf the Cityof Lodi. California, and with our study and evaluation of th e City of Lodi, Cal i f c m i a's i n to rm al aaml systems used to administer federal fmancial assistance programs, as req u i red by Off i e e of Management and Budget Circular A• 128, ,wt selected ce rW n transactions applicable to certain nonmajor federal financial as s i s can c e pro grams for the Yew esrdod lune 30, 1991. As required by OMB Circular A-128, we have perfonn d auditing procedures tomes com pi i mce with the ; e q u ire r n (s governing types of services allowed cr u n a.l l owed and eligibility that are applicable to those transactions. Ourproccdures were substantially less in scope than an audit, the objective cE which is the expression eE an opinion on the City of Wi. California's compliance with these requirements. Accordingly. we do not expms such an opinion. With respcct to the itemstested; the results ofthose pr ures dixlosod nomalerial insfences cf noncompliance with the rel u irt~me n is lis ted in the pme ed i n g paragraph. With res pec t to items no t tested, nothing c are to o ur attention that caused us to believe that the City of Lcdi , Cal i f orn i a, had not complied. in all material respects. v&h thosercguiremcnts, However, the results cf our proced ores di s teed i myna teti al instances cE noncompliance with those rtq e irerr►e n t s, which are described in the accompanying summary cf findings and rccotttmerx adons. This report is intended for the i n formation of the City Council. man a g c me n t, and U .S , De p art:rm n t of Housing and Urban Development. This res trict i o n is not intended to limit the distribution of this re port, which is a matter of pub tic mcord. )<,'PrA&, Tt`el-"z� ttw ! �- November 8, 199 t �1 awt Peat Marwick cemfwd P%*AC Acamr w" 2495 Natomas Park Dave Sacramento CA 95833 2936 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL ACCOUNTING AND ADMINISTRATIVE CONTROLS AT THE The Honorable Membcrs &City CourtCil City of Lodi, Cal Uornia. We hm audited thegeneral pw7ose furan W statements of the City cf Lodi, Califemis as of and for the year ended June 30. 1991, and have issued our mpon thereon dated November 8, 1991, which was qualified because adequate historical cost records of general and proprietary fund fixed assets and proprietary funds con tribu tad capital were not available for audit and as such we are unable to satisfy ourselves with respect to these accounts. We corAutted our audits in accordance with generally accepted auditing varA4AS; issued by the Comptroller General of the United States; and Office of Management and Budget (O M B) Circ u lar A-128. Those standards and OMB C i u I a r A-128 req uLre that we plan and perfom the audit to obtain reasonable assurance about whether the general purpose financial statementsa -- free of n atcrial misstatement and about whether the City of Lodi, California complied with certain laws and regulations. In planning and performing our audits for the year ended June 30. 1991, we'considemd the City's internal control structure in order to determine our auditing procedures for the purpose, of expressing our opinions en the City's general purpose financial statements and not to provide assurance on the internal control structure. This report addresses our consideration of internal control struct= policies and procedures relevant to compliance with requirements applicabk to federal financial assistance programs. We have addressed policies and proced ures relevant to our audit cf the general purpose financial statementsin a separatercport dated November 8.1991. The management of the City cf Lodi, California is responsibla for establishing and mainWning an internal control structs. In fulfilling this responsibility, estimates and judgments by management 4m req uimd to assess the expected btncfits and related costs cf 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 arc safeguarded against loss from unauthorized use or disposition, that transactions arc executed in accordance with management's authorization and recorded properly to permit the prepamdon of general purpose financial statements in acccrdwx=c with generally accepted accounting principles, and that federal financial assistance programs arc managed in compliance with applicable laws and regulations. E Because cf Ln h rent lidtatkns in any internal con mi SUuC tune, en=%, it:e tjes, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the strxture to fut= periods is subject to the risk that procedures may become inadequate because of changes in cor d tions orthat the effectivenessof the design and operation of policies and prm dures may dcu riossse. For the purpose of this report, we have classified the significant internal control mucan policies and pgocadvms used in administering federal financial assistance programs in the following categories: ' Expenditures anddisbtr nments, . Political activity: Davis -Bacon Act • Civil rights; Cash n=agcn-ont; Rekxudm ass i sxarrce and r3l p ropcm y acquisition; • Fc&eral f i na -ci.a l reports; Allowable ooemaa principles; Dng-Aw Wbdpbva Act; and Administrative requirements. Types of services~ Eligibility; Matching Int Is of effort. or ung rcquhaments; S al erts, if any, ' Cost allccat on; and Monitoring s u bred pi en ts. For all of the internalco>ntrol structure categories listed above. we obtained an undmtand.ing cf the design of relevant policies and procedures and determined whether they have been placed in qoemticn. and we assessed the control risk. I During the year ended June K, 1941, the City of Lodi, California had no major fed era.l financial assistance programs and expended 57 potent ofits ectal federal financial assistance under the following nonmajor federal financial Assistanve program: Community Development Black Grants. We performed tests of controls. as required by OMB Circular A-128. to evaluate the effcctivcness cftha design andopetalion ofintema1 contin1 Mcmm policies andprostduses that we have considered relevant to preventing or detecting material noncompliance with specific requirements. general requirements, and requirements governing claims for advances and reimbursements. and amounts claimed cr used for matching that are applicable to the aforementioned nonmajor programs. Our procedures were less in scope than would be necessary to rtr {dtr an opinion on these internal control structure policies and procedures. Accordingly. we do not express such an opinion. Our aonsideradon of ft inm a.l control structure wmild not nocrssa y disclose all orators in the internal ca>ntrol scwtum that might be material weaknesses under standards established by the American Institute of Certifscd Public Accountants. A material weakness is a reportable condition in which the design oropmtion cone or more ofthe specific internal conuv! strxtw-e elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material in relation to a federal financial assistance program may oxur and not be d ctex: ted within a timely period by employees in the nosn ud course of performing the Lr assigned functions. We noted no matters involving the internal control structure and its operabon that we considerto be material weaknesses as dcfincd above. We also noted matters involving the internal con"I stnsctwt and its operation that we have rtportcd to the management of the Qly of Lodi, California in a scparau ictttr dated November 8, 1991. This report is intended for the information of the City Council. managempent, and the U.S. De-pamncrnt cf Housing and Urban Development. This restriction is not intended to limit the distribution cf this report, which is a matter of public record, November 8.1991 12 CITY OF LODI, CALIFORNIA Summary of Findings and Recommendations Year Ended June 30, 1991 J]MdJW T h e City doesn't have a formal policy in place to meet all the req u Lmrn a n t s of the Drug -Frac Workplace Act„ The City should develop a cornprchen s i v c and formal chug-frde policy that mce is the rcq u ire me n is of the Drug -Fr" Waslcplaoa Act- A copy cf the policy statement should be given tflall employees, The City developed a camprehensive and formal drug-free pokey that moots the requirements of the Drug -Free Workplace Act. This policy was approved by the City Council on November 22. 1991. A copy of this policy was distributed to all employees on Novern3 er Z7.199 1. 'iii amocrrtef expenditures rcflacted in Lho schedule otfcdera] fin�assistance for unity Development Block Grants. 1988-1989 program year. does not agr" by $107.28 with the Summary c£ Community Development Block Grants Financial Status Report file with the U.S. Department of Housing and Urban Development AkewomelfAdw The City should develop controls to e n s urc that expenditures m f l e c t ed in the books and records arc in a gre e m c n t with reports filed with the U.S. Dc p ar bTn n t cf Hauling and Utm Dcvelop"nt. Cit 'a Y�smui6: The City has procedures to ensure that expenditures reflected in the accounting records correspond with the reports with the U.S. Department of HmsfaV and Urban Development. All gm nt mon ies, with the exception ofthe Housing Rehabilitation Program, are rcconcilad on a monthly basis by the City's accountant. The City's Housing Rehabilitation Program is administered by San Joaquin County. Rocancil iation s for any expenditures are marc on a qu arteri y basis by the City u pon rccc i p t of the summary of expenditures from the County. In order to close the City's books for June 30, 1491, the County provided tentative figures for these: expenditures. Th c quarterly summary of expenditures was actually received in October (after the City's numbers were finalized). The necessary adjustment to the City's record was made in the current year after these corrected ri gurus w= received. 13 CITY OF LODI, CALIFORNIA Status of Prior Year Findings and Recomm-endations Year Ended J u rve 30, 1991 Findlodc In our tests of zompiia= of the City's administrative controls over the Drug Suppression Program, we noted that there was rw individual responsible during the year for monitoring and maintaining compliance with the regulations imposed cn the use of funds rpt i v tti �i nd et this feral a[n. $tsesumandAtiM: T?re City should appoint an individual to monitor compliance with regulations in order ioensure compliance with regulations in order to ensure compliance and avoid ft possible loss of future grant monies. "u rr rrt t S t 3 t U ; On January 1, 1991, t he Chi hired an individual who will b�. responsible far monitoring compliance with the conditions of the grants. This individual works with the de pastmen is administering the grant monies to verif y that the City complies with the regulations imposed ori the use of these funds. 14 COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Yeal Ended June 30,1991 DAVID M. HINCHMAN, MAYOR JAMES W. PINKERTON, JR. MAYOR PRO TEMP PHILLIP PENNINO, COUNCIL MEMBER JACK A. SIEOLOCK. COUNCIL MEMBER JOHN R. 'RANDY' SNIDER, COUNCIL MEMBER THOMAS A. PETERSON. CITY MANAGER Prepared by the Department of Finance Dizoo Flynn, Finnncc Dircctorflrcasurcr Diana White, Assistant Financc Dircctor�Trcasurer CITY OF LODI TABLE OF CONTENTS page INTRODUCTION Transmittal Memorandum 1 Directory of Officials and Advisory Bodies 8 Organization of the City of Lod i 9 FINANCIAL REPORTS GENERAL PURPOSE FINANCIAL STATEMENTS Independent Auditor's Report 10 Combined Balance Sheet — All Fund Types and Acroun t G rou ps 11 Combined Statement of Rene nu es, Expenditures and Changes in Fund Balances All 0 ove mn e n to i Fund'IAes and Expendable Trust Funds 13 Budget and Actual —General and Special R e Ye n ue Funds 14 AU Proprietary Fund Types 7s Combined Statement cfCash Flow — All Propriclary Fund Ty es 16 Notes to General Purposa Financial Statements 17 SUPPLEMENTAL FINANCIAL STATEMENTS General Fund Overview 36 Fin an cia 1 Statements 37 • Special Revenue Funds OYerVlcw 40 Financial Statements 41 Capital Project Funds Ovemew 44 Financial Statemenu 45 Debt SerYicc Fund Overview 48 Financial Statements 49 Enterprise Funds Overview 52 Financial S t a t e m e n is 53 TABLE OF CONTENTS — continued 70 General 0overnmentaI Expenditures by Function — Last Ten Years P89C Trust and Agency Pu m d s 72 Overview 58 FinancialSta(emenu 59 Internal Service Funds 75 Overview 62 Financial Statements 63 General Fixed Ass cts do Long Term Debt Account Groups 78 Overview 66 Financial Statements 67 STATISTICAL TABLES General G ove mme. n t a l Revenues by Source — U s t Te n Years 70 General 0overnmentaI Expenditures by Function — Last Ten Years 71 Gene- al 0overnmental Tax Rcvenues by Source — Last Ten Years 72 Secured Tax U vies and Collection — Lau Ten Years 73 Assessed Full Cash Value ofall Taxable Property — Last Ten Years 74 Property Tax Rate Ail Overlapping G o vernm e n is — Last Ten Years 75 ` Special Assessment Billings and Collections — Last Ten Years 16 Ratio of Debt to Taxable Ass t&std Value and Net Bonded Debt Per Capita 71 Computation of Direct and Overlapping General Bonded Debt 78 Computation cf Lgal Debt Margin 79 Ratio ofAnnual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures ' Last Ten Years 80 Demographic Statistics — Last Ten 81 Construction ActMty — LastTen Years 82 Bank Deposits — Last Ten Years 83 Principal Empiaydn -84 Surety Bonds of Principal Cffi k s 85 0 an n Limitation — Last Ten Years 86 LL L d LL t1 PREFACE The comprehensive Annual Financial Report (CAFR) has been prepared in order to present the City's monetary results of operations and financial condition as of June 30.1991, as well as provide statistical information ofgenera I interest about the City ofLodi. To achieve these goals, the City's CAFR was organized into the following three major sections: INTRODUCTION This sectioncf the CAFR provides a comprehensive analysis of the City's financialposition as of June 30,1991 as "-CU as summaries of significant policies and practices which a f feet the City's management of its financial affairs. The introduction section abo includes a dircctoryof City officials and advisory bad i es, and an organization chart cf the City. FINANCIAL REPORTS mitis section includes the primary financial statements of the City, and �s organized into lhree major areas: • Independent Auditors' Report • General purpose financial s t a t e m e n is including noteswhich summarize the City's financial results of operation and financial position a t the 'Fund' level. •Supplementalrtnancialstatements,whichprovidefinancialinformationforeachoftheCity'sfundsandaecountgroupsorganzedbygenericfuntitype; r Governmental Funds (General. Special Revenue, Capital Project, and Debt Service), Enterprise Funds, Fiduciary Funds, and General Fixed Assets and Long Term LtabWtles, An overview Introduces each of these supplurnental financialstatementswhich d"r,0 es the purpose ofeaeh fund or account group. In a=rdan= with generally accepted accounting principles, the City's financial reponingsystern is organbed on a'fund' basis, which is described further on the Mowing page of this Preface. STATISTICALTABLES Tris section includes the following demographic and financialtables which provide currenl and historical Trend inlormation for the City, a nd is organized into four major areas: ' Statistical overview • General financialirends of revenues. expenditures, property valuation and taxsources forthe last tenyears. ' Long—term indebtedness trends and characteristics 9 Demographic and economic base trends and characteristics PREFACE — CONTINUED The City's financial reporting system is organized on a 'fund' basis consistingor th ru major fund types —Governmental. Proprietary, and Fiduciary —and two self—balancingAccountGroups. The City's various funds assummar17tdbelow have becnestablished inordertosegregate and identify thoscfinancial transactions and resources associated with providing specific activities or programs in co n fo r a xc with s pc cia I regulations. restrictions or limitations. OOVERNMENTALFUNDS Mast of the City's programs and functions are p rovid e d and financed through the following Governmental Fu nds, w is h are distinguished by their mca s ure mu n t focus on determining financial position and changes in financial position. rather than upon determining ne t income: General Fund Special Revenue Funds Asset Seizure Gas Tax Transportation Pa r t n e rs hi g Act State Park Bonds Housing and Urban Development Transportation Demlopment Act Federal Aid Urban PROPRIETARY FUNDS Dcbt Scrdu Capital Project Funds Capital Outlay Equipment Replacement Subdivisions Storm Drainage Proprietary funds are d Ls t in gu Ls h ed from Governmental funds by their aim Ila r ity to private sector on t erp rises, as the Ln t e n t Is that the coat of providing se rd= — whether this service is to the public (En t crp r#se Funds) or internallyto the o rga n to t Ion (Internal Se Mw Funds) — b to be financed or r000w and prima ri l y through usercharges. Enwprbe Funds mayalso be established to account for operations underwhich the City oran outside gra ntLng agency has decided that a pfirN lC determination of net Income under full accrual a=u n t i ng is appropriate for capital maintenance, public policy, management eon t ro 1, a ceo u n to b ili t y, or o t ho r pu b Ile purpose The following three Enterprise Fundsare used by the City:electric, sewer and water. FIDUCIARY FUNDS Also ]mown as Trust and Agency Funds, the following funds are used to account for assets by the City in a trustee capacity for private Lnd Ivld ua ls, orga n lz a t io ns, or other governmental agencies: Expendable Trust Funds Hutchins Street Square Non—expendable Trust Fund Deferred Compensation Agoncy Funds Industrial WayBcckman Road Turner/Cluff �.,... .