HomeMy WebLinkAboutAgenda Report - January 2, 2002 I-03`r3 d CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: REPORT TO THE COUNCIL — FINANCIAL AUDIT FOR FISCAL YEAR 00-01
MEETING DATE: January 2, 2002
PREPARED BY: Finance Director
RECOMMENDED ACTION: That the City Council receives for file the following reports and financial statements
submitted by KPMG LLP and the Finance Department for Fiscal Year 2000-01:
• The Combined Annual Financial & Single Audit Report
• Report on Applying Agreed-upon Procedures
BACKGROUND INFORMATION: The annual audit was conducted to reassure the City Council and other
interested parties that the City's financial records and reports are prepared in accordance with generally accepted
accounting principles (GAAP), that internal controls are adequate to safeguard the City against loss from
unauthorized use or disposition of assets and that the City has complied with all agreements and covenants to obtain
grant funds and debt financing. KPMG LLP has issued an "unqualified opinion". Steven DeVetter, Partner and
Marvin Dozier, Senior Manager of KPMG will be present to do the presentation and answer questions during the
Council meeting.
The reports will be provided to Federal and State oversight agencies, bond trustees and insurance companies for their
review and evaluation. Copies of the reports are provided to the City Council and also available to the public by
contacting the Finance Department or at the Lodi Public Library for reference.
Certificate of Achievement
The City received a Certificate of Achievement for Excellence in Reporting from the Government Finance Officers
Association of United States and Canada (GFOA) and the California Society of Municipal Finance Officers
(CSMFO) for the eighth year in a row. Copies of these certificates are included in the 2000-01 Financial Report.
Acknowledgments
The Accounting staff of the Finance Department should be commended for their hard work and professionalism in
preparing the City's Annual Financial Reports; it is due to their dedication to excellence and to the City that made
Lodi recognized by the auditors and other professional financial organizations.
FUNDING: None
APPROVED:
H. Dixon Flynn -- City Manager
c
Vicky McAthie
Finance Director
Apt #a
Three Embarcadero Center
San Francisco, CA 94111
Independent Accountants' Report on Applying Agreed-upon Procedures
The Members of the City Council
City of Lodi, California:
We have performed the procedures enumerated below to the accompanying Appropriations Limit
Worksheet No. 6 of the City of Lodi, California (the City) for the year ended June 30, 2001. These
procedures which were agreed to by the City and the League of California Cities (as presented in the
publication entitled Agreed-upon Procedures Applied to the Appropriations Limitation Prescribed by
Article XIII -B of the California Constitution), were performed solely to assist the City in meeting the
requirements of Section 1.5 of Article XIII -B of the California Constitution. The City of Lodi's
management is responsible for the Appropriations Limit Worksheet No. 6. This agreed-upon procedures
engagement was conducted in accordance with attestation standards established by the American Institute
of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of those
parties specified in this report. Consequently, we make no representations regarding the sufficiency of the
procedures described below either for the purpose for which this report has been requested or for any other
purpose.
The procedures performed and our findings were as follows:
1. We obtained the completed Worksheets No. I through No. 7 and compared the limit and annual
adjustment factors included in those worksheets to the limit and annual adjustment factors that
were adopted by resolution of the City Council. We also compared the population and inflation
options included in the aforementioned worksheets to those that were selected by a recorded vote
of the City Council.
Finding: No exceptions were noted as a result of our procedure.
2. For the accompanying Appropriations Limit Worksheet No. 6, we added line A, last year's limit,
to line E, total adjustments, and compared the resulting amount to line F, this year's limit.
Finding: No exceptions were noted as a result of our procedure.
3. We compared the current year information presented in the accompanying Appropriations Limit
Worksheet No. 6 to the other worksheets described in procedure No. 1 above.
Finding: No exceptions were noted as a result of our procedure.
....KPMG LLP. KPMG LLP. a U.S limited liability partnership, is
a member of KPMG International. a Sw— association.
4. We compared the prior year appropriations limit presented in the accompanying Appropriations
Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the
prior year.
Finding: No exceptions were noted as a result of our procedure.
We were not engaged to, and did not conduct an examination, the objective of which would be the
expression of an opinion on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we do
not express such an opinion. Had we performed additional procedures, other matters might have come to
our attention that would have been reported to you. No procedures have been performed with respect to the
determination of the appropriation limit for the base year, as defined by Article XIII -B of the California
Constitution.
This report is intended solely for the information and use of management and the City Council and is not
intended to be and should not be used by anyone other than these specified parties.
K`>Mc, LrP
October 23, 2001
CITY OF LODI, CALIFORNIA
Appropriations Limit Worksheet No. 6
Budget Year Ending June 30, 2001
Amount Source
A.
Last year's limit
$
48,787,849
B.
Adjustment factors:
1. Change in per capital personal income
1.0491
2. Weighted -average change in population
1.0129
3. Total adjustment %
1.0626 (B 1 *B2)
C.
Annual adjustments
$
3,055,748
D.
Other adjustments:
Lost responsibility (-)
$
—
Transfer to private (-)
—
Transfer to fees (-)
—
Assumed responsibility (+)
—
Subtotal
—
E.
Total adjustments
3,055,748
F.
This year's limit
$
51,843,597 (A+E)
CITY OF LODI, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Year Ended June 30, 2001
ALAN NAKANISHI, MAYOR
PHILLIP PENNINO, MAYOR PRO TEMP
SUSAN HITCHCOCK, COUNCILMEMBER
EMILY HOWARD, COUNCILMEMBER
KEITH LAND, COUNCILMEMBER
H. DIXON FLYNN, CITY MANAGER
Prepared by the Finance Department
Vicky McAthie, Finance Director/Treasurer
Ruby Paiste, Accounting Manager
j
Coriene Wadlow, Accountant II
r
r am Ii io mfla akin 0140 rill a■tl a w s mwus � mw
TABLE OF CONTENTS page
PREFACE i
INTRODUCTION
Letter of Transmittal iv
Certificate of Achievement for Excellence in Financial Reporting xvi
Certificate of Award - Outstanding Financial Reporting xvii
Organization Chart of the City of Lodi xviii
Directory of Officials and Advisory Bodies xix
FINANCIAL REPORTS
GENERAL PURPOSE FINANCIAL STATEMENTS
Independent Auditors' Report on General Purpose Financial Statements and Supplementary Schedule of Expenditures
of Federal Awards
Combined Balance Sheet - All Fund Types and Account Groups
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
All Governmental Fund Types and Expendable Trust Funds
Combined Statement of Revenues, Expenditures, and Changes in Fund Balances
Budget and Actual - General and Special Revenue Funds
Combined Statement of Revenues, Expenses and Changes in Fund Equity - All Proprietary Fund Types
Combined Statement of Cash Flows - All Proprietary Fund Types
Notes to General Purpose Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Funding Progress — Pension Plan 43
SUPPLEMENTAL FINANCIAL STATEMENTS
General Fund
Overview 45
Comparative Balance Sheets 46
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 47
Schedule of Expenditures by Department - Budgetary Level of Control - Budget and Actual Comparison 48
TABLE OF CONTENTS - continued page
Special Revenue Funds
Overview
49
Combining Balance Sheet
51
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
52
Comparative Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
53
Debt Service Fund
Overview
56
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance
57
Capital Project Funds
Overview
58
Combining Balance Sheet
59
Combining Statement of Revenues, Expenditures and Changes in Fund Balance
60
Enterprise Funds
Overview
62
Combining Balance Sheet
63
Combining Statement of Revenues, Expenses and Changes in Fund Equity
64
Combining Statement of Cash Flows
65
Internal Service Funds
Overview
66
Balance Sheet
67
Statement of Revenues, Expenses and Changes in Fund Deficit
68
Statement of Cash Flows
69
Trust and Agency Funds
Overview
70
Combining Balance Sheet
71
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Expendable Trust Funds
72
Combining Statement of Changes in Assets and Liabilities - Agency Funds
73
General Fixed Assets and General Long -Term Obligations Account Groups
Overview
74
Comparative Schedule of General Fixed Assets
75
Schedule of General Fixed Assets by Function and Activity
76
Schedule of Changes in General Fixed Assets by Function and Activity
77
I♦ ]N ! AM= W� �i 41Fw* ate' .moi W.�
TABLE OF CONTENTS - continued page
Comparative Schedules of General Long -Tenn Obligations 78
STATISTICAL TABLES (unaudited)
General Governmental Revenues by Source - Last Ten Fiscal Years
79
General Governmental Expenditures by Function - Last Ten Fiscal Years
80
General Governmental Tax Revenues by Source - Last Ten Fiscal Years
81
Secured Tax Levies and Collections - Last Ten Fiscal Years
82
Assessed Full Cash Value of all Taxable Property - Last Ten Fiscal Years
83
Property Tax Rates - Direct & Overlapping Governments - Last Ten Fiscal Years
85
Special Assessment Billings and Collections - Last Ten Fiscal Years
86
Ratio of Net General Bonded Debt to Taxable Assessed Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years
87
Computation of Direct and Overlapping General Bonded Debt - June 30, 2001
88
Debt Ratios - June 30, 2001
88
Computation of Legal Debt Margin - June 30, 2001
89
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total Governmental Expenditures
- Last Ten Fiscal Years
90
Revenue Bond Coverage - Last Ten Fiscal Years
91
Demographic Statistics - Last Ten Fiscal Years
92
Construction Activity - Last Ten Fiscal Years
93
Bank Deposits - Last Ten Fiscal Years
94
Principal Employers - June 30, 2001
95
Principal Taxpayers - June 30, 2001
96
Surety Bonds of Principal Officials — June 30, 2001
97
Gann Appropriation Limitation - Last Ten Fiscal Years
98
Personnel Authorized - Last Ten Fiscal Years
99
Schedule of Taxable Sales and Permits by Category — Last Ten Fiscal Years
100
Schedule of Business Tax Receipts Issued — Year ended June 30, 2001
102
Miscellaneous Statistics - June 30, 2001
103
PREFACE - CONTINUED
SINGLE AUDIT
The City is required to undergo an annual single audit of its expenditures of federal awards in conformity with the provisions of the Single Audit Act
Amendments of 1996. Information related to this single audit, including the schedule of expenditures of federal awards, findings and recommendations, and
independent auditors' reports on internal control and compliance with applicable laws and regulations, is also included in this report.
The City's financial reporting system is organized on a "fund" basis consisting of three major fund types - Governmental, Proprietary and Fiduciary - and two
self -balancing Account Groups. The City's various funds as summarized below have been established in order to segregate and identify those financial
transactions and resources associated with providing specific activities or programs in conformance with special regulations, restrictions or limitations.
GOVERNMENTAL FUNDS
Most of the City's programs and functions are provided and financed through the following Governmental Funds, which are distinguished by their use of the "flow
of current financial resources" measurement focus in determining financial position and changes in financial position:
General Fund
Debt Service
Capital Project Funds
Vehicle and Equipment Fund
Library Capital
Subdivision Capital
Hutchins Street Square Capital
Capital Outlay Reserve Fund
Lodi Lake Capital
Special Revenue Funds
Police Special Revenue Fund
Special Grants Fund
Streets Fund
Transportation Fund
Community Development Block Grants
Home Program
PROPRIETARY FUNDS
Proprietary funds are distinguished from Governmental funds by their similarity to private sector enterprises, as the intent is that the cost of providing services
whether this service is provided to the public (Enterprise Funds) or internally to the organization (Internal Service Funds) - is to be financed or recovered
primarily through user charges. Enterprise Funds may also be established to account for operations under which the City or an outside granting agency has
decided that a periodic determination of net income under full accrual accounting is appropriate for capital maintenance, public policy, management control,
accountability or other public purpose. The following four Enterprise Funds are used by the City: Electric, Sewer, Water and Transit. The Internal Service
Funds are used to account for claims and benefits.
t WNW= . W= .M.
PREFACE - CONTINUED
FIDUCIARY FUNDS
Also known as Trust and Agency Funds, the following funds are used to account for assets maintained by the City in a trustee capacity for private individuals,
organizations or other governmental agencies:
Expendable Trust Funds Agency Funds
Private Sector Trust Special Assessments
Hutchins Street Square Bequest
Miscellaneous Expendable Trust
ACCOUNT GROUPS
Except for assets and liabilities associated with the Proprietary or Fiduciary fund types, the following self -balancing account groups are used for accounting control and
accountability for the City's general fixed assets and the unmatured portion of principal outstanding on its general long-term obligations.
General Fixed Assets Account Group
General Long -Term Obligations Account Group
ff
i
i
i
�
Z
U
'
O
f
'
Z
M an Ion i on
CITY COUNCIL
ALAN NAKANISHI, Mayor
PHILLIP A. PENNINO , Mayor Pro Tempore
COUNCILMEMBERS:
SUSAN HITCHCOCK
EMILY HOWARD
KEITH LAND
October 23, 2001
CITY OF LODI
CITY HALL, 221 WEST PINE STREET
P.O. BOX 3006
LODI, CALIFORNIA 95241-1910
(209)333-6706
FAX (209) 333-6795
To the Honorable Mayor, Members of the City Council
and Manager of the City of Lodi:
H. DIXON FLYNN
City Manager
SUSAN BLACKSTON
City Clerk
RANDALL A_ HAYS
City Attorney
The Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2001, is hereby submitted. This report is provided to present the financial
position, results of operations and cash flows of the City's funds as of June 30, 2001, in conformity with generally accepted accounting principles. The report
conforms to the highest standards of financial reporting as established by the Governmental Accounting Standards Board (GASB), for reporting by State and local
governments. The responsibility for the accuracy, fairness and completeness of the report rests with the City.
We believe that the information is accurate in all material respects and that it is presented in a manner designed to fairly present the financial position of the City.
In addition, we believe that all disclosures necessary to enable the reader to gain full understanding of the City's financial activities have been included.
The CAFR is presented in four sections: introductory, a financial section, a statistical section and single audit section. The introduction includes the transmittal
letter, the City's organization chart and a list of principal officials. The financial section includes the independent auditors' report on the general-purpose financial
statements and supplementary schedule of expenditures of federal awards, the financial statements and notes to the financial statements. The single audit section
includes the schedule of expenditures of federal awards, notes to the schedule, and reports on compliance and internal control based on the audit of the general-
purpose financial statements and on compliance and internal control with requirements applicable to each major program in accordance with OMB Circular A-133.
The statistical section includes selected financial and demographic information presented on a multi-year basis.
THE REPORTING ENTITY AND SERVICES PROVIDED
The funds and account groups included in the CAFR are those deemed dependent upon the City and controlled by the City Council and reflect the City's financial
reporting entity in accordance with GASB Statement 14.
The City provides a wide range of municipal services including public safety (police, fire and graffiti abatement), public utilities services (electric, water and
sewer), transportation services (streets, flood control and transit) leisure, cultural and social services (parks and recreation, library and community center), and
general government services (management, human resources administration, financial administration, building maintenance and equipment maintenance).
iv
Several municipal services are provided through other government agencies, private companies or public utility companies, including:
Number of
Facilities
Elementary and Secondary Schools 13
Sanitation (solid waste) and Cable Television 2
Ambulance 1
Gas and Telephone 2
ECONOMIC CONDITION AND OUTLOOK
Overview
The City is located in the San Joaquin Valley between Stockton 10 miles to the south, and Sacramento 35 miles to the north, and adjacent to U.S. Highway 99.
The City population is 58,593 and is contained in an area of 12.598 square miles. The City has grown steadily since incorporation in 1906 and is projected to
grow to 70,500 people by the year 2007. The City's growth is provided for in both the General Plan and the City's growth control ordinance that allows an
increase in population of 2% per year until the growth limits are reached.
Lodi is built on a strong and broad based agricultural industry with national and industrial markets for its commodities and products. Wines, processed foods, nuts,
fruit and milk are major commodities of the Lodi area and provide the basic material for food processing and packaging. These commodities support the
operations of General Mills, Guild Winery and Pacific Coast Producers to name just three companies in the business of processing local agricultural commodities.
In addition, Lodi has a wide range of small, financially sound businesses that add to the economic strength of the City. These companies range in size from 10 to
150 employees and produce a wide variety of products, services and commodities.
There has been an increase in industrial and residential development that has been unprecedented since the early 1980s. This new development combined with the
growing strength of the wine/grape industry is a positive indicator for Lodi. The City's focus on economic development has successfully encouraged numerous big
industries to move to Lodi that collectively created hundreds of new jobs.
Economic Development
Lodi continues to be committed to promoting economic development (business retention and attraction) and expanding the tax base to fund city services rather than
increase taxes to pay for these services. The City developed long and short-term economic development goals in conjunction with the Chamber of Commerce that
resulted in the revitalization projects for the downtown and Cherokee Lane areas. In addition to revitalization efforts, the City has adopted a number of incentives
to retain and attract new businesses. These incentives included infrastructure improvements, regulatory flexibility, tax credits and utility rate incentives.
v
mm M ft r m m�" mom m m ft m ON m m m
mm W M MM M m 4m MW =�.� � A� Ww�
MAJOR GOALS, OBJECTIVES AND PROJECTS
Overview
To assist the citizens of Lodi understand where the City intends to allocate available resources, the City Council, the City Manager and Department Heads have
established a hierarchy of major goals, objectives and major projects that support and re -enforce the City's mission statement.
Five major City goals were established as policy direction and focal points for the efforts of City staff. These goals include:
Improve Customer Service
Enhance Access to Information
Ensure Efficient and Productive City Organization
Enhance Quality of Life and Provide a Safe Environment for Citizens, and
Develop the Lodi Economy
City Council, the City Manager and Department Heads established sixteen major City objectives:
Develop Short and Long Range Operational Plans Promote Commercial/Industrial Base
Promote Public Relations and Marketing Efforts Provide Resources to Maintain City's Infrastructure
Implement Information Systems Strategic Plan Continue to Use Partnerships to Advance City's Objectives
Pursue Efforts to be Entrepreneurial Promote Urban Forestry
Maintain City's Sense of Community Provide for a Balanced Community
Encourage Public Arts, Cultural and Recreational Opportunities Provide Appropriate and Sufficient City Facilities
Develop Effective Records Management Program Evaluate Telecommunications Opportunities
Develop/Review Policies Relating to Providing Customer Service Provide Employee Training and Education
Projects represent the foundation of the planning statements for the City of Lodi. These projects are designed to accomplish specific objectives and become the
focus for organization wide effort.
As discussed above, economic revitalization continues to be an active focal point of the City in 2000-01. The following major City projects were planned in the
1999-2001 two-year budget document: 1) development of plans for the renovation and expansion of the Public Safety Building; 2) preparation of an Electric
Utility Strategic master plan; 3) development of policy guidelines for replacement and financing of water and wastewater utility infrastructure; 4) provide street
infrastructure that meets the demands of growth; 5) provide improvements to the railroad tracks and adjustments on Lockeford Street and Lodi Avenue; 6) prepare
a comprehensive, professional Economic Development Strategy; 7) development of a green belt around the City of Lodi; and 8) formation of a redevelopment
agency.
Public Safety Building Remodel and Expansion
The Public Safety Building is over thirty years old and it has many mechanical and design deficiencies. Remodeling this building to provide additional workspace,
parking and related site improvements are estimated to cost the City $19.2 million. The public safety building remodel will include a complete retrofit of the
HVAC system, replacement of jail facility, full compliance with the Americans with Disabilities Act requirements, more space for public safety officers and a
Police and Civic center parking structure. The City is currently working on financing options for this project.
A .
Electric Utility Master Plan
With deregulation of the electric utility industry, the Electric Utility Department has been working to develop a long range strategic plan based on Federal and
State legislation, the City's financial projections, debt structure, customer service needs, power generation, transmission and distribution assets. The objective of
this plan is to provide the City with a guide for decisions related to Electric Utility that has to be made over the next 5 to 10 years. To remain competitive in a
deregulated environment, the City must make significant changes in the way business is conducted. A previously completed financial plan established the
foundation by which the City enters the competitive environment and moves forward with an integral plan. The risks associated with deregulation make this
project a critical focus area for the City.
Water/Wastewater Utility Service Improvements
The City's aging water and sewer lines are in need of replacement at some time in the future. The City is currently working to develop policy guidelines for
replacement and financing of these improvements.
Public Road Improvements
The City needs to provide street infrastructure to meet the demands of growth on the westside of town. Lower Sacramento Road is in need of widening and
reconstruction from Kettleman Lane to Turner Road. Guild Avenue extension from Industrial Way to Lodi Avenue is being done as part of the City's industrial
economic development program. The project includes completion of Thurman Street to Guild Avenue as well. Currently, the City is working on these projects,
which should be completed in fiscal years 2001-03.
Railroad Track Improvements
This project will provide improvements to the railroad tracks and adjustments on Lockeford Street and Lodi Avenue. This project includes: removal of the
Central California Traction Company tracks in Lodi Avenue between Cherokee lane and the Union Pacific mainline tracks and reconstruction of Lodi Avenue
including lighting; installation of concrete rail crossing surfaces; improvement of Lockeford Street and Victor Road. The City is in contact with the Railroad
Company to coordinate this project.
Economic Strategy of Lodi
In April 1994, the City Council adopted goals to promote economic growth in targeted business districts and throughout Lodi. These goals provide a commitment
by City Council and long-term direction to staff for the promotion of business growth and retention in the City. These goals include the formulation of a city wide
Economic Development Strategic Plan. As indicated above, the City has adopted and successfully implemented several incentives to retain and attract new
businesses.
Greenbelt Policy
The City of Lodi is surrounded by one of the most fertile and productive agricultural regions in the world. This land has been the base on which economic
development has occurred in Lodi and northern San Joaquin County from the earliest days of settlement. As pressure for urban growth continues, the City needs a
strategy to protect its green belt and agricultural assets. Currently, City staff is working with the City of Stockton and San Joaquin County to develop appropriate
plans and policies to protect existing greenbelt from inappropriate development in our sphere of influence.
Redevelopment Agency
The greater parts of the historic business and residential areas of Lodi are located in the eastern third of the City. The age of the buildings and infrastructure in this
area is between 40 to 90 years old. Many of the buildings reflect the charm of the buildings constructed between the 1890s and 1930s. Many long time residents
vii
= = M M M = � ' �_ � M � � � waA ■, wn ilw
and businesses continue to live and conduct business in this area. Over the last fifteen to twenty years, private investment has shifted to the City's newer areas in
the west and south areas of the City and the number of resident property owners in the "Eastside" areas have decreased. Accordingly, this area has experienced a
decline in the level of investment, property maintenance and relative property values. The City Council is committed to maintaining the historic and economic
vitality of this area and accordingly, the City has begun the steps necessary to form a Redevelopment Agency to preclude blight and decay and to encourage private
investment.
FINANCIAL INFORMATION, MANAGEMENT AND CONTROL
A detailed understanding of the financial position and operating results of the City is provided in the following sections of this report. The following is a brief
description of the City's financial condition, management practices and control techniques.
Basis of Accounting
Basis of accounting refers to the policy as to when revenues, expenditures or expenses are recognized in the financial accounts and reported in the financial
statements. The City's accounting records for general government operations are maintained on a modified accrual basis. Revenues are recorded when available
and measurable. Expenditures are recorded when the services or goods are received and the liability incurred. For proprietary fund types, the City uses the
accrual basis of accounting. As such, the measurement focus is on net income in addition to financial position and changes in financial position. Revenues are
recognized when earned and expenses are recognized as the liability is incurred. We believe that the City's internal accounting controls adequately safeguard
assets and provide reasonable assurance of proper recording of financial transactions.
Accounting System and Budgetary Control
In developing the City's accounting system, consideration is given to the adequacy of the internal controls. The objective of the City's internal accounting controls
is to provide reasonable, but not absolute, assurance that the assets are safeguarded against loss from unauthorized use or disposition; and to ensure that
transactions are properly recorded to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept of
reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived and that estimates and judgments are required to be
made by management in evaluating these costs and benefits.
