HomeMy WebLinkAboutAgenda Report - January 15, 2003 I-03COUNCIL COMMUNICATION
AGENVA TITLE: REPORT TO THE COUNCIL — 11 INANCJAL AUDIT FOR FISCAL YEAR 01-02
METING SATE: January 15, 2003
PREPARED BY: Finance Director
.EC[?M ENDED AC`T`ION: That the City Council receives for file the following reports and f aancialstate eats
submitted by KPMG LLPand the Finance Department for Fiscal Year 2001-02:
E The Combined Annual Financial & Single Audit Report
* Management Letter
* getter to the Council (SAS 61)
* Report on Applying Agroed-upon Procedures
* Independent Auditors' report on compliance (SIAW)
Independent Auditors' report on compliance (Debt compliance-
PCEfT CE)
BACKGROUN D INFORMATION. N. The annual audit was conducted to assure the City Council and other
interested parties that the City's financial records and reports are prepared in accordance with generally accepted
ac ,ounting prinQiples (GAAP), that internal controls arcadequate to safeguard the City against loss from
€rnas. lhorized use or disposiliou of assets and that the City has complied with all agreements and covenants to obtain
grant fiends and debt flaancing, .CS.P.NK-i ILP has issued an "unqualified opinion", Steven DeVetter. Partner and
Nancy Rose, 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, Copses of the reports acre 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 reC-eiVQd a Certificate of Achievement forF',xcellen in Reporting from the Government Finance Officers
Association of Limited Status and Canada (GFOA) and the California Society of Municipal Finance Officers
(CSS FO) for the ninth year in a row, Copies of these certificates are included in the 2001-02 Financial Report.
A rv.kner lid ��a�rtt�
The Accoursting stale of the hi�nance Department should be commended for their hard work and professionalism in
preparing the. City's Annual Financial Reports; it is clue to their dedication to excellence and to the City that made
Lodi recognized by the auditors and other professional financial organizations.
FUNDING None;
Vicky MeAthie
Finance Director
APPROVED. �
1ics Flpn -- City Manager
A
ThieVa Embaicaderr Cente:
San E=ranc�sce, CA 9411
October 30, 2K2
The Ilonorable Heathers of the City Council and City Manager
City of Lodi, California
Ladies Emd Gentlemen:
We have audited the financial statements of City of Lodi (the City), for the year ended Janne 30, 2082, and
have; iss,',u .d our report !hereon dated Glc tobrr 30, 2002, In planning aaacl perfoiming our audit of the
financial statements of the City, we considered internal control in order to determine our auditing
proceduresfor o.r the purpose.. € f expressing, our opinion on the; financial. statements, An audit does not itrclude
exaixtining the effectiveness of internal control and sloes not provide assurance, on internal control. We have
not considered internal control since the date of our report.
During mic audit, w� noted cer in inatteTs involving internal control and other operational matters that are
p escuted fo.r your Consideration, These comments and recommendations, all of which have been discussed
with the appropriate members of' a aaanagenient, are; intended to improve internal controlor result in other
operabrag efficiencies and are summarized as follows and includedin. the attachment:
Copies Of reports submitted by the City to the Federal Transit Administration (FTA) in
compliance with the .FFAr s reporting requirements should be printed and kept on file for
future reference.
Payroll certifications s€abinitted by contractors and subcontractors should be tested on. a
periodic: basis for compliance e with federal requirements.
Cour audit procedures are designed primarily to enable us to form an opinion on the financial statements,
and tberefore niay not bring to light all weaknesses in policies or procedures that .may exist:, We aim;
however, to use our knowledge of the City's gained during our work to make comments and suggestions
that We hope will bQ, useful to you,
We would be pleased to discuss these; conunents and recommendations with you at any time.
This report is intended solely for the information and use of the City Council and management, and others
within the orgttnMi ion and is not intended to be and should not be med by anyone ether than these
Specified parties,
Very truly yours
t�itael��t�es�t.