�.�. .r.... ....� a. " ...... Swam MENN A Imo/ PREFACE — CONTINUED ACCOUNT GROUPS Except for assets and liabilities associated with the Proprietary or Fiduciary fund types, the following self—balancingAccount G roups are used for acmoundng control and accountability for the City's general fixedassct% and the unmatured portion of principal outstandingon its general long—term debt. March 31, 1992 MEMORANDUM TO: City Council FROM. Director of Finance SUBJECT COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR 1990-91 OVERVIEW The Comprehensive Annual Fina nciat Report (CAFR) forFisra1 Year 1990-91 of the Citycf Lodi, Californiais hereby transmitted. The CAFR is prepared by the Finance Department in order to present the City's monetary resuMof operations and financialconditionasof June 30, 1991, asweil as to provide statistical information of general interest about the City of Lodi, The CAFR re tl e cts the City's co m m i t m e n t to, the highest standard of financial reporting by using a reporting format which m c e is the standards adopted by the Governmental Accounting Standards Board (GASB), which is recognized as the authoritative body for establishing the standards of financial a u= u n ting and reporting with respect to activitiesand transactions of State and local governments. We believe that the data provided in this report is accuratein all material respects, and is presented in a manner designed to fairlyreflect the financialposition and results of opera tions of the City. except as noted be low, In addition. we believe that all disclosures necessary to enable the reader to gain an understanding of the City's "financial activitieshavebcea included, The responsibility for (he accuracy of the -data presented, as well as for the completeness and fairness of the presentation. including all disclosures. rests with the City. ACCOUNTING SYSTEM AND BUDGETARY CONTROL The City's accounting records forgeneral governmental operations are maintained on a modifiid accrualbasi'�, with revenues recordedwhen availableand measurable. and expenditures recorded when the services or goods are received and the liability incurred. For proprietaryfund types, the Cityuses the accrualbasis of accounting. As such, the measurement focus is on net income in addition to financial position and changes in financial position, revenues arc recognized w h e n earned and expenses arc recognized as the liability is incurred. In developing the City's accounting system, contidcration is giver` to the adequucy ofinternal accounting control. The objective of the City's internal accounting controlsare to provide reasonable. but not absolute. assur-ancc that as.scis arc safeguarded against loss from unauthorized use or disposition, and to ensure that transactions are properly recorded to permit the prepara tion of financial siatements in accordance with gcncrally accepted accounting principles. Theconcept of reasonable assurance recognizes that the cost cf control should not exceed the benefits likely to he derived, and that estimates and�udgements are required to be made by management in evaluating these casts and benefits. BUDGETARY POLICY AND CONTROL Budgets are adopted annually by the City Council by resolution and preps rcd for each fund in accordance with its basis of accounting. The Cily Manager is responsible for preparing the budget and for its implc mentation after adoption. The City Council has the authority to amend the budget at any lime during the fiscal year. The City Manager has the authority to make adjustments tothe budget as long as these changeswill not have a significant policy impact nor affecl budgeted yearendbalancu. During Rical year 1990-91, several suppiemcnial hudgct appropriations were made. Expenditure and budgeting detail is maintained by the City foreach fund and department by division at the line item level. Budgetary control is exercised through an online computerized sysbanwhich is integrated with the City's general ledger. The system maintains an ongoing record of budget balances throughout the year based on actual expenditures and unfilled purchase orders. Open encumbrances at yearend are reported as reservations of fund balance. SERVICES PROVIDED BY THE C IT'Y OF LODI The Cityprovides awide range of municipal services, including police and fire protection, electrical, water and sewer utilities, street maintenance. public transportation. planning, building and safety, library services. parks and recreations scniccs and other general government services. Several municipal serOces are provided through other government agencies. private companies or public utility companies, including the following: Flemtaxy and Secondary Schoo Ls ............................................ Lod i Unified School District Sanitation (solid waste) and Cable Television ___..._____....._. Private Companies Gas and Telephone...................................................................... Public Utility Companies Financial information for all funds through which se rvices arc provided by the City of Lod i have been included in this report based on the critc ria adopted by the GASB which is the authoritative body in establishing generally acce pied accounting principles for locaI government. ECONOMIC CONDITION AND OUTLOOK Summary of the LAml Economy The City of Lodi is located in the San Joaq uin Valley berwcen Sic ck ton to the south and Sacra mento to the north and adjacent to U.S. Highway 99, The City hasa population of 52, 500 contained in I I square miles, with an assessed value ofS1,905,3N,0011 The City has grown steadily since incorporation in 1906. Even w7th stringent growth control me asures, approadmatcty 5 t8 ncv4 residential unirs are constructed each yea r, In 1989, the California Appellate Courl found the City's initiative growth control ordinance: o he illegal. Subsequently. the City Council adopted a g rows h con t ro I o rd i na n ce which allow a 2% increase in population each year. tt is anticipated that build out will occur in the year 2007 and that the City's papulation wg11 he 70"), Retail trade and industry are the economic base of Lodi. H(m,cvcr, many of the nL-u,cr residcnts commute cut of the area fore mployment. The major cmployers in the City arc General Mills, Lodi Memorial Hospital. Farmers and Merchant? Bank, Lodi Unified School DL-sIrict, Interlake. Pacific Coast Producers and the City government. Future Economic Outlook The economic condition of the City is clearly dependent on h(m the Na t io rw land State economics perform over the next severa l months. In addition to the National and Stale economies that clearly a (feet Lodi. t hr, effort made by other local cities to increase their share of the retail sales market and to attract industry will also have a significant effect on the performance of the economy in Lodi. If the competitive environment bctwec n cities to increase market aha re continues. Lodi may experience a loss of revenues even if the overall local economy is perfurmirig well, Accordingly. Lodi s making an effort to create a positive environment for businem and industry. W a I m a r t will open a store in Lodi in 1992. In addition. the City is working with the Chamber of Commerce and other businessgroups to promote economic growth and re La in those businesses which have been a foundation to the economic health of the City. FINANCLAL INFORMATION Fund Balance It is t he City's policy to maintain an unreserved fund balance in the General Fund (and working capital ba la noes of the Electric. Water and Scwc r Enterprise funds) of at least two months of opera ting expenditures. Itis goal was not achieved in fLsca l year 1990--9I. The General Fund has less than one month of unreserved fund bala rice; whereas, the enterprise funds have achieved the City's goal. Expe,odlture Limitation Article XIIIBoftheConstitudonoftheStateofCalifornia(Proposition9)providesforthelimitationofexpendituresbystateandlocalgovernments. Underthese provisions, 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 this limitation are appropriations fundal through charges for services, fines and lorfeitures. grants, transfers of service resportsibili ties between governmental agencies. and indebtcc3ness incurred prior to Fiscal year 1979. Pursuant to subsequent Slate Iegistation adopted after the passage of Proposition 9, the City is required tc annually establish and adopt its appropriations limit by resolution. For 1990-91, the City's Appropriations subject to limitation were 533,441,797 compared to actual appropriations subject to limitation of S22,O48,696, a favorable variance of St 1,393,101. Cash Managcmcnt The City has written tnvestmen pottctcs whtc#t address a wide variety ofrnvcsLmcnj pracTices, thcTucring primary invesCmeht objectives, invcstincnt authority, aliciwable investment vehicles, investment maturity terms, eligible financial institutions, capital preservation, and cash flow management. Under the City's policies, investments in the City's portfolio are intended to be held until maturity. and accordingly. investment terms are selected for consistency with the City's cash flaw needs. Reporu are issued monthly to the City Manager and City Council providingdetailed information regarding the City's investmenu and compliance with City policy. Under t he City's investment policies. the City's primary obicct ivc is to achieve a reasonable rate of return on public funds whiIa minimizing risks and preserving capital. In evaluating the performance of the City's port folio in achieving this objective. it is expected that yields on City investments will regularly meet or excccd the average return on three month U.S. Treasury Bills. Debt Administration At June 30, 1991, the City had outs tanding gcncralob I igation honds of S1.5 million, spccial asscssmcr I honds of S270" and Cc N if ica I CS of Participation Of S9,2 million. These liabilities aredLwusscd in Note tothc GcnoraI Purpose Financial St atemcnls. The City's debt management policy includes a committment to monitor all formso( debt annually consistent with the City's Financial Plan and Budget preparWion and review process. Also, the City will generally conduct financings on a competitive basis, will seek an investment grade rating on any direct debt, and 'A!II seek credit on h an cements such as I e t t e rs of c re d i t or insurance w h e n no cess a ry forma rk d i n g purposes, availability, and cost effectiveness. Interim Financial Reporting Interim financial reports are prepared monthly using a'pyramid' appfmch in presenting varying levels cfdetafl. Under this approach, the highest level ofsummary data spresented I it . followed by psogsessivciy greater levels ofdctail. Detailed repurts provide information regarding revenues and expenditures for all program areas byline item, including year to date estimates and monthly actuals,ertcumbrances, and budget variance. Competitive Bidding Policy Citypurchases formaterials. equipment. andservices during fmAycar 1990-91were made pursuant to compet Itive bidding procedures asestablished under City purchasing ordinances. Contracts for construction projects are awarded pursuant to the competitive bidding requirements established bythe Stale of Californiaror projects in excess of SSM. Personnel Policies The City maintains written policiesand procedures addressing a wide variety of personnel and payroll practices, including recruitments, promotions,compensadon, classification, disciplinary actions, and o I h c r conditions of employment. With t h c exception of t h e positions of the City Attorney and City Clerk. the City Manager has the sole authority for the appointment or removal cf all City o fiice rs a n em p loyees. General Se rvices, Fire. Police, Electrical Utilities, Confidential, Ma Intcna, net and Operators, and Dispatchers arc represcn(W in labor rctations bysepamte bargaining units. Executive management (Department Heads) and Mid—Management are unrepresented, Single Audit The City is subject to the financial and cornplia nee reporting requirementscf the Single Audit Act of 1984, which is applicable to all localand slate governments reeeivigftA=I financiXt a mx. As7part of ftCiry`s sinrgte a-udit cis s� made to determine the adequacy of the 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. The results of the City's single audit for the fiscal year ended June 30.1991 provided no instances of materialweaknessesinthe intcrnalcontrolstructure orsignificantviolationsofapplicable lawsandregulalions. FINANCIAL, HIGHLIGHTS As demonstrated by the statements and schedules included in the financial section c>f this rcpon. the City continues to mecl its responsibility forma naging the financial resources of the City. General Government Functions The following schedule presents summary of the general fund, special revenue funds. capitaloutlay funds and debt service fund revenuesfor the fiscal year ended June 30, 1991 and the amount of increasesand decreases in relation to prioryear revenues. REVENUES 1991 - 1990 Amount %of Total Amount %of Total Variance Variance ByAmount By Percent Taxes S10,522,620 48,89% S10,409,387 49.01% 5213233 2.05% Licensesand Permits 545.174 2.51% 460,123 2.17% 585.051 18.48% Fines, Forfeitures and Penalties 340,891 1.57% 281,887 133% S59,004 20.93% Uie of Money and Property 1,406,727 6.47% 1,439,144 6.78% (S32,417) 2.25% Subventionsand Grants 4,134,008 19.03% 3,984,077 18.76% $149,931 3.76% Charges for services 4,062,086 18,70170 3,966,589 18.67% $95,497 241% Other revenues 616,031 2.84% 699,285 3.29% (583,2544) —11.91% TOTAL $21,727,537 100.0096 521,240,492 10WIM S487,045 2.29% Governmental revenuesfor Fiscal Year 1990-911 n the amount of 521,727,537 reflects an increaseof 5487.045 from 1990 revcnues due to increased revenues in Taxes; Licensesand Permits: Fines, Forfeitures and Permits; Subventions and Grants; and, Charges for services. Thcsc increases were offset in part by a decrease in interest and rental income of 532,417, by a decrease on sale of property for Dial—a— Rideand donations to Hutchins Street Square. V —5— The following schedule presents as u m m a ryo f ge n e ru 1 fund, special r ev e n u c funds, cap hu u I outlay funds and richt service expenditures for the Fis ca 1 year ended June 30, 1991 and the increases and decreases in relation to prior year amounts. XP-ENDIL 1RES 1991 Amounl %of Total Amount 1990 Variance Variance %ofTotal By Amount By Percent Public Safety S9,141,249 37.33% 57.956335 36.98% S1,184,9I4 14.89% Public Works 4,300,628 17.567, 3,284,163 15.2% I,016,465 30.955% Sanitation 3,449,491 14.09% 3,384,503 15.7'3% 64,988 1.92% Library 903,940 3.69^! 788.167 3.66 115,773 14.69%n Parks and Recreation 2,484,63I 10.15% 2,264,818 10.53% 219.813 9.71% General Government 4,209,.361 __17.19%. _. _ 3,838,605 17.84% 370.756 9.66% S24,489,W 100.00% 521,516,591 100.0096 52.972,709 13.82% Capital Projects 1,247,317 3,849,009 (2,601,692) -67.59% Debt SerAm 406.094 398,728 7366 1.85% TOTAL 526,142,711 525,764,328 5378„3 83 1.47% The increase in expenditures is primarily represented by the increase in Public Safety and Public Workswhich are in part offselby the decrease in Capital Projects during fiscal year 1990-91. As shown belw, the basis for this increases is in part related to the 101/oincrease in 'salaries and benefits". The fo l I owi ng schedule presents a summary of general fund, special revenue funds. capital outlay fund and deb t service expo n d i t u res for t he E%akl year ended June 30. 