In addition, the City maintains budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Council. The budget is adopted annually. The City Manager is responsible for the preparation of the budget and its
implementation after adoption. The City Council has the authority to amend the budget at any time during the year. The City Manager has the authority to make
adjustments to the budget as long as those changes will not have a significant policy impact nor affect budgeted year-end balances. During fiscal year 2000-01, the
City Council and City Manager made several supplemental budget appropriations the majority of which relate to capital projects.
Fund Balance
It is the City's goal to target and maintain an unreserved, undesignated fund balance in the General Fund and working capital balances in the Electric, Water and
Sewer enterprise funds of at least 15% of operating expenditures. This goal was achieved in the enterprise funds for the fiscal year 2000-01. The General Fund
maintained a fund balance of $3,945,678 or 13% of operating expenditures at the end of fiscal year 2000-01.
viii
Carryover Policy
A two-year Financial Plan and Budget format provides the City Council and staff with the opportunity to commit operating funds to services over a two-year time
frame rather than the traditional one-year period. Under a one-year budget, appropriations lapse at the end of the fiscal year and favorable budget balances are no
longer available for operating expenditures except when encumbered under contractual agreements. The two-year Financial Plan and Budget allows for the
unexpended operating budget balances to be carried forward to the second year of the Financial Plan provided that the fund balance exceeds the required operating
reserve.
Cash Management
The City has written investment policies that address a wide range of investments. These policies describe the City's investment objectives, investment authority,
allowable investment vehicles, maturity terms and eligible financial institutions. They also describe the City's capital preservation and cash management
objectives. As provided in the policy, investments are intended to be held until maturity and investment terms are to be consistent with the City's cash flow needs.
Investment reports are issued both monthly and quarterly to the City Manager and City Council to provide detailed information regarding the City's investments
and compliance with City policy and as required by state law. An important objective of the City's investment policy is to achieve a reasonable rate of return on
public funds while minimizing risks and preserving capital. In evaluating the performance of the City's investment portfolio, investments are expected to yield a
rate of return that regularly meets or exceeds an average rate of return on a three-month U.S. Treasury Bill.
The City received an award again this fiscal year from the Municipal Treasurer's Association of the United States and Canada (MTA) for the Investment
Certification Program. This award program is designed to recognize outstanding written investment policies and to provide professional guidance and assistance in
developing and improving existing investment policies in the government sector. In addition, the Treasurer and Deputy Treasurer of the City are Certified
California Municipal Treasurers (CCMT).
Appropriation Limitation
Article XIII B of the Constitution of the State of California (Proposition 4) provides for the limitation of expenditures by state and local governments. Under the
provisions of this article, City appropriations funded through tax sources may not exceed Fiscal Year 1979 appropriation levels except as adjusted for increases in
population and the growth in the California per capita income or non-residential assessed valuation due to new construction within the city.
Excluded from the limitation are appropriations funded through charges for services, fines and forfeitures, grants, transfers of service responsibilities between
government agencies and indebtedness incurred prior to Fiscal Year 1979. Pursuant to subsequent legislation adopted after Article XIII B, the City is required to
annually establish and adopt its appropriations limit by resolution. For 2000-01, the City's appropriations subject to limit were $22,482,923 and the appropriation
limit was $51,843,597 a favorable variance of $29,360,674.
Debt Administration
The City issued a $5.0 million Certificates of Participation to fund its share of the improvements downtown and Cherokee Lane along with a $1.97 million limited
obligation improvement bonds for the Central City Revitalization Assessment District on July 22, 1996. The improvement bonds of the assessment district are not
general obligations of the City.
The City also issued $10.12 million for the renovation of the Performing Arts Center on August 1, 1996. In addition, the Electric Utility issued $43.96 million
Certificates of Participation to finance the costs of certain improvements to the distribution and transmission facilities of the City's electric system. The City is also
authorized to issue up to $16 million for the Environmental Abatement Program for the clean up effort of the groundwater contamination of PCE/TCE around the
ix
man i on N00.1 4040-M MIM lit
= W W � = = � ! W! =11111 A 111111111 � =-W Ittlt>•r
downtown area. At June 30, 2001, the City had outstanding Certificates of Participation of $73,812,683. These liabilities are discussed in Note 7 of the General
Purpose Financial Statements.
The City's debt management policy includes a commitment to monitor all forms of debt annually during the preparation of the City's Financial Plan and Budget to
ensure compliance. Also, the City will generally conduct financing on a competitive basis, will seek an investment grade rating on any direct debt and will obtain
credit enhancements such as letters of credit or insurance when necessary for marketing purposes, availability and cost effectiveness.
Interim Financial Reporting
Monthly financial reports are prepared to present the City's financial condition and results of operation. These reports are organized using the "pyramid"
approach. As such, the highest level of summary data is presented first, followed by progressively greater levels of detail. The reports provide current period and
year to date revenues, expenditures and encumbrances for all activities and funds, including year to date estimates and variances.
Single Audit
The City is subject to financial and compliance reporting required by the Single Audit Act Amendments of 1996, which is a requirement of all local and state
governments receiving federal financial awards. As part of the Single Audit, tests are made to determine the adequacy of internal controls, including that portion
related to federal financial awards, as well as to determine that the City has complied with certain applicable laws and regulations governing federal funds.
Competitive Bidding Policy
All required purchases for materials, equipment and services during 2000-01 were made pursuant to competitive bidding procedures as established under the City's
purchasing ordinance. Contracts for construction projects were awarded pursuant to competitive bidding procedures established by the State of California for
projects in excess of $5,000.
Risk Management
The City is self-insured for dental care, workers' compensation, general liability and unemployment insurance. General liability and workers' compensation are
administered by outside agencies. The City administers unemployment insurance. Self-insurance transactions are accounted for under the City's Claims and
Benefits Fund. At June 30, 2001, the Claims and Benefits Fund had a deficit of $1,535,143. The City engaged the services of an actuary to evaluate the workers'
compensation and the general liability programs.
FINANCIAL HIGHLIGHTS
As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for effectively
managing the financial resources of the City.
x
General Government Functions
The following table presents a summary of the general fund, special revenue funds, capital projects funds, expendable trust funds and debt service fund revenues
for the fiscal year ended June 30, 2001, and the amount of increases and decreases in relation to prior year revenues. As provided and discussed below, revenues
increased by $4,713,857 or 12.62 % from 2000.
Factors contributing to material changes in general government revenues from the prior year are provided below:
1. Taxes. Property Tax - Current secured growth in Lodi for the period of 2000-01 increased by 7.53% over last year. Other factors contributing to increased
property taxes was the annexation of St. John's Episcopal Church (9.73 acres) and the Mondavi Properties (134 acres). In addition, the State had granted
funds to the Assessor's Office to provide additional staff and equipment to review requests for revaluation of properties. All appeals are now current.
Property values declined during the early years of the last decade but rebounded in the later half of the decade due to the healthy economy. All these factors
increased revenue to local agencies participating in the San Joaquin County Pool.
Sales Tax - All four quarters of 2001 reflect an average of 10% increase over the same period in prior year due to high consumer confidence. Strong sales
from new car dealers, discount department stores, service stations, supermarkets and department store categories were responsible for most of the gain. Lodi
received an 11.6% share of the San Joaquin countywide "use tax" allocation pool. Most of this increase reflected the reallocation of automobile leases to the
jurisdiction in which the lease was initiated.
2. Licenses and permits. The increase of $186,292 accounts for the continued rise in building permits and business licenses.
3. Intergovernmental revenue. The increase of $2,587,218 is primarily due to the multiple street projects during the year that were funded by State and
Federal Grants.
xi
MM Mau M! M
REVENUES
2001
2000
Variance
Variance
Amount
% of Total
Amount
% of Total
by Amount
by Percent
Taxes
$ 21,909,208
52.09%
$ 19,800,885
53.02%
$ 2,108,323
10.65%
Licenses and Permits
1,592,227
3.79%
1,405,935
3.76%
186,292
13.25%
Intergovernmental Revenue
11,641,304
27.68%
9,054,086
24.24%
2,587,218
28.58%
Charges for Services
4,248,586
10.10%
4,611,212
12.35%
(362,626)
-7.86%
Fines, Forfeitures and Penalties
765,223
1.82%
714,051
1.91%
51,172
7.17%
Investment and Rental Income
1,518,554
3.61%
994,445
2.66%
524,109
52.70%
Miscellaneous Revenues
383,120
0.91%
763,751
2.05%
(380,631)
-49.84%
TOTAL
$ 42,058,222
100.00%
$ 37,344,365
100.00%
$ 4,713,857
12.62%
Factors contributing to material changes in general government revenues from the prior year are provided below:
1. Taxes. Property Tax - Current secured growth in Lodi for the period of 2000-01 increased by 7.53% over last year. Other factors contributing to increased
property taxes was the annexation of St. John's Episcopal Church (9.73 acres) and the Mondavi Properties (134 acres). In addition, the State had granted
funds to the Assessor's Office to provide additional staff and equipment to review requests for revaluation of properties. All appeals are now current.
Property values declined during the early years of the last decade but rebounded in the later half of the decade due to the healthy economy. All these factors
increased revenue to local agencies participating in the San Joaquin County Pool.
Sales Tax - All four quarters of 2001 reflect an average of 10% increase over the same period in prior year due to high consumer confidence. Strong sales
from new car dealers, discount department stores, service stations, supermarkets and department store categories were responsible for most of the gain. Lodi
received an 11.6% share of the San Joaquin countywide "use tax" allocation pool. Most of this increase reflected the reallocation of automobile leases to the
jurisdiction in which the lease was initiated.
2. Licenses and permits. The increase of $186,292 accounts for the continued rise in building permits and business licenses.
3. Intergovernmental revenue. The increase of $2,587,218 is primarily due to the multiple street projects during the year that were funded by State and
Federal Grants.
xi
MM Mau M! M
� � ! � � � � ?� ! ! � � � � ! !� � � 11111111•
4. Charges for services. The decrease of $362,626 is mainly due to the decrease in development impact fees. The developers pay development impact fees
before construction; hence, the new subdivisions constructed during the year were paid in the prior year.
5. Investment and rental income. The increase of $524,109 is the result of the increased rental activities in Parks and Recreation facilities and the
Performing Arts and Conference Center.
6. Miscellaneous revenues. The decrease of $380,631 is due to a one-time sale of City property of $193,815 and a decrease in donations of
$150,000 in prior year.
Expenditures
The following table presents a summary of general fund, special revenue funds, capital project funds, expendable trust funds and debt service fund expenditures for
the fiscal year ended June 30, 2001, and the increases and decreases in relation to prior year amounts. Current expenditures increased by $10,148,150 or 28.39%
in 2001 over 2000.
EXPENDITURES
2001
2000
Variance
Variance
Amount % of Total
Amount % of Total
by Amount
by Percent
General Government $ 8,862,277 27.22% $
7,812,738 27.86% $
1,049,539
13.43%
Public Protection 13,190,372 40.51%
11,430,276 40.76%
1,760,096
15.40%
Public Works 6,312,323 19.39%
5,038,519 17.97%
1,273,804
25.28%
Library 1,198,449 3.68%
1,089,971 3.89%
108,478
9.95%
Parks and Recreation 2,999,186 9.21%
2,669,872 9.52%
329,314
12.33%
$ 32,562,607 100.00% $
28,041,376 100.000/o $
4,521,231
16.12%
Capital Outlay 12,044,436
6,420,407
5,624,029
87.60%
Debt Service 1,285,242
1,282,352
2,890
0.23%
TOTAL $ 45,892,285 $
35,744,135 $
10,148,150
28.39%
Factors contributing to material changes of 10% or higher in general government expenditures from the prior year are provided below:
1. General government. The increase of $1,049,539 is mainly due to overall MOU increases in salaries and benefits, salary
equity adjustments, increase in
medical rates, conversion of part-time employees to contract employees with full-time benefits. This was the result of salary studies and surveys of other
comparable cities for almost all the bargaining units.
2. Public Protection. The increase of $1,760,096 is due to increase in salaries and benefits,
and the increase in PERS contribution for the Police group as a
result of amending the PERS contract to allow a higher benefit from 2% at 50 to 3% at 50.
xii
3. Public Works. The increase of $1,273,804 is due to the increase in HUD and Home programs, increase in employees salaries and benefits, reclassification of
of positions and filling of vacant positions.
4. Parks and Recreation. The increase of $329,314 is due to the addition of new programs: Healthy Start, Lawrence/Heritage After school program, Camp Lodi
Lake. It also includes salary and benefit increases.
5. Capital Outlays. The increase of $5,624,029 is attributed to the numerous projects undertaken during the year i.e., Lower Sacramento Road Expansion,
Beckman Road Reconstruction, Stockton Street Reconstruction and the acquisition of property for the G -Basin/ DeBenedetti Park.
Enterprise Activities
Enterprise funds are used to finance and account for the acquisition, operation and maintenance of City facilities and services that are entirely or predominantly
supported by user charges. Enterprise operations are accounted for in such a manner as to show profit or loss as in comparable private enterprises. At June 30,
2001, the City operated four enterprise funds that include electric, sewer, water, and transit. Total fiscal year operating loss was $17,208,960 which is mainly due
to the increase in bulk power costs. The City has implemented a Market Cost Adjustment effective June 1, 2001 and August 1, 2001, to recover these costs. Total
fund equity is $76,178,684 which represents a .67% decrease over fiscal year 1999-00. Additional enterprise fund financial information can be found in Note 18
of the general-purpose financial statements.
Internal Service Activities
Internal service funds are used to account for financing goods or services provided by one department or agency to another on a cost reimbursement basis. At June
30, 2001, the City maintained one internal service fund for claims and benefits. The total fiscal year 2000-01 net operating loss before operating transfers was
$1,399,745 with a retained deficit balance of $1,535,143. Additional information can be found in Notes 16 and 17 of the general-purpose financial statements.
Fiduciary Fund Operations
The City maintains Expendable Trusts Funds to account for and administer bequests for the Hutchins Street Square/Community Center and the Library. Agency
Funds are used to account for and administer the Special Assessment funds.
INDEPENDENT AUDIT
The City Council requires an annual audit of the records and accounts of the City by an independent certified public accountant. The accounting fnrn of KPMG
LLP was selected to perform this audit. The independent auditors' report precedes the general-purpose financial statements and concludes that the City's general
purpose financial statements are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of
America.
CERTIFICATES OF ACHIEVEMENT
The Government Finance Officers Association of the United States and Canada (GFOA) and the California Society of Municipal Finance Officers (CSMFO), both
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report (CAFR) for the fiscal year
ended June 30, 2000. These Certificates of Achievement are prestigious national and state awards recognizing conformance with the highest standards for
preparation of state and local government financial reports.
=" mm so M M m m m m m m m mm =� �
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized CAFR, whose contents conform
to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the last eight years (fiscal years ended
June 30, 1993 through 2000). We believe our current report continues to conform to the Certificate of Achievement program requirements and we are submitting
it to GFOA and CSMFO.
ACKNOWLEDGMENTS
The professionalism, dedication and efficiency of the Finance Department Accounting staff made it possible for the timely preparation of this report and are to be
commended. I would also like to thank Ruby Paiste, Accounting Manager, and Cory Wadlow for their continued attention to detail and proactive approach to
meeting future challenges such as GASB 34 and the continued implementation/testing of other JDE financial modules.
I would also like to thank you for your continued interest and support in planning and conducting the financial operations of the City in a responsible and
progressive manner.
Respectfully submitted,
Vicky McAthie
Finance Director
xiv
M M M M M M Millllll� s i• illlllll� s� s, �. .�.
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lodi,
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2000
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
�GE We, n
WROM
N
� RJUL� y irsident
ax is% �@
Executive Director
The Government Finance Officers Association of the United States and Canada (GFOA)
Certificate of Achievement for Excellence in Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City
of Lodi for this comprehensive annual financial report for the fiscal year ended June 30,
2000. The Certificate of Achievement is a prestigious national award recognizing
conformance with the highest standards for preparation of state and local government
financial reports.
In order to be awarded the Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized comprehensive annual financial report,
whose contents conform to program standards. Such reports must satisfy both generally
accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. 2000 was the 8th year
that the City of Lodi received a Certification of Achievement. We believe our current
report continues to conform to the program requirements, and we are submitting it to
GFOA.
Xvl
California Society of
Municipal Jinance OfTwers
Certificate of Award
Outstanding Financial Reporting 1999-2000
Presented to the
City of Lodi
This certificate is issued in recognition of meeting professional standards and criteria in reporting
which reflect a high level of quality in the annual financial statentents
r and in the underlying accounting system front which the reports were prepared.
February 26, 2001
, 24 2 - . zije -
Chair, Professional & Technical Standards Committee
Dedicated to Excellence in Municipal Financial Management
r M= M W M W air M= M W W aft art W M M r
DIRECTORY OF OFFICIALS AND ADVISORY BODIES
CITY COUNCIL
Alan Nakanishi
Mayor
Phillip Pennino
Mayor Pro Temp
Susan Hitchcock
Council Member
Emily Howard
Council Member
Keith Land
Council Member
ADVISORY BODIES
Planning Commission Eastside Improvement Committee
Library Board Lodi Arts Commission
Recreation Commission Youth Commission
Site Plan and Architectural Review Committee Lodi Senior Citizens' Commission
PRINCIPAL ADMINISTRATIVE OFFICERS
H. Dixon Flynn
City Manager
Randall Hays
City Attorney
Susan Blackston
City Clerk
Nancy Martinez
Library Services Director
Vicky McAthie
Finance Director/Treasurer
Mike Pretz
Fire Chief
Charlene Lange
Community Center Director
Joanne Narloch
Human Resources Director
Richard Prima
Public Works Director
Alan Vallow
Electric Utility Director
Konradt Bartlam
Community Development Director
Jerry Adams
Police Chief
Roger Baltz
Parks & Recreation Director
xix
H
Z
w
uxQ
�J
i
a0.
U
J
_
Q
LL'
(�
IJ]
a
'o
i
za
1
a
J
W
Z
W
C�
1
■
1
1
� � � � � � � � � � 111111• � � � � � � � �
Three Embarcadero Center
San Francisco, CA 94111
Independent Auditors' Report
The Honorable Members of City Council
City of Lodi, California:
We have audited the accompanying general purpose financial statements of the City of Lodi, California (the City), as of and for the year ended June 30,
2001, as listed in the accompanying table of contents. These general purpose financial statements are the responsibility of the City's management. Our
responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Lodi,
California as of June 30, 2001, and the results of its operations and the cash flows of its proprietary fund types for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
As described in note I(b) to the general purpose financial statements, the City adopted the provisions of Governmental Accounting Standards Board
(GASB) Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions.
KPMG LLP. KPMG LLP, a U.S. limited liability partnership, is
a member of KPMG Intemational, a Swiss association.
In accordance with Government Auditing Standards, we have also issued our report dated October 23, 2001 on our consideration of the City's internal
control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral
part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the
results of our audit.
The supplementary information listed in the accompanying table of contents reflecting the funding progress relative to the City's portion of the California
Public Employees Retirement System on page 43 is not a required part of the basic general purpose financial statements, but is a disclosure required by
GASB, and we did not audit and do not express an opinion on such information. We have applied to the schedule of funding progress certain limited
procedures prescribed by professional standards, which consisted principally of inquiries of management regarding the methods of measurement and
presentation of the schedule.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City taken as a whole. The
accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and
Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations, and is not a required part of the general purpose financial
statements of the City. The supplemental financial statements listed in the accompanying table of contents are presented for purposes of additional
analysis and are not a required part of the general purpose financial statements of the City. The schedule of expenditures of federal awards and
supplemental financial statements have been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in
our opinion, are fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
The statistical section listed in the accompanying table of contents is presented for the purpose of additional analysis and is not a required part of the
general purpose financial statements of the City. Such additional information has not been subjected to the auditing procedures applied in our audit of the
general purpose financial statements, and, accordingly, we do not express an opinion thereon.
October 23, 2001
K'PtU(r.=r LLP
1a
M r M M = i = = M � = � � � w � � �
Assets and Other Debit
Cash and investments (note 3)
Restricted assets (notes 1 and 3)
Advance receivables (notes 1 and 15)
Receivables:
Accounts
Property taxes (note 4)
Special assessments
Interest
Due from other funds or
governmental agencies (note 8)
Inventory
Deferred financing costs
Other assets
Fixed assets (note 5)
Other debit:
Amount to be provided for general
long-term debt obligations
Total assets and other debit
CITY OF LODI
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
June 30, 2001
(continued on next page)
See accompanying notes to general purpose financial statements. 2
Fiduciary
Governmental Fund Type
Proprietary
Fund Type
Fund Type
Account Groups
General
General
Special
Capital
Internal
Trust and
Fixed
Long -Term
Total
General
Revenue
Projects
Enterprise
Service
Agency
Assets
Obligations
(Memorandum Only)
$ 1,487,883
1,001,271
8,041,695
9,113,680
1,929,432
1,111,038
$
22,684,999
1,240
31,264,969
31,266,209
1,084,000
4,733,096
5,817,096
3,194,533
436,822
73,000
8,499,760
84,475
1,598
12,290,188
729,274
38,186
286,503
1,053,963
40,346
40,346
18,290
106,555
155,026
27,579
5,593
313,043
207,479
4,661,533
17,374
6,532,067
11,418,453
117,584
1,710,474
1,828,058
202,638
202,638
58,152
1,747
54,688
9,062
123,649
84,963,403
82, 964,170
167,927,573
19,500,934
19,500.934
$ 5,813,195
7,221,812
8,528,114
147,229,801
2,041,486
1,167,637
82,964,170
19,500,934 $
274,467,149
(continued on next page)
See accompanying notes to general purpose financial statements. 2
Liabilities, Fund Eauity and Other Credits
Liabilities:
Accounts payable and other liabilities
Accrued salaries and wages
Accrued interest
Due to other funds or governmental agencies (note 8)
Accrued compensated absences (note 7)
Deferred revenue
Self-insurance reserve (notes 14 and 16)
Capitalized lease obligations (note 7)
Certificates of participation payable,
net of discount (rote 7)
Water note payable (note 7)
Total liabilities
Fund Equity:
Contributed capital (notes 9 and 19)
Investment in general fixed assets
Retained earnings (deficit) (notes 9 and 17)
Fund balances: (note 9)
Reserved for library
Reserved for encumbrances
Reserved for inventory
Unreserved -designated
Unreserved -undesignated
Total fund equity (deficit) and other credits
Commitments and contingent liabilities (notes 6 and 20)
Total liabilities, fund equity and other credits
CITY OF LODI
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS - continued
June 30, 2001
Fiduciary
Governmental Fund Type Proprietary Fund Type Fund Type Account Groups
General General
Special Capital Internal Trust and Fixed Long -Tenn Total
General Revenue Projects Enterprise Service Agency Assets Obligations (Memorandum Only)
$ 1,054,726
774,658
528,302
3,858,867 493,250
$
6,709,803
512,791
82,964,170
37
512,828
62,411,917 (1,535,143)
60,876,774
1,075,765
1,075,765
2,117,009
4,016,796
1,401,310
2,168,200
7,535,115
300,000
117,584
1,122,277
5,592,499
7,014, 776
1,279,828
119,980
868,218
4,808,302
2,268,026
3,576,629
3,945,678
3,576,629
3,863,036
76,178,684 (1,535,143) 674,387 82,964,170
169,141,129
928,435
928,435
274,467,149
$ 5,813,195
59,930,925
12,980,000
72,910,925
2,793,718
2,793,718
1,867,517
4,171,495
4,665,078
71,051,117 3,576,629 493,250
19,500,934
105,326,020
See accompanying notes to general purpose financial statements.
3
M= M IM M M i M M M= W M== M M M
13,766,767
13,766,767
82,964,170
82,964,170
62,411,917 (1,535,143)
60,876,774
316,450
316,450
97,709
611,238
2,168,200
2,877,147
117,584
117,584
2,439,079
1,694,836
674,387
4,808,302
3,413,935
3,413,935
3,945,678
3,050,317
3,863,036
76,178,684 (1,535,143) 674,387 82,964,170
169,141,129
274,467,149
$ 5,813,195
7,221,812
8,528,114
147,229,8012,041,486 1,167,637 82,964,170 19,500,934 $
See accompanying notes to general purpose financial statements.