1. Copies of Submitted Reports _ Federal Transit. Grant
Observation
Financial statin; reports required for submission to the Federal Transit Administration (FTA) and
acquests for reimburses encs are submitted on line. The City does not print copies of these reports
submitted to FTA fur the City's files for futme refer•enc:e,
Recommendation
Failure to print out copies of reports and requests for reimbursement for filing results M the lac; of aft
audit trail for evidence of compliance with reporting requirements.
The Depm-ta ent should keep a copy of each report subs-ritted electronically to FTS as evidence of
compliance, with. the reporting requirements or determine if such documentation can otherwise be
ob ined.
2. review of Payroll Certification - Federal Transit Grant
Observation
11he City obtains from the contractor or subcontractor payroll certifications to ensure that a contractor
or subcontra€:tor is paying thoir Laborers and mechanics the prevailing wage rate established by the
Department. of Labor, The payroll certifications are not tested to ensnare that compliance as represented
ley the contractors is in accordance with federal requirements.
Recommendation
Non--cornpliaznce; of contractors with federal requirements on wage rates tnay result in the suspension or
debatrmcalt of the contractors. Such suspension or debmnent may result in praject delays and
incurr-e.nQr, ofadditional costs by the City.
Upon receipt of the payroll certification, the City should periodically examine; individual wage details,
on a test. basis, to eDsure that certifications are accurate and wages paid are in accordance with federal
re dnaiz e.aracn ts,
h ee Emba, cadem cenler
a�; F;av,cisco. ('A J41
October 30, 2002
The HonoFable :Merrrhers of the City Courn€it
City of Lodi, Caatiforaniaa
Ladios and Gentl.ernne:w
We have audited the general purpose financial statements of the City of Loch, California (the City) for the
year ended June 30, 2002, and have issued our report thereon dated October 30, 2002. Under auditing
standards gencraa.l.:ly accepted in the Uan.ited. States of America, we are providing you with the attached
information .rc..laatod to the conduct of our audit.
Our Responsibility onsibility under- Auditing Standards
e ner i ly Accepted in the United States of America
We have a responsibility to conduct our audit in accordance with auditing standards generally accepted in
the United States of American. In carrying out this responsibility, we planned and performed the audit to
obtain rmisonabie assurance about whether the financial statements are free of rnate.rial misstatement,
whether caused by error- or tka€ud..Becanse, of the nature of audit evidence and the c:haracteiistics of fraud,
we are to obtain reasonable, not absolute:, assurance that material misstatements are. detected. We have no
respo nsib.]I.ity to plan and pe.r€ear€n the audit to obtain reasonable assurance that rnaisstaternernts, whether
c aaascel by error or fraud, that are neat material to tlae :fi�€rreial statements are detected.
In addition, in planning and performing our audit, we considered internal control .in order to determine our
auditing procedures for the, purpose; of expre=ssing our opinion on the financial statemernts. An audit does
raot include examining the effectiveness of internal control and does not provide; assurance on internal
control.
Significant Accounting Policies
"bite, ,significant accounting policies used by the City are described in mote 1 to the financial statements. We
noted no transactions entered into by the City during the year that were both significant and unusual, and
of which, under professional standards, we are required to inform you, or tfansactio s fox wbich there is a
lack of auttaorita ive guidance or cornscsis€€s,
ana gement ,judgments and Accounting Estimates
Accounting cst.irnatus are an intograal part of the financial statements prepared by management and are
based on rnanaal ernent's current judgments. Certain accounting estimates are particularly sensitive because
of their significance to the financial statements and because of the possibility that feature events affecting
theme may differ markedly from management's currentjudgments.
We evaluated the key factors. and assumptions used to develop estimates and found them to be reasonable
m relation to the. financial statements taken as as whole.
MU
Audit Ackjustments
We proposed no corrections of the finaanac:ial statements that could, in our judgment, either individually or
in the aggregate, have a significant effect on the, City's financial reporting process.
In connection with our audit of your financial statements, we have not discussed with management any
sionificaant financial statement misstatements that have not been corrected for in your books and records as
of and for tire year ended June 30, 2002.