1991 by object code and l he increases a n d decreases in relation to prior year amounts. Salaries and Benefits Utilities and Communications Supplies. M a t er is is and Se rvi�'es Equipment, Land and S t rue t u res Other TOTAL EXPENDITURES BY OBJECTCODE 1991 Amount % o f To t a l S 16,022,702 h I.29 %- 953,082 3.65% 2,448.405 9.37% 2531508 9.68% 4,187,014 16-02%- 6-02%$26,142,7I1 $26,142,711 100.00% -6 _ 1990 Variance Variance Amount %n of Total ByAmount By Percent S14.559,007 5651% S1,463,695 10,05% 802.065 3.11% S15 LCL 7 18.83% 1,867,655 725% S580,750 31.10% 4,603,060 17.87% (S2,071,552) -45.OD% 3.932541 15.26% $254,473 6.47% S25.16-4 28 100.00% S378,383 1.47% INDEPENDENT AUDIT The City Council requires an annual audit of the records and accountsof the City by an independent certified public accountant. The accounting firm of K P M 0 Peat Marwick was selected to perform this a u d i [ The auditor's report on the general purpose financial statements and combining individual fund statements and schedules is included in the financial section of this report. The auditor's report reflects that the financial records, reports and internal controls of the City are in conformancewith 'generally accepted accounting principals. with one exception. The City does not have adequate records or policies in place to ensure control and proper accounting of rixed assets (equipment. structures. and land). A=rdingh- rhe opinion of the auditor's was a'qualified opin ion',,A,hich means. that they are not able to assure the reader, or the City's financial rc ports that the reports rein ?nanchl position in aceorda nee with generally accepted accounting principals. ACKNOWLEDGEMENTS The preparation and development of this report would not have been possfh1c ArJ1hout the year—round efficiency or the Finance staff and their special efforts, working in conjunction with the City's independent auditors, to produce this report. In addition, there are five members of the Finance Department whose extra efforts and attenlion to detail have made this report a product in which the City cantake specsal pride. 'Titley are: Diana White, Assistant Finance Director; Vicky MC Athie, City Accounting Manager; Ruby Paiste, Accountant: Maxine Cadwallader, Revenue Manager. and Cory Wad law, Accounting Supervisor. Dixon Flynn ` Financa Director CITY COUNCIL David M. Hinchman, Mayor James W. Pinkerton Jr., Mayor Pro Temp Phillip Pennino, Council Member Jack A Siegiock, Council Member John R. "Randy"Snider, Council Member ADVISORY BODIES Library Systems Advisory Board Council of Governments (COG) Citizens Advisory Committee Library Board Lodi Ad Hoc Transportation Committee Lodi Arts Commission Lodi Senior Citizen's Commission PRINCIPAL ADMINISTRATIVE OFFICERS Thomas A Peterson Jerry Glenn Bob Mc Natt Alice Reimche Leonard Lachendro Robert H. Holm Larry Hughes Charlene La n g e Joanne Narloch Jack Ronsko Henry Rice James Schroeder Floyd Williams Ron Williamson -8 Personnel Board of Review Planning Commission Recreation Commission Site Plan and Architectural Review Committee Lodi Solid Waste Management Task Force Old Lodi Union High School Site Foundation Board City Manager Assistant City Manager City Attorney City Clerk Librarian Finance Director/Treasurer Fire Chief Community Ce n t e r Director Personnel Director Public Works Director Electric Utility Director Community Development Director Police Chief Parks & Recreation Director CITY CF LCVI r L:: --I-! =�a �- F- u u _ M �i r F- u u �i r � �(' a Q � 6 a +_ J J 4 U i w a n W w W u Y O A N Y = 1 r mat w .. _ �1 of OI � 1 � 1 C � r Y � O N r y Y iJ liy r F- u u �i • a +_ J J 4 FINANCIAL REPORTS GENERAL PURPOSE FINANCIAL STATEMENTS KPMG Peat Marwick Ceoi ied Public Accountants 1795 Natonnas Porgy D - e Sacramento CA 95833 2936 The Honorable Members of City Council City of Lodi, CaJifomia- We haveauditcd the general purpose Emma -,W statrmcmu of the City ofL.odi, California as of and for the year ended.Lv A 1991, as listed in the acxompanying table of aattcam Thew gaxra! pctrpose fkanc aittatanents are thc responsibility of the City's management. Our respansibiIity is toexpri--ss anophon onhesc general purpose rt nar, i -W stat vncr, is bastad on our audit. Ex ozM ar d i se-� in the following para$rsph, w e c and u c t cd ouT audit in accordance with g er, cral l y accepted auditing standards. Those $LvxLvd s rcxt u i m that we plan andpetrkrm the audit to obtain xatsortable assurance aboutwhcther the gen:.'ral pttrposs financials tatements are frac of m1terial misstatement, An audit includes examining, on a test basis. evidence supporting the amounts and disclosures in the general purpose financial seatemcnts, An audit also includes assessing the accounting principles us'cd and signd-ricant csdmtates made bymaWcn nt, ar well as evaluating the overall financial statement prescr =ion, Webciicvc that our audit pro vidcs areasonable basis for ow opinion. The City docs not msainWn complete historical cosi mcords ofiu gem a.l wd 7npritury fund firedassets andptvptietary fu id contributed capitaL Accordingly, we were unable to satisfy ourselves with respect to fted asset balances of $15,417„586 and 640,017,901 in the general fixed asset account group and the proprietary funds. respectively. depreciation expanse of S 1,919,960 in tlyt 7oprietary fwnLLi, and unrecorded corich buted capital, In our opinion. except for the effects of such adjustrnents, if any. as might have been determined tobc necessary had we been able to apply adequate procedures to the fixed assets rexords andproprictary contribuicd capital w discuss'¢d in the preceding paragraph. the general purpose financial statements r (0;1rcd to above prott fairly, in all maseriaJ resyectsthe financial posidon of the 0 t y ofLmli, California as oflune 30.1991. and the resuI s oftts opfradotu and the cash flows cf1 Ls proprietary fund types forthe year thio ended in conformity wi+h generallyacecpiai accounting prineip1es. Our audiI war made for the purpw ofform ing an opinion on the general purpose financial staICments taken as awhole. The combining, individual fund and individual a0c01 u group financial statcmants listed in the accompa rig table cf contents arepNe cnted forpurpgscs of additional analysis and arc not a required pan of Lhe general pAipm ftnamial statements of the City of Lodi California. Such information has bccn subjected to the auditing procedures applied in do audit of the general purpose 'financial statements and, in our opinion, excefx for the effects of such adjustmenu, if any, as might have been detcrmtned to be necessary had we been able to anpl y adequate proaWaraes to UN: fixedtt_sscts and Proprietary contributed capital as discussed in the second preceding paragraph, is fairly stated in all matchal respxu inrolution to the general prltmm Bnaocial OMMMMA taken u a whole. The informationcontaincd in the statistical soction has rtes been subjected to the auditing proccduses applied in the examination of the general purpose financial sumsrrerus and. accordingly, we express no opinion thereon, nptiG.- P� Sacramento. C al tforn i a Novcmber8.1991 x' ' •10- ! RT'm WrIN t TWM IMM6.1 MKI€T stoat' Tam iiram wart : "MCI cl wrl OCIVS fwtK ardo►g Ltr6mi twavSs "VLI V'St t06'L10'OP Wal 11S'ttl MrL OKW Urn L4vucI 9561t119`t 6EC04 1511'11!!'1 Knit'[ oWU2 CUT( 01'09 9111'661 061'11 "lea VOV91 GWV m ODCtt OGV(kL owst OWSL 1gvm't orb's Its OCVVLt't Lot'6a u1'ut ttr"m SwLSt't OW051' 1 000 toe KroI1'rt S I90lowl urctel KZ'fw6 vw116L'f LOCK ""loll ow9trz S agyp s OMM IM -4 "MR I M-11 Tam" tw.L PW "Mt fox Pq I+Mw1 Mir Mg orwmmq IVOMW3 um 111 1661 'OC A"t §&-'D I.—Y P- fwU1 PW+3 IN • MRS X11 Pwf9 J 100"130 Lua area IML maw PwR P arVA14ai n)"ar p* N N tot! om Ny Vr A" (� MR Pte! a" *!� f ��wra err cc mm) soft PNV w* p 0 (t awl M -W -m pre *go "MP -anu m pwmnmj Doodad pmwt os won fuPb odrroar an ter s irsi �r�'iTirt itt�i8'i tt 1 a3o't"i�'9S rir oi�I r'zaMI Warts ZSt'606'L9 _ "CLI►'S1 (£W0 929'4►t S`nC'rr 011'ZOt'r 106'ZCZ K6,st '1 C98b[►'1 MfgIR LLS (Etf'Ci ars29•t 10619EZ r[Z'L10'[ 09CIP15 OLVM Salim (WO11 ;soul twtsL'tt 9Z9'Lrr s09'SCE'►r "IrliVS1 9tS'Llr'fl 9Z►11S'fL 9Et't[Lr 19L'tl0't 1IZ'99►'i ""'116'11 80111of 000'5Z EL0'IEI CEL'r191 C I Z^4rL't [ iZ'91L't WITS stt Irc WWI rto 9w 1 0tq' aoo si s%VL Ss99Zr'L ►10'501'r uf'6ort talf'o WrEwl C(6'rl►'1 000'191 EErZt► OOS't9 fb 6w SUES" lzv;6Z rt 1' I orss ZOs 4r2'6 s09'tZL t0C'66f'L S 61F 1165 00'61 1KV%C'1 CLl'rt Lt9'ZS Z61'Wr S f 6��P 7 "` tYrilQ r9ts>!,p taaasy r1> tom; 8 LIU ptol utos•!to 1 Ia+a+�p p� usaarj pia WUI Ittiawl tnW83 wpa Maids saftm SUJL V1119 jutuap+I =a I PM avomsmx- MIL rug 1 -Mum te6l 'K w+t pan+mw,) , rdnuuJ tummy per radAl pint IIV - "S 23urlry Nuu4uJu.) I[II)'1 40 AJJ:) P" P- Plot sst V" *1 "diff -3 A"6 ruf Fool P"opman Paf�!rV • rr> woasagw+sia asl p"�A �IIR l� ra pna 1-Ww MI ;iwft rRl ow -m- Im1 (9"1w !r l rr vw4w ap" "wdoj solldp�Ya/ ( go" a1 (fl =A--, 1A, ..+,..long {9 � �a pwwrMfrws IwwsY "W" essay =frn ria ouapr p ms*y -gq!4nl A" pia swivel 4 - .,V rae "Vtl A Sot a xOmpanying notes to jcnnrnl purpose finandw staterruents. -13- i CITY OF I.ODI Combined Statement of Revenues. Expenditures and Changes in Fund Balances All Governmcntal bund Types and Expendable 'frust f=unds June 30, 1991 Fiduciary URYg1]llllfmAi Emd I= S�p,e,�c,i,a�,l� Debt Capital EixpendaNc Total Genet p arVenuc I" Revenues: Taxes $ 9,790, 3 58 782.146 50,316 + S 10.622.620 Ucenses and p�-rmits 545.174 545.174 lntpsgovernmental revenues 2,580,7K4 1,553,224 4,134.008 Clurges fur services 4,()71,510 60.576 4,062,0&6 Fines, forfeits and penalties 340.891 340.891 Imsetsss and rental income 869,099 93.464 U93 441.141 842 1,407,569 Miscellaneous revenue 543.061 M z 18 M= .,44L409 1.341.696 Total ttvcnue 18,670,677 2.509.628 385.347 887,550 842 22,454,CA4 Eat: Comeau: GAY goveserment 3,046,747 1,136,583 26.031 4.209361 Public protection 9.122.438 18,811 9.141,249 Public works 2,' 16,913 1,583,695 4,300,628 Sanitation 3,449,491 3,449,491 Library 903,940 903.940 Parka Ord recreation 2.00,125 1.506 2,484,631 CW" *guy 1.242772 4,.545 1.247317 Debt service: fisw 93.752 93.742 PrincipaT Pa 31es 2 352 21,722,674 2740.595 40.5,094 1,268,803 4.545 26,142,711 Deficiency of revenues tmdcr cxpenditurts (3,051,997) (230,967) (20,747) (381,.253) (3,703) (3,688,667) Other Bnatteigg sources: Opersdas tssmras is (note 9) 3.302.271 I01.702 474.174 3,878,147 Opendat transfers out (note 9) (640.0881 (41.203) (6.4951 (6.87.136) Total other Rnman6 sounxs 2,662,183 60,499 467,679 Excess y ravmarea finmdng sow= over expeaditwo and other financing was (389,814) (170.468) (20.747) 86.426 (3.703) (498.306) Fund bdomm, lune 30, 1990 1.82o.Tn 1.11mia 253,649 9.I16114 Ftttrti balarecs. lttaa 30.1991 (oats g) S4- l 1, 4. 9L ,23� J!B. 71Q 3(.,.533 Sot a xOmpanying notes to jcnnrnl purpose finandw staterruents. -13- i A Revenues; Tues Lirassa aid pwmu la(artovaasaeu(aF sevemtts Files, faefiiu aadpeaWuea hwtawal asd toW Mame Misai}asawsss ssvwrse TOW rrvsaue Expead"M Lbnart (haeswl;orarsmeat Htblic psrec0 M Pob6c works Sasu wol PSAs ii asd nicnag s (7lY OF 1.001 CfJMNned Statanent n( Revenues, F.apendiWMS sw4 (3s4a8ta is Fund Halances RudBet and Actual . (ienaal and Slwial Revenue Funds June 30, 1991 (icecrai Fund Defic' of aveatses Ovwr Revised expaidiNm Ysria for Revised 791,990 Faysswbk 1iVAO &MW (Un(avorabkl S 10,087,225 9,790.158 (297,067) 591.250 2,215,790 545,174 2,580,784 (46.076) 364,994 4,060,170 4,001,510 (5800) 285,500 340.891 55,391 775.865 869,099 93,234 394,000 543.061 149,061 18,409,800 18,610,677 260.817 3,168,178 9,140,307 2,777,475 3,527,460 1,373,720 2,510,349 TOW ciocadil ms 22,497,689 Defic' of aveatses Ovwr Revised expaidiNm (4,087,889) Odw fbasici% mw= 791,990 Onandis8bimArs.in(=a9) 3,273,835 Op,a+ usmfm ala (arose 9) ( 562,64 8 ) TOW odwfbmm# sawcae 2,716,187 EMU (def rriaot:)r) a(nwmw 4W cd w 1,564,320 (Waawq Waco aiiow exp"Abo ea (11,096) sad G&W ImaKia1 ams (1,371,702) Fish bnMm a ]nae 30, 1!90 1.820.777 -..Pad a. uae --- ssq rYtS SM W itcvcnuc BM4 - - - Revised 670,559 VWW" Revised 791,990 Faysraw Fi1A10 &i1 dxm klt� 806,800 782.146 (24,654) 1,564,320 1,553,224 (11,096) 126,580 60.576 (66,004) 84.975 93,464 8.489 7.310 20.218 12,908 2.589.985 2.5W.628 (60,357) Tool {Ncmcxygum On(X) -- Revised 670,559 Favorable 09490 791,990 (Us(mvsrab(c} 10,844,025 10,572.304 S (321,721) 591.250 545.174 (46,07b) 3,780,110 4,134,008 353.898 4,186,750 4,062,086 (124,664) 5,884,243 2!!5,500 340.891 860.840 962.563 101.723 401.310 563.179 161,969 20,999,785 21,180,305 180520 3,046,747 121,431 1,807,142 1,136,583 670,559 4,975,320 4,187,330 791,990 9,122.438 17,869 23.465 18,811 4.654 9,163,772 9,141,249 22.523 2,716,933 60,742 3,106,568 L513.695 1,322,873 5,884,243 4,300,628 1,383,615 3,449,491 77.969 3,527,460 3,449491 77.969 903.940 469,780 1,373,720 900,940 469.780 2,483,125 27,224 151,833 1,506 150.329 2,662,184 2,494,631 177.553 21,722,674 773,015 5,019,010 2.740595 2,348,415 27,586,699 24,463,269 3,123,430 (3,051,997) 1,033,892 (2,499,025) (230,%7) 2,266,058 (6,566,914) (3,262,964) 3,303,950 3,302,271 23,436 101.702 101,702 3,278,835 3,403,973 125,138 (640,088) (77,440) (23,436) (41.203) (17,769) (586,084) (681,291) (95,208) 2,662,183 (54,004) (23,436) 60,499 83.934 2,692,751 2.722.682 29.930 (389.814) 981,888 (21522,461) (170,468) 2,351,992 (3,894,163) (1601212) 3,333,930 I,820.777 1,415,935 1,416,422 3,236,712 3,237,199 _14309639-- h f 1 I{ %&6) j&.5 3�� �(0 51) 2,676,917 $ 3.J73.880 SCC seaopapsn7(at 001416 10 8esrmnF pupoes r+asmcial stwaneaas .14 CITY OF IMI Cornhined Statement of Revenues, Expenses and Chwiges in Retained Earnings All Proprietary Fund Types Year Endrd June 30, 199 1 Retained earnings. June 30.1990 Retained earnings, Jwe 30.1991 S 44,335,605 447.626 5 44,783.231 See accompanying nodes to general purpose financial statements, -15- Internal Total (Memorug OnIY} Operating revenues: Charges for scrviccs S 35.454,700 62.692 $ 35,517,392 Operating expenses: Personal services 3,548,1 19 8I,940 3,630,059 Supplies. materials, and scrviccs 2.930,219 700.795 3.63I,014 Utilities and communications 25,090,615 112 25,090,727 Depreciation 1,919,960 1,919,960 Benefit payments _ 179.346 263-17 442520 Total operating expenses 33,668,259 1,046,02I 34.714,280 Operating income (loss) 1,786,441 (983.329) 803.112 Nonoperating revenues. Sewer bond taxes 180.02I I80,02I Interest revenuc.net 743.853 I47,188 891,041 Rent 202.689 202,689 Other 71Q_450 561,585 1-592.035 Total nonoperabng revenues 1,857,013 I,008.773 2,865,786 Income before operating transfers 3,643,454 25,444 3,668,898 Operatingtramsfers in (note 9) 1,140 302,705 303,845 Operatingnnsfers out (note 9) (3.494.200) (3.494.206) Total operating transfers (3,493.Of6 302.745 (� Net income 150,388 328.149 478,537 Retained earnings. June 30.1990 Retained earnings, Jwe 30.1991 S 44,335,605 447.626 5 44,783.231 See accompanying nodes to general purpose financial statements, -15- •stumumm p!3twut, j asodond 1*saua8 01 tabu lutAt adtuoaatt gas SO LIS ZL£' £98 60 [ 1 S MATO pea to s7u tuinbo %sro pia qn3 R ,r N a egad 8unnnSaq iv s]ualumbo 1113 pus qn:) (9£Z'£00 0 999`EZl '9Z0'Z 1)1) �7w i�tnbo gs�r3 pus s*ul jass asr�>.xn ssW _ scrim SagtAI139 2"wamo Aq MAOA qM 12N :sasleA!IM UnSUM UX)'q mOU 42vJ ( { ) SOP!An39 $U "Iflj ptldg3 Aq PM qW3 ION uongdL"J Jo �J JO Ald ' (980'066'Z 1) (9W066'Z 1) Stam I*nde3 jo ttoumasuo3 pus uum:< :san!sv3g fu!m eutj 1*1uh3 UKU; Smo114s*J MLT TLVI60'T an za rT sanlAnx 8unxmnl lgl!dsmau (u! pasn) Aq prp!Aoed t{sa31aN iv;,Fq"r ��� lanuaAae 1"iadauou eat(10 ut wwacAq (19£'061'£) SQL'Z0£ (990'£6,'£) tau xro) u! mistwre ium=jo :san!Anx li!aewtnj lgudgaeou mq smoU tpZ) COVE I ( ) LrrFal'z 53niAnn 8ungaad0 (ii polo) Aq pnp!Aoid tpw3 pN (160111) w" moo 01 attp to max"a 69P't,Z TOY W410 umi anp ui anal (S,6Z' 10£) 016V100 *AM= a3uaWsu! JIM tq a "IM Z9 I'll Z911 l I sa3leasgs psgswduuaa pwu= a unLitn (PC l's) (Pi I'S) is WWA poniaar to alraxwa 9Z6'L 8Z I'l 861'9 PUV ta! I f W uga>31e( (Z 1 Z'9ZZ' 1) 1 Z 6' 1 (££ I V V I ) sand gt a a g,Iad unoAk I!4 . l mp pur 19 (al*seoop) gs**&3tq (008'0 (WO 899'Z st l X"ou!