3
M= M IM M M i M M M= W M== M M M
CITY OF LODI
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS
Year ended June 30, 2001
See accompanying notes to general purpose financial statements. 4
Fiduciary
9,354,831
Governmental Fund Type
(10,106,651)
Expendable
Total
Special
Debt
Capital
$ 21,909,208
General
Revenue
Service
Projects
Revenues:
4,248,586
1,124,214
765,223
9,305
Taxes $
19,379,363
933,117
9,305
1,596,728
Licenses and permits
1,592,227
8,862,277
13,190,372
Intergovernmental revenues
4,025,225
7,293,600
1,198,449
322,479
Charges for services
1,642,660
1,351,243
1,254,683
Fines, forfeits and penalties
765,223
Investment and rental income
745,405
251,351
512,493
Miscellaneous revenue
76,520
920
305,680
Total revenues
28,226,623
9,830,231
3,992,063
Expenditures:
Current:
General government
8,862,277
Public protection
12,804,032
386,340
Public works
5,298,598
1,013,725
Library
1,183,449
Parks and recreation
2,802,186
197,000
Capital outlay
669,772
7,015,923
4,358,741
Debt service:
Interest and fiscal charges
755,242
Principal payments
530,000
Total expenditures
31,620,314
8,612,988
1,285,242
4,358,741
Excess (deficiency) of revenues over (under) expenditures
(3,393,691)
1,217,243
(1,285,242)
(366,678)
Other financing sources (uses):
Operating transfers in (note 10)
4,188,561
1,498,984
1,285,242
2,382,044
Operating transfers out (note 10)
(2,329,905)
(5,718,278)
(2,041,242)
Other
Capital lease proceeds (note 7)
669,772
Total other financing sources (uses)
2,528,428
(4,219,294)
1,285,242
340,802
Deficiency of revenues and other financing sources
over (under) expenditures and other financing uses
(865,263)
(3,002,051)
(25,876)
Fund balance as previously reported, June 30, 2000
3,788,220
5,950,875
3,888,912
Cumulative effect of change in accounting principle (note 16)
1,022,721
101,493
Fund balance, June 30, 2000, as restated
4,810,941
6,052,368
3,888,912
Fund balance, June 30, 2001 $
3,945,678
3050317
3,863,036
See accompanying notes to general purpose financial statements. 4
Fiduciary
9,354,831
Fund Type
(10,106,651)
Expendable
Total
Trust
(Memorandum Ony)
$ 21,909,208
1,592,227
(3,898,885)
11,641,304
14,308,089
4,248,586
1,124,214
765,223
9,305
1,518,554
$ 11,533,418
383,120
9,305
42,058,222
8,862,277
13,190,372
6,312,323
15,000
1,198,449
2,999,186
12,044,436
755,242
530,000
15,000 45,892,285
(5,695) (3,834,063)
9,354,831
(17,226)
(10,106,651)
17,226
17,226
669,772
(64,822)
(5,695)
(3,898,885)
680,082
14,308,089
1,124,214
680,082
15,432,303
674,387
$ 11,533,418
Revenues:
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines, forfeits and penalties
Investment and rental income
Miscellaneous revenue
Total revenue
Expenditures:
Current:
General government
Public protection
Public works
Library
Parks and recreation
Capital outlay
Total expenditures
Excess (deficiency) of revenues over (under) expenditures
Other financing sources (uses):
Operating transfers in
Operating transfers out
Capital lease proceeds
Total other financing sources (uses)
Excess (deficiency) of revenues and other
financing sources over (under) expenditures
and other financing uses
Fund balance as previously reported, June 30, 2000
Adjustment to fund balance
Fund balance, June 30, 2000
Fund balance, June 30, 2001
CITY OF LODI
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUNDS
Year ended June 30, 2001
9,548,803
General Fund
686.526
12,868,076
12,804,032
Variance
Revised
5,298,598
Favorable
Budget
Actual
(Unfavorable)
$ 18,435,758
19,379,363
943,605
1,423,183
1,592,227
169.044
4,002,908
4,025,225
22,317
1,524,981
1,642.660
117,679
1,026,362
765,223
(261,139)
638,974
745,405
106,431
74,574
76,520
1,946
27,126,740
28,226,623
1,099,883
9,548,803
8,862,277
686.526
12,868,076
12,804,032
64,044
5,337,326
5,298,598
38,728
1,228,635
1,183,449
45,186
3,016,650
2,802,186
214,464
669,772
669,772
691,000
32,669,282
31,620,314
1,048,948
(5,542,522)
(3,393,691)
2,148,831
4,188,561 4,168,561
(2,329,905) (2,329,905)
669,772 669,772
2,528,428 2,528,428
(3,014,094)
(865,263) 2,148,831
3,788,220
3,788,220
1,022,721
1,022,721
4,810,941
4,810,941
S 1,796,847
3,945,878 2,148,831
See accompanying notes to general purpose financial statements.
Special Revenue Funds
385,340
483,860
2,878,264
Variance
Revised
197,000
Favorable
Budget
Actual
(Unfavorable)
711,000
933,117
222,117
10,826,886
7,293,600
(3,533,286)
691,000
1,351,243
660.243
180,000
251,351
71,351
777,922
920
920
12,408,886
9,830,231
(2,578,655)
870,200
385,340
483,860
2,878,264
1,013,725
1,864,559
197,000
197,000
(9,055,325)
19,361,801
7,015.923
12, 335, 878
23,297,285
8,612,988
14,684,297
(10,888,399)
1,217,243
12,105,642
1,498,984 1,498,984
(5,718,278) (5,718,278)
(4,219,294) (4,219,294)
(15,107,693)
(3,002,051) 12,105,642
5,950,875
5,950,875
101,493
1D1,493
6,052,368
6.052,368
(9,055,325)
3,050,317 12,105,642
9,548,803
Total (Memorandum Only)
686,526
13,738,276
13,190,372
Variance
Revised
6,312,323
Favorable
Budget
Actual
(Unfavorable)
19,146,758
20,312,480
$ 1,165,722
1,423,163
1,592,227
169,044
14,829,794
11,318,825
(3,510,969)
2,215,981
2,993,903
777,922
1,026,362
765,223
(261,139)
818,974
996,756
177,782
74,574
77,440
2,866
39,535,628
38,056,854
(1,478,772)
9,548,803
8,862,277
686,526
13,738,276
13,190,372
547,904
8,215,610
6,312,323
1,903,287
1,228,635
1,183,449
45,186
3,213,650
2,999,186
214,464
20,021,573
7,685,695
12,335,878
55,966,547
40,233,302
15,733,245
(16,430,921)
(2,176,446)
14,254,473
5,687,545 5,687,545
(8,048,183) (8,048.183)
669,772 569,772
(1,690,866) (1,690,866)
(18,121,787)
(3,867,314) 14,254,473
9,739,095
9,739,095
1,124,214
1,124,214
10, 863, 309
10, 863, 309
(7,258,478)
6,995,995 $ 14,254,473
W = = = ! i = = W = = ! M W M
! ! i i i i � � � !� � � �■ � � +� atatatatatat� ..■.. �.
CITY OF LODI
COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITY
ALL PROPRIETARY FUND TYPES
Year ended June 30, 2001
Internal
Total
Enterprise
Service
(Memorandum Only)
Operating revenues:
Charges for services $
48,632,352
2,571,428
$ 51,203,780
Operating expenses:
Personnel services
5,461,461
166,761
5,628,222
Supplies, materials and services
18,444,362
2,669,319
21,113,681
Utlillies
39,570,924
39,570,924
Depreciation and amortization
2,364,565
2,364,565
Claims payments
1,406,618
1,406,616
Total operating expenses
65,841,312
4,242,698
70,084,010
Operating loss
(17,208,960)
(1,671,270)
(18,880,230)
Nonoperating revenues (expenses):
Investrnant income (expenses), net
2,440,378
192,309
2,632,687
Rent
194,181
194,181
Fees received from developers
494,337
494,337
Otherrevenues
4,173,415
79,216
4,252,631
Total nonoperating revenues
7,302,311
271,525
7,573,836
Loss before operating transfers and capital contributions
(9,906,649)
(1,399,745)
(11,306,394)
Capital contributions
9,800,570
9,800,570
Operating transfers in (note 10)
3,803,234
1,160,995
4,964,229
Operating transfers out (note 10)
(4,212,409)
(4,212,409)
Total operating transfers
9,391,395
1,160,995
751,820
Net loss
(515,254)
(238,750)
(10,554,574)
Add: Depreciation on contributed assets
455,869
455,869
Net decrease to retained earnings
(59,385)
(238,750)
(10,098,705)
Retained eamings (deficiQ, June 30, 2000
62,471,302
(1,296,393)
61,174,909
Retained earnings (deficit), June 3D, 2001
62,411,917
(1,535,143)
60,876,774
Contributed capital, June 30, 2000
14,222,636
14,222,636
Depreciation on contributed assets acquired through June 30, 2000
(455,869)
(455,869)
Contributed capital, June 30, 2001
13,766,767
13,766,767
Total fund equity (deficit), June 30, 2001 (note 17) $
76,178,684
(1,535,143)
$ 74,643,541
See accompanying notes to general purpose financial statements.
6
CITY OF LODI
COMBINED STATEMENT OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
Year ended June 30, 2001
Noncash Investing. Capital and Financina Activities
Enterprise Funds - The City received donated fixed assets valued at $5,892,281 for the year ended June 30, 2001
See accompanying notes to general purpose financial statements.
7
= M== M= M=== i== M w W M= M
Intemal
Total
Enterprise
Service
(Memorandum Only)
Cash flows from operating activities:
Operating loss:
$ (17,208,960)
(1,671,270)
$ (18,880,230)
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization
2,364,565
2,364,565
Other revenues
4,173,415
79,216
4,252,631
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(4,100,184)
14,950
(4,085,234)
Increase in advance receivable
(2,360,609)
(2,360,609)
Increase in restricted deposit
(260)
(260)
Decrease (increase) in interest receivable
101,095
(4,414)
96,681
Increase in due from other funds
(2,532,722)
(2,532,722)
Decrease in inventory
191,594
191,594
(Increase) decrease in other assets
(48,525)
4,186
(44,339)
Increase in accounts payable and other liabilities
1,806,052
1,806,052
Decrease in accrued salaries and wages
(114,284)
(114,284)
Increase in accrued interest
485
485
Decrease in due to other funds
(256,126)
(256,126)
Increase in accrued compensated absences
164,132
164,132
Decrease in deferred revenue
(16,248)
(16,248)
Net cash used in operating activities
(17,836,580)
(1,577,332)
(19,413,912)
Cash flows from noncapital financing activities:
Operating transfers in
3,803,234
1,160,995
4,964,229
Operating transfers out
(4,212,409)
(4,212,409)
Fees received from developers
494,337
494,337
Net cash provided by non -capital financing activities
85,162
1,160,995
1,246,157
Cash flows from capital financing activities:
Proceeds from Certificates of Participation
9,227,375
9,227,375
Acquisition and construction of capital assets
(10,093,628)
(10,093,628)
Principal payments on debt
(274,587)
(274,587)
Interest payments on debt
(2,146,855)
(2,146,855)
Capital contributed
3,908,289
3,908,269
Net cash provided by capital financing activities
620,594
620,594
Cash flows from investing activities:
Rent of City property
194,181
194,181
Interest on investments
4,587,234
192,309
4,779,543
Net cash provided by investing activities
4,781,415
192,309
4,973,724
Net decrease in cash and cash equivalents
(12,349,409)
(224,028)
(12,573,437)
Cash and cash equivalents at beginning of year
21,463,089
2,153,460
23,616,549
Cash and cash equivalents at end of year
$ 9,113,680
1,929,432
$ 11,043,112
Noncash Investing. Capital and Financina Activities
Enterprise Funds - The City received donated fixed assets valued at $5,892,281 for the year ended June 30, 2001
See accompanying notes to general purpose financial statements.
7
= M== M= M=== i== M w W M= M
r i = = = = = M r � � lllllllfl• � � e_
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
(1) Summary of Significant Accounting Policies
The City of Lodi (City) was incorporated on December 6, 1906, as a municipal corporation under the General Laws of the State of California. The City
operates under a Council -Manager form of government and provides the following services: general government, public works, public protection
(police and fire), public utilities, library, parks and recreation.
The accounting policies of the City conform to generally accepted accounting principles (GAAP) as applicable to governments in the United States of America.
The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles.
The following is a summary of the more significant policies:
(a) Reporting Entity
An elected five -member council governs the City of Lodi. As required by GAAP, these financial statements present the City and its component units,
entities for which the City is considered to be financially accountable. The component units, although legally separate entities, are, in substance, part of the
City's operations and therefore, their activities are blended with data of the City.
The blended component units of the City are as follows:
The Lodi Public Improvement Corporation (LPIC) was formed on April 26, 1988, for the purpose of rendering financial assistance to the City in the
issuance of the 1988 Certificates of Participation (refunded by the issuance of the 1991 Certificates of Participation) to finance the expansion of the
City's White Slough Pollution Control Facility, the 1995 and 1996 Certificates of Participation to finance the Central City Revitalization Projects and
the Performing Arts/ Conference Center, and the recent issuance of the 1999 Certificates of Participation to finance the Electric Systems
improvements. The City Council constitutes the Board of Directors of LPIC. The funds of LPIC have been included in the Enterprise (Electric and
Sewer) Fund and in the Capital Projects Fund in the accompanying general-purpose financial statements.
The Lodi Financing Corporation (LFC) was formed on October 12, 1999, for the purpose of assisting the City with the financing of the costs of its
environmental abatement program and enhancing the water supply of the City for the use, benefit and enjoyment of the citizens served by the City.
On June 29, 2000, the Lodi Financing Corporation issued Variable rate Certificates of Participation, Series 2000A. During the fiscal year, Series
2000B, Series 2001A and 2001B were issued. These additional issues were intended to, fund the continued commitment of the City as the lead
agency in initiating and prosecuting environmental enforcement actions to compel responsible parties to investigate and clean up all actual or potential
dangers to public health and the environment arising from or related to hazardous substance contamination of portions of the City's groundwater and
soil located within an area approximately 600 acres and encompassing the City's central business area. The City Council is the Board of Directors of
LFC. The funds of LFC are included in the Water Fund in the accompanying general-purpose financial statements.
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
(b) Implementation of New Accounting Principles
The City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 33, Accounting and Financial Reporting for
Nonexchange Transactions. This statement establishes accounting and financial reporting standards for nonexchange transactions involving financial and
capital resources such as taxes and grants. In a nonexchange transaction, a government gives (or receives) value without directly receiving (or giving) equal
value in return. This is different from an exchange transaction, in which each party receives and gives up essentially equal values. This statement affects the
timing of recognition of nonexchange transactions — that is, when governments recognize them in the financial statements. Accordingly, the City has restated
its beginning fund balance for the general fund by $1,022,271 and the special revenue fund by $101,493 to reflect the cumulative effect of this change in
accounting principle. In addition, the City has recognized revenue in its combined statement of revenues, expenses and changes in fund equity (all proprietary
fund types) for capital contributions earned during the current year in lieu of directly recording such earned contributions as contributed capital which is a
component of fund equity. The adoption of this statement increases proprietary revenues of the City by $9,800,570 for the year ended June 30, 2001.
(c) Basis of Presentation - Fund Accounting
The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of
each fund are accounted for in a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses
as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the
means by which spending activity is controlled. The various funds are summarized by type in the general-purpose financial statements. The City uses the
following fund types and account groups:
Governmental Fund Tvaes
Governmental Funds are those through which most governmental functions of the City are financed. The acquisition, use and balances of the City's
expendable financial resources and the related liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds.
The measurement focus is upon determination of and changes in financial position, rather than upon net income determination. The following are the City's
governmental fund types:
General Fund: The General Fund is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
Saecial Revenue Funds: Special Revenue Funds are used to account for the proceeds of specific revenue sources
(other than expendable trusts or major capital projects) that is legally restricted to expenditures for specified purposes.
Debt Service Fund: The Debt Service Fund is used to account for the payment of general long-term debt principal, interest and related costs.
M i M M M M M M i M r M M M i W M M M
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
Capital Projects Funds: The Capital Projects Funds are used to account for financial resources to be used for the acquisition
or construction of major capital facilities (other than those financed by proprietary funds and trust funds).
Proprietary Fund Types
Proprietary Funds are used to account for the City's on-going organizations and activities that are similar to those often found in the private sector. The
measurement focus is upon determination of net income and capital maintenance. The following are the City's proprietary fund types:
Enterprise Funds: Enterprise Funds are used to account for operations that are (a) financed and operated in a manner
similar to private business enterprises - where the intent is that the costs (expenses, including depreciation) of providing
goods or services to the general public on a continuing basis be financed or recovered primarily through user charges,
or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or
net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.
Enterprise funds have been established for the Electric, Water, Sewer and Transit Divisions of the City.
Internal Service Funds: Internal Service Funds are used to account for the financing of goods or services provided by
one department or agency to other departments or agencies of the City or to other governmental units, on a cost -reimbursement
basis. Internal Service Funds have been established for the City's Claims and Benefits accounts.
Fiduciary Fund Types
Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other
governmental units and/or other funds.
Agency Funds: Agency funds are used principally to account for collection of bond proceeds with no governmental obligation
and payment of related bond principal and interest. Agency funds are custodial in nature and do not involve measurement of results of operations.
Expendable Trust Funds: Expendable Trust Funds are used primarily to account for funds held by the governmental
unit in a trustee capacity for individuals, private organizations, other governmental units and/or other funds. Expendable
trust funds are accounted for in essentially the same manner as governmental funds.
Account Groups
Account groups are used to establish accounting control and accountability for the City's general fixed assets and general long-term obligations. The
following are the City's account groups:
10
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
General Fixed Assets Account Group: This account group is established to account for fixed assets of the City,
other than those accounted for in the proprietary funds.
General Long -Term Obligations Account Group: This account group is established to account for all long-term
obligations of the City except those accounted for in the proprietary funds.
(d) Basis of Accounting
Governmental fund types are accounted for by using the modified accrual basis of accounting and the flow of current financial resources measurement focus
Revenues are recorded when they become both measurable and available. Revenues not considered available are recorded as deferred revenues.
Expenditures are recorded when the liability is incurred, except for (a) unmatured interest on general long-term obligations which are recorded when due;
and (b) the noncurrent portion of accrued compensated absences, which is recorded in the General Long -Term Obligations Account Group.
In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual funds are
used as guidelines. There are, however, essentially two types of revenues. In one, moneys must be expended on the specific purpose or project before any
amounts will be paid to the City; therefore, revenues are recognized based upon the expenditures incurred. In the other, moneys are virtually unrestricted as
to purpose of expenditure and are usually revocable only for failure to comply with prescribed compliance requirements. These resources are reflected as
revenues at the time of receipt or earlier if the susceptible to accrual criteria are met.
Property taxes are recognized as revenue in the year for which taxes have been levied, provided they are collected within 60 days after year end. Special
assessments are recorded as revenue in the year the individual installments are due.
Sales tax revenues collected by the State on behalf of the City are recorded using the modified accrual basis of accounting.
Charges for services and miscellaneous revenues (except investment earnings) are recorded as revenues when received in cash since they are generally not
measurable until actually received. Investment earnings are recorded as earned since they are measurable and available.
Proprietary fund types are accounted for by using the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when
the liability is incurred. Unbilled service revenue is accrued in proprietary funds.
Fiduciary fund types are accounted for according to the nature of the fund. The City has Agency type funds which are purely custodial in nature (assets equal
liabilities) and thus do not involve measurement of results of operations. In addition, the City has Expendable Trust funds that are accounted for in the same
manner, as are other governmental funds. All of these funds are accounted for on the modified accrual basis of accounting.
� M M M M M i M M M M M M M M i M M r
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
(e) Proprietary Fund Accounting
The City has elected under GASB 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary
Fund Accounting, to not apply all Financial Accounting Standards Board (FASB) Statements and Interpretations issued after November 30, 1989. As
required under GASB Statement No. 20, the City will continue to apply all applicable GASB pronouncements as well as Statements of Interpretations of FASB,
Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARBs) of the Committee on Accounting Procedure issued on or before
November 30,1989, unless those pronouncements conflict or contradict GASB pronouncements.
(f) Deferred Compensation Plans
The City applies the provisions of Government Standards Board Statement No. 32, Accounting and Financial Reporting for Internal Revenue Code Section
457 Deferred Compensation Plans (457 Plans). For 457 Plans in compliance with the 1996 Small Business Job Protection Act, the City neither has custody of
the plan assets, nor directs or accounts for the plan investments; therefore, such plans are excluded from the financial statements.
(g) Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of funds are recorded to reserve that portion of
the applicable appropriation, is employed in the governmental funds. Open encumbrances are reported as reservations of fund balances since the
commitments will be honored through subsequent years' budget appropriations. Amounts encumbered at year-end are reappropriated in the following year.
Encumbrances do not constitute expenditures or liabilities.
(h) Cash and Investments
The City maintains a cash and investment pool that is available for all funds of the City for the purpose of increasing interest earnings through investment
activities. Investments are stated at fair value. Each fund's portion of this pool is shown on the combined balance sheet as "cash and investments".
Investment earnings on the pooled investments, including any changes in fair value are allocated to various funds based on month-end cash balances in
accordance with California code section 53647.
(i) Restricted Assets
In the Enterprise (Electric) Fund, restricted assets represent the proceeds of the 1999 Certificates of Participation held by the trustee for the planned
improvements of the city electric systems.
IVA
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
Q) Advance Receivables
Advance receivables reported in the Special Revenue Fund represent Community Development Block Grant (CDBG) funds and Home program funds the City
loaned to a developer for a low-income housing project. The City will receive principal and interest from the original loan in thirty years and could use it for
allowable projects or make new loans.
Advance receivables reported in the Enterprise Fund represent the City's portion of the NCPA's General Operating reserve that is refundable on demand by the
City. (See Note 15.)
(k) Inventory
General fund inventories are recorded at cost and are recognized as expenditures when consumed rather than when purchased. For the Proprietary fund types,
inventories are recorded at cost using weighted average cost method, which approximates market and expense is recognized when inventories are consumed in
operations.
(1) General Fixed Assets
General fixed assets purchased are recorded as expenditures in the governmental funds and capitalized at cost in the General Fixed Assets Account Group.
Capital leases for buildings, improvements and equipment are recorded in the General Fixed Assets Account Group and capital lease payable is recorded in the
General Long -Term Obligations Account Group. Contributed fixed assets are recorded at estimated fair market value at the time received. The costs
of normal maintenance and repairs that do not add to the value of the asset or materially extend asset useful lives are not capitalized.
Improvements considered to be infrastructure such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems are not
capitalized as these assets are normally immovable and of value only to the City. Therefore, the purpose of stewardship for capital expenditures is
satisfied without recording these assets. Depreciation has not been provided on general fixed assets, nor has interest been capitalized.
(m) Fixed Assets - Proprietary Fund Types
Fixed assets owned by the Proprietary Funds are stated at cost. Contributed fixed assets are recorded at estimated fair market value at the time received.
Depreciation has been provided over the estimated useful lives using the straight-line method.
The estimated useful lives are as follows:
Years
Buildings and improvements 3-40
Machinery and equipment 2-40
Vehicles 5-15
13
� � � i M i i M = = = = = = i =
M M M M M �! i M M � � 1 111111 a � e � �.
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
Depreciation recognized on contributed fixed assets is charged to contributed capital for assets acquired before the implementation of GASB Statement No. 33.
(n) Compensated Absences/Vacation and Sick Leave
Noncurrent accumulated vacation and vested sick leave benefits for governmental funds are recorded in the General Long -Term Obligations Account Group as
a liability and also as an amount to be provided by future operations. The amount to be provided by future operations represents the total amount that would be
required to be provided from the general operating revenues of the City if all the benefits were to be paid. The current portion, the amount expected to be paid
in the next twelve months, is recorded as a liability of the responsible governmental fund.