Other Informantion in Documents Containing Audited Financial Statements
Our responsibility for other infornaat€on iu.. the City's Comprehensive, Annual Financial R( port does not
extend beyond the general purpose financial irnfornaation identified in our report, and we have no
obligation to perform. any procedures to corroborate other Information contained in the City's
Comprehensive Annual Financial Report. We have, however, .read the: other information included .in the
City` � Comprehensive Annual financial Report, and no matters casae to our attention that cause us to
behe;ve that such information., or its manner of presentation, is materially inconsistent with the
mformatio,.n, or manner of its presentation, appearing in the finnanncial. staternents.
Disagreements with Management
ent
`hero were sno disagreements nts with management on financial accounting and reporting matters that, if not
mt.isf'actorily re:sot.vod, would have caused ra m dificatiorn of Our report chat tho City's firaamciaal stater ernts.
Major Issues Discussed with Management Pricer to Retention
We generally discuss a variety of rraatters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City's auditors. However, these discussions
oQc€a.r-red in the normal course of our professional relationship and our responses were not a condition to our
retention.
Difficulties Encountered hi Performing the Audit
We encountered no serious difficulties in dealing with management in perfornning our audit.
This rapport is iwended solely for the information and use of the City Council and Management and is not
intended ro be and should not be used by anyone other than these specified pal -ties,
Very truly yours,
k�PMC, LEP
2
hree rmbarcamro Canter
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 A of the City of Lodi, California (the City) for the year ended June 30, 2002. 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 XHI-B of
the Cat lorroa Considurion), were performed solely to assist the City in meeting the requirements of
Section 15 of Article %lILB 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 A through F and compared the limit and annual
adjustment factors included in those worksheets to the hint 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 procedures.
2_ For the accompanying Appropriations Limit Worksheet A, we added line A, last year's limit, to
line E, total adjustments, and compared the resultme amount to line F, this year's firnit.
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 A to the other worksheets described in procedure No. t above.
Finding: No exceptions were noted as a result of our procedure.
4. We compared the prior year appropriations limit presented in the accompanying Appropriations
Limit Worksheet A 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 cngaged to, and did not conduct an examination, the objective; of which would be the
expression of an opinion on the accompanying Appropriations Limit Worksheet A. Accordingly, we do not
oxpr4ss such au. opislicul, Had we pe forai-a�d additional procedasre.s, other matteV5 might. have come. to otax
attention that would have been
reported to you, No procedures have, been performed with respect t to the
determination of the <app.ropr.iation lirnit for the base year, as defined by ttiele XIII -B of the California
Constitution.
This report is .intended solely for the informatioa and use of management and the City Council. and is not
inteaade,d to, be- acid should not be used by anyone other than these specified paa-ties_
Lep
October :30, 2002
A
B
(_
D
CITY OF LO I, CALIFORNIA
Appropriations Limit Worksheet A
B udget Year Ending .lune 30, 2002
Amount --Source —
Last year's limit
$
51,843,597
Adjtastmc t faaetors�
I . Changs in per capital personal income
1.0782
State Finance4re.ightett-aver,`I
change in population
1,0190
Exhibit
$. Total adjustruent %
1.0987
(131*B2)
Annual adjrastaueMs
$
5,11.6,227
[thew a4justments:
Lost responsibility (9
Transfer er to private H
-
Transfer to fees (-)
_.._
Assumed responsibility (�)
--
Subtotal
Total adjustments
5,116,227
This year's l.irn:it
$
56,959,824
( +E)
f�"t-,�Mw.