( ) 4,08'$01) (P08'801) ,GouegAtA to Dgn=q L9£'s81 L l9' l 061`[6 I pgA» a!a3oeu► slessawp 06111 Q90 L6£'8t 1 algeAiaaar sluno33a uI {asttgeaur} asgatao(] W-Pw Imm u! altwR3 teonr[!Seotttg pug uo!tvm. xaa :santA" lupus do rig prp!Aoed 4=3 tau Ln Wimm Stimetdo ap-*u 30e o1 tnmmn(py ZlI'L{)!i T (hZ£'£8hj 1„'981,1 S atte)Otuturn updo :samAnn 8ungsado woeJ Sm0U 4sTJ si�ol 1661 '0i aunf papu3 J94A s;xy.L punt +CmaixloJd VROU 4"J Jo tuatuatsls paugywoa I00"1 40 A.U:) CITY OF LORI Notes to General I'tirpose Financial Statements t I) Summary of Significant Accounting Policies TheCiiv of Lodi, California (City)was incorporated Decem txr f,, 1906. its a municipal curporat tinderthc general lawsof the State or California The C+.y opera.es under the Council Namgcr form of government and provides the following services as authorized by its charier: general government. public works, ' pub)ik- protecu on, sanitation, library, and parks a,rrd rccrc:won. T'he accounting policies of the City of Lodi, California. confonu io generally accepted accounting principles as applicable to governmental units. The foVowing is a summary of the more significant policies: (a) Reporting Entity The City's general purpose financial statements include the operations of allorgani7ations for which the City Councilcxercises oversight responsibility. (Oversight responsibility is demonsuated by f inancial interdependency, sctection of goveming authority, designation ofmanagement, ability to significantly influence operations, and accountability fa fiscal matters. Based on the aforcmentioned oversight crilcria. the Lodi Public Improvement Corporation (LPIC) is included in the Enterprise Funds as the City has oversight responsibility for rias entity. (b) stasis of Presentation . Fund Accounting The seoouats of the City arc organized on the basisof funds and account groups. each of which isconsidered aseparm accouruing entity. The operations of each fund are accounted for with a separate set of self -balancing accounts thlt compromise its assets. liabilities. fund balance/retained camings. revenues. and expcnditures/expcnses. The various funds are summarized by type in the general purpose financial statements. The following fund types and account groups are u x d by the City: Governmental Funds ac those through which most govcmmcntal functions of the City arc financed. The acquisition. use, and balances of the City's expendable financial resources and therelated liabilities (except those accounted for inproprietary funds) arcaccounied for through gnvernmental funds. ne measurement focus is upon detcrmiination of chanes in financial position. rather than upon net income detcrtnination. The following arch a City's governmental fund types: • ieneral Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resourcesexcept those required to be accounted for inanodw fund. •Spahki R@venu@ Funds - Special Revenue Funds arc used to account for the proceeds of specific revenue sources t,othcr than special assessments, expendabletrusts, a major capital projects) that are legally restricted to expenditures for specified purposes. •DrX S=JCt EUUA - The Debt Service Fund is used to account for the accumulation of resources for. and the payment of.gencral long-term debt principal. interest, and related costs. • ('aaitat Prniecfj Fund - The Capital Projects Fund is used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than how fmancedby proprietary funds and trust funds), .37- CITY OF 1.0111 Notes to General Purpose Financial Statement. Prohnctary Funds are used to account for tic Cily's on-going organizations and activities which arc similar to those often found in the pnvatc sector, The measurement focus is upon ocici-minaiionof net income and capital maintenance. The following are the City's proprietary fund typcv Fnternr K Eun .Enterprise Funds are used to acatunt for operations (a) that arc rmamod and operated in a manner similar to private business cntcrpnws • where the intent is that tnc costs (expenses, including dq rcciabon) ofprmiding goads ascrv�ces arc rectxdcd primarily through ttscr charges; or (b) where the governing body has decided that periodre detemiination of net income is appropriate for capital maintenance, public policy. management control. accountability. aother purposes. in(cmal Service Funds areused to account forthc financing of goods car smices provided by one department or agency to other dcpartmtnts a agencies of the City, a to othergovcmmcntal units, on a cost-reimhirscment basis. Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agm for individuals. private organizations. other governmental units, andlor other funds. • AglaCIEUpd - Agency funds are used principally to account forcollection of bond proccxds with no government obligation and payment of related bond principal and interest, Agency fundswe tvstodial m nature find do not involve measurement of resultso operations, - Expendable Trust Fund is used principally to account for funds held by the governmental unit in a i%stec capacity for inuividuals, private organizations, othergovcmmmod units. and/or other funds. Account groups= used lo establish accounting control and accountability for the City's general fixed assets and general longterm debt. The following arc the City's account groups: SjepCral Filled Assets Account Groun - This group ofaccoL ms is established to acco,v for fixed assets of the City. ocher than those accounted form the proprietary funds and trust funds. Genera} Long -Term Debt Account Group ' This group of accounts is cstablishrd to account for all long -tern obligations of the City except those accounted for in h e proprietary funds and trust funds. (r) Basis of Atcounting GovernmerstO funds and Fiduciary fund types use the modified accrual basis ofaccounting. Under this basis of accounting. revenuesare recorded when hey become both measurable and available to pay liabilities of the current period. Revenues not considered available arc recorded asdeferrcd revenues, Fxpenditures are recorded when the liability is incurred. except for(1) interest on general long-term obligations which is recorded when due. and (2) the noncurrent portion of ac-Mcd vacation and sick leave. which is recorded in the genera€ long-termdebt account group. In applying floe susceptible to accrual concept to intergovernmental revenues. the legaf and contraclual requirements of the nwnerous individual programs are used as guidance. T -acre arc, however, essentially two types of revenues. In one, monies must be expended on he specific purpose orproject bcforC any amounts will be paid to the City: therefore, revenues arc recognized bascd upon the expenditures incuned. In the other. monies arc virtually unrestricted as to purpose of 5131 ('111' OF LOW Noles to General Purpose Financial 5laternenl.s expenditure and are usually rcwxablc only for railurc These resources are rcficctcd ai revenues at tlic time of xeoeiptcT earlier if the suscc.•Ptible to xcmal c,riima arc met PToperty (axes arc recognized as revcnue in the year forwhich coxes have txen levied, provided (hey arc collected wilhin 60 days after yvar•end. Special assessrricnts ars: rccnrcicci as revcnue in the year the individual installments are due. Licences and permits, chargcs for services. fines and rorfeoures, and rruscelidnrnus revenuer. (except investment camings) arc rccordcd as rcvenues when rec•civcd in cash because they arc generally not mcm cable until actually receival. Investment carning,i are recordexl as camel since they arc rmisurabie and availahle. The accrual basis of accounting is tLwd by the proprietary funds. Unbilled service revcnue is accrued in proprietary funds. (d) Encumbrances Encumbrance accounting: under which purchsx-w orders, contracts, acid othercorruniunents forthe expenditure of funds are recorded to reserve that pumur. ofthe applicable appropriation, is crnployed in the govcrronfcntal funds. Open encumbrances arc re•poitcd as reservations of fund balances since the commitments will be honored N-ough subsequent years' budget appropriations. Encumbrw,.ccs do not constitute expenditures or liabilities. (e) Cash and lnyestments The City maintains a cash and investrmcnt pool that is available for all funds cf the City for the purpose of increasing interest earnings through'tnvestmcn( activities, Each funds portion of this pool is displayed on the combined balance sheet as "cashand investnents." Interest eamai on the pooled funds is allocated to the various funds based onmonthfind balances. Investments arestatad at cost orarnoriizcd cost, which approximates murkct, (r) Inventory Inventory is valued at the Iowcr of cost (weighted•averagc method) or market. I'he cost of inventory is recorded as nnexpmdiiurc/expense at the lime individual inventory iiems areconsumcd (comurnpdan method). (9) General Fixed Assets General Fixed Assets have been acquired for general govemrnmal purposes. Assets purchased arc recorded as expenditures in the govcrnmentai funds and capitalized at cost in the general fixed assets account group. Ca iwl Icascs for buildings, improvemcros, and equirw4it are recordedin the general fixed assets account group, and the capital lease obligaLioi payable is rcroi*d in the general long-term [debt account group. Contributed fixed assets are recorded inthe.generl fixed asset account group atestirrwtcd fair naw e( value the limer='tvcfj. Certain improvements such az roads, bridges. curbs and gutters, streets and sidewalks. drain systems. and lighting systems arc not capitalized, Such assets nomtatly are immovable and of value only to the City. Therefore. the purpose ofslcwardship for capital expenditures issad sF"cd without recording these assets, No depreciation has banpravised on general fixed assets, nor tis interest been capilaUzW -19- -oz - Pug Pa=43tnd uogm nal so Mww aanli Jo J(lurllt'tu B zilln% (slassv palalnsaU sui 8 guy sluajttntnl s qM 2q of loud � u! !j 4M Jo luaula181s a Jo uo!Muasaid atp sallnbal a p ! ) �uawlsa�ur pinb!1 �t14g sraP!suoa,tt pwmtl!m sftmm -------- `+ p moo spmp�S Sunutto V Rluawtua�►a� 10 b "ON MUMS 's�mlas!p •la po m ------- --- — - --------- -- ------ S pouSope +(lt3 t os 1p!u m 'tans 'sald!au!jd Sutttmo*m Pmdoom �4lp sauaR tofA% o(tsue►o aPMu u2oq lou anlct suarMU.Mlla PUWU! MS uo eCT 's#s�ilt3lg tg#atntrtJ 0181#1taeJ al �truo pawasald an � ' u! sMoU 4m Jo '%wll�u jo slinsas 'uaclssod l tosutl+a a of algtsied tpu! of .dlub Umpus ouraW» Powndp are sttcmaM tx>inqu,o� a riAjd a sv mt� p ]o amulm ug sltssnaxw stet a Po dat lay( lou suwnto� 18101 pa8 ale M. swum" JDJ Ammon Potwae �.� swleia 1u!Pnlou! ptsa~ na�f of xl IPM Sul1>tlada ad l •�t!I!Q8s!P ttsJal-1pf lml 1088 'luatu told�ain 'sl wq Muap 'uAIN PJUMU; 5V orlt�u� adur , . M ,.19XMJ a uo slot lealu�►a Jlas s n11J a p Aq =nm 11 .t lewua$ mJ P®msuI-Jps s! tl!5 0 'path ft!gt!t Pue asuadxa ue st anea aautansal-1taS ! Mals pwe uorle>e a Polgsuadum prow aAta+ti 1x08 u! pard aQ of Mmadva lunoum sPunJ ascndtal aq p1 twlnb�u aq PIoaM iCtt11ti11t7Ktle `ua.UW luomw attL 'pmd aq of ax�m S�7t 'tel ptmj alglstlodsa� � 4=!1 t l� AMM19 g sC dr*wD umoaoti tool sluasaxtal suarnuWo sa►►lnj rfq t Pt++wd aq #>l !te J! �1tJ aqt Jo sant#a�w urteaado 1 � rt e a •�-S 1 'J 0, mnoum u! t�xlJ an �1 tM.'1t1aUMMAoIS JoJ sli�auagAnemdo po � r iotel U wa"at o [} IAe41 1315 pug u9ltr3tsA/t03nasgV P418suadwoa � QZ - Z lucid 9111!lc1 S - E luawdinba put Axrn{ae OZ - it stuaw�,ro ritut rmx SIMP1ln6 smb1101 st ON santl lndasn poMW. 11sa O t' WOW au!l.Igll 1s ati1 Sutsn san! n asn t t j i"lt'tunsa -7ql fano Papltio�d ttaag 04!#e!aauia� If `pa+�!aaaj aural ai{1 tis anlCn 1�)Pnut �acj tblt'tu!1 to tsoa ir lsalels al} spun) asUdlaiva aul Ca nsu,M., v„r.,.... . . sluatualrl5 letaueui i asndint1 tejaua•1 01 Salop RM ssun> a S.ApooW Aq ra»aq jo Vi/ jo uoilwodaoj s,xood T pxpumS Aq xniaq so by paiiix gxwq a1>�uaduoy ui paisaAui aq of paxu�ne osle an spun) uetd uoqvswdujo3 punjap aU •snuxu=h asalauitdau =Mau oiut JMU2 ai pn=inc rile sl til, atU •lood auaunsaAut s lamstaai aims M pue -spun! Mninw 'sivawaaa'8e asi•4amdaJ 'saaui3ldaaae stailueq •pjoaaa jaded peiajaunw:) s. dpwlq Aq 1-d Jo s.Jwd V PnlxmS Aq I -V poitu jaded Ietaual:lwoO'soiirlejuawnzsui ptm 'sotaaah ,4.tns=i -S•n xp JO suotiestlgo ui 1saAu1 of Ai jjMV rams sainjmS ___ .. siluaaul"Aul (q) •sitsobp Jo sasea jluab apnlaut silsodap as*LLL -aumu s,AiIJ 34i ut Vaq leipoisna s.Ap:) aqt Aq ptaq ammnsut kiwisodap tcuapaj Aq pajaAoa Alaipua asa* pua-&24 Ig slssodap pug gssa s.ki!Z) ate, gsaa te) R6 S g;' j— slaw ivxu q" 4M pmamm 1•Lf 011 `8Z S siumns"U! Put 4SVJ =1661 0£ Am f W sivasc 1VMU Pm W" p013u4 I pue 'sivaumaAut puB qM jo dMI 191 $utMoilOJ xLL sjuaSV 1e3SIA 411 4Te) P PIJISON pus 'fjuamjsaAul pug 4Sez) (t:) •poiagwnaua la papuadxa uar+q icxu aneti +ta4i iegz tuaixa a4i at ica�C �} a41 � asvla ayi to a9dq suatictadwcidV •suois, w1 Ile 1a01ja1 spun] anuanad It! tttawo - MM3V PUv laspng - aaur.leu puna u1 sasut4J pine samiipuadir. 'sanuaAa,ajo luxualtiS paulgwoJ xU -itaimo, ,til, a43 Aq paAoadde aq isnw punt Aue jo suonrxjpsela am 1puadxa few!13unj uo suorimioldde Moi atli !ai[e IM suolslAw ,tug '.QAaMo4 siunoaoe uwmloq siunoun paia8pnq uM= mjm n of poxuogme si aadm* jo raftx)il Atib aqL . •aaueulrw uc JO asessed 4snauli pMMW Alydai ss iaspnq XV ' 1 41nl of Loud - sivaunuoa uxanil uteiga of I! :) Ai!J 241 Jo s8unaaw 8uunp paianpuoa ax ssuueaq ailgnd -slscg Icr -M uc uo pagsltgvns* st taspnq xu •ways 9utauruU J° sumo a4i peue samiin uad%a pasodoid sapniaut ip8pnq 8utivuado mU •i AIn f 8ul3wtuum X33 remU 2W joj ia9pnq Sun"o pasodoid c I!om:) kiij a p of sins fascueW 410 WMA 4x,3jo aunt• ur 8utiaow liaueio, lelnsat isu3 ayi of loud jo up ;sivawaicis le!mnJ 8uj (uedwoaoe nui pm.vUau ciep,Cn al1pnq a p 1ut4stigrw ut sampoaoud mm moll oj ItaunoJ All:) ay,L •spunj %Wfa,d Imtdm x)l swwaieis Iciaueuij awdmd Ictauas a p ut papnioui sl uotilrwojus AM41pnq ou ,Alguip,oaac •put lnjgutueatu paiop!suoa lou aye suosticdwoa iaspnq ..lunuuc„ 'siaafa,d asagi jo aunleu uu of-suol 2tp jo asneo*g -sz2A jo aagwnu g J3AO 8u.puaiw3 nwld iaafoxi Imtdca pue suurlsoid jofsw a p azisrotua 4at4Aw si Spnq ,.wuai-8uoi.. Apnwud axe siaafou�d fgdn jo sia" 24,1, •pmdopit s * iatpnq Irnuue uc 4:)14,%JOJ spunj kliuo apnlaut eiep lenin pue iaSpnq wasaid 4aN* sivawaicis IrPurul-4 'spun) jmuaLuw3Ao9 isow joj iaspnq lcnuue ue rxknv Al!:) aU Gjea kjwjaVpnjR (Z) sjuawajvjti iel3utut.1 asodlnd lriaual) of sainkI 10011 .fo A.L1 CITY OF 1.011 Notes to General Purpose Financial Statements The City's invcstmcnU; are categorized to give an indication of the level cf dsk assumLxi by the entity at year•etxi. Category 1 Sccunucs Ihal arc insured or registered, or for which the securities we held bythe City or its agent in IhcCity's name; Category 2 Securities Ihal arc uninsured and unrcgistcred and arc he Id by the brokers or dealer's trust department or agent i n the Cily's name; and Category 3 Smdtics that arc uninsured and unregistered and held by the brokeror, dealer, or by its trust department or agent but not in the Cily's n m e The following is a detail summary of cash and investmcnu at June 30, 199 I: -22- Approximate Market lr EW Ynlue cateQoKy MUSS tied: cash and deposits overdraft $ (65.633) (65.633) Cenificates of deposit 4,000,000 4,000,000 tnvcstmertts: Ranker's acceptances 2.91 1.98 I 2,994,300 I U.S, Treasury notes 2,989,777 2,989,700 I Local Agency lnvestmcnt Fund 10,000,ODO 10,000,000 Various mutual funds 790.549 790,000 Various Mvestmmus 57,085 134,000 1 Deferred compensauon: Pooled tnvestmenu 7.4,26.615 _ 7-42644 Total unrestricted 28.110.374 2fi•273.367 Retklsted: Sewer funds: Deposits 1,154,605 1,154,605 - Mix scrvice: Various deposits 203.OQ0 - Toud restricted 1.357.605 Tota! Gash and tnvestmcnis, and restncwd cash with fiscal agent S 29,467,97929.630.912 -22- (S) CITY OF LORI Notes to General Purpose Financial Statements Property Tax If San Joaquin County is respansible for assessing, collecting and distributing propmy taxes in accordance with enabling legislation. Revenue received is based on an allocation factor calculated by the County under the provisions c Prrr(xasition I3 plus a percentage cf (ho increase in market value in specific areas. The City's propeny tax is levied each July I on the assessed value listed as of tttc prior March I for All real and personalpropcny located m the City. Property sold alter the assessment date (March 1st) is reassessedaiid the amount ofpropcny tax assessed is prorate, The assessed value at March I, 1990, uponwhich the 1991 levy war based. was S2.203.294.002. Taxes are due in two oqual inst21lrr4nt5 on NovembCr i and February I following the Icvy date, payments are delinquent after 40 and 60 days. respectively, r'roperty laxeslevicd forthe year ended June 30. 