Enterprise Funds record vacation and sick leave as an expense and liability when earned by employees.
(o) Self -Insurance
The City is self-insured for general liability, workers' compensation, dental benefits, unemployment and long-term disability. Various City funds are charged
premiums for the City's self-insurance reserve, which is accounted for as an internal service fund. The accrued liability for estimated self- insured claims
represents an estimate of the eventual loss on claims arising prior to year-end including claims incurred but not reported.
(p) Total (Memorandum Only) Columns
Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data
in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Such
data are not comparable to a consolidation since interfund eliminations have not been made.
(q) Statement of Cash Flows
For purposes of reporting cash flows, the City considers all highly liquid investments with maturities of three months or less when purchased and investments
maintained in the pool to be cash equivalents.
(r) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
14
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
(2) Budgetary Data
The City adopts an annual budget for the general and special revenue funds. These budgets are prepared in accordance with generally accepted accounting
principles. As part of the City's internal controls, the City maintains budgetary controls. The objective of these budgetary controls is to ensure compliance
with the legal provisions embodied in the annual appropriated budget approved by the City Council. The accompanying financial statements present budget
and actual data only of funds for which an annual budget was adopted. The budgets of capital projects are primarily "long-term" budgets that emphasize the
major programs and capital project plans extending over a number of years. Due to the long-term nature of these projects, "annual" budget and actual
comparisons are not considered meaningful. Formal budgetary integration is not employed for Debt Service Funds since effective budgetary control is
alternatively achieved through the bond indenture provisions. Accordingly, no budgetary information is included in the accompanying general-purpose
financial statements for capital projects and debt service funds.
The City Council follows the following procedures in establishing the budgetary data reflected in the accompanying general-purpose financial statements:
On or prior to the fust regular Council meeting in June of each year, the City Manager submits to the City Council a proposed Two-year Financial
Plan and Budget for two fiscal years commencing July 1. The budget includes proposed expenditures and the means of financing them.
Public hearings are conducted during meetings of the City Council to obtain citizens' comments. Prior to July 1, the budget is legally enacted through
passage of an ordinance.
Budgeted revenues are adopted by the City Council at the time the budget is approved. Budgeted revenues are modified when the tax base changes,
when fees are modified or when new revenue sources are identified.
Budgeted expenditures represent original appropriations adjusted by budget transfers and appropriation amendments. The legal level of budgetary
control (that is, the level at which expenditures can not legally exceed the appropriated amount) is at the department level. The operating budget
is prepared and controlled at the department level (e.g., city clerk, city manager, etc.) for the General Fund. Special revenue fund expenditures,
including transfers out, are approved by Council at the fund level. The City Manager may transfer appropriations from one activity to
another within a department without approval from the City Council. All other appropriation adjustments during the year, whether transfers,
increases or decreases, require City Council approval.
Under a two-year budget, all operating appropriations lapse at the end of the second year except for funds that are encumbered.
I
(3)
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
Cash and Investments and Restricted Cash with Fiscal Agent
The following is a detailed summary of cash and investments and restricted cash with fiscal agent at June 30, 2001:
Pooled cash and investments:
Demand deposits $ 31,751
Certificates of deposit 2,6 1.9,511
Investments 19,679,238
Total pooled cash and investments 22,330,500
Library Private Sector Fund:
Shares of stocks 354,499
Total cash and investments 22,684,999
Restricted cash with fiscal agent 31,266,209
Total cash and investments and restricted cash with
fiscal agent $ 53,951,208
(a) Cash
The City's demand deposits and certificates of deposit at year-end are covered by either federal depository insurance or by collateral held by the
custodial bank. The collateral pool of the custodial bank is equal to 110% of the uninsured deposits.
(b) Investments
The City has adopted an investment policy pursuant to Government Code Section 53601 which authorizes the City to invest in obligations of the U.S. Treasury,
agencies and instrumentalities, commercial paper rated A-1 by Standard & Poor's or P-1 by Moody's Commercial Paper Record, bankers' acceptances,
repurchase agreements, mutual funds and the State of California Local Agency Investment Fund (LAIF). The City is also authorized to enter into reverse
repurchase agreements. The City selects its investments based on safety, liquidity and yield. At no time during the year did the City borrow funds through the
use of reverse repurchase agreements.
The cost of investments in the State of California Local Agency Investment Fund (LAIF) approximates the fair value of the external investment pool
shares.
16
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
The following are the most recent available audited condensed financial statements of NCPA:
Combined Balance Sheet
June 30, 2000
Assets
Current assets $ 44,857,000
Restricted assets 302,365,000
Electric plant, net 586,325,000
Other assets and deferred charges 302,656,000
Total assets $ 1,236,203,000
Combined Statement of Revenue and Expenses
Year ended June 30, 2000
Sales to participants for resale
$ 205,344,000
Operating expenses
(118,510,000)
Other revenues (expenses)
(42,343,000)
Future recoverable costs
(31,616,000)
Net revenues before refunds
12,875,000
Refunds to participants
(9,587,000)
Net revenues
3,288,000
Accumulated net revenues,
beginning of year
20,530,000
Accumulated net revenues,
end of year
$ 23,818,000
Liabilities and Capitalization
Current portion of long-term debt $ 60,375,000
Other current liabilities 77,410,000
Other liabilities and deferred credits 31,707,000
Long-term debt 1,042,893,000
Accumulated net revenues 23,818,000
Total liabilities and capitalization $ 1,236,203,000
Combined Statement of Cash Flows
Year ended June 30, 2000
Net cash provided by operating activities
$ 82,059,000
Net cash provided by investing activities
42,000
Net cash used in capital and related
financing activities
(119,437,000)
Net cash provided by noncapital
and related financing activities
25,707,000
Decrease in cash and cash equivalents
(11,629,000)
Cash and cash equivalents, beginning
of year 76,710,000
Cash and cash equivalents, end of year $ 65,081,000
At June 30, 2000, NCPA's total outstanding long-term debt was $1,103,268,000 at an average interest rate of 6.5%. The current portion of long-term debt at
June 30, 2000, was $60,375,000.
33
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
Complete financial information for NCPA may be obtained at the following administration office:
Northern California Power Agency
180 Cirby Way
Roseville, CA 95678
Transmission Agency of Northern California
The Transmission Agency of Northern California (TANC) was organized under the California Government Code pursuant to a joint powers agreement entered
into by fifteen Northern California utilities including the City of Lodi. The purpose of TANC is to provide electric transmission or other facilities for the use of
its members through its authority to acquire, construct, finance, operate and maintain facilities for electric power transmission. The joint powers agreement
provides that the costs of TANC's activities can be financed or recovered through assessment of its members or user charges through transmission contracts
with its members. Each TANC member has agreed to pay a pro rata share of the costs to operate TANC and has the right to participate in future project
agreements. The joint power agreement remains in effect until debt obligations and interest thereon have been paid, unless otherwise extended by the members.
Increase in Non -defaulting Project Participant's Original Proiect Entitlement Percentage
Upon the failure of any Project Participant to make any payment, which failure constitutes a default under the Member Agreement for the projects, and except
as sales and transfers are made pursuant thereto, the Member Agreements provide that Project Entitlement for each non -defaulting Project Participant shall be
automatically increased for the remaining tenor of the Member Agreement; pro rata with those of the non -defaulting Project Participant thereunder; provided,
however, that the sum of such increase for any non -defaulting Project Participant shall not exceed, without written consent of such non -defaulting Project
Participant, an accumulated maximum of 25% of the non -defaulting Project Participant's original Project Entitlement Percentage Share.
California -Oregon Transmission Proiect
TANC is a participant and also the Project Manager of the California -Oregon Transmission Project (Project), a 339 -mile long, 500 -kilovolt alternating
current transmission project between Southern Oregon and Central California. As a Project Manager, TANC is responsible for the overall direction and
coordination of all project development, construction work, operations and maintenance and for general and administrative support.
The project was declared commercially operable on March 24, 1993 and provides a third transmission path or "intertie", between the electric systems of the
Pacific Northwest and those in California. The major environmental requirements for the Project have been successfully met and completed.
In connection with its participation in the Project, TANC has an entitlement percentage in Project transfer capability and construction cost sharing of
85.2557%. TANC has incurred costs for Project construction of approximately $433.4 million as of June 30, 2000. These costs have been capitalized by
TANC since they are expected to be recovered through reimbursement from Project participants and the successful operation of the Project's transmission
lines. The Project agreement among the participating members provides that each member agrees to make payments, from its revenues, to TANC for Project
costs incurred and for the payment of debt service.
34
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
Under the TANC joint powers agreement, the City is obligated to pay 1.89% of its debt service and operating costs. At June 30, 2000, approximately $384
million in long-term debt was outstanding of which $9.2 million is considered current.
The following are the most recent available audited condensed financial statements of TANC:
BALANCE SHEET
June 30, 2000
Assets
Electric Utility Plant, net $ 365,419,884
Restricted Assets 37,823,783
Current Assets 15,031,516
Noncurrent assets and deferred charges 48,720,744
Total Assets $ 466,995,927
STATEMENT OF INCOME
For the Year Ended June 30, 2000
Revenues:
Operating revenues
Interest income
Total revenues
Costs and expenses
Capitalization and liabilities General and other operating costs
Interest and other financing costs
Total members' equity 570,957 Depreciation and amortization
Long-term debt 366,819,604 Total costs and expenses
Total capitalization 367,390,561
Current liabilities 87,952,886 Net income
Noncurrent liability and deferred credit 11,652,480
Total capitalization and liabilities $ 466,995,927
Complete financial information for TANC may be obtained at the following administration office:
Transmission Agency of Northern California
3100 Zinfandel Drive, Suite 600
Sacramento, CA 95670
35
$ 41,201,669
3,653,880
$ 44,855,549
$ 8,926,976
25,219,535
10,686,009
44,832,520
$ 23,029
M = = r = ! M W � � � > 1111 l 1 � Ills . �
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
16) Membership in Insurance Pools
California Joint Powers Risk Management Authority
The City is a member, along with 19 other public agencies, of California Joint Powers Risk Management Authority (CJPRMA) organized under a Joint
Powers Agreement pursuant to the California Government Code for the purpose of sharing the risk of catastrophic general liability, automobile liability and
public officials' errors and omissions losses because adequate insurance is not available in the commercial insurance market.
CJPRMA has a twenty-one member Board of Directors, including a director from the City of Lodi. Officers of CJPRMA are elected every two years by the
Board members.
The ultimate cost of the program to the City depends on the catastrophic losses of all members, as well as the City's own loss experience and will be
determined retrospectively five years after the end of the current program year. The City periodically pays deposits to the CJPRMA. These deposits are
recorded as expenditures in the year paid, as they are a reasonable estimate of the actual cost of the program. During the year ended June 30, 2001,
deposits of $190,821 were paid to CJPRMA.
The most recent condensed audited financial information of CJPRMA as of June 30, 2001 follows:
Balance Sheet
June 30, 2001
Total Assets, primarily investments
Liabilities
Reserve for losses, Liability program
Reserve for losses, Worker's Compensation program
Claims payable
Current liabilities
Total liabilities
Fund Equity
Retained earnings
Total Liabilities and Equity
0i
Statement of Revenues, Expenses and Retained Earnings
Year Ended June 30, 2001
$ 65,276,721
Total Revenues $
7,160,479
Total Expenses
(4,196,246)
$ 30,474,668
Operating Income
2,964,233
57,670
35,125
Investment Income
6,921,295
20,366
Net Income
9,885,528
30,587,829
Retained Earnings, beginning of year
27,602,810
34,688,892
Refunds to members
(2,799,446)
$ 65,276,721
Retained earnings, end of year $
34,688,892
0i
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
The participants and their percentage shares at June 30, 2001, are as follows: City of Alameda 3.68%, CCCMRMIA 4.96%, Chico 1.62%, Central San Joaquin
Valley Risk Management Authority 14.99%, Fairfield 2.91%, Fremont 6.16%, Livermore 2.50%, Lodi 2.20%, Manteca 1.47%, NCCSIF 2.79%, Petaluma
1.70%, Redding 3.93%, Redwood Empire Municipal Insurance Fund 5.71%, Roseville 3.30%, San Leandro 2.99%, San Rafael 2.54%, Santa Barbara Area
Joint Powers Insurance Authority 0.72%, Santa Rosa 5.50%, Small Cities Organized Risk Effort 2.0%, Stockton 7.84 %, Sunnyvale 6.23%, Vacaville 2.17%,
Vallejo 3.33%, and Yolo County Public Agencies Risk Management Insurance Authority 8.76%,
Local Agency Workers' Compensation Excess Joint Powers Authority
The City, along with 30 other public agencies, is a member of the Local Agency Workers' Compensation Excess Joint Powers Authority (LAWCX) which
was formed July 1992, for the purpose of sharing the risk of workers' compensation losses. All members are self-insured up to $250,000 per occurrence.
LAWCX members pool resources to pay claims from $250,000 to $500,000 per occurrence and then use group purchasing power to obtain excess
coverage through a commercial insurance company up to statutory limits.
The most recent condensed audited financial statement information of LAWCX follows:
Balance Sheet
Statement of Revenues, Expenses and Retained Earnings
June 30, 1999
Year Ended June 30,1999
Total Assets, primarily investments
$ 3,526,300
Total Revenues
$ 1,189,258
Liabilities:
Accounts Payable
$ 19,981
Total Expenses
(2,600,294)
Unallocated Loss Adjustment
195,211
Claims Reserve
2,343,634
Claim Incurred But Not Reported
1,560,587
Net Income
(1,411,036)
Total liabilities
4,119,413
Retained Earnings:
Retained Earnings, beginning of year
817,923
Contingency Margin
(1,448,375)
Capital Contributions
855,262
Total Retained Earnings
(593,113)
Retained earnings, end of year
$ (593,113)
Total Liabilities and Equity
$ 3,526,300
The City paid $52,357 in deposits to LAWCX during the fiscal year ended June 30, 2001.
37
= r M= M= i M M rte- -M = M i W= r m m
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
The participants and their percentage shares at June 30, 1999 are as follows: City of Alameda 4.21%, Albany 0.67%, ACWA/JPIA 12.67%, Central San
Joaquin Valley Risk Mgmt Authority 16.46%, Clovis 1.28%, Coachella Valley Joint Power Insurance Authority 8.07%, Desert Hot Springs 0.03%, East Bay
Regional Park District 3.06%, Emeryville 1.09%, Fremont 6.50°/x, Livermore 2.62%, Lodi 2.48%, Merced 1.72%, Los Gatos 0.40%, Morgan Hill 0.71%,
Newark 0.92%, Pacific Grove 0.19%, Palm Springs 2.60%, PARDEC 4.65%, PARSAC 6.38%, Piedmont 0.67%, Rialto 0.47%, Roseville 4.20%, SDWCA
4.28%, Small Cities Org. Risk Effort (SCORE) 1.31%, South Lake Tahoe 0.25%, Sunline Transit Agency 0.12%, Union City 1.51%, Vacaville 3.27%, Vallejo
4.67% and Vector Control JPA 2.54%.
California Transit Insurance Pool
The City, along with 27 other public agencies is a member of California Transit Insurance Pool (Ca1TIP), a joint powers insurance authority which was
formed for the purpose of sharing the risk of property damage, bodily injury, personal injury and public officials errors and omissions losses for public transit
systems.
Liability protection coverage is provided under two programs:
Program I applies to member properties with a pre -funded deductible or a self-insured retention of less than $100,000 per
occurrence. Under this program, claims processing is provided by Ca1TIP's claim administrator.
Program II applies to all member properties with self-insured retention of $100,000 or greater per occurrence. Under
this program, claims administration services are performed at the discretion of the member agency, subject to CaITIP bylaws.
Ca1TlP is responsible for funding member claims in excess of applicable self-insured retention from the self-insurance pool limit of $500,000. Claims
in excess of the pool limit are covered by overlying insurance purchased by Ca1TIP, covering all member agencies up to $5 million. Claims in excess
of $5 million are covered by additional overlying insurance up to a $10 million limit for certain member agencies, at the option and expense of those
agencies.
38
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
The schedule below reflects the liability protection coverage at April 30, 2001, which is the most recent available data, for each of Ca1TIP's member agencies:
Agency
Program
Arcata Mad River Transit System
I
City of Azusa Transit System
I
Butte County Transit System
I
Central Contra Costa Transit Authority
I
Culver City Municipal Bus Lines
II
City of Dixon Transit System
I
EI Dorado County Transit
I
City of Folsom Transit System
II
Humbolt Transit
I
City of Lincoln Transit System
II
City of Lodi Transit System
I
Mendocino Transit Authority
I
Monterey -Salinas Transit
II
Morongo Basin Transit Authority
I
Napa Valley City Bus
I
Nevada County Transit District
I
Placer County Transit
II
Riverside Transit Agency
I
Santa Cruz Metropolitan Transit District
II
Santa Rosa County Transit
II
Siskiyou County Transit
I
San Luis Obispo Regional Transit Authority
I
South Coast Area Transit
I
City of Vacaville
I
Vallejo Transit Lines
I
Western Contra Costa County Transit Authority
I
City of Whittier Transit System
II
Yolo County Transit Authority
I
39
Self -Insured
Limit
Retention
(in millions)
$ Prefunded
$ 10
25,000
10
25,000
10
25,000
10
250,000
5
Prefunded
10
Prefunded
10
250,000
5
Prefunded
5
250,000
5
Prefunded
5
25,000
5
100,000
5
Prefunded
5
Prefunded
5
Prefunded
5
100,000
10
25,000
10
100,000
10
100,000
10
Prefunded
10
Prefinded
10
Prefunded
10
Prefunded
10
25,000
10
Prefunded
10
100,000
10
Prefunded
10
MM MW M M M m m m m moo W mm i m m
M r M M s M . . M � � � ill. � � �
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
The most recent condensed audited financial information of CaITIP as of April 30, 2001, is disclosed as follows:
Balance Sheet Statement of Revenues, Expenses and Retained Earnings
April 30, 2001 Year Ended April 30, 2001
Total Assets, primarily cash and investments $ 11,859,727 Total Revenues $ 3,880,492
Total Expenses (2,934,164)
Total Liabilities $ 9,145,867 Cumulative effect of accounting change (492,423)
Net Income 453,905
Retained earnings 2,713,860 Retained earnings, beginning of year 2,259,955
Total Liabilities and Retained Earnings $ 11,859,727 Retained earnings, end of year $ 2,713,860
There have been no reductions in insurance coverage from the prior year and there were no insurance settlements in excess of insurance coverage in any of the
last three years.
(17) Deficit in Fund Equity
Internal Service Fund - Claims and Benefits - A deficit in fund equity at June 30, 2001, in the amount of $1,535,143 in the Internal Service Fund is due to the
self-insurance reserves in the Claims and Benefits Fund established to cover both incurred and incurred -but -not -reported (IBNR) claims. The City plans to
implement the deficit reduction plan recommended by an actuary to gradually eliminate the deficit in the Internal Service Fund.
40
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
(18) Segments of Enterprise Activities
There are four services provided by the City that are financed by user charges - Electric, sewer, water and transit. Selected financial data for these four services
for the year ended June 30, 2001, are as follows:
41
M! M W M M M M W' M M S M r M M! i
Electric
Sewer
Water
Transit
Total
Operating revenues
$
40,115,081
4,697,052
3,600,091
$ 220,128 $
48,632,352
Operating expenses:
Depreciation and amortization
(738,278)
(893,044)
(275,023)
(458,220)
(2,364,565)
Other
(46,252,656)
(4,336,384)
(8,115,385)
(4,772,322) (63,476,747)
Operating income (loss)
(6,875,853)
(532,376)
(4,790,317)
(5,010,414)
(17,208,960)
Nonoperating revenue (expense)
3,539,456
(75,242)
828,829
3,009,268
7,302,311
Current capital contributions
677,971
3,730,253
1,484,057
3,908,289
9,800,570
Operating transfers, net
(1,955,758)
(580,301)
(655,545)
2,782,429 (409,175)
Net income (loss)
$
(4,614,184)
2,542,334
(3,132,976)
$ 4,689,572 $ (515,254)
Property, plant and equipment additions (deletions)
(including construction in progress), net
$
6,324,718
(262,511)
123,132
$3,908,289 $
10,093,628
Net working capital
$
19,083,484
2,662,436
1,139,390
(258,388) $
22,626,922
Total assets
$
79,523,356
38,196,299
20,052,350
$ 9,457,796 $
147,229,801
Certificates of participation, net
$
43,425,052
9,505,873
7,000,000
$ $
59,930,925
Total equity
$
32,059,342
27,912,884
8,250,610
$ 7,955,848 $
76,178,684
41
M! M W M M M M W' M M S M r M M! i
M M M M M M M M r M M! t � 111111i1• � Illi �
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2001
(19) Contributed Capital
Contributions of property, plant and equipment for the proprietary funds increased as follows:
(20) Commitments and Contingencies
Litigation and claims - The City is a defendant in various lawsuits and is a party to various claims including environmental exposure. The City Attorney
estimates that the potential claims against the City resulting from such litigation would not materially affect the financial condition of the City.
Arbitrage Earnings Rebate Liability - Arbitrage earnings are defined as income earned on the unexpended tax-exempt bond proceeds in excess of that which
would have been earned had the moneys been invested in securities with a yield of the effective rate of the bond anticipation notes. Currently,
arbitrage earnings must be rebated to the United States Treasury every five years from the date of August 18, 1999, for the Electric System Revenue
Certificates of Participation. Bond counsel has calculated the City will owe $154,585 arbitrage earnings for 2001.
Electric Purchases Commitments - In February 2001, the City and certain other NCPA members entered into a contract with a third -party electricity provider
(the Provider) to purchase electricity at a fixed price for a ten-year period beginning January 1, 2002. The purchase represents 30% of Lodi's net annual energy
requirements. The remainder of the City's energy requirements is provided through existing arrangements with NCPA. The total purchase commitment for the
City over the ten-year period is for 2,190,000 MWhs at a cost to the City of $65/mwh. Since the State of California has discontinued efforts to allow for retail
competition for electric services, the value of the contract is not at risk. As a municipal utility, the City's rates cover the costs of power resources including
contracts. The City's rates are competitive compared to those of regional utility rates. Existing NCPA resource cost to the City ranges between $63 and $68
per MWh.
42
Depreciation
Balance at
Balance at
on Contributed
End
Beginning of Year
Assets
of Year
Enterprise Fund
Electric Fund
$ 602,183
(9,219)
$ 592,964
Sewer Fund
5,223,301
(154,669)
5,068,632
Water Fund
3,632,985
(102,877)
3,530,108
Transit
4,764,167
(189,104)
4,575,063
Total Enterprise Fund
$ 14,222,636
(455,869)
$ 13,766,767
(20) Commitments and Contingencies
Litigation and claims - The City is a defendant in various lawsuits and is a party to various claims including environmental exposure. The City Attorney
estimates that the potential claims against the City resulting from such litigation would not materially affect the financial condition of the City.
Arbitrage Earnings Rebate Liability - Arbitrage earnings are defined as income earned on the unexpended tax-exempt bond proceeds in excess of that which
would have been earned had the moneys been invested in securities with a yield of the effective rate of the bond anticipation notes. Currently,
arbitrage earnings must be rebated to the United States Treasury every five years from the date of August 18, 1999, for the Electric System Revenue
Certificates of Participation. Bond counsel has calculated the City will owe $154,585 arbitrage earnings for 2001.
Electric Purchases Commitments - In February 2001, the City and certain other NCPA members entered into a contract with a third -party electricity provider
(the Provider) to purchase electricity at a fixed price for a ten-year period beginning January 1, 2002. The purchase represents 30% of Lodi's net annual energy
requirements. The remainder of the City's energy requirements is provided through existing arrangements with NCPA. The total purchase commitment for the
City over the ten-year period is for 2,190,000 MWhs at a cost to the City of $65/mwh. Since the State of California has discontinued efforts to allow for retail
competition for electric services, the value of the contract is not at risk. As a municipal utility, the City's rates cover the costs of power resources including
contracts. The City's rates are competitive compared to those of regional utility rates. Existing NCPA resource cost to the City ranges between $63 and $68
per MWh.