-three F nbarcadero Center
Sar` �-i anc sco, CA 94 ! I I
Independent Auditor's Report
The City Cooncit
City of Lodi:
We have audited the general purpose financial statements of the City of Lodi, California (the City) as of
and for the year endod June 30, 2002 arid. have issued our report t'1 oireon dated October 30, 2002,
We condiaeted our audit in accordance with auditing standards generally accepted in the United Staters of
America, and the; standards applicable to financial anc ial aaudits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; an(] instructions of the State of Califorxria
Department of Transportation. "Those standards and instructions require that we plan and perform the audit
to obtain reasonable assurance about whether the general purpose financial statements. are free; of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statement. An audit also includes assessing the accounting principles used and
the significant estimates made by management, as well as evaluating the overall financial state McDt
presentatiou. We believe that our audit provides a reasonable basis for our opinion_
Compliance with Laves and regulations applicable to the, C'ity is the responsibility of the, management of the
City. Els part of obtaining reasonable assurance about whether the general purpose financial statements. are
l.ree of material misstatement, we performed tests of the, City's compliance with certain provisions of laws,
regulations. contracts, and grants. However, our objective was not to provide an opinion on overall
compliance with such provisions. Accordingly, we do not express an opinion.
fn connection with our audit, nothing carne to our attention that caused us to believe that the City failed to
comply with the, following requirements, of the Striate Local. Transportation Partnership Program insofar as
they relate to accounting smatters:
0 ''hey reimbursement claainis submitted to the State of California Department of rraansportation
for the reconstruction and widening project (Project Dumber SF98-515 # (001)) are: supported
by payment vouchers, and canceled checks.
The charges for the various categories for eligible costs incurred by the City are fully
supported_
lrae.lig.ible costs were not claimed as reimbursable on the project.
a Local snatching funds are from an approved source,
However, our audit was not directed pritaaarily towards obtaikung knowledge of such noncompliance.
mu
This report is intended solely for the information and use of the city council and managements of the City
of Lodi and State of C:alifoi iQa Department of 'I T anspoi ation and is not intended to be and should not be
used by anyone gather than these specified pedes.
October 30, 2002
J � �
? ree E_ nbaz _adeio Center
5a . i=r :3 ,cisco. CA 94",11
Independent. editors' Report
The City Council
City of Lodi:
We have a€ ditecl, in accordance with auditing standards gene ally accepted in tate Utited States of
Anieric;a and Government Auditing Standards issued by the Comptroller General of the United States, the
generai purposes financial statements of the City of Lodi, California (the City), as of and for the year
ended June 30, 2002, and have issued our report thereon dated October 30, 2002.
In connect ion with our audit, nothing came. to our attention that caused us to believe that the City failed to
c:oulply with the terms, covenants, Provisions, or conditions of Section 6.13 and Exhibits A, D, and ' of
the 200€3 Environmental Abatement Program Bonds dated Jute 29, 2000 with Lehman B€ -others, Inc.
insofar as they relate to accounting matters. However, our audit was not directed primarily toward
obtalining knowledge of such noncompliance.
This report is intended solely for the information and use of the City Council and managements of the City
of Lodi and Lehman Brothers, Inc. and is not intended to be and should not be used by anyone other than
these specified
October 30, 2002
10110 "1 K,
CITY OF LODI, CALIFORNIA
Prepared by the Finance Department
Vicky. cAthleg FinanceDirector/Treasurer
Ruby Paiste, Accounting Manager
Coriene Wadlaw, Accountant 11
Odette Bendor, Accountant
TABLE OF CONTENTS page
PREFACE
INTRODUCTION
Letter of TraDsmittal
Certificate of A,hievernent for Excellence in Financial Reporting
Certificate of Award - Outstanding Financial Reporting
Organization Chart of the City of Lodi
Directory of Officials and Advisory Bodies