1991, arc recorded as receivables, net of esdmatcd uncollectibles. Propeny taxes paid tothe City by the County within 60 days ofthe end ofthc fiscal year arc "available' and are therefore. rccognimd as revenue. The remz6ning \=01ecled balance will be recorded as revenue vkm r=ivcd. Due from Other Governments Due from other govcrosncnts represents amounts due from the Swe ofCalifornia and the fcdcral government as follows: General Special -EWU._ Revenue DW S tate cf Cal i Corn is S 18.962 20,387 S 39.349 Federal govcmment 13.376 13.376 Public Employee Retiremcnt Systcnt ...1 -MQ S20162 3363 $ �9 SS These amounts represent expenditures made by the Cily forvarious grata programs but not reimhurscd prior to J un c 30, 1991. -23- CITY OF 1.01)1 Notes to General Purpose Financial Statements (6) Long -Term Debt and Capitalized Lease Obligations T73e following is a st mnwy of dcbt transactions ofthe City for the ycar endcd June 30.199;: General lonp-term debt account group: jpteEmt Rate .lune. 3p. 1994 ins Retijements Jung 3k 1991 Compensatedabscnces 52,184.066 225.461 $ 2,409,527 Gcncral obligation bonds: 1965 Municipal lmprovcmcnt Bo,-�ls: Series 3.50% 1,595,000 245,000 1,350,000 Srrics B 45 - 5.25% 195.000 45000 150.(100 1,790,()()0 290,000 1.500,000 S pec Lal assessmou di sth c t bonds with govarrsmental CarnrniWX=. nct of dismmt: Lodi United Downtown, net of$6,736 discount 8,75.9,94% 287.422 2.077.422 24.15 314-15 261-264 ] _763.264 Capitaliz,cd kwobligadow: IBM Corpmalon 7.42% 85.803 15.553 70.250 IBM Corporacion 7.44% 141.563 24.557 117,006 FMC Coepwidon 7.86% 27,873 19.352 8.521 FMC Corporation 7.50% 65.470 25.939 39.531 CaLcrpi I Lar 7.50% 50,497 15,589 34.908 Enicr8ency One 7.49% 338911 67.782 271.129 371.206 338,9II 168.772 541.345 $ 466 6. 482 4,714,136 Enterprise Funds: CZ01cates of paniCipWoM net of $463,787 discount 5.25-7.80% $ 8,834,34$ 88,135 �� �. S8,746.21 .2d. CITY OF L.ODI Notes to General Purpose Financial Statements Fang -turn debt payable at lune 30, 199IL is comprised of the following individual issues: These bonds were issued to finance the construction of sewer and drainage facilities plus a public salt t y building. The bonds are secured by a pledge of propcn y tax revenues. pri n c i pal is payable annually throughOctobex 1. M. with interest. 1:10.4Munletball liffillrovemenI - These bonds were issued on May 1, 1969 to finance the construction and completion of storm drainage improvernents for Me City of Lodi, The bonds arc secured by a pledge of property tax revenues. The annual principal payments, with semiannual payments kwat of 450% to 5.25%, are payable on May 1 and november 1 through 1994. • The City is obligated under the terms of the Lodi United Downtown special assessbond indentures, in the absence o fany other bidder. to be the purchaser of props rt y upon which m ry said special ass cs sm c n is are levied and tie delinquent. - 59,415,000 certirlcates of participation (1988 wastewater Treatment Plant Expansicn project), annual principal payments August 1. beginning 1989, in amounts from S 100,000 to $755,000 with final payment due August 1.2003. interest increases from 5.25% to 7,86%, payable semiannually on Febnkuy 1 and August 1. The certificateswom refinanced in December 1991 at lower interest rates with approximately 51.000,000 of additional procoeds. The annual prindpW regkAircirtettts to amor+,i zc all debt ou is Land; ng as of June 30.1991 arc as follows: The various indmures contain significant limitations and restricdoas on annta debt scrvice requirements. maintenance of" flow of monies through various restricted accounts, minimumamourus to be maim it ed in various sinking funds and minimum revenue bondcoveragcs. City managerncrtt believes the City is in compUance with all such significant limitations and restrictions. -25- General Special Certificates Year Ending Obligation Assessment of ,[W LIL gun" RIltlob EAUir IUM Ts�al 1992 S 295,000 25,000 110,000 430,000 i993 310,000 25,000 120,000 455,000 1994 325.000 30,000 125,000 480,000 1995 280.000 30,000 135,000 445,000 1996 290,000 35,000 140,000 465,000 t Crwter l.x. m 8,58OLWO _$.I= 3t S. 00.000 270)0 9.210.000 10,980.000 The various indmures contain significant limitations and restricdoas on annta debt scrvice requirements. maintenance of" flow of monies through various restricted accounts, minimumamourus to be maim it ed in various sinking funds and minimum revenue bondcoveragcs. City managerncrtt believes the City is in compUance with all such significant limitations and restrictions. -25- (7) CITY OF LODI Notes to General Purpose Financial Statements T( c present value of future minimumcapital lease Nymcnts a_q of June 30. I99I arc as follows: 1991 S 1.81.049 1992 155,035 199(1 123,808 1994 112,536 1995 MM Tout minimum Ime paymtnS 639.423 Im amoum reprMw ing i n torts t SAI$ Pm.sav value ofminimum �ml kax plants S 543 10 The City of Lodi hm Iant Its name to the City of Lodi Wustrial Developmant Authority (or the purpose of issuing the followingir4wtrial dcniopmcnt bQnds and original issue amounts: Minton Corporatlon S5,WJ,000-, Dat Corporahon58XO,OM, and Wallace Computer Services $3,000,000 Industrial Development Bonds. Tbw bonds ase rp cW obligationboads only. payable solely out of the bond revenues or other sources cf the above companies and arc not a *dge of the gmeW credit of the CityoftA di. 7be Cby of Lodi isnot obligated Aut c redemplon or admhi- n6on of these Industria! development bonds, Due FroWTo Other Funds Individual fund he7 fund reccivable a-idpayable balances, cwNding due from govern mental agencies (scc note 5)by find type attune 30.1981. areas follows: Due From Due Zb Eud Othtr Funds Other Ewp Sptxxstl Revawe Fund S S 68,500 Cspital Pmjws Fumb 277.500 482,433 Enwpirise Fwxls 1137.333 $ .l414,933 S 1.414,933 •26- CITY OF LODI Notes to General Purpose Financial Statements (9) Fund Balance The following is a summary of reamed, unrescrved{icsignated and unrescrvcd fund balances at June 30.1991: Spocial Bt= Dcbt 5mdee Capital Trust & Mims 6&t Ci CW Rcwved for: Encumbrances S 102.455 188.740 174.475 Unreserved -Designated for; Prior heat: Obligations 514,760 1,057,214 10357 4,378,235 (3,533) Plant Rent 16.544 Debt Service 206.000 LOW RgMMM ,250.000 TOWDU*MW 514,760 1,057,214 232.901 4,628,235 (3,533) Unreserved _ 913,749 Tont! Fund Bal rA% $ 14 9 33 �4�4 d.�.L� 232.901 �? Reserved fund balance indicates that the potion of fund equity which has beat legally segregated for specific purposes. Designated fundbalartoe indicates that portion of fund equity for which the City has made tentative plans. Undesignated fund balance indicates that portion of fund equity which is available for budgeting in future periods. •27• Tse S 465.670 5.956.545 16.544 206,000 6,429,089 _813748 S 7,708.507 19 CITY OF Loot Notes to General Purpose Financial Statements (9) Operating Transrers Total opmdng transfers by fund type at iunc 30.1991. arc as follows: EUd Gmc7al Fuad Special Revenue Funds Capital Projects Funds Fn terpr's se Funds tnwnal Service Fund (14) Special Assessment Districts Operating Transfers In aw 5 3,302.271 S 640.088 ](11.702 4I.203 474.1114 6.495 1.140 3A94.206 302,2Qj S 4.1.81.992 $4,181,9 92 In accordance with the Governmental Accounting Standards Board Statement No. 6, the special assessment district debt for which the City has no obligation shouldbe ra;ordcd inan agency (url, The dcbim i cc transactims fortM "Tumcx Roadard CluCf Avenue' andtM 1kdwrial Wayw)d Beciasw Road" special assesstunt district bwAs are accounted for in the trust and agency funds. 7N City is notobligated in any manner in the event cf default on the debt, T'r4 sped al Lw s mr� fen t dis trict debt for which the City hw an obligation should be recorded on the City's financial s t W em cap (s , As the City is obligated on the Lodi United Downtown assessments, the debt is rrcordcd in the general long-term debt account group (see note 0. The debt service transactions for this weame rt are recorded in the debtservlce fund. (11) Defined Beneflt Ptmsion Plan (x) Plan Description The City cmtributes 10 the California Public Employees' Retirement System(PERS or System). wagent muldple-employer public employeeretiremnt system Ow wu as a commm im► mment and adrnirtisaadve agent forparticipating public entities within the State ofWif -da. 13te City's payroll for employers covered by the Systern forthe year endue June 30, 1991 was 512,980,108 which is 87% of tht City's total payroll of $14,936,297, The System ccvm ease dally all employees. exctpt elected officials and those employeescmVentated on an hourly basis who were tired after May 31,1966. Citysafety employees whoredreat age50 iwnd0M toan annual redrement benefit. payable monthly forlife, inanmountequalto two perum per year Urms ycan of service based on tt,c average monthly pay during the last twelve conssmutive months of serviceor another period of twelve consccutive months if the average pay rate rues nigher. The benefit nt increases by retirement age up to a maximum of 2.7% after age 54. -28- CITY OF LUDI Notes to General Purpose Financial Statements Ali other City employees who retire at age 6O are entitled to an annual retirement txncfit, payable monthly for life, in an amoV t equal to Iwo percent per year times years cf servicebased on the average monthly pay duringthe Iasi 36 consmtive months of service or another 36comsecutive rimth periodil the average pay rate was higher. The bcnctit rate fluctuates depending on the employee's m6ferrrcnt age. The lowest rate of 1.092% is received at a rclircmcnt age after 50, The maxitnuLm rate is 2.418% at a retirement age after 62. The Syste n also provides death "disability benefits. These benefit provisions and all other r equ ircments are establ ishcd by slate statute and City resolution. Ca-Wn safety employees are required to contribute 9% of their annual salary to the System. All other employeesarc required to contribute seven perom, The City is required to contribute the remaining amountsrtccossary to fund the benefits for it_s merrrbers, using the actuarial basis recorrtmcrxlcd by the PERS actuaries and actuarial consultants and adopted by the Board of Administration, (b) Funding Status and Progress The ttr wm shown below as the "pension benefitobligation' is a standardizeddisclosure measure of tht present value cf pension benefits, adjustod for the effects of proj%iied u4ry increases v4 step -rut benef it_s, estimated to be payabie in the future as a result cf employee service to dale. P,4 measure is intended io help users awesa the funding status cf the System on a going -concern basis. assess progress made in accumulating sufficient a sets to pay benefits when due. and make cornresons among employen. The measure is the actuarial present value ofcredttcd projected benefits and is independent of the fundingmethod used to determine eontnbut.on to the System, The pemion by rit obligation,;k, as carnputed as pan cf an actuarial valuation peKorm4d as of June 30. 1990, Significant actuarial asau npdons used in the valuation include (a) n roue ofmmm on the investment of present and future assets of $.5% ayear compounded annually. (b) projw; d salary increascs of 5% a year co cd annually. attributable to inflation, (c) additional projected salary in rcas(n cf 2%ayear, attributable to seniorityhncrit, and (d) no post retirement benefit increases. Tota] unfunded pension benefit obligation applicableto the City's employees was $3,474,536 at June 30, 1990, as follows: Pension bcxtefst ob II gatiom Rc6r= and bcm i6x!escunmtlyreceivingt)gmfits and terminated cmployxs not yet rceciving benefits S 23,824,058 Curmu errrploy=,, Accumulated employee contribudon.s including a]loc cd investment earnings 9,985,941 Employcr-financed ve=sted 10,807,385 Enpioyer-rmanccd nonyv --ved 72Q.472 Total pension benefit obligation 45,347,861 Net � seta available for bo efits, 9L cosi (market value approximates $47.484,351) 43.813,3Z5 Unfunded pension benefit obligation S 3,474,536 Changes in the p i o n benefit obligation from last year of $903,590 were due to changes in actuarial assumptions. .29. CITY OF LODI Notes to General Purpose Financial Statements (c) Actuarially Determined Contribution Requirements and Contribution Made PERS uses the Fhtxy Age Nonrial Acumial Cost Method which is a projected bene tit cost method. That is. it takes into amount those benefits imt are expectod to be earned in h e future as well as those already accrual, According to this cost method. the normal cost for an employee is the level mount which would fund the projected benefit if it were paid annually from date of employment until retirement. PERS uses a modification of the Emry Age Cost Method in which the employer's total normal cost is expressed as a level percentage of payroll. PERS alsousts the level percentage of payroll method to amortize any unfunded actuarial habiiidcs. The amortization pchcxi of the unfunded ectwrial liability ends on June 30. 20W. The significant actuarial assumptions used to compute the actuarially determined contribution requirement arc the same as those used toeornpute the pension tic ewes t obligation. as previously described. The contributionto theSystem for 1991 of 52,335,288 was madein accordancewith actuarially delamined requirements computed through an actuarial valuation perfornred as of June 30. 1990, The contributions consisted of. (a) $2,157,669 normal cost(16.62%of current covered payroll) and (b) ($248,299) amortization of the untuMed actuarial accrued payroll liability (1.91% of current covered payroll), The city contributed $1,325.163 of this total (10.21% of current covered payroll) aril the employes contributed$ 1,010, 124 (7.78% of current covered payrol(), (d) Trend Information TrcM infotttlation gives an indication ofthe pmg-ress made in accumulatingsu Tiicicnt assets to pay benefits when due. For fiscal years after 1987, PERS began to provide he City. as well wall other System rnembtrs, information necessaryto comply with actuarial disclosure requirements. Until ten years of data can be acartntdated. the available datafor the pa�od the Systcm was inplacc will beprewcntcd, 1988is the firs! year that the actuarial informationwas made available by PERS. Actuarial eomiatim is computed, through ars actuarial valuatiori performed as of June 30 oAhe previous ymr. The trend information for fiscal year ended June 30.1988 though 1991 arc as follows: -30- City's Contributions to the Systeme Unfunded Pension Made in Accordance with Actuarially Net Assets Ueiunded Actual Benefit obligation Detestnistod Requirements, as a Fiscal Available Pension Benefit Pestentage Pension Benefit AaptdECAwrd M to Pe Pert:erttsgt of C.r✓"fm Payroll I= &LINda awiffaign bvm Qltlinsti FAURll Al Eawh= to bthatf d ft = 1988 $ 28,784.100 34,242,600 84.1% 5,458,503 9,366,000 58.3% 15.6% 1.9% 1[989 32,566,900 37 22,800 06.8% 4,955,800 10.320,700 48,0`k 11.9% 7.8% 1990 31,248,900 40.651,700 91.6% 3,402.800 11,253,600 30.2% 11.59ta 7.8% 1991 41.873.300 45,347,800 92.3% 3,474,500 12.980.100 26.8% 10.2% 7.8% -30- CITY OF LODI Notes to General Purpose Financial Statements (12) Deferred Compensation Plan 77n City offers its ernployccs a dcfcrred compensation plan (Plan)crcatcd in accordance with lntcma.l Revenue Code Section 457. The Plan. available to all City employees, pormiu them to defer a portion of their salary until future years, The de(crred aompcnsation isnot availablc to employees until termination, re(irement, death, orunforesceable emergency, All amo un is of compensation deferTed ander the Plan. a I I property and rights purchased with those amounts. and all income a I tri b u t ab I c to those amounts. propert y or rights arc (until paid or made available to the cm p I oyee or other beneficiary) solely the pros xrt y and rights of the City su b)ocl only to the claims of the City's general creditors, panjcipa & righu under the Plan are equal to those ofgcneral creditors of the City in an amount equal to the fair market value of the deferred account for each paniciparu. The Citydoes have the duty ofdue circ that would is mquired of an ordinary prudent investor. (13) Segments of Enterprtse Actlt+lttes There arc three services prcrvi ded by the City which are financed by user charges • c Ice vic, sewer. and water. Se I ectad fi nxw ial data for those three sc ry i ccs for the year ended ium 30.1991 arc as follows: -31. I Mulls Ss= ]3'at 12W OpartinS re4wi a S 29,917,282 2,991,649 2,545,769 $ 35,454,700 opalft expenses: D ian (831,265) (765,283) (323.410) (1,919,960) Other (28.534.393} 11,7jL20) (1,467 -IM) (31.748.299) Operating income 0oss) 551.624 479.614 755.203 1.786,441 Ncnoperaitng revenue 859.403 752.063 245,547 1,857,013 Operaft t ma crs u, (out), nct ..1318 886] (812495) [3.493.