42
M M M r 80 M w w M M w M � � im 111111 wiiiiiii�
City of Lodi
Required Supplementary Information
Schedule of Funding Progress - Pension Plan
(in thousands of dollars)
43
Unfunded
Unfunded
(Overfunded)
Entry Age
(Overfunded)
Actuarial
Actuarial
Actuarial
Liability as
Actuarial
Actuarial
Accrued
Accrued
Funded
Covered
Percentage of
Valuation
Asset Value
Liability
Liability
Ratio
Payroll
Covered Payroll
Date
(A)
(B)
[(B) - (A)]
[(A) / (B)]
(C)
([(B) — (A)]/(C))
6/30/95
$ 70,518
$ 69,253
$ (1,265)
102%
$ 15,499
(8.160/.)
6/30/96
79,694
77,581
(2,113)
103%
15,999
(13.21%)
6/30/97
91,769
79,787
(11,982)
115%
16,871
(71.020%)
6130/98
108,165
88,222
(19,943)
123%
17,601
(113.31%)
6/30/99
125,286
104,459
(20,827)
120%
18,534
(112.37%)
6/30100
136,603
113,757
(22,846)
120%
19,585
(116.6511/6)
43
i
i
i
H
w
�
�
w
F-
�
Q
�
Z
�
w
�
W
a
M M = i M = = = i M � lmi � t ...
OVERVIEW
The General Fund is maintained to account for all financial resources that are not restricted as to their use. This includes property and sales taxes,
business tax, receipts, franchise taxes and various subventions such as Motor Vehicle In -Lieu fees received from the State of California. With the
exception of grant programs, General Fund resources can be utilized for any legitimate governmental purpose.
Due to the scale and flexibility of General Fund revenues, a broad range of municipal services is provided through this fund. The following is a
summary of the services primarily financed through the General Fund by Department:
Office of the City Manager
Implementation of City Council policies
Intergovernmental relations
Community Promotion
Risk Management and Insurance
Salary and Benefits Administration
Budget Administration
Transit Operations
Disaster Preparedness
Solid Waste Management
Telecommunications
Safety
Information Systems/Data Processing
Office of the City Attorney
Legal Advisor to the City Council
Contract Review
Litigation
Office of the City Clerk
Official City Recordkeeping/Elections
Council Meeting Agendas and Minutes
Chamber of Commerce
Human Resources Department
Employee Relations
Recruitment, Selection and Classification
Affirmative Action
Benefits Administration
Community Center Office
Aquatics for Seniors
Facilities Administration
Senior Activities
Cultural Activities
Police Department
Patrol
Crime Prevention
Animal Control
Investigations
Drug Suppression
Fire Department
Emergency Response
Hazard Prevention
Weed Abatement
Parks and Recreation Department
Park Maintenance
Youth Programs
Adult Programs
Pre-school Programs
Senior Activities
Aquatics
Trips and Classes
Library
Adult and Youth Reading Material
Research Services
Finance Department
Revenues and Collections
Financial Reporting
Debt and Investment Management
Parking Enforcement
Utility Billing
Purchasing
Public Works Department
Engineering Services
Street Paving and Sweeping
Sidewalk Maintenance
Traffic Signal & Sign Maintenance
Storm Drain Maintenance
Tree Maintenance
Street Maintenance
Building Maintenance
Parking Lot Maintenance
Community Development Department
Development Review
General Plan
Environmental Impact Reporting
Demographic Information
Design Review
Building and Safety
Although several of the activities listed above may be partially financed through other funds, the primary source of funding for these services is
the General Fund. For example, central support services provided by the Department of Finance are organized in the General Fund, these
services are provided to Enterprise Fund Activities, Special Revenue Fund Activities and Capital Outlay Fund Activities. Reimbursement
transfers are made from the other funds to the General Fund based on a formula calculated each year as compensation for these services.
45
CITY OF LODI
GENERAL FUND
COMPARATIVE BALANCE SHEETS
June 30, 2001 and 2000
ASSETS
Cash and Investments
Receivables:
Accounts
Property taxes
Interest
Due from other funds or governmental agencies
Inventory
Other assets
TOTALASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and other liabilities
Accrued salaries and wages
Accrued compensated absences
TOTAL LIABILITIES
FUND BALANCE
Reserved for library
Reserved for encumbrances
Reserved for inventory
Unreserved -undesignated
TOTAL FUND BALANCE
TOTAL LIABILITIES AND FUND BALANCE
46
2001
2000
$ 1,487,883
$ 3,197,509
3,194,533
1,878,624
729,274
58,262
18,290
16,816
207,479
155,469
117,584
102,705
58,152
68,383
$ 5,813,195
$ 5,477,768
$ 1,054,726
$
1,004,507
512,791
385,041
300,000
300,000
$ 1,867,517
$
1,689,548
$ 316,450
$
178,933
97,709
191,851
117,584
102,705
3,413,935
3,314,731
3,945,678
3,788,220
$ 5,813,195
$
5,477,768
M M = = = M = = = = M = = = = M
CITY OF LODI
GENERALFUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Years ended June 30, 2001 and 2000
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines, forfeits and penalties
Investment and rental income
Miscellaneous revenue
Total revenues
EXPENDITURES
Current
General government
Public protection
Public works
Library
Parks and recreation
Capital outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Capital lease proceeds
Total other financing sources (uses)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE, as previously reported, June 30, 2000
Cumulative effect of change in accounting principle
FUND BALANCE, restated, June 30, 2000
FUND BALANCE, June 30, 2001
47
2001
2000
VARIANCE-
VARIANCE -
Favorable
Favorable
BUDGET
ACTUAL
(Unfavorable)
BUDGET
ACTUAL
(Unfavorable)
$ 18,435,758
19,379,363
943,605 $
17,155,319
17,573,705
418,386
1,423,183
1,592,227
169,044
1,342,629
1,405,935
63,306
4,002,908
4,025,225
22,317
2,805,476
3,748,649
943,173
1,524,981
1,642,660
117,679
1,387,702
1,411,163
23,461
1,026,362
765,223
(261,139)
948,505
714,051
(234,454)
638,974
745,405
106,431
550,835
572,239
21,404
74,574
76,520
1,946
77,000
161,996
84,996
27,126,740
28,226,623
1,099,883
24,267,466
25,587,738
1,320,272
9,548,803
8,862,277
686,526
8,398,034
7,774,589
623,445
12,868,076
12,804,032
64,044
11,665,761
11,353,514
312,247
5,337,326
5,298,598
38,728
4,572,357
4,493,714
78,643
1,228,635
1,183,449
45,186
1,102,085
1,039,971
62,114
3,016,650
2,802,186
214,464
2,765,172
2,669,872
95,300
669,772
669,772
32,669,262
31,620,314
1,048,948
28,503,409
27,331,660
�1,171�,749
(5,542,522)
(3,393,691)
2,148,831
(4,235,943)
(1,743,922)
2,492,021
4,188,561
4,188,561
3,995,011
3,995,011
(2,329,905)
(2,329,905)
(1,173,745)
(1,173,745)
669,772
669,772
2,528,428
2,528,428
2,821,266
2,821,266
(3,014,094)
(865,263)
2,148,831
(1,414,677)
1,077,344
2,492,021
3,788,220
3,788,220
2,710,876
2,710,876
1,022,721
1,022,721
4,810,941
4,810,941
2,710,876
2,710,876
$ 1,796,847
394 ,678 ff
2,148,831 $
1,296,199
3,788,220
2,492,021
47
CITY OF LODI
GENERAL FUND
SCHEDULE OF EXPENDITURES BY DEPARTMENT
BUDGETARY LEVEL OF CONTROL - BUDGET AND ACTUAL COMPARISON
Year ended June 30, 2001
GENERAL GOVERNMENT
City Council
City Manager
City Clerk
City Attorney
Human Resources
Community Development
Finance Department
Non Departmental
Total General Government
PUBLIC PROTECTION
Police Department
Fire Department
Total Public Protection
PUBLIC WORKS
LIBRARY
PARKS AND RECREATION
TOTAL GENERAL FUND EXPENDITURES BY DEPARTMENT
48
BUDGET
2001
VARIANCE -
Favorable
ACTUAL (Unfavorable)
$ 99,880 $
80,835
19,045
2,705,091
2,646,801
58,290
279,455
256,875
22,580
304,078
285,099
18,979
546,950
513,200
33,750
1,830,627
1,376,710
453,917
2,106,492
2,090,954
15,538
1,676,230
1,611,803
64,427
9,548,803
8,862,277
686,526
8,684,069
8,654,602
29,467
4,184,007
4,149,430
34,577
12,868,076
12,804,032
64,044
5,337,326
5,298,598
38,728
1,228,635
1,183,449
45,186
3,016,650
2,802,186
214,464
30,950,542
1,048,948
$ 31,999,490 $
z
W
D
Q
z
11 L
1
a
W
Q
j
z
W
LL
Q
1'
aLu
�
w
�
J
a
1
1
1
1
i
M M M i M ! M � � imi 111 � � tiller � �
OVERVIEW
The City has established the following five special revenue funds in order to account for the proceeds from revenue sources that are restricted to
expenditures for specific purposes.
Police Special Revenue Fund
This fund was established to account for the revenues and expenditures related to the City's share of property forfeited by persons convicted of
possession and selling illegal drugs and the State of California auto theft prosecution moneys.
Special Grants Fund
This fund has been established to account for the receipt of smaller grants from Federal and State sources.
Streets Fund
This fund was established to account for the following:
Gas Tax
To account for revenues and expenditures apportioned to the City under the Streets and Highway Code. Portions
of the tax rate levied by the State of California on all gasoline purchases are allocated to cities throughout the State on a population basis. These
funds are restricted for expenditure by the State of California for street related purposes only.
Development Impact Mitigation Fees
To account for impact fees charged to provide for the building of various storm drains and street improvements needed to serve new
development. The fees are calculated on a per acre basis and are collected at subdivision final map approval or with building permit stage
effective November 4, 1991.
Master Storm Drain
To account for the funding of construction or modification of the City's storm drain system.
Measure K Sales Tax
To account for revenues and expenditures apportioned to the City for sales tax collections under Measure K. Expenditures for administration,
maintenance and construction must be for street -related projects.
Intermodal Surface Transportation Efficiency Act (ISTEA)
To account for revenues from the federal highway administration for programs including surface transportation program (STP) for streets and roads,
congestion mitigation and air quality program (CMAQ)and hazard elimination safety (HES) for street lighting projects.
49
OVERVIEW -continued
Transportation Fund
This fund was established to account for the receipt of moneys from the State of California apportioned to the City for transportation purposes.
The State has designated 1/4% of the 6% sales tax levied statewide for local transportation purposes. Funding for this program was provided
during the 1971 legislative session with the enactment of the Transportation Development Act, which extended the 6% sales tax to include
purchases of gasoline. Revenues allocated to the City of Lodi under this program are divided into two categories: Article 8 funds, which are
restricted for the improvement and maintenance of street systems; and Article 4 funds, which are restricted for public transit systems.
Community Development Block Grants
This fund was established to account for Federal moneys provided to the City principally for low and moderate income residents to develop a
suitable living environment and expand economic opportunities.
Home Program
This fund was established to account for the City's Home Program that provides adequate and affordable housing for low and very low-income residents.
50
M M M! M i M M M M M M M M! M M M M
ASSETS
Cash and Investments
Receivables;
Accounts
Interest
Due from other funds or governmental agencies
Advance receivables
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and other liabilities
Due to other funds or other governmental agencies
Deferred revenue
TOTAL LIABILITIES
FUND EQUITY
Fund balances:
Reserved for encumbrances
Unreserved - designated
TOTAL FUND BALANCE
TOTAL LIABILITIES AND FUND BALANCE
CITY OF LODI
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30, 2001
(with comparative totals for the year ended June 30, 2000)
51
Community
Development
Police Special
Special
Block
Home
Totals
Revenue
Grants
Streets
Transportation
Grants
Program
2001
2000
$ 439,964
507,999
53,308
$
1,001,271 $
3,205,749
436,822
436,822
2,173,773
6,387
29,570
2,229
38,186
60,192
54,470
19,700
3,022,952
1,460,512
103,899
4,661,533
2,738,085
393,985
690,015
1,084,000
1,084,000
$ 500,821
19,700
3,997,343
55,537
1,854,497
793,914
$
7,221,812 $
9,261,799
$ 117,185
19,700
557,499
80,274
$
774,658 $
149,782
632,872
1,380,238
103,899
2,117,009
1,788,579
195,828
393,985
690,015
1,279,828
1,372,563
$ 313,013
19,700
1,190,371
1,854,497
793,914
$
4,171,495 $
3,310,924
611,238
611,238
176,610
187,808
2,195,734
55,537
2,439,079
5,774,265
187,808
2,806,972
55,537
3,050,317
5,950,875
$ 500,821
19,700
3,997,343
55,537
1,854,497
793,914
$
7,221,812 $
9,261,799
51
CITY OF LODI
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
Year ended June 30, 2001
(with comparative totals for the year ended June 30, 2000)
REVENUES
Taxes
Intergovernmental revenues
Charges for services
Investment and rental income
Miscellaneous revenue
Total revenues
EXPENDITURES
Current
Public protection
Public works
Parks and recreation
Capital outlay
Total expenditures
EXCESS (DEFICIENCY) OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Total other financing sources (uses)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER
FINANCING SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE, as previously reported, June 30,2000
Adjustment to fund balance
FUND BALANCE, restated, June 30, 2000
FUND BALANCE, JUNE 30, 2001
386,340
974,005 39,720
197,000
7,015,923
386,340 197,000 7,015,923 974,005 39,720
Totals
2001
2000
Community
747,630
7,293,600
5,175,859
1,351,243
1,396,494
Development
192,011
Police Special
Special
9,830,231
7,616,080
Block
Home
Revenue
Grants
Streets
Transportation
Grants
Program
$
933,117
47,502
(9,311)
395,278
197,000
3,959,356
1,728,241
974,005
39,720
4,074,151
1,727,107
1,351,243
3,881,635
37,644
180,563
33,144
920
9,311
4,175,644
1,727,107
6,052,368
3,881,635
433,842
197,000
6,424,279
1,761,385
974,005
39,720
386,340
974,005 39,720
197,000
7,015,923
386,340 197,000 7,015,923 974,005 39,720
Totals
2001
2000
$ 933,117 $
747,630
7,293,600
5,175,859
1,351,243
1,396,494
251,351
192,011
920
104,086
9,830,231
7,616,080
386,340 76,762
1,013,725 544,805
197,000
7,015,923 4,100,801
8,612,988 4,722,368
47,502
(591,644)
1,761,385
1,217,243
2,893,712
1,396,608
102,376
1,498,984
1,189,021
(9,311)
(2,173,636)
(3,535,331)
(5,718,278)
(2,013,493)
(9,311)
(777,028)
(3,432,955)
(4,219,294)
(824,472)
47,502
(9,311)
(1,368,672)
(1,671,570)
(3,002,051)
2,069,240
140,306
9,311
4,074,151
1,727,107
5,950,875
3,881,635
101,493
101,493
140,306
9,311
4,175,644
1,727,107
6,052,368
3,881,635
$ 187 808
2,806,972
55,537
$ 3,050,317 $ 5,950,875
52
■■ i = = = = = = = W = s = = = M IM r
� = M M = M = M M i M � � � s � � i.
CITY OF LODI
SPECIAL REVENUE FUNDS
COMPARATIVE STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Year ended June 30, 2001
EXPENDITURES
Current
General government
Public protection 870,200 386,340 483,860
Public works
Parks and recreation 197,000 197,000
Capital outlay
Total Expenditures 870,200 386,340 483,860 197,000 197,000
EXCESS (DEFICIENCY) OF REVENUE OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out _
Total other financing sources (uses) _
EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE, as previously reported, June 30,2000
Adjustment to fund balance
(317,174)
POLICE SPECIAL REVENUE
SPECIAL GRANTS
47,502 364,676
140,306
VARIANCE-
VARIANCE -
Favorable
Favorable
BUDGET
ACTUAL
(Unfavorable)
BUDGET ACTUAL (Unfavorable)
REVENUES
Taxes
$
$
Intergovernmental revenues
539,026
395,278
(143,748)
197,000 197,000
Charges for services
Investment and rental income
14,000
37,644
23,644
Miscellaneous Revenue
920
920
Total Revenue
553,026
433.842
(119,1!34)
197.000 197,000
EXPENDITURES
Current
General government
Public protection 870,200 386,340 483,860
Public works
Parks and recreation 197,000 197,000
Capital outlay
Total Expenditures 870,200 386,340 483,860 197,000 197,000
EXCESS (DEFICIENCY) OF REVENUE OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out _
Total other financing sources (uses) _
EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE, as previously reported, June 30,2000
Adjustment to fund balance
(317,174)
47,502 364,676
(317,174)
47,502 364,676
140,306
140,306
(9,311) (9,311)
(9,311) (9,311)
(9,311) (9,311)
9,311 9,311
FUND BALANCE, restated, June 30, 2000 140.306 140,306 9,311 9,311
FUND BALANCE, END OF YEAR $(176,868) 187,808 384.676 $
ku
CITY OF LODI
SPECIAL REVENUE FUNDS
COMPARATIVE STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
Year ended June 30, 2001
REVENUES
Taxes
Intergovernmental revenues
Charges for services
Investment and rental income
Miscellaneous Revenue
Total Revenue
EXPENDITURES
Current
General government
Public protection
Public works
Parks and recreation
Capital outlay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUE OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Total other financing sources (uses)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINAN(
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE, as previously reported, June 30,2000
Adjustment to fund balance
FUND BALANCE, restated, June 30, 2000
FUND BALANCE, END OF YEAR
TRANSPORTATION
STREETS
VARIANCE -
11,300
Favorable
VARIANCE -
(Unfavorable)
12,324,578
Favorable
BUDGET
ACTUAL
(Unfavorable)
$ 711,000
933,117
222,117
5,495,250
3,959,356
(1,535,894)
691,000
1,351,243
660,243
164,000
180,563
16,563
7,061,250
6,424,279
(636,971)
TRANSPORTATION
7,015,923
VARIANCE -
11,300
Favorable
BUDGET ACTUAL
(Unfavorable)
12,324,578
11,300
1,717,326 1,728,241
10,915
2,000 33,144
31,144
1,719,326 1,761,385
42,059
19,340,501
7,015,923
12,324,578
11,300
11,300
19,340,501
7,015,923
12,324,578
11,300
11,300
(12,279,251)
(591,644)
11,687,607
1,708,026 1,761,385
53,359
1,396,608 1,396,608
(2,173,636) (2,173,636)
(777,028) (777,028)
(13,056,279)
(1,368,672) 11,687,607
4,074,151
4,074,151
101,493
101,493
4,175,644
4,175,644
$ (8,880,635)
2,806,972 11,687,607
102,376 102,376
(3,535,331) (3,535,331)
(3,432,955) (3,432,955)
(1,724,929) (1,671,570) 53,359
1,727,107 1,727,107
1,727,107 1,727,107
$ 2,178 55,537 53,359
54
a� a► ar as ■a ai is as a a a � � � a a a ■ia a
M m m m m m=-� M- M= M �� � s �
CITY OF LODI
SPECIAL REVENUE FUNDS
COMPARATIVE STATEMENT OF REVENUE, EXPENDITURES AND CHANCES IN FUND BALANCE
BUDGET AND ACTUAL
Year ended June 30, 2001
REVENUES
Taxes
Intergovernmental revenues
Charges for services
Investment and rental income
Miscellaneous Revenue
Total Revenue
EXPENDITURES
Current
General government
Public protection
Public works
Parks and recreation
Capital outlay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUE OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Total other financing sources (uses)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER FINAN(
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE, as previously reported, June 30,2000
Adjustment to fund balance
FUND BALANCE, restated, June 30, 2000
FUND BALANCE, END OF YEAR
M
(10,888,399) 1,217,243 12,105,642
1,498,984 1,498,984
(5,718,278) (5,718,278)
(4,219,294) (4,219,294)
(15,107,693)
COMMUNITY
5,950,875
5,950,875
101,493
101,493
6,052,368
6,052,368
DEVELOPMENT
3,050,317 12,105,642
DEVELOPMENT BLOCK GRANTS
HOME PROGRAM
TOTALS
VARIANCE-
VARIANCE-
VARIANCE -
Favorable
Favorable
Favorable
BUDGET
ACTUAL (Unfavorable)
BUDGET
ACTUAL (Unfavorable)
BUDGET
ACTUAL
(Unfavorable)
$
$
$
711,000
933,117
222,117
2,165,219
974,005 (1,191,214)
713,065
39,720 (673,345)
10,626,886
7,293,600
(3,533,286)
691,000
1,351,243
660,243
180,000
251,351
71,351
920
920
2,165,219
974,005 (1,191,214)
713,065
39,720 (673,345)
12,408,886
9,830,231
(2,578,655)
870,200
386,340
483,860
2,165,219
974,005 1,191,214
713,065
39,720 673,345
2,878,284
1,013,725
1,864,559
197,000
197,000
19, 351, 801
7,015,923
12, 335, 878
2,165,219
974,005 1,191,214
713,065
39,720 673,345
23,297,285
8,612,988
14,664,297
M
(10,888,399) 1,217,243 12,105,642
1,498,984 1,498,984
(5,718,278) (5,718,278)
(4,219,294) (4,219,294)
(15,107,693)
(3,002,051) 12,105,642
5,950,875
5,950,875
101,493
101,493
6,052,368
6,052,368
S (9,055,325)
3,050,317 12,105,642
SUPPLEMENTAL FINANGIAL STATEMENTS
DEBT SERVICE FUND
==WON WMMMMMMM M M MM� l � �
OVERVIEW
The City has established a debt service fund to account for the payment and accumulation of resources related to general long-term debt
principal and interest for the following debt issues:
1995 Certificates of Participation
These bonds were issued in September 1995 to finance the Central City Revitalization and City Hall remodel.
1996 Certificates of Participation
The bonds were issued in August 1996 to fmance the Conference/Performing Arts and Center.
56
CITY OF LODI
DEBT SERVICE FUND
COMPARATIVE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
Years ended June 30, 2001 and 2000
2001
EXPENDITURES
Interest and fiscal charges $ 755,242
Principal payments 530,000
Total Expenditures 1,285,242
DEFICIENCY OF REVENUES UNDER EXPENDITURES (1,285,242)
OTHER FINANCING SOURCES
Operating transfers in 1,285,242
Total other financing sources 1,285,242
(DEFICIENCY) EXCESS OF REVENUES AND OTHER SOURCES
(UNDER) OVER EXPENDITURES
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR $
2000
$ 777,352
505,000
1,282,352
$
(1,282,352)
1,282,352
1,282, 352
57
M 2w M In NoUK a WE M MIll" am No r -Mill
SUPPLEMENTAL FINANCIAL STATEMENTS
CAPITAL PROJECT FUNDS
OVERVIEW
The City uses the following funds in order to account for the financial resources used in the construction and acquisition of major capital
facilities or equipment (with the exception of those financed primarily through enterprise funds):
Vehicle and Equipment Fund
This fund was established to account for the financing and replacement of vehicles and equipment for all funds of the City with the exception of the
Enterprise Funds. Financing is primarily provided through operating transfers from other funds, interest earnings and sales of surplus
property.
Library Capital
This fund is used to account for the acquisition, construction and installation of capital facilities for the Library.
Subdivision Capital
This fund is used to account for construction and installation projects dealing with subdivision work for others.
Hutchins Street Square Capital
When the old Lodi High School burnt down, the City purchased the property and renamed it Hutchins Street Square. The Old Lodi High Site
Foundation was established and this organization organizes events to raise money for the capital restoration of Hutchins Street Square.