luffink 3 U =#*)
Schedule of Funding Progress — Pension Plan
SUPPLEMENTAL FINANCIAL STATEMENTS
General Fund
Overview
Comparative Balance Sheets
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
Schedule of Expenditures by Department - Budgetary Level of Control - Budget and Actual Comparison
=a am am am on am I= M M M M M M M M
iv
xVj
XVh
xviii
xix
1
2
4
5
6
7
8
M
46
47
48
49
Im an an ME
TABLE OF CONTENTS - continued
Special Revenue Finds
Overview
50
Combining Baiance Sheet
52
Combining States ent .of revenues, Expe ,d'itures .aid Changes in Fund ala c e
53
Comparative Stater ent of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
54
Debt Service Fun
Overview
58
Comparative Statements of Revenues, Expenditures and Changes in Fund Balance
59
Capital Project Funds
Overview
60
Combining Balance Sheet
61
Combining Statement of.Rev noes, Expenditures and Changes in Fund Balance
62
Enterprise Funds
Overview
64
Combining Balance Sheet
65
Combining Statement of Revenues, Expenses and Changes in Fund Equity
66
Combining Statement of Cash Flows
67
Internal Service Fund
Overview
68
Balance Sheet
69
Statement of Revenues, Expenses and Changes in Fund Deficit
Statement of Cash Flows
'70
✓ 7 1
Trust and Agency Funds
Overview
72
Combining Balance Sheet
73
Combining Statement of Revenues, Expenditures and Changes in Fund Balan
Expendable Trust Funds
74
Combining Statement of Changes in Assets and Liabilities - Agency Funds
; 5
General Fixed Assets and General Long -Term Obligations Account nt r€ u s
Overview
76
Comparative Schedule of General Fixed Assets
77
Schedule of General Fixed Assets by Function and Activity
79
Schedule of Changes in General Fixed Assets by Function and Activity
79
TAKE OF CONTENTS -.continued
m,,RMn�
Comparative Schedules of General Long -Tenn Obligations so
General Gone rnmentai Revenues by Source - Last Ten Fiscal Years
82
General Govemmental Expenditures by Function - Last Ten Fiscal Years
83
General Governmental Tax Revenues by Source - Last Ten Fiscal Years
84
Secured Tax Levies and Collections - Last Ten Fiscal Years
85
Assessed Full Cash Value of all Taxable Property - Last Ten Fiscal Years
86
Property Tax Rates - Direct & Overlapping Governments - Last Ten Fiscal Years
88
Special Assessment Billings and Collections - Last Ten Fiscal Years
89
Ratio of Net General Bonded Debt to Taxable Assessed Value and Net Bonded Debt Per Capita - "sl Ten Fiscal Years
90
Computation of Direct and Overlapping Genera I Bonded Debt - June 30, 2002
91
Debt Ratios - June 30, 2002
91
Computation of Legal Debt Margin - June .30, 2002
92
Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total Goverrunental Expenditures
- Last Ten Fiscal Years
93
Revenue Bond Coverage - Last Ten Fiscal Years
94
Demographic Statistics - Last Ten Fiscal Years
95
Construction Activity - Last Ten Fiscal Years
96
Bank Deposits - Last Teri Fiscal Years
97
Principal Employers -.tune 30, 2002
98
Principal Taxpayers - June 30, 2001
99
Surety Bonds of Principal Officials — June 30, 2002
100
Gann Appropriation Limitation - Last Ten Fiscal Years
101
Personnel Authorized - Last Ten Fiscal Years
102
Schedule of Taxable Sales and Permits by Category — Last Ten Fiscal Years
103
Schedule of Business Tax Receipts Issued — Year ended June 30, 2002
105
Miscellaneous Statistics - June 30, 2002
106
am am Im am an
TABLE OF CONTENTS - confinued
page
SINGLE AUDIT
Schedule of Expenditures of Federal Awards 107
Notes to Schedule of Expenditures of Federal Awards 108
Report on Compliance and. on. Internal Control over Financial Reporting Based on an Audit of
Financial Statements Performed in Accordance with Gauer nrent Auditing Standards 109
Report on Compliance with Requirements Applicable to Each Major Program
and Internal Control Over Compliance in Accordance with OMB Circular A-133 111
Schedule of Findings and Questioned Costs 113
PREFACE E _ csa�etar results of ssper aticsras grad finan6ai
r 3acassi e ray al iraaracial atepor2 (C l' ) has I'= prepared Ora order to presersi the city of Lodi, Cj`alif'rarrat ese 90
.fie t:s�rra - tisticai ia�f€arrseatia�r taf general iratera:st al�a>nt flee City. �o aohiev� these goals, tine City's ��.�' is esrgaraized into €� f�all�*vaia�g
3
condition as of aurae 30, 2.002, as we" as Pro�ide eta
fear sraajaar sectirrsas:
INTR City officiais and advisory bodies and age organiza600 ciaart of the City.