[1661 N a income (less) $ (969.658) 911,791 188.255 S 150.388 Addidom to lixad assets, net S4.3� 7,8� 77151 $ 12,990,086 Net working capital $ 6.663,959 I I,796.767 271.981 S 18.732.707 Tota! assets S 26.342.440 23,376,702 6,591.858 $ Sb,317,000 Cestirkma or parucrpauon 8.74b,213 S 8,746,213 ToW equity $ 25.308.737 13.401.362 LU5J06 S 44,335,605 -31. I CITY OF LODI Notes to General Purpose Financial Statements (14) Deficit Fund Balance The Tb t and Agency Fund has a deficit fund balance of S3,533 at June 30.1991. This deficit relates to cxpendidtures on the Hutchins Street Square -Holz Bequest Projext which was no! completed by the contractor, The City intends to eliminate the deficit by applying the S15.000 retained p�rccnuge withheld to this fund. (15) Contingent Llabllltles The City is exposed to various risks of loss related to tons; theft of damage to. and destruction of assets; errors and omissions; injuries 10 employees; arzi r+ a tura! d i sas ter s, The City has e s to b l i sh ed a Risk Management Fund (an internal service fund) to account for and 1" nmc a its uninsured risks of loss. Under this pmVun, the City is set f•tnstucd under its existing general liability insurancepolicy for the first 5500.000 of claims. per occurrence, with the California Join! Powers Irfsuram Agency (CJP1A, footnote 17) providing certain liabilitycovcsage forthe next $500,000 ====Cc =Cc and in the aggregate. A ddi d onaJ coverage is available with the CJ P 1 A for claims in excess of S 1,000,000 to S 14,000,000 per occurrence and in the ag greg ate, The City isaW 5W-Lrsurc4 with respect towork m' compensation, dental, unemployTnon4 and long-term disability for its employes. Self-insured transactions ue accounted for in the Internal Service Fund. General liability and workers` compensation are administered by an ouuide agency. the other programs are adrrdnisterW by the City. The City purcira,.ses commercial insurance for workers' compensation claims from 5300,000 toy 1,000,000, Incurred but not mponcd claims have been considered indctcrmining the accmal for thesclf-insurance reserve, If The City has a self•iraurance reserve of 51,446,024 which is reported as a liability in the Internal Service Fund. 171-e reserve amount is based on the mqulrernents ofOaverrc mum Accounting Standards Board Statement 10, whichrequire5 U%4 a liability for claims be report ifinfotmation prior to the issuance ofihc financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount ofthe loss can be reasonably estimated. Payable amour is are bad on administrators reports and the City's historical data. The Citydoes not use an actuary to determine the liability. Changes in claim reserve amounts in fiscal year ended June 30.1991 am as follows: Beginning -o!• Carrm-Year Balance ar FiuW-Year' Claims and Changes Claim Fiscal UAB ia.Fuilz= Bmaim AmEnd 1990-3091 $1,747,318 (153.139) (148,t55) $1,446,024 F42AMISM it[ an MUM=LZW • The City issued certificates of participation to pay for the expansion of the capacity of its sewage treatment plant, The City is committed to pay any sewagevtatment plant expansion costs in excess of the cash provided f3mthe issuance of the certificates of participation, At June 30.1991. budgeted costs exceeded cash available from the issuance of theccrtiftcatcs ofpariicip►ationbyapproximatdy $1.336766. - The CilyofLodi, California is adefcrniant in various lawsuits. The City Attorney estimates ftk the potcns ai claims against the City not covered by insurance ms-ulting from such litigationwoidd not materially affect the Financial condition of the City. .32- CI'FY OF LODI Notes to General Purpose Financial Statements Arbltr Bond Council has calculated possible arbivage earnings of S 133.419 as of August 1, 1991. Arbitrage camings arc defrncd as income ram ed on the unexpended tax exempt bond proceeds in excess of that which would have been gamed had t4c monies been invested in securities with ayiddofthc effcct'svc nue ofthc bond anticipation rotes, Currently, arbitrage camings must bemN(ct d to the United Smics Trusury every five years from the datc of August 1, 1988, (16) Membership In the Northern California Power Agency The City. along with various oder public agencies, is a member of the Norihcm California Power Agency (NCPA) which was originated for the {purpose of exm sing their common power to parchase, gerwrate, sell or interchange electric energy andcapaci(y through N acquisition andusc ofclecuical gcnerwon and transmission facilities. Expenses related to payments to NCPA at June 30.1991 amounted to $25,098,450. The City, under ils contractual obligations. jointly funds the operations, construction and development programs of NCPA. The City has committed, if necessary, to advance cat:rtain annual amounts to NCPA in the future for b e continuance of cor6U%ction and development programs. No funding of future advarsCcs isccntcmplaLM for 1492. (17) Membership In the Crallrornla Joint Powers Insurance Authority TheCityiis amemberofthe California Joint Powers InsuranceAuthoriry (CJPIA). Variouspublic agmcics famedtlte CJPIA for the purpose of sharingthe risk ofca.wuvp c, general liability. automobile liability and public officials' errors and orr smioru losses because adNuata insurance is not available in the comrnmlal insurm= market. Tlx ultimate cost of the program to the City will depend on Lhe catastropb1c losses of all the members, as well as the City's own loss experience. and will be determined m M spm dyeI y five yun after the end of the current program year. The City periodically pays dc"i is to 0,! CJPIA. These depositsatam recorded as txpenditurt-s in the year paid as they are a reasonable estimate ofthe actual Cost of the program. During the year ended June 30. 1991. no deposi is w a e paid to the CJ P I A, (18) Subsequent Events Xl UJ1"._F" • WvjYc July 1, 1991, a new fund was established toaocattnt for the ravenue and expcnditwms associated with the implcrncrtLation of new program by CCO as the I.acal Traraport on Authority. This pro gram i w o t Yes rc v cn u e rrc ci Y cd from the n w 112 percent sales tax for transportation. Out of the four prograrns tsubi l sh by the Local TranVortatiat Lm prove me nt Platt only tbe Local S treet Repair Program ope rates as a direct subvention program, The funds from the Local Street Program can only be used to supplement the existing 1.xal Street hfaintcnana Program. Pnojectseligible fix funding fulls Program may include these purposes nwessarr and convenient to the development. construction and maintenance of the City's streets and highway networks. Funds fizmtWs program may also be used tooffsct h e loss of traffic foe rcvenuc horn exempted "afferdablc housing units' as defined in the Regional Fair Shan Plan. -33- CITY OF LORI Notes to General Purpose Financial Statemenks On S�pLCrnber 4, 1991. the City adopted the Development Impact Mitigation Flee Ordinance. This ordinance will lake effect sixty days following its adoption. The Ordinance allows the City to charge fees to build various capital ;rnprovements needed to serve new development. The rets consist ofeight scpanic service calegorics. These categories provide for new wills and oversized water lines. lift staOom and ovcrsiretl s e w a lines. storm drainage. trat%c signals and majors tree t widening. additional patrol cars and police s tat i on expansion. aM ti o nal fire fighting equipment and flirt station expansion, new parks and equipment and city hall and library expansionmd equipment. The[= will be calculated on aperacre basis and will be collated at subdivision finalmap approval or with building permit stagy effective Novem" 4.199 1. • The City cntcrrd into a S4,758,000 contract on October 16, 1991 with the Slate of, California matt of Water Resources to assist the City in financing the corisouction of a water project enabling the City to meet safe drinking water standards estabii.st4 by Ibe State, The bonds arc by the pmjccct ar t a pledge of usa fees collected by the Water EAUnpriaa Fund. The semiannual payments of $173,313, ine wAPS iim mist 3AI%, are payable October I and A pri I 1 throu g It 2014. • InNcrvambcr 1990, the City's first msidenUaJ land annexation in five years paved the way forpossibly 1,600 newhomes, two parks and possibly two eIerrerLary schools. T74 arms. ailons =compass Mare hat 450 acres earmark Cd for single-family homes. Development was slowed in the past uxcicx rite 2% a year population limit imposed by prior ordirtam s, It is the Rrst time the City has grown since the Third District Court of A7N-ai deciamd a voice approved slow growth ordinarre uncxxutitudonal, .34. SUPPLEMENTAL FINANCIAL STATEMENTS GENERAL FUND OVERVIEW The General Fund ismaintained to account for a I I f inancial resources that arc not restricted as totheir use This includes sales taxes. business tax receipts, Iranchisc taxes, and various subventions such as Cigarette Taxes and Motor Vchicic In— Lieufecs received Irom the State of California. With the exception of grant programs. General Funds ources can he utilized for any legitimate governmental purpose. Duet the scale and flexibility of General Fund revenues, abroad range of municipal scrviccs arc 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 Implementationof City Councilpolicics Intergovemmentalrelations Community Promotion Risk Management and Insurance Salaryand Benefits Administration Budge: Administration Transit Operations Disaster Preparedness Solid Waste Management Telecommunications safety Office cfthe City Attorney Legal Advisor to the City Council Contract Review Litigation Office of the City Clerk Official City Recordkeeping Council Meeting Agendas and Minutes Elections Chamber cf C=mcrce Department of Finance Revenues and Collec� ions Financial He porting Debt and Investment Management Data Processing Parking Enforcement Utility Billing Purchasing Personnel Of rice fimployce Rcla ions Recruitment. 5elcction and Classification Affirmalivc Action Henefits Administration Police Department Pat rol Crime Prevention Animal Control Investigations Drug Suppression Fire Department Emergency Response I azard prevention Wccd Abatement Parts and Recreation Department Park Maintenance Youth Programs Adult Programs Pre --school Programs Senior Activities Aquatics Trips and Classes Library Adult Reading Material Youth Reading Material Research Services Adult k Youth Education Programs Community Center office Aquatics Faci IitiesAdministration Senior Activities CulturalActivities Department of Public Works EngineeringSeniices Street Paving and Sweeping Sidewalk and Street Maintenance Traffic Signal & Sign Maintenance Storm Drain Maintenance Tree Maintenance Vehicle & f?quipment Maintenance Building Maintenance Parking Lot Maintenance Dcparlment of Community Development Development Review General Plan Environmentalimpact Reporting Demographicf nformat ion Design Review Building and Safety Although several of the activities listed above maybe partially financed through other funds, the primary source of funding for these services is the General Fund. Forexample, central supportservices provided bythe Departmentof Financeare organized inthe 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. 36 CITY OF IMI Bunce Sheet - Gencral Fund June 30. 1991 (w it h comparative totals for Junc 30. 1990) Li abi li tics and Fund Liabilities: Accounts payable and other liabilities $ 402,892 $ 401308 Accrued salad and wages 228.605 203.875 Accrued compcnsated abscnses 1,043,236 998,952 De fc "A revenue M.457 Total liabilities 1,674,733 Fund Equity: Fund balance: Reserved forencumbrances 102.455 82.144 Unreserved • designated 514.760 495563 Unreserved —81-3,74a lt2.43.070�Q7Q molal fund equi ty 1,430.20 .8L 24.77 Mal liabilities and fund equity $ 3,105.696 $ 3.817.389 Sec accompanying independent auditors'rcport, -37- 10 IM 1M els Cash and investments $ 2,516,650 $2.533,329 Receivables (net of allowance for uncollectibles): Accounts 366.283 331.189 Ropny taxes 341,186 Interest 79.290 88.756 Due from other funds or governmental agencies 20.162 394.382 Inventory 94.739 93,977 Other assets -28,572 34.570 Total assets $3,105,696 $3,817,389 Li abi li tics and Fund Liabilities: Accounts payable and other liabilities $ 402,892 $ 401308 Accrued salad and wages 228.605 203.875 Accrued compcnsated abscnses 1,043,236 998,952 De fc "A revenue M.457 Total liabilities 1,674,733 Fund Equity: Fund balance: Reserved forencumbrances 102.455 82.144 Unreserved • designated 514.760 495563 Unreserved —81-3,74a lt2.43.070�Q7Q molal fund equi ty 1,430.20 .8L 24.77 Mal liabilities and fund equity $ 3,105.696 $ 3.817.389 Sec accompanying independent auditors'rcport, -37- 10 Rtevenucs: Tues 1 40rtes and pcmdts Lmrgomw,entrtl avenues Ouges for services Funs, forfeits and poWties 1r11L'leSI and renal inamw mscellatreom lncnrtte Tout revam Expmdimm: Curmt: Omen! government Plrblie protection publk vrorb Sartltmion Lbuy F reamim Taal experdktm Deficiar:I of revm= under Gaiter MaadrtS trtwrGes: O.perong trawt<ers in ikpamirtj heifers out Taal alder fin�cingsou�+ce�t F.xcm (Odkkm)Q(nrAmW=d WA,= aver expo" - um twntat no Fund bale= begbating of year Fuad belom end of ym CITY CIF LODI Genera) Fund 5tatcmem of Revenues. ExNMiitums and Ctwges in Fund Balance Budget and Actual Year Ended June 30, 1991 (with carparative total lorJune 30, 1990) 9MIM 1991 V 1.769.859 1994 (148.668) A" A6mg YAt311= S 10,087,225 9,790,1.`6 S (297,067) S 9,502,430 9,697,050 S 194.620 591,250 545.174 (46.076) 407,835 460,123 52,288 2.1 15.790 2,580,784 364,994 2,047,110 2.051550 4,440 4,060,170 4,001,510 (58.660) 3,828,700 3.927.276 98.576 285500 340.89I 55.391 306,000 281.877 (24.123) 775.865 869.099 93.234 698.755 790.242 91.487 T 394.000 31 149,061 448300 543.212 94912 18.409.800 18,670,677 260,877 17,239,130 17,751,330 512200 3,168,178 3,046,747 121.431 2,4 18,855 2,430,28I (I 1.426) 9,140,307 9,122438 17.869 7.589.255 7.956335 (367.080) 2,777,675 2716.933 60.742 2,464,531 2,424,164 40.367 3,527,460 3,449,49 I 77,969 3,342,110 3.384503 (42.393) 1,373,720 2.510.3+49 903.940 __2.483.125 469,780 _ 27.224 1.280.130 2.16j.331 788.167 2.15&136 491,963 12,195 22,497,689 21.722.674 775.015 19,263,212 19.139586 123.626 3,278,835 3.302.27I 23.436 1.769.859 1.621.191 (148.668) (MQAU 1640.088) �n?.a4Q) 11451 (131.m 13.155 2716,187 2,662,183 (54,004) 1,624,859 1,489,346 (135,513) (1,371,702) (389,814) 1.920.777 981.888 (399,223) 101.090 500.313 _1.820.177 S 449,075 „ 1,430,963 S 931.888 1.719.687 S ,3_1 _1719,697 U20,777 777 S a 6 JI Ser accorrtpartying indgenderu oras &ors' report. •38• SUPPLEMENTAL FINANCIAL STATEMENTS SPECIAL REVENUE FUNDS OVERVI EL% The City has established the following rive special revenue funds in order to account f'or the proceeds from revenue sourecs that are restricted to expenditures for specific purposes. Asset Seizure Fund This fund was established to account for the revenues and expenditures related to the City's share cf property forfeited by persons convicted of possession and selling illegal drugs. Special Grants This fund has been established to account for the receipt of smaller grants from Fedcral and Sta to sources. Gar Tax Fund This fund has been established to account for rcvenues and expenditures apportioned to the City under the Streets and Highway Code. Portions cf the tax rate levied by the State of California on all gasoline purchases are allocated to cities throughout the State on a population basis. Thcsc funds are restricted for expenditure by the State of California for street—related purposes, only. Transportation Fund This fund was established to account for the receipt of monies frnm the State of California apportioned to the City for transportation purposes. The State has designated i14°lo of the 6% s a ies 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 cf 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 arc restricted for public transit systems. Community Development Block Grant This fund was established to account for Fedcral monies provided to the City principally for low and moderate income residents to derclop a suitable living environment and expanding economic opportunities. CITY CF LIODI Combining$alame SNxt - Spocid Revenue Funds Jane 30 V I (with comparative totafs for June 30,1990) Gas Tjx luagamiaD am ALMU Cash and invaWOOns S 103,227 10,090 429,770 527519 (54,042) S 1,016.564 S 1,349,520 Reoaivdgu (not of Wowanoe for WAO&CUMOk Jlo wma 487 8.228 269.178 277.893 29.875 IntelUM 1.530 150 6.735 9.885 18.300 27.520 P Daa it m outer binds a Rcwtrn r=W Ocher aasma 3.387 17,000 13376 33M 286.385 Taal assatf S f 1� 444.762 4( 6) S 1.3 S Imam lisbi�tida: Aova* p y*k tatd odKr Wad" S 23.267 28.888 532 S 52,687 S 198.539 AowaW adarias and araRes 5.226 4.397 213 9.839 Duo b oto Medsfil —A9.886 M ..._A= Toral EWida _7#,49 MOB _..