Capital Outlay Reserve Fund
This fund was established to account for the entire City's construction projects and capital purchases in excess of $10,000 with the exception of those
funded through Enterprise Funds. Financing is provided primarily by operating transfers from other funds and from State and Federal grants.
Lodi Lake Capital
This fund was established to account for moneys charged for activities held at Lodi Lake. The Council designated the moneys to be used for Lodi
Lake capital projects.
58
ASSETS
Cash and investments
Restricted assets
Receivables:
Accounts
Property taxes
Interest
Due from other funds or governmental agencies
Other assets
TOTALASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and other liabilities
Due to other funds or other governmental agencies
Deferred revenue
TOTAL LIABILITIES
FUND BALANCE
Fund balances:
Reserved for encumbrances
Unreserved - designated
TOTAL FUND BALANCE
TOTAL LIABILITIES AND FUND BALANCE
CITY OF LODI
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
June 30, 2001
(with comparative totals for the year ended June 30, 2000)
$ 120,758
121
Hutchins
Capital
Lodi
49,133
Vehicle and
Library
Subdivision
Street Square
Outlay
Lake
Totals
Equipment
Capital
Capital
Capital
Reserve
Capital
2001
2000
$ 396,947
121,900
300,339
3,577
7,167,326
51,606 $
8,041,695 $
5,784,985
2,158,818
8,320
2,168,200
1,240
276,189
1,240
1,098
987,295
4,861
1,694,836
73,000
276,189
123,637 300,339
73,000
73,000
13,181
3,863,036
3,888,912
$ 396,947
286,503
76,577
286,503
6,539
8,528,114 $
1,858
103,919
778
106,555
56,281
17,374
17,374
37,283
1,747
1,747
1,085
$ 396,947
123,758
300,339
76,577
7,576,109
52,384 $
8,528,114 $
5,960,271
$ 120,758
121
368,220
39,203 $
528,302 $
49,133
73,000
3,943,796
4,016,796
2,022,226
119,980
119,980
120,758
121
73,000
4,431,996
39,203
4,665,078
2,071,359
1,062
2,158,818
8,320
2,168,200
377,475
276,189
122,575 300,339
3,577
987,295
4,861
1,694,836
3,511,437
276,189
123,637 300,339
3,577
3,146,113
13,181
3,863,036
3,888,912
$ 396,947
123,758 300,339
76,577
7,578109
52,384 $
8,528,114 $
5,960,271
59
i � i � � i i i li ! ai; ai ■� � �. -� ti•.f a.■R. .�..
CITY OF LODI
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
Year ended June 30, 2001
(with comparative totals for the year ended June 30, 2000)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES AND OTHER USES
(76,479)
(22,881)
88,579
Hutchins Capital
Lodi
1,076,362
FUND BALANCE, BEGINNING OF YEAR
352,668
146,518 300,339
Vehicle and
Library
Subdivision Street Outlay
Lake
FUND BALANCE, END OF YEAR
Totals
1236637 300,339
3,577 3,146,113
Equipment
Capital
Capital Square Capital Reserve
Capital
2001
2000
REVENUES
Taxes
$
1,596,728
$ 1,596,728
1,479,550
Intergovernmental revenues
24,027
298,452
322,479
129,578
Charges for services
358
1,254,325
1,254,683
1,803,555
Investment and rental income
262
506,613
5,618
512,493
217,880
Miscellaneous revenue
40,102
66,000
199,578
305,680
497,669
Total revenue
$
64,487
66,262
3,855,696
5,618
$ 3,992,063
4,128,232
EXPENDITURES
Current
General government
$
$
38,149
Capital outlay
543,816
89,143
3,512,758
213,024
4,358,741
2,319,606
Total expenditures
$
543,816
89,143
3,512,758
213,024
$ _ 4,358,741
2,357,755
EXCESS (DEFICIENCY) OF REVENUE OVER (UNDER) EXPENDITURES
(479,329)
(22,881)
342,938
(207,406)
(366,678)
1,770,477
OTHER FINANCING SOURCES (USES)
Operating transfers in
452,850
1,736,883
192,311
2,382,044
3,248,692
Operating transfers out
(50,000)
(1,991,242)
(2,041,242)
(3,942,807)
Total other financing sources (uses)
402,850
(254,359)
192,311
340,802
(694,115)
EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES AND OTHER USES
(76,479)
(22,881)
88,579
(15,095)
(25,876)
1,076,362
FUND BALANCE, BEGINNING OF YEAR
352,668
146,518 300,339
3,577 3,057,534
28,276
3,688,912
2,812,550
FUND BALANCE, END OF YEAR
$ __276a.1 89
1236637 300,339
3,577 3,146,113
13,181 $_
3,863,036 $
3,888,912
60
c�
z
w
1
1
Fr
a
J
Z
Q
'
U
Lj-
i
Z
IL
W.
ZW
�
W
J
CL
I
OVERVIEW
Enterprise funds are distinguished by their similarity to private sector activities, as the intent is to finance or recover the cost of providing services
primarily through user charges. As such, the measurement focus is on net income in addition to financial position and changes in financial
condition. An accrual basis of accounting with depreciation recorded as an expense is utilized. Enterprise funds may also be established in order
to account for operations under which the City or an outside grantor agency has decided that a periodic determination of revenues earned,
expenses incurred and/or net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.
The City of Lodi uses the following four enterprise funds:
Electric Fund
The City established this fund 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, maintenance and debt service.
Sewer Fund
This fund was established by the City in order to account for the provision of waste water collection and treatment services to the residents of the
City. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations,
maintenance, improvements and debt service.
Water Fund
This fund was established by the City in order to account for the provision of water to the residents of the City as well as some customers in the
County. All activities to provide such services are accounted for in this fund, including, but not limited to administration, operations, distribution,
maintenance, capital improvements and debt service.
Transit Fund
This fund is used to account for the operations of the Dial -A -Ride and the Grapeline bus system.
P&A
ASSETS
Cash and Investments
Restricted assets
Receivables:
Accounts
Interest
Due from other funds or governmental agencies
Advance receivables
Inventory
Other assets
Fixed assets (net)
Deferred financing costs
TOTALASSETS
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts payable and other liabilities
Accrued salaries and wages
Accrued interest
Due to other funds or other governmental agencies
Accrued compensated absences
Deferred revenue
Certificates of participation payable, net of discount
Water note payable
TOTAL LIABILITIES
FUND EQUITY
Contributed capital
Retained earnings (deficit)
TOTAL FUND EQUITY
TOTAL LIABILITIES AND FUND EQUITY
CITY OF LODI
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
June 30, 2001
(with comparative totals for the year ended June 30, 2000)
Electric
Sewer
Water
Transit
$ 5,385,778
2,733,795
994,107
37
31,264,712
257
37
7,638,483
606,339
242,938
12,000
100,983
39,329
14,714
3,590,537
42,773
1,668,275
1,230,482
4,733,096
1,401,310
1,667,437
1,471,465
13,286
225,723
1,047
47,519
4,456
1,635
1,078
25,290,783
34,553,683
16,904,701
8,214,236
202,638
43,425,052
9,505,873
$_79.523,356
386196,299
206052,350
9,457,796
2001
$ 9,113,680
31,264,969
8,499,760
155,026
6,532,067
4,733,0%
1,710,474
54,688
84,963,403
202,638
147229 801
2000
$ 21,463,089
35,992,088
4,399,576
256,121
3,999,345
2,372,487
1,902,068
6,163
71,302,129
210,909
141.903,975
$ 2,579,351
99,199
1,107,856
72,461
$ 3,858,867
$
2,052,814
37
37
114,321
695,718
329,035
23,882
27,130
1,075,765
1,075,280
1,401,310
1,401,310
1,667,437
763,656
349,308
8,066
1,047
1,122,277
956,145
868,218
868,218
884,466
43,425,052
9,505,873
7,000,000
59,930,925
55,544,269
2,793,718
2,793,716
2,923,305
$ 47,464,014
10,283,415
11,801,740
1,501,948
$ 71,051,117
$
65,210,037
$ 592,964
5,068,632
3,530,108
4,575,063
$ 13,766,767
$
14,222,636
31,466,378
22,844,252
4,720,502
3,380,785
62,411,917
62,471,302
32,059,342
27,912,884
8,250,610
7,955,848
76,178,684
76,693,938
$ 79,523.356
38,196,299
20,052,350
9,457,796
$ 147,229,801
$
141,903,975
w w wwomawm aw M dw ! v'4 m � " M ow " OE
OPERATING REVENUES
Charges for services
OPERATING EXPENSES
Personnel services
Supplies, materials and services
Utilities
Depreciation and amortization
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUES (EXPENSE)
a w M �
CITY OF LODI
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND EQUITY
Year ended June 30, 2001
(with comparative totals for the year ended June 30, 2000)
$ (6,875,853) (532,376) (4,790,317) (5,010,414) $ (17,208,960) $ (7,957,281)
Interest, net
$ 3,087,374
(486,973)
1,150
Totals
2,440,378
Electric
Sewer
Water
Transit
2001
2000
$ 40,115,081
4,697,052
3,600,091
220,128 $
48,632,352 $
46,277,668
3,152,242
1,434,734
791,354
83,131
5,461,461
5,388,889
4,622,701
2,560,994
6,604,917
4,655,750
16,444,362
17,283,792
38,477,713
340,656
719,114
33,441
39,570,924
29,262,860
738,278
893,044
275,023
458,220
2,364,565
2,299,408
$ 46,990,934
5,229,428
8,390,408
5,230,542 $
65 841,312 $
54,234,949
$ (6,875,853) (532,376) (4,790,317) (5,010,414) $ (17,208,960) $ (7,957,281)
Interest, net
$ 3,087,374
(486,973)
1,150
(161,173) $
2,440,378
$ 383,073
Rent
1,500
137,396
43,385
11,900
194,181
187,584
Fees received from developers
-
104,970
389,367
-
494,337
431,428
Other revenues
450,582
169,365
394,927
3,158,541
4,173,415
3,515,372
TOTAL NONOPERATING REVENUES (EXPENSE)
$ 3,539,456
(75,242)
828,829
3,009,268 $
7,302,311
$ 4,517,457
LOSS BEFORE CAPITAL CONTRIBUTIONS AND OPERATING TRANSFERS
(3,336,397)
(607,618)
(3,961,488)
(2,001,146)
(9,906,649)
(3,439,824)
Capital contributions
677,971
3,730,253
1,484,057
3,908,289
9,800,570
Operating Transfers in
389,499
368,510
168,992
2,876,233
3,803,234
1,908,126
Operating Transfers out
(2,345,257)
(948,811)
(824,537)
(93,804)
(4,212,409)
(5,687,728)
Net Operating Transfers in (out)
(1,277,787)
3,149,952
828,512
6,690,718
9,391,395
(3,779,602)
Net income (loss)
(4,614,184)
2,542,334
(3,132,976)
4,689,572
(515,254)
(7,219,426)
Add: Depreciation on contributed assets
9,219
154,669
102,877
189,104
455,869
514,350
Net (decrease) increase to retained earnings
(4,604,965)
2,697,003
(3,030,099)
4,878,676
(59,385)
(6,705,076)
RETAINED EARNINGS (DEFICIT) - BEGINNING OF YEAR
36,071,343
20,147,249
7,750,601
(1,497,891)
62,471,302
69,176,378
RETAINED EARNINGS (DEFICIT) - END OF YEAR
31,466,378
22,844,252
4,720,502
3,380,785
62,411,917
62,471,302
CONTRIBUTED CAPITAL:
Beginning of year
602,183
5,223,301
3,632,985
4,764,167
14,222,636
12,756,356
Depreciation of contributed assets acquired through June 30, 2000
(9,219)
(154,669)
(102,877)
(189,104)
(455,869)
(514,350)
Contributed assets
-
1,980,630
End of year
592,964
5,068,632
3,530,108
4,575,063
13,766,767
14,222,636
TOTAL FUND EQUITY
$ 32,059,342
27,912,884
8
71955,848 $
76,178,684
$ 76,693,938
64
CITY OF LODI
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year ended June 30, 2001
(with comparative totals for the year ended June 30, 2000)
Noncash Investing Capital and Financing Activities
Enterprise Funds - The City received donated fixed assets valued at $5,892,281 for the year ended June 30, 2001.
65
No
Totals
Electric
Sewer
Water
Transit
2001
2000
Cash flows from operating activities:
Operating loss $
(6,875,853)
(532,376)
(4,790,317)
(5,010,414) $
(17,208,960)
(7,957,281)
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation and amortization
738,278
893,044
275,023
458,220
2,364,565
2,299,408
Other revenues
450,582
169,365
394,927
3,158,541
4,173,415
3,515,372
Change in assets and liabilities:
Increase in accounts receivables
(3,661,235)
(423,253)
(14,785)
(911)
(4,100,184)
(1,276,434)
Increase in advance receivables
(2,360,609)
(2,360,609)
(888,626)
Increase in restricted deposit
(260)
(260)
Decrease (increase) in interest receivables
91,331
(1,625)
11,389
101,095
(26,513)
Increase in due from other funds
(93,874)
(1,644,569)
(794,279)
(2,532,722)
1,040,998
Decrease (increase) in inventory
170,772
(306)
21,128
191,594
18,459
(Increase) decrease in other assets
(46,925)
(837)
165
(928)
(48,525)
61,012
Increase (decrease) in accounts payable and other liabilities
1,515,053
(1,886)
484,839
(191,954)
1,806,052
789,816
Decrease in accrued salaries and wages
(73,073)
(35,567)
(4,068)
(1,576)
(114,284)
(180,936)
(Decrease) increase in accrued interest
(4,350)
(1,039)
5,874
485
704,143
(Decrease) increase in due to other funds
(256,126)
(256,126)
246,949
Increase (decrease) in compensated absences
99,796
76,570
(12,631)
397
164,132
(48,962)
Decrease in deferred revenue
(16,248)
(16,248)
(572,621)
Net cash (used in) provided by operating activities
(10,045,757)
122,531
(5,280,198)
(2,633,156)
(17,836,580)
(2,275,216)
Cash flows from noncapital financing activities:
Operating transfers in
389,499
368,510
168,992
2,876,233
3,803,234
1,908,126
Operating transfers out
(2,345,257)
(948,811)
(824,537)
(93,804)
(4,212,409)
(5,687,728)
Fees received from developers
104,970
389,367
494,337
431,428
Net cash (used in) provided by noncapital financing activities
(1,955,758]
(475,331)
(266,1781
2,782,429
85,162
(3,348,174)
Cash flows from capital financing activities:
Proceeds from Certificates of Participation
4,727,375
4,500,000
9,227,375
10,731,895
Issuance costs - Certificates of Participation
(834,837)
Acquisition and construction of capital assets
(6,324,718)
262,511
(123,132)
(3,908,289)
(10,093,628)
(4,884,252)
Principal payments on debt
(145,000)
(129,587)
(274,587)
(265,119)
Interest payments on debt
(1,391,435)
(658,070)
(97,350)
(2,146,855)
(2,098,191)
Capital contributed
3,908,289
3,908 289
1,852,074
Net cash (used in) provided by capital financing activities
(2,988,778)
(540,559)
4,149,931
620,594
4,501,570
Cash flows from investing activities:
Rent of City property
1,500
137,396
43,385
11,900
194,181
187,584
Interest on investments
4,478,809
171,097
98,501
(161,173)
4,587,234
2,637,756
Net cash provided by (used in) investing activities
4,480,309
308,493
141,886
(149,273)
4,781,415
2,825,340
Net (decrease) increase in cash and cash equivalents
(1 D, 509,984)
(5B4,866)
(1,254,559)
(12,349,409)
1,703,520
Cash and cash equivalents at beginning of year
15,895,762
3,318,661
2,248,666
21,463,089
19,759,569
Cash and cash equivalents at end of year $
5,385,778
2,733,795
994,107
$
9,113,680
21,4634089
Noncash Investing Capital and Financing Activities
Enterprise Funds - The City received donated fixed assets valued at $5,892,281 for the year ended June 30, 2001.
65
No
� � � � � � �� �� � � w �� �� �� .A� �� �e :� a�
OVERVIEW
Internal Service Funds are maintained to account for the internal transfer of services between operating units of the City. The purpose
of an Internal Service Fund is to achieve a level of operating efficiency that may not be available if the same activities were performed by
multiple organizations.
Claims and Benefits Funds
The City of Lodi maintains an internal service fund to account for the following insurance and certain employee benefits:
General Liability
Employee assistance program
Workers' Compensation
Employee recognition program
Dental
Unemployment insurance
Chiropractic
Flexible spending program
Life/accidental insurance
Long Term Disability
Medical
Vision
66
CITY OF LODI
INTERNAL SERVICE FUND
BALANCE SHEET
June 30, 2001 and 2000
ASSETS
Cash and investments
Receivables:
Accounts
Interest
Other assets
TOTAL ASSETS
LIABILITIES AND FUND EQUITY
LIABILITIES
Self-insurance reserve
TOTAL LIABILITIES
FUND DEFICIT
Retained deficit
TOTAL FUND DEFICIT
TOTAL LIABILITIES AND FUND EQUITY (DEFICIT)
67
M M W
Totals
2001
2000
$ 1,929,432 $
2,153,460
84,475
99,425
27,579
23,165
4,186
$ 2,041,486 $
2,280,236
$ 3,576,629
$ 3,576,629
$ (1,535,143)
(1,535,143)
$ 2,041,486
$ 3,576,629
$ 3,576,629
$ (1,296,393)
(1,296,393)
$ 2,280,236
CITY OF LODI
INTERNAL SERVICE FUND
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND DEFICIT
Years ended June 30, 2001 and 2000
OPERATING REVENUES
Charges for services
OPERATING EXPENSES
Personnel services
Supplies, materials and services
Claims payments
TOTAL OPERATING EXPENSES
OPERATING LOSS
NONOPERATING REVENUES
Investment income (expenses), net
Other revenues
TOTAL NONOPERATING REVENUES
LOSS BEFORE OPERATING TRANSFERS
Operating transfers in
Net (loss) income
RETAINED DEFICIT - BEGINNING OF YEAR
RETAINED DEFICIT - END OF YEAR
68
Totals
2001 2000
$ 2,571,428
166,761
2,669,319
1,406,618
4,242,698
(1,671, 270)
192,309
79.216
271,525
(1,399,745)
1,160, 995
(238,750)
(1,296,393)
$ (1,535,143)
$ 2,439,023
175,495
2,664,891
955,716
3,796,102
(1,357,079)
135,228
80.507
215,735
(1,141,344)
1,161,000
19,656
(1,316,049)
$ (1,296,393)
CITY OF LODI
INTERNAL SERVICE FUND
STATEMENT OF CASH FLOWS
Years ended June 30, 2001 and 2000
Cash flows from operating activities:
Operating loss
Adjustments to reconcile operating loss to net cash used in operating activities:
Other revenues
Changes in assets and liabilities:
Decrease (increase) in accounts receivables
(Increase) decrease in interest receivables
Decrease in accounts payables and other liabilities
Decrease (increase) in other assets
Decrease in self-insurance reserve
Net cash used in operating activities
Cash flows from noncapital financing activities:
Operating transfers in
Net cash provided by noncapital financing activities
Cash flows from investing activities:
Interest on investments
Net cash provided by investing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
69
Totals
2001
2000
$ (1,671,270) $
(1,357,079)
79,216
80,507
14,950
(36,048)
(4,414)
2,456
-
(32,501)
4,186
(3,286)
(210,415)
(1,577,332) (1,556,366)
1,160,995
1,161,000
1,160,995
1,161,000
192,309
135,228
192,309
135,228
(224,028)
(260,138)
2,153,460
2,413,598
$ 1,929,432 $
2,153,460
WNW
SUPPLEMENTAL FINANCIAL STATEMENTS
TRUST AND AGENCY FUNDS
OVERVIEW
The City has established the following expendable trusts and agency funds, which are used to account for funds, held by the City in a trustee
capacity or as an agent for private individuals, organizations or other governmental agencies:
Expendable Trust Funds
Private Sector Trust Fund
This fund was established to account for assets held and invested by the Library Board as trustee. The Library can spend the funds
in accordance with trust agreements.
Hutchins Street Square Bequest
This fund was established to account for assets held by the City as trustee. The City can spend the principal and earnings of the trust
in accordance with the trust agreement on behalf of Hutchins Street Square.
Miscellaneous Expendable Trust
This fund was established to account for nominal sums of moneys held by the City as trustee. It is believed that these sums will be spent
within a short span of time.
Agency Funds
Special Assessments
This fund was established to account for special assessments collected on the property tax roll by the City on behalf of the property owners within
the Industrial Way Beckman Districts and the Downtown and Cherokee Lane Districts.
70
ASSETS
Cash and Investments
Receivables:
Accounts
Special assessments
Interest
Other assets
TOTAL ASSETS
LIABILITIES AND FUND BALANCE
LIABILITIES
Accounts payable and other liabilities
TOTAL LIABILITIES
FUND BALANCE
Unreserved - designated
TOTAL FUND BALANCE
TOTAL LIABILITIES AND FUND BALANCE
CITY OF LODI
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEET
June 30, 2001
(with comparative totals for the year ended June 30, 2000)
$ 62,405 430,845 $ 493,250 $
Expendable Trust Funds
Agency Fund
555,574
Private
Hutchins Street
Miscellaneous
Special
Totals
1,235,656
Sector
Square Bequest
Expendable Trust
Assessments
2001
2000
$ 674,010
372
51,745
384,911
$ 1,111,038 $
1,226,596
1,598
1,598
1,598
40,346
40,346
5
5,588
5,593
4,141
9,062
9,062
3,321
$ 674,010
377
62,405
430,845
$ 1,167,637 $
1,235,656
$ 62,405 430,845 $ 493,250 $
555,574
$ 62,405 430,845 $ 493,250 $
555,574
674,010 377 674,387
680,082
674,010 377 674,387
680,082
$ 674,010 377 62,405 430,845 $ 1,167,637 $
1,235,656
71
w w IF= ■■■� w w w w a■r �■■� w I� ■w viiiiiiIIIIIIII! �
CITY OF LODI
EXPENDABLE TRUST FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
Year ended June 30, 2001
(with comparative totals for the year ended June 30, 2000)
REVENUES
Investment and rental income
Total revenues
EXPENDITURES
Current
Library
Total expenditures
EXCESS (DEFICIENCY) OF REVENUE OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES
Operating transfers out
Other
Total other financing sources
EXCESS (DEFICIENCY) OF REVENUE AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
FUND BALANCE, BEGINNING OF YEAR
FUND BALANCE, END OF YEAR
Expendable Trust Funds
Private Hutchins Street Miscellaneous
Sector Square Bequest Expendable Trust
$ 9,280 25
$ 9,280 25
$ 15,000
$ 15,000
(5,720) 25
(5,720) 25
679,730 352
$ 674,010 377
72
(17,226)
17,226
Totals
2001
2000
$ 9,305
$ 12,315
$ 9,305
$ 12,315
$ 15,000
$ 50,000
$ 15,000
$ 50,000
(5,695)
(37,685)
(17,226)
33,571
17,226
(33,821)
(250)
(5,695)
(37,935)
680,082
718,017
$ 674,387
$ 680,082
CITY OF LODI
AGENCYFUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Year ended June 30, 2001
(with comparative totals for the year ended June 30, 2000)
ASSETS
Cash and investments
Special assessment receivable
Interest receivable
TOTAL ASSETS
LIABILITIES
Special Assessments
Balance Balance
7/1/00 Additions Deductions 6/30/01 6/30/00
$ 379,462 205,091 199,642 384,911 $ 379,462
40,346 40,346
4,137 5,588 4,137 5,588 4,137
$ 383,599 251,025 203,779 430,845 $ 383,599
Accounts payable and other liabilities $ 383,599 47,246 430,845 $ 383,599
TOTAL LIABILITIES
$ 383,599 47,246 430,845 $ 383,599
73
s 111111111 11011111 111111111 IEW Illi Mill 111111110 w � 5a . we
OVERVIEW
General Fixed Assets Account Group
All of the City's fixed assets of a tangible nature, except those relating to the proprietary fund types, are accounted for in this Account Group. As
these assets are not financial resources available for expenditure or appropriation, they are not accounted for with Governmental Funds, but as an
account group; and exist solely as accounting records of the City's fixed assets. The City's general fixed assets have been accounted for at cost,
and do not include public domain or infrastructure fixed assets such as roads, bridges, storm drains or sidewalks, as these assets are immovable
and only of value to the City.