� ib°� mai sis of the C;lty`s €zraaeiat fs�asairs�aa of �ur�e 31i �'��t32, as .well as sa�traazaaes cafe sigzrificarat farsia�i�s .grad practices ��'raac.�
This
sacti of the C AFF provides a eorr3preheras Y
affeci the city's management Uf its financial affairs. ,l..he Introduction section aiso a�achadc� a director] � y
This section includes the priaraary financial statements of the city Arad is organizedintothree Major areas:
* Independent Auditors' eNri
r ease Financial Stater,ents including notes which summarize- the C=ity's 1°iraancial position and resorts of r peraiierr�s at the
� General purpose
d by
"Fund" levet.
Funds, Fiduciary Farads
iat statements and
schedules, which prt�vide frraCapi al projectrandf Dent � ice), Por each Of the a ap ie ty's futids and account �eratat financial staff ments
Supp financial Special Revenue, �apat
generic fund type: Gaaverrzr€aerat Funds (General, Sp
d General Pixel ,assets and General L•tsssg-"1"errat C3bligatissris �cesaara�t r�sups. P.sa nverview introduces each of these saapp e
which describes the pure ,e ofeach fund or accOuni group.
aes
�
principles, the Pity's financial repotaag systema is organised tura a "fund" basis, which is described further on the for!®v�in� P g
lda accordance With generally accepted accc�rarrtana P P
of this Preface..
A ' ' is and financial tables which Provide current and historical trend information for the city and is organized irstaa fcaaar rrsa3or areas:
This section includes the failcaa�ring deraaagraplaa
Sta€istical overvae v
t;�eazeral financial trends of xevenaaes, expenditures, Pro
Long-term
Valuation grad tax sources for the last fere years
1 ong-term indebtedness trends and characteristics
Demographic and cconoraaic base trends and characteristics
PRE FACE - 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
CP
Amendments of 1996 and OMB 133. Infonnation 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 - Gover=ental, Proprietary and Fiduciary - aild 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 wiffi 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 dace "flow
of current financial resources" measurement focus in detennining financial position and changes in financial positiow
General Fund
Debt Service
Capital Project Funds
Vehicle and Equipmew Fund
Library Capital
Subdivision Capital
Hutchins Street Square Capital
Capital Outlay Reserve Fund
Lodi Lake Capital
Special Revenue Funds
Polict Special Revenue Fund
Special Grants Fund
Streets Fond
Transportation Fund
Conununity Development Block Grants
Home Program
PROPRIETARY FUNDS
Proprietary funds are distinguished from Govemmental 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 Fund
is used to account for claims and benefits.
131
PREFACE- CONTINUED
General Fixed Assets Account Group
General Lon -Ter Obligations Account Group
ff
CITY COUNCIL
PHILLIP A. PENNr NIO . Mayor
SUSAN HITCHCOCK , Mayr�r Pro Temport,
EMILY HOWARD
KPITil LAND
ALAN NAKAMSHI
October 30, 2002
C .ITY HALL, 221 WEST NNF STREET
P.O. BOX .3006
LORI, CALIFORNIA 95241-1410
(209) 333-6706
FAX (209) 333,6795
To the Honorable Mayor, Members of the City Council
11, DIXON FLYNN
City Manager
SUSAN .BLACC STON
City Cierk
RANDALL A. HAYS
City Aew mey
The Comprehensive Annual Financial Report (CAFR) fbr the fiscal year ended June 30, 2002, is hereby submitted. This .report is provided to present the financial
position, results sof operations and cash flows of the City's proprietary fisssds as of June 30, 2002, 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 sof the City.