$!� 131.073 276ym FW4 944*. Aadbdam 114 WVW for OWWAbnff=s 4.409 8.197 175,534 188.740 515.164 tlnewwod-*WVMted 144.3" 14.114 49M2 576.751 [41.4711 ],4 1) ...9D].251 Tool lied puny 14LU7 14.114 414.7!14 1SUIS (JIAZI 1,7,43.259 L41i%421 TOW }iabilioaa srd fiad agttiry S &67L7 4114 4a4=752 �b ) S 1.3 S 1,693.300 Sae awanpawim iptdepraetdertt auditors' repo.. EII See awompsnyittg indeptadau auditors' Mport. -41- CFrY OFLODI Special Revenue Fund Combining Statement of Revcnucs, Expendituresand Changesin Fund Balana Year Ended June 30.1991 (with comparative totals for June 30, 1940) Tawl Awl ScitllCC smgw QWU claot IS; IMMOUbm Revmes: ■ Taxes S 782.146 V 782.146 S 663.202 irtlaVvciedtWmvenues 78,465 90.686 1.114,774 268.799 1,553,224 1,467,715 ChwScs for savkcs . 60,576 60.576 39.3 13 rerereu �7.72�4 810 41.902 4�3 028 9MisodwMeMm t 1ILI TotWmvenue 86.889 91,496 824.048 1,238,396 268.799 2,509,628 2,361,434 CiamolSwa t 1,136.383 1,136,583 1,408,324 Public p ae cdon 18.811 18.811 Pawk 1.165506 129.389 268,800 1,583,695 pod'aat�� _�� 85§82 Tet11t1 espernl MM _19.811 _L.0 1.18.5-5Q 1.265.911 2.74939 2,377.,005 Uetic�r� ts:ntder —UM 9.W (361AI8? �..(27-576i ,.—LL? 12 SSS.jjlJ 000 Anxcbv sow= owatitwMalain 36.679 487 23.33I 41.205 101.702 (27,144) QpmWq traralears out (4 U01) _ 41.203) r Tool adw firudat tomces 36.679 487 23.331 2 60.499 (27,104) Excess (dctk ocy) of tevanics xW otlw 801AIM am and fi=CWSUses 104.757 90.477 (361,458) (4,245) I (170,468) 11,533 Pamd balancae; end of Year $I c�4�1 7 1.411.14 1166269 1� 535 414 $ $ 1.416.422 See awompsnyittg indeptadau auditors' Mport. -41- SUPPLEMENTAL FINANCIAL STATEMENTS CAPITAL PROJECT FUNDS The following funds were used by the City in order to account forth c financial resources used in the construction or acquisition ofmajor capital facilities or equipment (with the exception of those financed primarily through special revenue funds and enterprise funds): ' Capital Outlay Fund This fund was established to account for all the City's construction projccts and capital purchases in excess of $10,040 with the exception ofthose funded through the Equipment Fund and Enterprise Funds. Financing is provided primarily by operating transfers from other funds and from State and Federal grants. For internal control purposes. capital projccts arc segregated by funding source. Thesesourccs include: Library Capital Subdivision Capital Hutchins Street Square Capital Master Storm Drain Capital General Fund Contributions Equipment Fund This fund was established to account for the financing and replacement of equipment for all funds cf the City with the exception of Enterprise Funds. Financing is primarily provided through operating transfers from other funds, interest earnings and sales of surplus property. r LTfY OF LORI All Capital Pmjcds Funds Combining Elden� ShM June 30.1991 (with comparative totals for lune 10. 1990) $aa aaootnr Oft lttdcpeaiw ondt' wpod 45- Oud ayy muff O E1ttlehin Taub Equ' own IM 2,492,009 945.891 $ 4,795,262 S 4,701.330 919 229.307 272.951 AM 4.649 4.649 3.187 Carlt sant WAM" rn s $ 276,113 264.096 711,623 109.330 Rtacwvoww (sal of syOWaM O bar woawbodwoO Aosoo to 6.228 222.100 hopoly tattn W root Dw boas o0w finds orpram omw Trost assets i Email S LiaGW" AcaouotF and I S adw 17.786 41 AactrtaiWW 367 Do io adtai 13ttadt 22M Tad Ufa 17.716 .`.^_ S 22M Itttnd arry Food 6siXw Rarendd for was 1Jetia w"d - dodpopd 122% ZI= 29M 217A43 lum T" MdE' TOW HAMINO and aI= Lam Aw at)dq s (4 9 17 8 33 $aa aaootnr Oft lttdcpeaiw ondt' wpod 45- Oud ayy muff O Sloan Taub Relcry, Ebb IM 2,492,009 945.891 $ 4,795,262 S 4,701.330 919 229.307 272.951 4.649 4.649 3.187 MM S5,3® S 405 071 5.066 1.290 S 24.173 S 74,708 135 502 1382 _.27IL"4 _.1.�IJ ..3Il2.19i 162.179 174,475 209,996 Z.322-960 LaZ= 4307,222 ZA22M 9AI21 1.M2.21Q 4.716.214 2WS 22" S JMWM S s'4 CM CF IADI All C a 1 W Project Funds CombiningStatcment cf Rcvcnuas, Ex,..nditures, and Changes "Fund Balance lune 34, 1991 (with cnrr Wative totals for June 30.1990) See ==%wyi% Wkpa*a n&W WPXL -46- l.rbr�ry Hutchins Capital MIUM >gttipertcrtt Gpisa! Subdivision Street 5tonn Tools F�1odQuft Fund sma Am= 191 12� Ra+rertve hurm and row im«ne t 21,140 279.899 140.102 S 441.141 $ 511,832 Miraellarraout raraW 429-1 "6.404 4ZU11 Total reveattra 426.130 21.140 279.899 20.279 140.102 887550 988.150 COWr 507,219 314.404 26.031 20,M21-2 26.031 IM 3�E IA= TcAd axp"ttrrm 507,219 314.404 3.840 422433 20.907 1.268.803 1,650,8$8 Derim,WL7 of t+eWOM trader et= (81,089) 21.140 (34,505) (3.840) (402,154) 119.195 (381.253) (662,708) Mar ibwtcig8 wureaa (uses) Opttaraftxain 115.573 474.174 1,361,735 Qpaa4% ww&fiee Out ,4Q 173.894 .194-7A 1 (W-5 T* W edw 6rt rritr8 &W."aa (w") 109,078 173,840 184.761 461.679 1,364,735 DdWwm ncirr� OddwPm xwM ewer "W= att+i edwr saes 27.989 21.140 (34.503) 170,000 (217.393) 119.195 86,426 702.027 Fuld bdmoa. bo&Wnbq of year Z= 2d= 231M L4JA24) ?� � BZ$.43� 1,716,284 4.014.237 Fund b latwa. *W dye: S .2A 77 $F4� 7J44� 121,580 2,4_ 4 S S 4,802.710$ 4671 See ==%wyi% Wkpa*a n&W WPXL -46- SUPPLEMENTAL FINANCIAL STATEMENTS DEBT SERVICE FUND 801. W -MI am". sr" anergy{ WNW rw1 � The City hex estsblixhed a debt scni c e fund to account for the payment and accumulation cf resources related to general long—term debt principal and interest during Fiscal year 1990-91 for the following debt issues: 1%5 Muoicipal Improvcmcat Brads — Scrics A and B These bonds were issued in 1965 attid 1969 to finance the construction of sewer, storm drainage and a public safety building. These bonds are i secured by a pledge of property tax revenues. Special Assesatnent District Bonds These bonds were issued in 1984 to finance a downtown beautification program and arc secured by an assessment of prolxrdcs in the District. 0 CITY OFLODI Debt Service Fund BalanceShect Jame 30, 1991 (with comparative totals for June 30, 1990) 0 Cmh and investments Restricted cash with fiscal agent Receivables (net of allowance foruncollectibles); Property taxes Special assessn3ent Total assets iabiftj and BW E06U Twhilitias: Deferred revenue rWW Wum - u rd-cWpuW Total liabilities and fund equity See accompanying independent auditors' report. -49- $ 29,207 $ 49,516 203,000 203,000 369 694 763 257�,9O1 $ 279x,648_ NZ -901 211,645 $ 257,901 CITY CIF LODI Debt Service Fund Statement ofRcvcnucs. Expenditures and Changes in Fund Balance June 30.1991 (with comparative totals for June 30. 1990) Sex accompanying independent auditors' report. -5a djt —'.., a:.N .�Y41 .1224 Revenues: MIMs a 50,316 a 49.135 Intergovernmental revenues 82.780 Interest and rental income 3.023 3,050 Miscellaneous revenue 332,00$ Total revenues 385.347 139.568 Expenditures: Dcbt service Interest and fiscal charges 93,152 123.728 Principal payments 312342 225-QQQ Total expenditures 406.094 398.728 Deficiency of revenue under expwdi tures (20.747) (259.160) Other financing sources: operating transfers in J14 Total other financing sources 266.314 Excess (deficiency) of revenues and other financing sources over expenditures (20,747) 7.154 Fuad balance, beginning of year 253.649 ZAJA24 Fund balance. end of year $ 23 $253,648 Sex accompanying independent auditors' report. -5a djt —'.., a:.N J a C) ZI . z LL K A a z D LL w U) oa CL as w z w OVERVIEW Enterprise funds are distinguished by their similarity to private sector activities as the intent is to finance or recover the cost of providing aervicca 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, and/or net income is appropriate for capital maintenance. public policy, management control. accountability or other purposes: The City of Lodi uses the following ti«J.e enterprise funds; Electric Utility 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 this fund, including but not limited to, source of supply. overhead. systems maintenance, customer service, engineering. administration. capital improvements and maintenance. and deht service. • Water Fund This fund was established by the City in order to account for the provision cf 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. Sewer Fund This fund was established by the City in order to account for the provision of wastewater collection and treatment services to the residents cf the City. All activities necessary to provide such services are accounted for in this fund. including, but not to, administration, operations, maintenance, improvements. and debt service. CITY OFLODI Combining Balance Sheet - Entervrisc Funds June 30. 1991 (with comparative totals for June 30.1990) Cash and investments Restricted cash with fiscal agents Receivables (net of allowance for uncollectibles): Acaotutts Property Tomes Interest Due from other funds or governmental agencies Inventory Otha atscts Fixed assets Liabilities; IA ccoliElEs payable and other liabilities Accrued salaries and wages Accrued interrst Due to other funds Accrued compensated abances Certificates dparticipation payable. net of discount Total liabilities Fund equity - rctainod earnings Total liabilities and fund equity See accompanying independent auditors'report. $ 597.179 675,331 35,826 Ts& $ 2536.469 mower Water �1 L�4 $ 3988.526 4.933.922 1,062,810 S 9,985,258 $ 15,324,340 360.529 1,154,605 1,154,605 7,842.425 1,820,270 162.230 187,930 21 70.430 2,289,864 641,089 84 ,213 18.963 62.827 74.690 23.1 17 160.634 344.384 1.13/.333 S 26,342,440 23,376,702 1,137,333 1,378,792 1,408,967 21,254 252.737 1,682,958 1,574,154 244 7.496 141 7.881 10.449 17.924.:73.02'L 2^505 1,071123 40-012M 28.247.1.2.5 $ 26,342,440 23,376,702 b,39 $ g,jjja $ X146 $ 597.179 675,331 35,826 $ 1,308,336 $ 2536.469 30,717 12.169 12.314 55.200 38,402 355395 355.395 360.529 864,000 864,000 1,125,092 405.807 186,232 60,212 652,251 641,089 84 ,213 �Z46.21� 8,834N8 1033.703 25.308.737 9.975.340 13.401,362 --272,352 11.981.395 44.335,605 13,541,922 44.185.217 S 26,342,440 23,376,702 5&25,506 6,597,858 $ 56,317,000 S 57,731.146 -53- MY OFLODI Entapnse Fl:nds Combining StatemenI of Revenues. xpww3 and Changes in Retained Earnings Year F,nded June 30.1991 (with comparative totals for 1990) Sea acaMmying indtpatrdeitt attditoW mpmt. •54- Lou w= lei IM �go far aervicas $29.917282 2,991,649 2,545,769 S 35,454,700 $ 32,451,443 d 2,017,032 859.517 671,570 3,548,119 3.085.491 Suppliah nwerials NW savi¢es 2,095,837 576.485 257.897 2,930,219 2,813,532 tsdaoosamkAtkm 24,246.578 306.348 537.689 25,090,615 21,868,452 UM 831.265 765,285 323.410 1,919,960 1,706.871 � fDepta l+aymau 174..216 4.400179 .346 256.062 Tout oposdas expaaos tPastirtS lttoonte 29,365,658 A24 2.512.035 479.614 1.790.566 31MB1529,73044$ Tbaoparawt8 wvames: „ISI ... _.755.203 13M."t . 2.721,085 Sauer bad taxes 180,021 180.02I 189.142 lntanu't et 591.543 26.378 125.932 743.853 1,595,924 Rm 25.124 133,40I 44.164 202.689 202.635 Otlta 242.736 3 73151 73OA5 391"2 Taut rat-opwatinS mmucs E59AO3 752&U _1.4S.S47 X1.3 2,369,3.4,4 Inacrm bdm opw4u+s b'attafas 1.411.027 1,231.677 1,000.750 3,643,454 5,090,429 Otis trO.Sfers out, ad (2.360,693 (319.886) f$12 4951 ..i3..4,.91" QA46,69$} Not i>MM (laat) (M9.658) 911.791 188.255 150.388 1,643,73I Retained aamittss„ beSbmiq of year 2J.23$.395 1, .489.371 X937151 4J-1$1-211 42.S41.dlifi. __- $25 33 3 40! 362 5 62 S 44605 S 44,185 17 Sea acaMmying indtpatrdeitt attditoW mpmt. •54- CrN OF W DI CombiningStatemcnts cf Cash Flows nterprise Funds )kw Ended June 30.1991 C, sh flows fnan operating activities: Operating income Adjustments to recorrcii4 operating income to net cash provided by o�r-atin. acdyitses; DeQreciahm and amortization Change in melt and Iiabili des, Decrease (increase) at accounts receivable D=,clx ininvrrsl mxivable bttmte in inventory Decrease (increase) in other assets (Deamm) in accounts payable and otter l iabi l id es lnacase in taladu and wages Decrease in accrued interest bKraw (decaeate) in atrcatpd oomperrtated absences Decrease in due Gear other funds Decrease in due to other funds NN cash provided by operating activities Cash flows fir an noncspi tat rvu= is: g activities ; bxruw � � out. net in puidAg r,,;=vs Net cash provided byrommp W financing activities C4�h flows Erom cap W fim ming actividea: Acquisition and canm�on of oFital asses Payment of Cw0cate of Participation long -tam NU cash used by capital financing activities Cash flows Gom in V estin g activ ities: Ewtii$s from snytzunt- s lit cath provided by investing activities Mal L%r=t4 in ush and ush equivalents Cas h and cash equivalents& begs nnin g of year Cath and ash equivalentsat end of year S 551.624 831.265 143.053 126.267 (92.030) (1,157.260) 2.232 15.774 241,459 662.384 (2--,360,68523). (2,171,302) (4,373,569) (4,373,569) 670.DZ0 (5.212467) 3 S 3,988.526 Sx ac*�,snpen*g indeprnderc auditors'rt-pom -55- 479,614 782.150 14.747 51.554 (9,765) 2.656 (70.660) 1.441 (5,134) (963) I,245.640 (3_ 696:888 ) 376.652 (7,845,006) _(105.000) (7,950,006) 55.524 55.524 (6,272,190) 12.360.717 6,08$,527 755.203 323.410 (19,403) 5.929 (7,OD9) (88) (213) 3,125 (3,649) 796.213 (8169 g 54 (742,641) (771511) (771,511) 175.6% �,.125M (542,245) 1,60,055 1 1,786,441 1,936,825 138.397 183,750 (108.804) 2.568 (1,228,133) 6.798 (5,134) 11.162 241.459 2,704,237 (2,920.001) (2,537 291) (12,990,086) --(105.000 (13,095,086) 901.238 (12,026,902) 23.1 M-265 11.1 I SUPPLEMENTAL FINANCIAL STATEMENTS TRUST AND AGENCY FUNDS The City of Lodi has established the following expend able trust 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 goyernmen taI agencies: I Expendable Trust Funds 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 bchalf of Hutchins Street Square. Non— Expendable Trust 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 CC the Internal Revenue Code. Agency Funds Special Assessments This fund was established to account for special assessments collected on the property tax roll by the City on bchalf of the property within the Industrial Way Bec k m a n and Turner Cluff Assessment Districts. United Downtown Improvement District Assessments This fund was established to account for special assessments collected on the property tax roll by the City on behalf of the property owners in the Downtown Improvement District. A!S Cash and inveswmts Receivables (net of allowance for uncollectibles): Accounts lngereg ToW anets Li�isex Aeeouats payable andother liabilities Deferred compestsa6on funds Total liabilities Rridequity (deficit) unreserved -designated Total liabilities and fund equity CrrY OF LODI Combined Balance Sheet • Trust and Agency Funds June 30.1991 (with comparative totals for June 30.1990) Deferred Special Hutchins St, Tolals QMWaUlio Assessments go" 1w M S 7,426,615 567,219 7.227 $ 8,001,061 S 6,955,280 5,980 5.980 258.648 _1.492 __M _ 8.190 .....2.1.14 S 7,426,615 57�13 15 S 8 1 1 S 7,223,042 575301 16,848 S 592,149 $ 809.985 7A26.615 7.426.615 6AM997 7,426,615 575.301 16.848 9,018.764 7,222,872 (3533] -LIM 170 $ 7.426.615 $ 8a $ 7 2, 23.042 •59- r MY of [ADI Trust end Agency Funds Combining Statement of OmWes in Asscts and Usbilities June 30, 1991 Cash wid bivevetntents moamnion ,fix 1.1940 A DW99km $ 6.413,887 1.012.728 June 31 12H $ 7,426.613 IWX 1. .1 $ 490.038 S.XciAj. Aji&Mlit 279,483 (202.302) dune 1311durte 130 2H $567.219 RecdvaWas (rot of allowam t»1X.1..13!ffi dAlkDom �ImOdi dOee�� for t.teollens>hks): Amo S 31.355 264,996 (X49.101) $ 7,227 S 8,001,061 S 6.953,280 ma Asaenntents U ...I,Q82_r8 OSS TOW 1141111111 $ 6.4N 1.012.722$ S 7,426,615 S 17 LqZM (210+164,) S 1= AcociantapapEMM 256.957 7.436 $ 497,900 43I.817 (354.416) S 575.301 Dim afl wJw Brad. DetetrdaeW-tPOY" $ 6,413,897 1.412.723 S 7,426,615 {4431 108 1-199 -9.114 Ftatd mum *Ad) . s a :.. ................ ....._.._... is i ._......__._..._.:......_s �:i�: $ 12= S 7.22L LJttte�rv� S 311.093 1.847 2%.085 S 16.848 $ 592.149 S 808,985 ToW L"" lied trod equity $ 6,413, yQIL72a �s S 7,426,61S S 4�9�7 i3� ��) S 37 $en a000rsaoyia8 WWII" maim, report -60- - HsdMM S� Beouest Y� t»1X.1..13!ffi dAlkDom �ImOdi dOee�� Celli�s S 31.355 264,996 (X49.101) $ 7,227 S 8,001,061 S 6.953,280 ReO WgAi+t Od of dowwoe far U308006w): AamentR 256.957 7.436 (260.433) 5.980 5.980 236x648 A:'easO�dts latnw" ,.._. _�. {4431 108 1-199 -9.114 Toldwsw _....._..... .. . s a :.. ................ ....._.._... is i ._......__._..._.:......_s �:i�: $ 12= S 7.22L A S 311.093 1.847 2%.085 S 16.848 $ 592.149 S 808,985 end Ddwn Pew 7,426,61 S 6.413.887 Uri 170SJA2 2.113 13M) j].S33 170 Total Y46ili w ad tuned equity S .2148.9. I= $ a I� S 9,015,231 S lawboda $en a000rsaoyia8 WWII" maim, report -60- CITY OF LOD1 Miscellaneous Expendable Mmt Fund Statement of Revenues. Expenditures. and Changes in Fund Balance Junc 30. 1991 (with comparative totals for lune: 30.1990) im 1� Revenues: Interest and rental income S 842 $ 50599 Ksccllanoous mvcnuc _. 235,357 Total revenue 842 285.956 Capival outlay 4.545 2-198;151 Total expenditures '(4,545) (2,198,151) Deficiency of revenue under expenditures (3,703) (19 P-1 95) Other financing sources Qperating transfers in 2,500 Operating transfers out Total other futancing sources 2.500 Deficiency of revenues and other financing sources under expenditures (3,703) (1,909,695) F t1 balance, beginning of yearc�80 rund balance, cnd of yeas $ 3 533) w -61- SUPPLEMENTAL FINANCIAL STATEMENTS INTERNAL SERVICE FUNDS Internal Service Funds are maintained to account for the int • i transfer of goods and services between operating units of the City. The purpose of an Internal Service Fund is to achieve a level of opei ai y efficiencythat may not be available if the same activities were performed by multiple organizations. The City of Lodi maintains internal service funds to account for insurance and certai , employee benefits. Long Term Disability Self Insurance Medical Self Insurance Employee Benefits (Dental) Public Liability and Property Damage Workers Compensation Self Insurance M 00 Ch Qcn o+ w r N 00 cq H y C4 O+ rr1 OOens C4 1% e 3 1 O� 60) v � O a Er w CITY OF ?SDI Comparative Statement of Revenues, Expenses and Changes in Retained Eamings • Internal Service Fund June 30.1991 (with comparative totals for June 30, 1990) See accompanying independent auditors' report. ME IF 1.22.x. 1�2Si Operating revenues: Charges for services $ 62,692 $ 59.558 Operating e x pe n ses Personal services 81,940 311.003 Supplies. materials. and services 700.795 1,166,301 Utilities and communications 112 I40 Benefit payments w263�174 386,382 Total operating expenses 1,046,021 1,863.8 Net operating incom (983.329) (1,804,268) NonoNrating revenues: Interrst revenue 147,188 138.847 Other 861.585 1,184.150 Total nonoperaring mvenues 1,008,773 1,323,004 Income before operating transfers 25,444 (481.264) Operating transfers, net .02.705 292.095 Net income (loss) 328,149 (189,169) Retained earnings, beginning of year _112,477 308.646 Retained earnings. end of year a :m $ 1 MLM See accompanying independent auditors' report. ME IF SUPPLEMENTAL SCHEDULES GENERAL FIXED ASSETS GENERAL LONG TERM DEBT Owafto own* owls" 11M OVERVIEW General Fixed A560% Account Group All of the City's fixed assets of a tangible nature, except those relating to the proprietary fund types, arc accounted for in this Account Group. As these assets are not financial resources available for expenditure or appropriation. they are not accounted for with Gowrnmental Funds. but as an account group, and exist solely as accounting records ofthe City's fixed assets. The City's general fixed assets haw 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 of Lodi. General Long Term Liability Group All of the City's long term liabilities (non— current debt), except those relating to the proprietary funds, 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 debt arc: • Debt instruments • Bond Anticipation Notes Demand bonds • Loss contingencies ' Compensated absences ' Special termination benefits • Leases i Pensions it. ........ Ka $�M1�YN��c�•! Ob0 0112 QOyy�y �Dp O►�QtV N +w e+3 h mM 00 qe N C M +O y O i9 v9 y U? m 7, m H 4 u 8C5 V � o? v Q fto .. � S ©Q Lt» 0 H HWl H H N r+ of N ••• H H H H U, LL i Cc Q a w L a D a z Z) CITY OF L.ODI General Governmental Revenues by Source Last Ten Fiscal Years (Amounts in Thousands) n SOURCE: City Finance Depamnen t -70- Licenses Charges Fines, Use of W930a Fiscal and Intergovem- for Forfeits and MIW & neous YMK Taw Tia Brcmi s MMW Seryke Penalties MMrtx Revenue 1981-82 7,949 4.540 134 467 1,606 197 671 334 1982-83 8,438 4,816 234 330 1,736 245 526 551 1983-84 9,280 5.570 241 333 1,939 223 403 571 198485 10,460 5,814 365 1.172 2,200 132 432 345 1985-86 11,318 6,224 367 1,586 2.345 181 356 259 1986-87 12,801 6.778 371 1,688 2,438 263 635 628 1987-88 13,902 7.477 427 1,865 2,986 268 478 401 1988-89 16,647 8,697 470 2,097 3,730 338 806 509 1989-90 17,751 9.697 460 2,052 3,927 282 790 543 1990-41 18,671 9.790 545 2.58I 4.002 341 869 543 SOURCE: City Finance Depamnen t -70- r -lL mamidaa axtRn (sI)uvsnou u! siunowd) &=A 113p.d Ua.L Iml uo:iaund Aq sam!puadx3 JEJU ,uu UO[) IWauaD Id0'l d0 A JZ, E8b'Z tO6 6WE L IVZ 221'6 Lt0'£ £ZL'IZ I6.066I 991'Z 88L 98E'E tzt,z L56'L 06'2 Otl'6I 06-6861 986'I 8EL b91'E 6£8'Z bZS'L 9991I L16'LI 688861 928 S69' I 89CZ 950'7- £Z I'9 O£S'Z 886'91 88-L861 SSE £OS' 1 ZOZ'Z 268'1 660'9 096'1 It0't I L8-9861 OZE 9S£' l Ks' i Z L811 Z9b'S 900'Z OWZ I 98-9861 9Ob Etc' 1 699' I 91911 560 LOL' 1 969'11 X8"61 Qty ZOZ'I £ZS`I Ztfi'I 699't 51E`1 IWoI tg-£86i IZZ Iti1'l 182'1 SL£'I 90Z'17 190'1 58Z'6 MEW 89I OM O8Z'I L9Z'I UWE LOE'Z 008'8 28-1861 xMM noUsMagg mmi't UUMMS uzqm IeJ Ili std 3!19nd -oid a!lQnd pul=20 PMA (sI)uvsnou u! siunowd) &=A 113p.d Ua.L Iml uo:iaund Aq sam!puadx3 JEJU ,uu UO[) IWauaD Id0'l d0 A JZ, CrN OF LODI General Governmental Mix Revenues by Source Last Ten Fiscal idea (Amounts in Thousands) SOURCE: City Fnu= Deparmmt State Controller Report -72- Motor Fiscal Sales Transient Doc n a ary Vehicle. Business xw E3wrix WIM 0ccupxcX Franchise Trans kLLklJ Cig=ne L&M Til 1981-82 1,569 2,573 53 113 29 342 124 60 4.863 1982-83 1.942 2,693 62 133 35 186 121 66 5.238 1983-84 1.M8 3.249 63 141 56 188 122 74 5,821 198685 2.190 3.449 71 164 61 924 128 78 7.065 1985-86 2,392 3.616 76 177 72 1.181 133 78 7.725 1986-87 2,762 3.925 110 I55 83 1,298 I33 85 8,551 198748 3.158 4.264 119 164 85 1,460 123 89 9.462 1988-89 3,356 4,526 136 192 100 1,666 117 91 10,184 1989-90 3.902 4,970 144 210 112 1,746 107 96 11,287 1990-91 4,348 4.962 151 238 98 1,787 90 93 11,767 SOURCE: City Fnu= Deparmmt State Controller Report -72- CITY OF LODI Secund Tax Levies and Collections Last Ten Fiscal Years (Amounts in Thousands) SOURCE City Fmwm Dgaytrrant -73- Percent Total Cumnt Ymr's Percent of Delinquent Total of Wil Fiscal Tax Tax Collections Tax Tax Collections LM c91lections to T37L.UvX S4]legils C4alwiOn3 to Uxx 1981-92 1,891 1,429 75.6% 36 1,465 77.5% 1982-83 2,104 1574 74.8% 29 1,603 76.2% 1983-84 2,248 1,710 76.1% 86 1,796 79.9% 1984-85 2.273 1.935 85.1% 99 2.034 89.5% 1985-86 2.545 2.133 83.8% 97 2,230 87.6% I98W 2,883 2,404 83.4% 112 2,516 87.3% 1987-88 3.153 2,693 85.4% 191 2,884 91.5% 1988-89 3.569 2.886 80.9% 90 2,976 83.4% 1984-90 3.985 3296 82.7% 204 3,500 87.8% 1990-91 4.286 3,847 89.8% 35I 4.198 97.9% SOURCE City Fmwm Dgaytrrant -73- CITY OF LODI Assessed Full Chi Value of All Taxable Property Last Tel Fiscal Years (Amounts in Thousands) Fiscal Secured Wity Unsecured Tax Leis Net Assessed XM Mineral Rw Rd ill E&CMadgm ]AW 1981-82 779574 25,027 41,018 845.619 92.160 753.459 1982-83 880,404 29,632 50.767 960.803 100569 860.234 1983-84 939,821 31,455 54,728 1,026,004 101.02'1 924.983 1984-85 1,054,386 32,779 61,812 1,148,977 103,827 1,045,150 1985-86 1.171,959 36,845 67,723 1.276,527 105.657 1,170,870 1986-87 1,323,239 39.917 72.211 1,435,367 110,029 1,325,338 1987-88 1,442,628 41,897 83,883 1568.408 123.842 1,444,566 1988-89 1,615,433 4,294 89,342 1,709,069 127.256 1.5818 13 1989-90 1.799,281 72 4,190 116.232 1,919,775 143.267 1,776,508 1990-91 1,948,698 12 2,712 99.114 2,050536 145.148 1,905,388 Fiscal Personal Less Net Assessed XCU Land IMPMYMMM ftp4]! Tial Ear wdgm yAbc 1981-82 192,657 589,186 63,776 845.619 92,160 753,459 1982-83 221,771 655,511 83521 960.803 100569 860,234 1983-84 240.379 702,890 82.735 1,026,004 101.021 924.983 1984-85 266,250 781.446 101,281 1,148,977 103.827 1,045,150 1985-86 703.161 870,166 103,200 1,276,527 105,657 1,170,870 1986-87 3 g 434 972,438 124,425 1,435,367 110.029 1,325,338 1987-88 311.723 1,059,697 133,988 1,568,408 123,842 1,444,566 1988-89 415,277 1.118,903 174.889 1,709,069 127,256 1,58 1,813 1989-90 459,095 1,237,487 223,193 1,919,775 143,267 1,776,508 1990-91 507,046 1,358,841 184,649 2,050,536 145.148 1,905,388 SOURCE: San Joaquin County Assessor's Office City Finance Office Central Files - Property Taxes -74- CITY OF LOM Property Tat Rate - All OverlappingGovemments Last Tcn Fiscaa idem s SOURCE San Joaquin Courtly Audi Sor/Control lees Office -75- I Basic Fiscal County -Wide Au Ld,Y1+ Cb School AH 1981-82 1, 0400 0.0189 0.0612 0.9199 1982-83 1.0000 0.0195 0.0623 0.9182 1983-84 1.0000 0.0198 0.0628 0.9174 1984-85 1.0000 0.0205 0.0636 0.9159 1985.86 1.0000 0.0209 0.0636 0.9155 198687 1.0000 0.0221 0.0651 0.9128 1987-88 I.0004 0.0226 0.0653 0.9121 1988-89 1.0000 0.0245 0.0660 0.9095 1989-W 1.0000 0.0240 0.0659 0.9101 1990-91 1. onm 0.0240 0.0659 0.9101 SOURCE San Joaquin Courtly Audi Sor/Control lees Office -75- I CITY OF L ODI Special Assessment Billings and Collections Last Ten FiscalYears (Amounts in Thousands) SOURCE: City Financc Dcparunent DEC Total Collection Total As Percent of Outstanding Current Current Current Current and Fiscal Assessments Assessments Assessments Delinquent x= Da Cdkcw Dw &smmentj 1981-82 N/A N/A N/A N/A 1982-83 346 161 46.5% 185.129 1983-84 284 270 95.1% 5.614 1984-85 315 299 94.9% 52.852 1985-86 308 277 89.9% 557 1986-87 294 263 89.5% 25,788 1987-88 284 277 97.5% 3.497 1988-89 269 247 91.8% 2,749 1989-90 183 177 96.7% 1,971 1990-91 182 178 97.8% 7,172 SOURCE: City Financc Dcparunent DEC CITY OF LODI Ratio of Net General Bonded Debt To Taxable Assessed Value and Net Bonded Debt Per Capita Last Ten Fisml Years (Amounts in Thousands) SOURCE State Controller's Office CHy Finance Department -77- Debt Payable Gross Gross From Nct Percent of Net Net Bonded Fiscal Assessed Bonded Enterprise Bonded Bonded Debt to Debt YAK Emulation YaIM Ikk ECygnuc J�rh Assessed Value fjr Capita 1981-82 35.574 845.619 4.355 4.355 0.5150% 122.42 1982-83 36,928 960,803 4.065 4,065 0.4231% 110.08 1983-84 38.3I8 1,026,004 4.141 4.141 0.4036% 108.07 1984-85 39.475 1,148,977 3.822 3,822 0.3326% 96.82 1985-86 41,281 1.276527 3.482 3.482 0.2728% 84.35 1986-87 43.283 1.435367 3,133 3.133 0.2183% 72.37 1987.88 45,794 1,568,408 2.759 2.759 0.1759% 60.2.5 1988-89 48.042 1,709,069 1 1,287 8.917 2.370 0.1387% 49.33 1989-90 49.22 1 1,919,775 10.912 8.834 2,078 0.1082% .22 1990-9I 50.328 2,050536 10.511 8.746 1,765, 0.0861% 35.07 # SOURCE State Controller's Office CHy Finance Department -77- CITY OF LODI Computation of Direct and Overlapping Gc n e ra 1 Bonded Debt June 30. 1991 General Obligation Percentage City's Share Bones ARRIk" gf.Deb[ Di= 0C City of Lodi General obligationbonds $ 1,500,000 1000/0 S 1.500,000 Ccrtificatcs of participation 8,746,213 100% 8,746,213 Overlapping debt — Total S 10,246,213 100%$ 10.246.213 Debt Rados as of i=3SL.i991 Ratio of Dirw and Overlapping Debt to Assessed Full Cash Value =10,246,213 / 2,050,536,000 .49% Ditto and Overlapping Debt Per Capita = 10,246213! 50,328 = S204 Taxable Asscssed M (xh Values Per Capita = 2, 050536150,328 = $40,743 -78- s CITY OF LODI Computation of Legal Debt Margin June 30, 1991 Assessed full cash value as of June 30. 1991 (I) S 2,050,5 36,000 Debt limit- 15% of assessed full cash value (2) $ 307,580,400 Amount of debt applicable to debt limit Legal debt margin $ 307,580,400 Percent of charter debt limit authorized 15.00% (1) Assessed value before exemptions applicable to 1990-91 tax xR (2) Sidon 43605 (1aUftdaGovernmcnt Code SOURCE: San Joaquin County Auditor/Controller's Office City Finance Dcpanment -79- CITY OF [ADI Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Fund Expenditures Last Ten Fiscal Years (Amounts in Thousands) tty mance & ment -80- Total Percent of Total General Debt Service Fiscal Debt Fund to General Fund X= abd2a Intere i sffyE� �lala� 198182 173 41 214 8,800 2.43% 1982-83 186 36 222 9.285 2.39% 1983-94 193 32 225 10,481 2.15% 1984-85 197 27 224 11, 696 1.912% 1985-86 209 22 231 12.840 1.80% 1986-87 216 17 233 14,041 1.66% 1987-88 235 12 241 15.986 1.54% 1988-89 132 5 137 17,917 0.76% 1989-90 136 5 141 19.140 0.74% 1990-91 145 6 151 21,723 0.70% tty mance & ment -80- CITY OF LODI Demographics Statistics Last Ten Fiscal Years Population Fiscal Square Percent X= Mit Populatiorl Man 1981-82 8.76 35.574 3.8% 1982-83 8.16 36.928 3.8% 1983-84 8.16 38.318 3.8% 198485 9.04 39,475 3.0% 1985-86 9.30 41,281 4.6% 1986-87 9.30 43.293 4.9% 1987-88 9.45 45,794 5.8% 1988-89 9.45 48.042 4.9% 1989-90 9.45 49.22I 2.5% 1990-91 10.70 52,539 6.7% SOURCE: State of California, Deparmwnt of Finance, Demographic Research Unit. City Firs[e Department Budget -81- City San Joaquin Population Rank in Size county Percent of California PoRulatign 4fCounty cili1 355,692 10.0% 121 369.300 10.0% 121 381,500 10.0 119 390,638 10.1% 118 407.500 10.1% 116 423.154 10.2% 115 435,700 10.5% I13 454000 X000 10.7% 112 460.227 10.7% 111 470.934 31.2% 113 SOURCE: State of California, Deparmwnt of Finance, Demographic Research Unit. City Firs[e Department Budget -81- CITY OF LODI Consnxi, ion Activity Last Ten Fiscal Years (in thousands) SOURCE. Chy Community Development Departmenc -82- Numbcr of Estimated Fiscal BuMing Pem� s Percent Valuation Permnt ISA haw Cban 1981 551 4.95% 26,382 4.73% 1982 708 28.49% 31.154 18.09% 1983 937 32.34% 36.383 16.78% 1984 983 4.91% 38,199 4.99% 1985 1,079 9.77% 74.812 95.85% 1986 1,230 13.99% 65,363 -12.63% 1987 1,249 1.54% 70.828 8.36% 1988 1.218 -2.48% 56.660 -20.00% 1989 1,332 9.36% 50,938 -10.10% 1990 1279 -3.98% 40,634 -20.23% SOURCE. Chy Community Development Departmenc -82- CITY OF LODI Bank Deposits Last Ten Fiscal Nam SOURCE: California State Depammt of Banking Licensing & acs Section .83. Savings Fiscal and Credit YrK @AD& LOU U nim 1981-82 279.796 137,916 3.256 1982.83 307.183 141,092 3,635 1983-84 345.628 253.985 4.642 198485 389.792 573.196 6,022 1985-86 436,060 1,058,496 9,220 1986-87 458,250 980,062 12.439 1987-88 480.454 1,228,694 15.418 1988-89 492.636 282.339 14.111 1989-90 540545 267.501 12,813 1990-91 691,677 183,936 12,465 SOURCE: California State Depammt of Banking Licensing & acs Section .83. CITY OF LODI Principal Ernployen June 30. 1991 Emplsty-c Genera) Mlb 9Ekidly Cereals and Food Mixes Fmnloyees 860 Pacific Coast Products Can Manufacturerand Cannery 490 City of Lodi Government 450 Valley industries Trailer Hitches 240 RM Holtz Rubber Products 171 Mervyns Retail 165 USA Products House Furnishings 163 Inter Lab Machine Fabrication 159 Triangle Pacific Cabinets 149 Raleys Food Store 149 Catalina Division Sportswear Clothing 138 SOURCE: (hi of Lodi -84- CITY OF LODI Surety Bonds of Principal Officials June 30, 1991 City Manager Assistant City Manager Cby Attorney City Clerk Public Works Director Police Chief F i i Chief Finance Director community Developnxnt Director Electric Utilities Diracux Community Center Director Parks and Recreation Director Personnel Dnoctor City employees (except the Finance Director Who has -a separate surety bond) are covered byy��a�� commercial fidelity bond amounting to a maximum of $5W.D00 per ]as with a $10.000 deductible, SOURCE: City Finance Department -as- Fiscal Limit Y&M BAW Bast Limit 6,623,521 1979-80 7,342,784 1980181 8,425,119 198Z/83 15,198,951 198384 16,855,637 1984/85 17,939,454 I985/86 19,471,483 1986187 21,015,572 1987/88 22,654,787 1988189 24,782,072 s Urnitatio 1989}90 27,223,106 199019: 29,357,398 0 Not available _86 - It CTiY CF L ODI Gann Appropriation Limitation As of June 30, 1991 CPI or Population Growth Appropriation Budget Subject Income Ulm fa= Urnitatio To Limit YidaOSS 1.1M7 1.0184 1.12197128 8,425,119 3,041,248 5,383,871 1.116 1.1396 1.2717936 10,631.611 5,383,871 5,247,140 1.0912 1.0196 1.11 258752 16.855.637 • 16,855,637 1.0233 1.0399 1.06433765 17,939,454 • 17,939,454 1.0474 1.0363 1.08542062 19,471,483 • 19,47I.483 1.0374 1.0404 1.07931096 21,015,572 11,066,825 9,948,747 1.0538 1.023 1.0780374 22,654.787 15,386,513 7,268.274 1.0304 1.0572 1.08933888 24,782,072 0 24,782,072 1.0393 1.0496 1.09084928 27,223,106 16.178,704 11,044,402 1.0498 1.0252 1.07625496 29,357,398 16,746,795 12,610,603 1.0421 I.0226 1.06565146 3I,286,179 17,847,059 13,439,120 _86 - It