General Long -Term Obligations Account Group
The City's long term obligations, except those relating to the proprietary fund types, are accounted for in this Account Group. These liabilities are
backed by the full faith and credit of the City, which means that the general taxing authority of the City secures the debt. Included
in long-term obligations are:
Compensated absences
Capitalized leases obligations
Certificates of Participation
74
CITY OF LODI
COMPARATIVE SCHEDULE OF GENERAL FIXED ASSETS
June 30, 2001 and 2000
General fixed assets: 2001 2000
Land $ 21,059,805 $ 19,111,815
Buildings and improvements 37,635,750 24,015,010
Machinery and equipment 5,743,372 4,598,524
Vehicles 4,887,961 4,320,427
Construction in progress 12,125,017 25,657,629
Capital lease assets 1,512,265 842,522
Total $ 82,964,170 $ 78,545,927
Investment in general fixed assets:
Prior year balances (as of June 30,1991) $ 42,965,286 $ 42,965,286
General fund 22,874,458 20,060,079
Special revenue funds 725,235 408,342
Capital projects funds 16,399,191 15,112,220
Total $ 82,964,170 $ 78,545,927
75
MM M110111 m m m! m m m 1111111101111111111 IM mom
� >• � ! ! � ! �� w ■ter �� �■�r � �� �� �� �� � ��
Function and Activity
General Government:
City clerk
City manager
Finance
Total General Government
Public protection
Public works
Library
Parks and recreation
Non -departmental
Total general fixed assets
allocated to functions
Total general fixed assets
CITY OF LODI
SCHEDULE OF GENERAL FIXED ASSETS
BY FUNCTION AND ACTIVITY
June 30, 2001
76
Buildings and
Machinery and
Capital Lease
Construction
Land
Improvements
Equipment
Vehicles
Assets
in Progress
Total
$
48,533
$
48,533
303,938
35,784
339,722
584,500
202,791
236,461
12,874
1,036,626
$
936,971
238,575
236,461
12,874
$
1,424,881
$ 628,503
739,336
2,905,840
2,457,290
1,275,804
739,504
$
8,746,277
1,037,952
814,260
822,796
1,691,716
2,713,338
7,080,062
205,286
328,524
162,585
696,395
12,935,879
21,370,422
650,511
405,713
921,930
36,284,455
6,252,185
14,383,208
264,669
94,667
7,737,371
28,732,100
$ 21,059,805
37,635,750
4,806,401
4,649,386
1,275,804
12,112,143
$
81,539,289
$ 21,059,805
37,635,750
5,743,372
4,887,961
1,512,265
12,125,017
$
82,964,170
76
CITY OF LODI
Schedule of Changes in General Fixed Assets
By Function and Activity
Year ended June 30, 2001
Function and Activity
General Government:
City Clerk
City Manager
Finance
Total General Government
Public Protection
Public Works
Library
Parks and Recreation
Non -departmental
Total General Fixed Assets
Allocated to Functions
Total General Fixed Assets
General Fixed
Assets
June 30, 2000
Additions
Deletions
General Fixed
Assets
June 30, 2001
$ 48,533
$
48,533
335,326
4,396
339,722
1,002,985
33,641
1,036,626
1,386,844
38,037
1,424,881
7,139,517
2,455,529
(848,769)
8,746,277
6,280,512
847,381
(47,831)
7,080,062
671,316
25,079
696,395
35,174,761
2,349,219
(1,239,525)
36,284,455
27,892,977
13,839,500
(13,000,377)
28,732,100
$ 77,159,083
19,516,708
(15,136,502) $
81,539,289
$ 78,545,927
19,554,745
(15,136,502) $
82,964,170
77
CITY OF LODI
COMPARATIVE SCHEDULES OF GENERAL LONG-TERM OBLIGATIONS
June 30, 2001 and 2000
Amount to be provided for retirement
of general long-term obligations
Total
General Long-term Obligations
Compensated absences
Capitalized lease obligations
Certificates of participation
Total
78
2001 2000
$ 19,500,934 $ 18,569,285
$ 19,500,934
$ 5,592,499
928,435
12,980,000
$ 19,500,934
$ 4,683,774
375,511
13,510,000
$ 18,569,285
STATISTICAL TABLES
UNAUDITED
! ! ! >! ! ! 1 !
CITY OF LODI
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Amounts In Thousands)
25,000
Charges
20,000
Use of
Fiscal
Licenses/
Inter -
for
15,000
Money &
Misc.
Year Taxes
Permits
Governmental
Services
Penalties
Property
Revenue
Total
1991-92 $ 11,556 $
420 $
5,213 $
10,000
252 $
1,380 $
1,139 $
24,963
1992-93 11,462
317
5,049
5,975
338
1,136
649
24,926
1993-94 12,579
507
4,756
2,100
407
1,157
199
21,705
1994-95 16,209
634
5,000
2,517
406
808
201
26,703
1995-96 17,070
842
6,642
2,428
421
1,063
140
28,606
N
v
pC
7 0
1,012
6,316
1,908
1991-02 1992-93 1993.94 199495 1995-96 1998.97 1997-98 1998-99 1999-00 2000-01
1,216
80
f Taxes ■ Licenses/ Permits ■ Inter - Governmental ❑ Charges for Services
1997-98 17,790
1,183
■ Fines, Forfeits/ Penalties ® Use of Money & Property ■ Misc. Revenue
2,871
Charges
Use of
Fiscal
Licenses/
Inter -
for
Fines, Forfeits/
Money &
Misc.
Year Taxes
Permits
Governmental
Services
Penalties
Property
Revenue
Total
1991-92 $ 11,556 $
420 $
5,213 $
5,003 $
252 $
1,380 $
1,139 $
24,963
1992-93 11,462
317
5,049
5,975
338
1,136
649
24,926
1993-94 12,579
507
4,756
2,100
407
1,157
199
21,705
1994-95 16,209
634
5,928
2,517
406
808
201
26,703
1995-96 17,070
842
6,642
2,428
421
1,063
140
28,606
1996-97 17,029
1,012
6,316
1,908
453
1,216
80
28,014
1997-98 17,790
1,183
6,291
2,871
662
1,060
524
30,381
1998-99 18,594
1,267
8,493
3,874
878
982
243
34,331
1999-00 19,801
1,406
9,054
4,611
714
982
764
37,332
2000-01 21,909
1,592
11,641
4,249
765
1,509
383
42,048
General Governmental Revenues include General, Special Revenue, Debt Service and Capital Projects Funds.
Excludes Expendable Trusts.
SOURCE: City Finance Department
• Due to change in accounting for refuse revenue.
**Due to in -lieu taxes from Enterprise
Funds.
79
20,000
18,000
16,000
14,000
y 12,000
v
c
10,000
0
L
6,000
6,000
4,000
2,000
0
CITY OF LODI
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
1991-92 1992-93 1993-94 1994-95 1995.96 1996-97 1997-98 1998-99 1999-00 2000.01
!General Government ■ Public Protection ❑ Public Works ❑ Sanitation
1 Library ® Parks & Recreation N Debt Service ❑ Capital Outlay
Fiscal General
Public
Public
Parks &
Debt
Capital
Year Government
Protection
Works
Sanitation
Library
Recreation
Service
Outlay
Total
1991-92 $ 5,186 $
9,903 $
4,204 $
3,424
$ 949 $
2,632 $
395 $
1,519 $
28,212
1992-93 5,033
9,903
5,128
4,063
852
2,487
396
941
28,803
1993.94 4,908
9,949
4,296
0
• 881
2,307
405
2,203
24,949
1994-95 5,211
10,401
4,382
0
' 956
2,299
345
2,652
26,246
1995-M 5,217
10,172
6,012
0
' 954
2,198
500
5,378
30,431
1996-97 5,882
11,059
5,749
0
• 1,012
2,312
939
10,810
37,763
1997-98 7,068
10,896
4,810
0
966
2,174
1,288
18,383
45,585
1998-99 7,239
11,225
5,151
0
• 1,030
2,230
1,282
6,640
34,797
1999-00 7,813
11,430
5,039
0
1,040
2,670
1,282
6,420
35,694
2000-01 8,862
13,190
6,312
0
1,184
2,999
1,285
12,045
45,877
General Governmental Expenditures includes General,
Special Revenue, Debt Service and Capital Projects Funds.
Excludes Expendable Trusts.
SOURCE: City Finance Department
' Due to change in accounting for refuse expenditures.
so
CITY OF LODI
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(Amounts in Thousands)
$9,000
-- --------- -
$8,000
Transient
$7,000
Motor Veh .
Public
Business
In Lieu
$6,000
Property
& Use
Occupancy
Franchise
Transfer
in Lieu
Cigarette Protection
License
Franchise
Total (1)
1991-92 $
$5,000
4,909 $
200 $
235
$ 79 $
1,799 $
43 $ - $
95 $
- $
11,980
1992-93
4,618
4,968
236
447
58
1,868
7 -
95
-
12,297
1993-94
$4,000
5,221
247
508
68
1,972
- 98
92
-
13,156
1994-95
4,077
5,320
248
$3,000
68
L§
- 149
169
5,300
17,722
1995-96
4,206
5,763
278
503
75
2,023
$2,000
L
5,413
18,865
1996-97
4,225
5,950
249
524
66
2,144
- 154
541
5,348
$1,000
1997-98
4,374
6,205
278
586
77
2,478
- 180
593
5,546
20,317
1998-99
4,517
$0
305
618
119
2,221
- 180
612
5,627
20,722
1999-00
4,932
7,095
318
675
I 1991-92 1992-93 1993-94 1994-95 1995.96 1996-97 1997-98 1998-99 1999-00 2000.01
3,008
®Property ■Sales&Use 0 Transient Occupancy oFranchise ■ Documentary Transfer
658
5,721
®Motor Veh . in Lieu ■Public Protection i] Business License ■In Lieu Franchise
2000-01
Fiscal
Sales
Transient
Documentary
Motor Veh .
Public
Business
In Lieu
Year
Property
& Use
Occupancy
Franchise
Transfer
in Lieu
Cigarette Protection
License
Franchise
Total (1)
1991-92 $
4,620 $
4,909 $
200 $
235
$ 79 $
1,799 $
43 $ - $
95 $
- $
11,980
1992-93
4,618
4,968
236
447
58
1,868
7 -
95
-
12,297
1993-94
4,950
5,221
247
508
68
1,972
- 98
92
-
13,156
1994-95
4,077
5,320
248
506
68
1,885
- 149
169
5,300
17,722
1995-96
4,206
5,763
278
503
75
2,023
- 154
470
5,413
18,865
1996-97
4,225
5,950
249
524
66
2,144
- 154
541
5,348
19,201
1997-98
4,374
6,205
278
586
77
2,478
- 180
593
5,546
20,317
1998-99
4,517
6,523
305
618
119
2,221
- 180
612
5,627
20,722
1999-00
4,932
7,095
318
675
116
3,008
- 196
658
5,721
22,719
2000-01
5,322
8,028
390
820
158
3,051
- 242
736
6,015
24,762
(1) General governmental tax revenues are included in taxes, licenses and permits, intergovernmental revenues and miscellaneous revenue of the City's General Fund.
SOURCE: City Finance Department
91
CITY OF LODI
SECURED TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(Amounts in Thousands)
6,000
5,000
c 4,000
m 3,000
I` 2,000
1,000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
-0 Tax Levy - Tax Collectons
SOURCE: County Auditor -Controller
82
M r M M M r r M M w M M M M w M M M M
Percent
Total
Current Year's
Percent of
Delinquent
Total
of Total
Fiscal
Tax
Tax
Collections
Tax
Tax
Collections
Year
Levy
Collections
to Tax Levy
Collections
Collections
to Tax Levy
1992 $
4,175
$ 4,105
96.3%
$ 169 $
4,274
102.4%
1993
4,375
3,809
87.1%
90
3,899
89.1%
1994
3,639
3,461
95.1%
624
4,085
112.3%
1995
3,670
3,516
95.8%
9
3,525
96.0%
1996
3,781
3,615
95.6%
-
3,615
95.6%
1997
3,827
3,682
96.2%
3,682
96.2%
1998
4,444
4,433
99.8%
4,433
99.8%
199.9
4,653
4,578
98.4%
4,578
98.4%
2000
5,056
4,917
97.3%
4,917
97.3%
2001
5,182
5,118
98.8%
5,118
98.8%
SOURCE: County Auditor -Controller
82
M r M M M r r M M w M M M M w M M M M
CITY OF LODI
ASSESSED FULL CASH VALUE OF ALL TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(Amounts in Thousands)
M r M M w r M M M M M M M M M r M M w
2,00D,000
1,50.000
S
s
E
I
1,000,000
500,000
1991-92 1992-93 199394 1994-95 1995-96 199&97 1997-99 1998.99 199500 2000-01
C3 Lend ■Improvements EProperty OEwmptlons
M r M M w r M M M M M M M M M r M M w
w■ w iw w w w w w iw w w■ w w w w w w � �
CITY OF LODI
PROPERTY TAX RATES -- DIRECT & OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
Per $100.00 of Assessed Value
2000-01
Oft
■County -Wide Levy ■County -Wide City
❑County -Wide School OCounty-Wide All Other
SOURCE: San Joaquin County Auditor/Controller's Office
95
Basic
Fiscal
County Wide
Year
Levy
city
School
All Other
Total
1991-92
1.0000
0.0153
0.0248
0.0034
1,0435
1992-93
1.0000
0.0150
0.0248
0.0034
1.0432
1993-94
1.0000
0.0146
0.0248
0.0034
1.0428
1994-95
1.0000
0.0126
0.0140
0.0034
1,0300
1995-96
1.0000
0.0123
0.0028
0.0034
1,0185
1996-97
1.0000
0.0000
0.0022
0.0034
1.0056
1997-98
1.0000
0.0000
0.0019
0.0034
1,0053
1998-99
1.0000
0.0000
0.0001
0.0034
1.0035
1999-00
1.0000
0.0000
0.0002
0.0034
1.0036
2000-01
1.0000
0.0000
0.0002
0.0000
1.0002
SOURCE: San Joaquin County Auditor/Controller's Office
95
Fiscal
Year
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000.01
CITY OF LODI
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
LAST TEN FISCAL YEARS
(Amounts In Thousands)
Current
Current
Assessments
Assessments
Due
Collected
$ 178
$ 140
49
46
52
52
49
48
51
50
125
125
SOURCE: City Finance Department
86
Total
Collection
Total
As Percent of
Outstanding
Current
Current and
Assessments
Delinquent
Due
Assessments
78.7%
$ 38
93.9%
3
100.0%
-
98.0%
1
98.0%
1
100.0%
-
0.0%
-
0.0%
-
0.0%
-
0.0%
-
w= M i w= r = i ===
M M M r M M M M M r M M i M M M M i M
CITY OF LODI
RATIO OF NET GENERAL BONDED DEBT
TO TAXABLE ASSESSED VALUE AND NET BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(Amounts in Thousands)
SOURCE: City Finance Department
87
Debt
Payable
Gross
Gross
From
Net
Percent of Net
Net
Fiscal
Assessed
Bonded
Enterprise
Bonded
Bonded Debt to
Bonded Debt
Year
Population
Value
Debt
Revenue
Debt
Assessed Value
Per Capita
1991-92
53 $
2,203,294
$ 12,375
$ 11,170
$ 1,205
0.0547%
$ 22.74
1992-93
53
2,304,333
11,560
10,355
1,205
0.0523%
22.61
1993-94
54
2,415,837
10,840
10,270
570
0.0236%
10.58
1994-95
55
2,471,754
11,379
10,174
1,205
0.0488%
21.91
1995-96
54
2,556,328
15,078
10,078
5,000
0.1956%
92.59
1996-97
55
2,593,001
24,948
9,978
14,970
0.5773%
272.18
1997-98
56
2,648,573
24,372
9,872
14,500
0.5475%
258.93
1998-99
57
2,724,793
23,776
9,762
14,014
0.5143%
245.86
1999-00
58
2,874,167
23,146
9,636
13,510
0.4700%
232.93
2000-01
59
3,060,725
72,911
59,930
12,981
0.4241%
220.02
SOURCE: City Finance Department
87
CITY OF LODI
COMPUTATION OF DIRECT AND OVERLAPPING GENERAL BONDED DEBT
June 30, 2001
Total Percent City's Share
COP Applicable of Debt
DIRECT DEBT:
CERTIFICATE OF PARTICIPATION $ 12,980,000 100.00% $ 12,980,000
OVERLAPPING DEBT:
NONE 0 0
Total $ 12,980,000 $ 12,980,000
DEBT RATIOS
June 30, 2001
Ratio of Direct Overlapping Debt to Assessed Full Cash Value =12,980,000/3,060,725,000 0.42%
Direct and Overlapping Debt Per Capita =12,980,000/58,593 $222
Taxable Assessed Full Cash Values Per Capita = 3,060,725,000/58,593 $52,237
SOURCE: City Finance Department
8s
M = = = = = = r = = = r
� � � � � � � � � � I• � lllllf� I� � � � +� �
CITY OF LODI
COMPUTATION OF LEGAL DEBT MARGIN
June 30, 2001
Assessed Full Cash Value as of June 30, 2001 (1)
Debt Limit - 15 Percent of Assessed Full Cash Value (2)
Amount of Debt Applicable to Debt Limit
LEGAL DEBT MARGIN
(1) Assessed Value before exemptions applicable to 2000-01 Tax Roll
(2) Section 43605 California Government Code
SOURCE: San Joaquin County Auditor/Controller's Office
City Finance Department
89
$ 3,060,725,475
$ 459,108,821
E
$ 459,108,821
Zero balances occured in 1996-97 due to general obligation bonds paid off in 1995-96.
SOURCE: City Finance Department
90
CITY OF LODI
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL
EXPENDITURES
LAST TEN FISCAL YEARS
(Amounts in Thousands)
Total
Percent of
Total General
Debt Service
Fiscal
Debt Governmental
to Governmental
Year
Principal
Interest
Service Expenditures
Expenditures
1991-92
$ 147
$ 27
$ 174 $ 28,803
0.60%
1992-93
156
21
177 24,949
0.71%
1993-94
165
15
180 24,949
0.72%
1994-95
114
8
122 26,246
0.46%
1995-96
118
4
122 30,431
0.40%
1996-97
0
0
37,763
•
1997-98
470
818
1,288 45,585
2.83%
1998-99
485
797
1,282 34,797
3.68%
1999-00
505
777
1,282 35,694
3.59%
2000-01
530
755
1,285 45,877
2.80%
Zero balances occured in 1996-97 due to general obligation bonds paid off in 1995-96.
SOURCE: City Finance Department
90
i i i i i i i� i i i i i i i i� �■ �
CITY OF LODI
REVENUE BOND COVERAGE
LAST TEN FISCAL YEARS
SOURCE: City of Lodi Finance Department
91
Net
Revenue
Direct
Available
Current Fiscal Year's
Fiscal
Gross
Operating
For Debt
Debt Service Requirements
Year
Revenue
Expense
Service
Principal
Interest
Total
Coverage
1991-92
$ 3,941,414
$ 2,394,811
$ 1,546,603
$
$ 483,493 $
483,493
3.20
1992-93
2,923,038
2,009,791
913,247
330,000
710,390
1,040,390
0.88
1993-94
3,454,258
2,030,628
1,423,630
100,000
705,690
805,690
1.77
1994-95
3,596,313
2,489,307
1,107,006
110,000
700,355
810,355
1.37
1995-96
3,339,315
3,301,761
37,554
110,000
696,357
806,357
0.05
1996-97
3,444,597
2,863,017
581,580
115,000
688,818
803,818
0.72
1997-98
3,946,058
2,913,969
1,032,089
120,000
682,218
802,218
1.29
1998-99
3,935,006
2,957,162
977,844
125,000
675,030
800,030
1.22
1999-00
3,874,750
3,146,931
727,819
140,000
666,770
806,770
0.90
2000-01
4,697,052
4,049,058
647,994
145,000
658,070
803,070
0.81
SOURCE: City of Lodi Finance Department
91
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
CITY OF LODI
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997.98 1996-99 1999-00 2000-01
III City Population ■ San Joaquin County Population
92
Population
San Joaquin
Population
Rank In Size
Fiscal
Square
City
Percent
County
Percent
of California
Year
Mlles
Population
Change
Population
of County
Cities
1991-92
11.30
52,900
0.4%
480,628
11.0%
113
1992-93
11.82
52,900
0.0%
503,400
10.5%
120
1993-94
12.14
53,000
0.2%
521,500
10.2%
124
1994-95
12.32
53,575
1.1%
530,700
10.1%
121
1995-96
12.32
54,473
1.7%
529,300
10.3%
81
1996-97
12.32
54,800
0.6%
535,420
10.2%
123
1997-98
12.32
55,700
1.6%
545,200
10.2%
124
1998-99
12.32
56,900
2.2%
554,400
10.3%
124
1999-00
12.50
57,900
1.8%
566,600
10.2%
125
2000-01
12.60
58,600
1.2%
583,700
10.0%
126
SOURCE:
State of California, Department of Finance, Demographic Research Unit.
City Finance Department Budget
92
CITY OF LODI
CONSTRUCTION ACTIVITY
LAST TEN FISCAL YEARS
Building Permits
2500. _..
2000
1500
1000
500
—
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Number of
Fiscal Building Permits
Year Issued
1993
1994
1995
1996
1997
1998
1999
2000
2001
1300
903
995
994
1464
1486
1632
1749
1856
2275
Percent
Change
1.64%
-30.54%
10.19%
.10%
47.24%
1.50%
9.83%
7.17%
6.12%
22.58%
SOURCE: City Community Development Department
93
Estimated
Valuation
(in thousands)
$ 27,009
18,123
31,517
44,881
29,019
57,452
59,790
74,012
77,613
104,380
Percent
Change
-33.53%
-32.90%
73.91%
42.40%
-35.34%
97.98%
4.07%
23.79%
4.87%
34.49%
CITY OF LODI
BANK DEPOSITS
LAST TEN FISCAL YEARS
(Amounts in Millions)
800,000
SAVINGS S
Year
700,000
LOANS
1989
600.000-
$ 282,339 $
1990
500,000
267,501
1991
0
° 400,000
183,936
1992
649,252
198,756
1993
666,342
300,000
1994
627,132
200,000-
1995
643,109
159,276
1996
682,223
121,183
1997
698,080
118,200
1998
725,210
113,431
10(),()()0
0
1989 IND 1991 1992 1993 1994 1995 1996 1997 1998
■ BANKS OSAVINGS & LOANS M CREDIT UNIONS
Fiscal
SAVINGS S
Year
BANKS
LOANS
1989
$ 492,636
$ 282,339 $
1990
540,545
267,501
1991
691,677
183,936
1992
649,252
198,756
1993
666,342
191,014
1994
627,132
186,159
1995
643,109
159,276
1996
682,223
121,183
1997
698,080
118,200
1998
725,210
113,431
Source: Califomia State Department of Banking -
Licensing & Statistics Section
Womufion on this page is the most recent data available.
94
CREDIT
UNIONS
14,111
12,813
12,465
13,993
15,405
15,689
16,036
15,721
16,894
17,729
= = = = = = = = w = � imi � it• �
Employer
Lodi Unified School Dist.
General Mills
Lodi Memorial Hospital
Pacific Coast Producers
City of Lodi
Wal-Mart
Target
Valley Industries
Farmers and Merchants Bank
Lodi Fab Industries, Inc.