In addition, we believe that all disclosures necessary to enable the reader to gain frill 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 tate 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 fsirsding progress, the financial statements and notes to the financial statements, The single audit section includes the
schedule of expenditures of federal awards, .nates to the schedule, and reports on compliance and internal control based on the audit of the general purpose
fisiancial statements and on compliance and inernal 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.
iv
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 (parrs and recreation., library and community center), and
general government services (management, human resources administration, financial administration, building maintenance and equipment maintonance)
Several municipal services are provided through other government agencies, private companies or public utility companies, including:
Number of
Facilities
Elementary and Secondary Schools 13
anitation (solid waste) and Cable ` ulevision 2
Ambulance i
Gas and Telephone 2
ECONOMIC: CONDI'T'ION AND OUTLOOK
The City is located in the Sara Joaquin Valley between Stockton 10 miles to the south, and Sacramento 35 wiles to the north, and adjacent to U.S. Highway 99.
The City population is 59.,431 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 flare and the City's growth control ordinance that allows ars
increase in population of 2% per year until the growth limits are reached.
Lodi is built on a strong and bread 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 conmodities.
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 successUly encouraged numerous 'big
industries to move to Lodi that collectively created hundreds of new jobs.
ItC,FIVES AND pRotJECTS
MAJOR GOALS, OBJ ' lent H�eads have
C,,y Co,
overview intends to agocate available reso �e City Manager and Departr
itizens of Lodi understand Where the City projects that support and re-enforce the CitY's Tnis"'on statement'
To assist the c goals, objectives and major
Jor
established a hie"arlly O'mo�l . and focal points for the efforis of City staff, These goals include:
Five major City goals were established as policy directlon
improve custolner Service
Enhance Access to information
-nt and prodUCtive City Organi7afiOn
Ensure Efflci'- of Life and Provide a Safe pnviroftment for Citizens, and
Enhance Quality
Devel0l) the Lodi EconOmY ablished siyteen majot City objective�s�' I Base
Manager and Department Heads est prorriote Coinrnerr
City Council, the city Mana
Develop Short and Long Range C)perational Plans provide Resources to Maintain CitY's Infrastr"eture
I�y
promote Public Relations and Marketing Efforts Continue to I-Ise, Parmerships to Advance 0 's Objectives
implement Information Systems Strategic Plan promote Urban Forestry
pursue Efforts to be Entrepreneurial provide for a Balanced Corny unitY
Ma,nta,n City, s Sense of Community ities Provide Appropriate and Sufficient City Facilities
a! and Recreational OpPortun Evaluate Telecommunications Opportunities
Encourage Public Arts, CultuT nagement Program provide Employee Training and Education
Develop Effective Records a
M
Develop/Review policies Relating to providing Customer Service projects are designed to accomplish specific objectives and become the
projects represent the foundation of the planning statements for the city of Lodi. These , jmajor Cty projects were planned in the
focus for orRanization wide effort. e fecal point of the City in 200 1_02, The following- Safety building,, 3)
omic revitalization continues to be an adi'v lic Safety Building; 2) the construction Of arra. ew Public OUT skate park; 6)
As discussed above, econ document: 1) the renovation and exPanslon of the old Pub 5) construction Of an Outd
construction of an indoor sports center,
2()01-03 two-year budget i Park/G-Basin; 4) development and ction of a new animal shelter facifitv-� 9) evaluating
design and development Of the DeBenedett ction of the civic center Veterans Memorial; 8) constru for providing paramedic/ambulance Services; and
design and construction of an aquatics center; 7) constm Omplex; 10) evaluating the need
the feasibility Of leasing land to pro Style Sports for the construction Of a sports c
11) the implementation of the redeveioPmelll agency- provide additional workspace,
di Remod--1 and Expansion hani.cal and design deficiencies, Remodeling this building t( of jail facility, fill,
Public Safety Build years old and it has many mec .
Safety Building is over thirty fety building remodel will include a complete retrofit of the HVAC systern, replacement
The Public improvements, the public sa C S a police and Civic center parking strlucture�
parking and related site rements, more space for public safetY Offi er and
compliance with the Americans with Disabilities Act requ
vi
New Pile Building
The neve Police Station is ander construction and will be completed in January 2004, The cost of the project is approximately $ i 7.5 million, This building is
designed to meet the needs of the Police Department for the next 20 years. The project is being paid for with a grant from the State for $4 million and Certificates
of Participation.