CITY OF LODI
PRINCIPAL EMPLOYERS
JUNE 30, 2001
Activity
Employees
Education
2,247
Cereals and Food Mixes
575
Health Care
650
Can Manufacturer and Cannery
530
Government
429
General Merchant
226
General Merchant
200
Trailer Hitches
191
Banking
183
Industrial Storage Racks
200
SOURCE: City of Lodi Community Development Department
95
Property Owner
General Mills, Inc.
Pack Coast Producers
Certainteed Corporation
Dart Container Corporation
King Video Cable Company
Edmund N. Richmond
Wei Mart Stores
Wallace Computer Service
Interlake Material Handling, Inc
Dayton Hudson Corporation
CITY OF LODI
PRINCIPAL TAXPAYERS
JUNE 30, 2001
Land Use
Food Processing
Manufacturing
Manufacturing
Warehousing
Communications
Industrial
Department Store
Warehousing
Industrial
Department Store
(1) Local Secured Assessed Valuation: 2,880,201,262
Source: San Joaquin County Assessor's Office
2
Assessed Valuation
$ 171,116,463
59,325,814
15,531,735
13,486,205
12,363,403
11,852,374
10,893,893
10,854,802
10,837,238
10,504,048
$ 326,765,975
Percent of Total (1)
5.94%
2.06%
0.54%
0.47%
0.43%
0.41%
0.38%
0.38%
0.38%
0.36%
11.35%
i = = = i = = i = = A w = = = = i
M = M ! M M = = M = = = = = � ® 1
CITY OF LODI
SURETY BONDS OF PRINCIPAL OFFICIALS
JUNE 30, 2001
City Manager
$500,000
Deputy City Manager
500,000
City Attorney
500,000
City Clerk
500,000
Public Works Director
500,000
Police Chief
500,000
Fire Chief
500,000
Finance Director
500,000
Community Development Director
500,000
Electric Utilities Director
500,000
Community Center Director
500,000
Parks and Recreation Director
500,000
Human Resources Director
500,000
City employees are covered by a commercial fidelity bond
amounting to a maximum of $500,000 per loss.
SOURCE: City of Lodi
97
FISCAL
LIMIT
YEAR
BASE
1991-92 $
24,782,072
1992-93
33,441,797
1993-94
34,027,028
1994-95
35,697,755
1995-96
36,515,234
1996-97
38,739,012
1997-98
41,229,332
1998-99
43,456,825
1999-00
45,785,303
2000-01
48,787,849
SOURCE: City Finance Department
CPI or
INCOME
1,0414
0.9936
1.0272
1.0071
1.0470
1.0467
1.0467
1.0536
1.0453
1.0491
CITY OF LODI
GANN APPROPRIATION LIMITATION
Last Ten Fiscal Years
POPULATION
GROWTH
APPROPRIATION
GROWTH
FACTOR
LIMITATION
1.0264
1.0689
$ 33,441,797
1.0241
1.0175
34,027,028
1.0213
1.0491
35,697,755
1.0157
1.0229
36,515,234
1.0131
1.0609
38,739,012
1.0168
1.0643
41,229,332
1.0070
1.0540
43,456,825
1.0120
1.0420
45,785,303
1.0194
1.0656
48,787,849
1.0129
1.0626
51,843,597
98
BUDGET SUBJECT
TO LIMIT
VARIANCE
$ 22,048,696
$ 11,393,101
17,255,606
16,771,422
16,646,590
19,051,165
17,292,960
19,222,274
18,563,360
20,155,652
19,243,568
21,985,764
20,096,975
23,359,850
20,491,809
25,293,494
20,907,397
27,880,452
22,482,923
29,360,674
M M M i M i = M = M w = M = = � ==
CITY OF LODI
PERSONNEL AUTHORIZED LAST TEN YEARS
■Administration ■ Community Development O Electric Utility
O Finance Department ■ Fire Department ® Library
Parks & Recreation O Police Department ■ Public Works Department
DEPARTMENT
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
Administration
17
17
22
17
21
24
26
30
32
34
Community Development
11
11
11
11
13
14
14
15
15
17
Electric Utility
41
41
40
38
39
43
44
44
46
47
Finance Department
40
39
36
35
35
34
34
32
34
34
Fire Department
49
49
48
47
48
48
48
49
50
52
Library
15
15
15
15
15
14
14
14
14
14
Parks & Recreation
35
36
29
26
27
26
27
26
26
29
Police Department
105
105
104
104
106
112
112
113
113
114
Public Works Department
95
97
89
86
87
92
94
95
99
103
Total
408
410
394
379
391
407
413
418
429
444
SOURCE: City of Lodi Finance Department
99
CITY OF LODI
SCHEDULE OF TAXABLE SALES AND PERMITS BY CATEGORY
LAST TEN YEARS
(Amounts in Thousands)
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000'
SALES (IN THOUSANDS OF DOLLARS):
Apparel Stores $
9,549 $
8,429 $
6,467 $
6,105 $
5,970 $
5,651 $
5,633 $
5,020 $
4,778 $
4,458
General Merchandise Stores
40,089
49,944
60,764
73,765
79,420
84,977
105,423
111,930
120,952
120,263
Drug Stores
17,719
16,373
13,184
13,673
13,295
13,411
Food Stores
40,197
42,130
33,033
28,692
33,237
34,029
34,247
34,344
37,328
42,977
Packaged Liquor Stores
3,956
6,470
6,041
5,932
5,664
6,150
Eating & Drinking Places
39,302
38,548
39,161
39,714
43,770
44,598
45,349
46,316
49,803
52,880
Home Furnishings & Appliances
10,407
13,593
16,038
14,327
12,396
12,808
12,136
17,319
22,254
17,908
Building Materials & Farm Tool
28,604
30,278
37,539
34,250
31,801
31,858
29,865
32,424
39,369
47,467
Auto Dealers & Supplies
81,918
82,725
85,917
93,198
103,241
102,788
101,933
106,531
123,667
141,640
Service Stations
27,983
29,601
31,221
30,519
34,348
35,095
35,746
29,203
36,491
46,794
Other Retail Stores
21,488
23,089
25,666
26,547
29,261
30,502
39,759
45,689
47,022
48,759
Total Retail Stores
321,212
341,180
355,031
366,722
392,403
401,867
410,091
428,776
481,664
523,126
All Other Outlets
91,310
92,149
96,921
92,594
94,440
116,000
130,660
133,453
143,207
154,590
TOTAL $
412,522 $
433,329 $
451,952 $
459,316 $
486,843 $
517,867 $
540,751 $
562,229 $
624,871 $
677,716
PERMITS:
Apparel Stores
26
29
32
25
23
22
28
28
28
28
General Merchandise Stores
9
17
14
15
13
13
22
21
23
24
Drug Stores
5
10
9
9
9
8
Food Stores
28
42
44
47
45
45
47
51
53
59
Packaged Liquor Stores
7
8
8
7
7
7
Eating & Drinking Places
65
135
132
136
144
146
146
151
151
148
Home Furnishings & Appliances
27
43
44
46
46
41
47
43
53
55
Building Materials & Farm Tool
14
38
38
35
29
30
25
22
22
23
Auto Dealers & Supplies
19
63
56
63
62
66
78
81
77
83
Service Stations
11
19
18
19
20
19
17
16
15
15
Other Retail Stores
98
186
182
196
201
197
205
229
258
268
Total Retail Stores
309
590
577
598
599
594
615
642
680
703
All Other Outlets
523
987
929
926
912
918
900
869
875
882
TOTAL
832
1577
1506
1524
1511
1512
1515
1511
1555
1585
First three quarters are actual, the fourth quarter is an estimate.
SOURCE: State Board of Equalization, State of California
100
m w m m m m m m m imm r =
= M=== M= M M== M M M w r w M r
CITY OF LODI
SCHEDULE OF TAXABLE SALES
LAST TEN YEARS
■ Apparel Stores ■ General Merchandise Stores ❑ Drug Stores
❑ Food Stores ■ Packaged Liquor Stores M Eating & Drinking Places
® Home Furnishings & Appliances 0 Building Materials & Farm Tool i Auto Dealers & Supplies
■ Service Stations ❑ Other Retail Stores
101
CITY OF LODI
SCHEDULE OF BUSINESS TAX RECEIPTS ISSUED
YEAR ENDED JUNE 30, 2001
TYPE OF BUSINESS
NO. OF BUSINESSES
PERCENT
Located in Lodi:
Agriculture, Forestry and Fishing
112
3.75%
Mining
0
0.00%
Construction
273
9.14%
Manufacturing
96
3.21%
Transportation and Public Utilities
44
1.47%
Wholesale trade
80
2.68%
Retail trade
638
21.36%
Finance, Insurance and Real Estate
278
9.31%
Services
1,466
49.09%
Total
2,987
100.00%
Located outside Lodi:
Agriculture, Forestry and Fishing
37
4.41%
Mining
0
0.00%
Construction
476
56.73%
Manufacturing
14
1.67%
Transportation and Public Utilities
8
0.95%
Wholesale trade
51
6.08%
Retail trade
53
6.32%
Finance, Insurance and Real Estate
31
3.68%
Services
169
20.14%
Total
839
100.00°x6
Grand Total
3,826
102
SOURCE: City Finance Records
r m m m r m m s= m w m m m m" m m w
103
CITY OF LODI
MISCELLANEOUS STATISTICS
JUNE 30, 2001
POPULATION
ELECTRIC UTILITY
Population
58,593
Number of Customers
23,644
Assessed Value
$3.1b
Energy Sales (KWH)
38,526,898
Building Permits Issued
2,275
Peak Demand(MW)
110.5
Dale of Incorporation
December 6, 1906
Form of Govemment
Council -Manager
PARKS & RECREATION
Employees
429
Parks Developed
25
Area
12.598 Sq Miles
Acres Parks Developed
293
Parks Undeveloped
4
FIRE PROTECTION
Acres Parks Undeveloped
86.5
Number of Stations
3
Community Center
1
Number of Firefighters
44
Swimming Pools
3
Number of Reserve Firefighters
0
Tennis Courts
11
Number of Calls Answered
4,047
Boat Ramp
1
Playgrounds
18
POLICE PROTECTION
Bali Parks Various
24
Number of Stations
1
Sour Fields
36
Number of Police Officers
78
Football Field
1
Number of Reserve Officers
7
HandballBasketballNolleyball Courts
7.5
Number of Support Personnel
35
Horseshoe Pits
10
Number of Calls Answered
unable to determine
PUBLIC WORKS
EDUCATION
Miles of Streets
176
Elementary Schools (public)
27
Miles of Alley Ways
16
Middle Schools (public)
7
Number of Street Lights
5,912
High Schools (public)
5
Number of Traffic Signals
52
Elementary Schools Enrollment (public)
14,127
Middle Schools Enrollment (public)
4,112
WATERIWASTEWATER
High Schools Enrollment (public)
8,643
Miles of Water Mains
212
Miles of Wastewater lines
174
K-8 Schools (private)
5
Number of Wastewater Treatment Plants
1
High Schools (private)
1
Average Daily Treatment
6.6 MG
K-8 Enrollment (private)
1463
Maximum Daily Capacity
8.5 MG
High School Enrollment (private)
135
HOSPITALS
Number of Hospitals
1
Number of Patient Beds
181
103
CITY OF LODI, CALIFORNIA
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2001
Federal Grantor/Program Title
U.S. Department of Housing and Urban Development:
(Pass-through San Joaquin County — Department of Planning and Building Inspection.
Urban county arrangement, and therefore no pass-through number.)
Community Development Block Grants:
2000-2001 Program Year
1999-2000 Program Year
1998-1999 Program Year
1997-1998 Program Year
1996-1997 Program Year
1995-1996 Program Year
U.S. Department of Transportation:
(Pass-through California Department of Transportation)
Federal Transit Assistance (FTA):
20(x1-2001 Program Year
1998-1999 Program Year
1997-1998 Program Year
1996-1997 Program Year
Intermodal Surface Transportation Efficiency Act (ISTEA)
U.S. Department of Justice:
Office of the Justice Programs:
1996 COPS MORE Grant
1998 COPS MORE Grant
Local Law Enforcement Block Grant:
1998 -LB -VX -3029
1999 -LB -VX -7030
2000 -LB -BX -1138
(Pass-through State Office of Criminal Justice Planning)
Crac-Net DC 97080390
Total federal awards
See accompanying notes to schedule of expenditures of federal awards.
104
Federal CFDA Pass -Through
Number Number Expenditures
14.228
N/A $
177.133
14.228
N/A
177,761
14.228
N/A
466.131
14.228
N/A
66,788
14.228
N/A
50.409
14.228
N/A
35.782
974,004
20.507
N/A
1.093.169
20.507
N/A
1.907.688
20.507
N/A
74.953
20.507
N/A
48,643
20.205
N/A
413.875
3.538,328
16.726
N/A
6,420
16.710
N/A
94,818
16.592
N/A
80,124
16.592
N/A
82.087
16.592
N/A
27.644
16.579
DC 97080390
86,117
377,210
$ 4,889,542
CITY OF LODI, CALIFORNIA
Notes to Schedule of Expenditures of Federal Awards
For the year ended June 30, 2001
(1) General
The accompanying Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2001 presents the activity of all federal awards
programs of the City of Lodi, California (the City). The City's reporting entity is defined in note I to the City's general purpose financial
statements. The SEFA includes all federal awards received directly from federal agencies and federal awards passed through other government
agencies.
(2) Basis of Accounting
The accompanying SEFA is presented using the modified accrual basis of accounting in the governmental funds and the accrual basis of accounting
in the proprietary fund which is described in note I to the City's general purpose financial statements.
105
M M Ml M M r M M M M W w r r M W M M M
= M r= r M M Ml=== M M= r r� M w
Three Embarcadero Center
San Francisco, CA 94111
Report on Compliance and on Internal Control over Financial Reporting
Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
The Honorable Members of City Council
City of Lodi, California:
We have audited the general purpose financial statements of the City of Lodi, California (the City) as of and for the year ended June 30, 2001, and have
issued our report thereon dated October 23, 2001. Our report on the general purpose financial statements was modified to indicate that the City changed
its method of accounting for nonexchange transactions. We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States.
Compliance
As part of obtaining reasonable assurance about whether the City's general purpose financial statements are free of material misstatement, we performed
tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of
our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be
reported under Govennnent Auditing Standards.
h►ternal Control over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing procedures for
the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on internal control over financial
reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial
reporting that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more of the internal control
components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements
being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted
no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses.
'this report is intended solely for the information of the City Council, City management and the City's federal awarding agencies and the City's pass-
through entities and is not intended to be and should not be used by anyone other than these specified parties.
October 23, 2001
14�PMC, LEP
106
Three Embarcadero Center
San Francisco, CA 94111
Report on Compliance with Requirements
Applicable to Each Major Program and Internal Control over
Compliance in Accordance with OMB Circular A-133
The Honorable Members of City Council
City of Lodi, California:
Compliance
We have audited the compliance of the City of Lodi, California (the City) with the types of compliance requirements described in the U.S. Once of
Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to its major federal program for the year ended June 30,
2001. The City's major federal program is identified in the summary of auditors' results section of the accompanying schedule of findings and questioned
costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major federal program is the responsibility of the
City's management. Our responsibility is to express an opinion on the City's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable
to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133,
Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit
to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and
material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those
requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable
basis for our opinion. Our audit does not provide a legal determination on the City's compliance with those requirements.
As described in item 01-02 in the accompanying schedule of findings and questioned costs, the City did not comply with requirements regarding
procurement suspension and debarment that are applicable to its major federal program. Compliance with such requirements is necessary, in our opinion,
for the City to comply with the requirements applicable to that program.
in our opinion, except for the noncompliance described in the preceding paragraph, the City complied, in all material respects, with the requirements
referred to above that are applicable to its major federal program for the year ended June 30, 2001. The results of our auditing procedures also disclosed
other instances of noncompliance with those requirements, which are required to be reported in accordance with OMB Circular A-133 and which are
described in the accompanying schedule of findings and questioned costs as items 0 1 -0 1 and 01-03.
107
M M M M M M M M r M M M r M M M r= M
►-7,M
Internal Control over Compliance
The management of the City is responsible for establishing and maintaining effective internal control over compliance with requirements of laws,
regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over
compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for
the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
We noted a matter involving internal control over compliance and its operations that we consider to be a reportable condition. Reportable conditions
involve matters coming to our attention relating to significant deficiencies in the design or operation of internal control over compliance that, in our
judgment, could adversely affect the City's ability to administer a major federal program in accordance with the applicable requirements of laws,
regulations, contracts and grants. The reportable condition is described in the accompanying schedule of findings and questioned costs as item 01-01.
A material .veakness is a condition in which the design or operation of one or more internal control components does to reduce to a relatively low level
the risk that noncompliance with the applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major
federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned
functions. Our consideration of internal control over compliance would not necessarily disclose all matters in internal control that might be reportable
conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the
reportable condition noted above, item 0 1 -0 1 we consider to be a material weakness.
This report is intended solely for the information of the City Council, City management and the City's federal awarding agencies and the City's pass-
through entities and is not intended to be and should not be used by anyone other than these specified parties.
October 23, 2001
K>MG, LLP
108
m = m = = m m m m = = m = r
Schedule of Findings and Questioned Costs —
Year Ended June 30, 2001
rr rr r rr rr rr �r rr �■ r� rr rr r r� rr r Ir � ..
CITY OF LODI, CALIFORNIA
Schedule of Findings and Questioned Costs
Year ended June 30, 2001
(1) Summary of Auditors' Results
(a) The type of report issued on the general purpose financial statements: Unqualified opinion
(b) Reportable conditions in internal control were disclosed by the audit of the general purpose financial statements: None reported
Material weaknesses: No
(c) Noncompliance which is material to the general purpose financial statements: No
(d) Reportable conditions in internal control over major program: Yes Material weaknesses: Yes
(e) The type of report issued on compliance for major program: Qualified opinion
(f) Any audit findings which are required to be reported under section 510(a) of OMB Circular A-133: Yes
(g) Major program:
CFDA #
20.507 United States Department of Transportation – Federal Transit Formula Grants
(h) Dollar threshold used to distinguish between Type A and Type B programs: $300,000
(i) Auditee qualified as a low-risk auditee under section 530 of OMB Circular A-133: Yes
(2) Findings Relating to the Financial Statements Reported in Accordance with Government Auditing Standards:
None
(3) Findings and Questioned Costs Relating to Federal Awards:
Finding No. 01-01— Federal Transit Formula Grants (20.507) – Reporting
In accordance with Office of Management and Budget (OMB) Circular A-133, grantees are responsible for maintaining internal control over federal
programs that provides reasonable assurance that they are managing federal awards in compliance with laws, regulations and the provisions of
contracts or grant agreements that could have a material effect on each of their federal programs.
109
CITY OF LODI, CALIFORNIA
Schedule of Findings and Questioned Costs
Year ended June 30, 2001
In accordance with the March 2001 A-133 Compliance Supplement the following is the control objective for reporting:
To provide reasonable assurance that reports of Federal awards submitted to the Federal awarding agency or pass-through entity include all
activity of the reporting period, are supported by underlying accounting or performance records and are fairly presented in accordance with
program requirements.
In the course of performing control testwork for the Federal Transit Formula Grant, we noted that one individual was responsible for preparing and
submitting the City's Financial Status Reports. These reports were not reviewed by another party before they were submitted to the awarding
agency. We noted instances where the report was not submitted at all and where it was not submitted timely. In addition, the Federal Transit
Formula Grant has a special reporting requirement whereby a Report of DBE Awards and Commitments is required to be submitted on a quarterly
basis. This report was not submitted at all for the fiscal year ending June 30, 2001.
Recommendation
To help ensure that the City's required federal reports are submitted accurately and on time, we recommend that a review be performed by a party
independent of the preparer. The performance of a review of all reports prior to submission to the federal awarding agency will help ensure the
accuracy of the reports and will help prevent untimely submission or not submitting reports.
Questioned Costs
None
Finding No. 01-02 — Federal Transit Formula Grants (20.507) – Procurement Suspension and Debarment
In accordance with the Buy America standards, procurement of all steel, iron and manufactured products in excess of $100,000 require, as a
condition of responsiveness, a Buy America certificate, documentation of a general waiver, or documentation of a specific waiver. A recipient
which makes purchases of rolling stock for transportation of fare -paying passengers must conduct or cause to be conducted a pre -award audit before
entering a formal contract for the purchase of rolling stock, and a post -delivery audit before title to the rolling stock is transferred. Pre -award and
post -delivery audits verify the accuracy of the Buy America certification, purchaser's requirements certification, and certification of compliance
with or inapplicability of Federal motor vehicle safety standards.
(m
M M M M M M M i M M M M r=
CITY OF LODI, CALIFORNIA
Schedule of Findings and Questioned Costs
Year ended June 30, 2001
During fiscal 2001, the City assumed a contract to purchase 5 new buses. The City assumed the contract after a third party conducted the initial
competitive bidding process. However, since the City assumed the contract and charged the cost of the buses to a federal grant, the City was
required to perform appropriate due diligence to ensure that the appropriate federal compliance requirements had been met. For the purchase of the
five new buses, the City was unable to provide documentation supporting a pre -award or post delivery audit or the pre -award and post -delivery
audit certifications in accordance with Buy America.
Recommendation
We recommend that the City correct the Buy America deficiencies related to the purchase of the five buses in fiscal 2001. In addition, we
recommend that the City implement a policy to ensure that all contracts that are to be assumed from a third party and that are to be charged to a
federal program comply with all applicable federal compliance requirements.
Questioned Costs
$1,786,306
Finding No. 01-03 — Federal Transit Formula Grants (20.507) – Davis Bacon Act
In accordance with the requirements of the Davis Bacon Act, the City must ensure that all laborers and mechanics employed by contractors or
subcontractors to work on construction contracts in excess of $2,000 financed by Federal assistance funds must be paid wages not less than those
established for the locality of the project (prevailing wage rates) by the Department of Labor.
To ensure that a contractor or subcontractor is paying their laborers and mechanics the prevailing wage rate established by the Department of Labor,
the City obtains from the contractor or subcontractor certified payroll information. This allows the City to ascertain whether the contractor or
subcontractor is paying the prevailing wage rate.
We tested a sample of twelve contractors and subcontractors, and for one the City did not obtain the certified payroll information for the fiscal year
ended June 30, 2001.
CITY OF LODI, CALIFORNIA
Schedule of Findings and Questioned Costs
Year ended June 30, 2001
Recommendation
We recommend that the City obtain certified payroll information for all contractors and subcontractors who are required to adhere to the Davis
Bacon Act requirements. This will help ensure that all laborers and mechanics are being paid the prevailing wage rates.
Questioned Costs
None
112
III-111MIM
City of Lodi
Presentation of Fiscal 2001 Audit Results
January 2, 2002
ASSURANCE
Engagement Scope
Presentation of Fiscal 2001 Audit Results to the City of Lodi
■ General Purpose Financial Statements
— Unqualified opinion in fiscal 2001
— No material weaknesses in internal control over financial reporting
■ Single Audit in Accordance with OMB Circular A-133
— One major program (Federal Transit Formula Grants)
-- Three findings
• Reporting
• Procurement suspension and debarment
• Davis Bacon Act
■ Report on applying agreed upon procedures
2
WSF12167
Discussion of General Fund
Presentation of Fiscal 2001 Audit Results to the CO of Lodi
■ $.9 million decrease in current year fund balance, offset by $1 million increase due
to change in accounting principle
■ Undesignated general fund balance is 11 % of operating expenses, which is down
from 12% in the prior year. The city's goal is 15%.
3
WSF12167
Required Communications
Presentation of Fiscal 2001 Audit Results to the City of Lodi
■ Our responsibility under Auditing Standards Generally Accepted in the
United States of America
■ Significant accounting policies
■ Management judgments and accounting estimates
■ Audit adjustments
■ Other information in documents containing audited financial statements
■ Disagreements with management
■ Major issues discussed with management prior to retention
■ Difficulties encountered in performing the audit
4
WSF12167
LAJLALAAAMM
Questions & Answers