The Police Building is designed to be a 54,13043 square foot, two-story building to house police op?rations, including staff offices and work space, properly and
evidence handling areas, and storage and mechanical rooms. The facility also includes a 5,600 square foot Type 1 jail, 1,000 square foot dispatch center, and
10,000 square feet of expansion shei:l space for future growth. The site will also include 100 secure parking spaces for police vehicles, a sally port for prisoner
transportation and a shelter for police motorcycles. Trash enclosures and an emergency generator will also be installed on the site,
e e e€ etti Par -Basin
The project consists of design and development of a 40acre, youth sports complex (with lighted fields) and park within the "G -basin", which provides storm water
storage in the park. This project is one of the highest unranked projects identified by the Parks and Recreation Commission and the City Council. The estimated
cost of the project is $112 million, which is approximately $5 million greater than the estimate in June 2001. The project is currently in schematic design and
construction design should be completed by January 2003.
Indoor Sports Center
This project consists of development acrd construction of a 40,000 square foot building to provide space for a gymnasium, exercise rooms, kitchen, meeting rooms
acid offices for community use. The estimated cast is $10.9 million and is currently in the schematic design phase. The construction design phase should be
completed by February 2003.
Outdoor Skate Park
The outdoor skate park vas completed in May 2002 and a formal dedication was held in August 2002. The City contracted with Spohn Manch to management the
park and to provide equipment. The cost of the project to the City was approximately $540,000.
.tics Center
This project consists of design and construction of a recreation pmol with water features, a 50 -meter competitive pool, snack bar, changing rooms, showers, parking
and picnic areas. The estimated cost of the project is $7 million, which is a $4 million, increase ftcoin the estimate made in June 2001. The project is currently in
the schematic design phase and construction design should be completed by March 2003,
Civic Center Veterans Monument
This project was completed ,and dedicated is May 2002. The cast of the project was approximately $490,000 and will be reimbursed to the City by the Veterans
Advisory Committee. This Monument consists of a 21.5 -forst stainless-steel obelisk, a 7 -foot granite sphere, ars eternal flame and a pool outlined by blue cobalt file
all underlit. The Monument is in a very visible location by City Hall and has received wide acclaim by the community,
INE
Animal Shelter Facility
The Lodi Animal shelter was built in the l%Ws to service a community of approximately 26,000. As most shelters built at that tim ,, its purpose was to be a "dog
pound",i.c. a place to impound stray and virions dogs before euthaoizing them, he current shelter cannot meet the newly ria mdatcd State law or fulfill ttz'-,
expectations of a community eager tca provide revere humane animal eared
The project is currently in schematic design and construction designs should .be Completed by October 2002, The estimated cost of the project is 4 miliion, which
is S1.5 greater than the original estimate made in June 2001. This will be an 18,O00 square foot facility on a 3 -acre site. It will include kennels, isolation kennels,
community classroom, a clinic, storage areas, exercise areas and areas set aside for expansion of kennels,
Sports Complex
The City is evaluating the feasibi'l'ity of leasing land to Pro Style Sports for the construction of a regional sports complex. This project has been can the drawing
board since 1393 with an environmental study dace in January 2003. If the project proves to be financially and environmental feasible, it could significantly
increase tourism to Lodi and the Central Valley -
Paramedics
The City is evaluating the need for providing pararnedicla abaa ance services. A. private company currently provides this service.
Redevelopment Agency
The greater harts of the historic business and residential areas sof 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 said. Many of the buildings reflect the charm of the buildings constructed between the 1890s and 1930s- Many long time residents
and businesses continue to live and conduct business .in this area. Over the last fifteens 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,
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
descriptions 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 fmanciat 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 r eived and the liability incurred, for proprietary frond types, the City uses the
accrual basis of accounting, As such, the measurement focus is can net income in addition to financial position and changes in financial position. Revenues are
W
recognized when earneed and expense-, are recognized as the liability is incurred. We believe that the City's internal accounting controls adequatOy safegu rd
assets and provide reasonable assurance of proper recording of financial transactions,
Accounting ys e and Budgetary Control
In developing the City's accounting system, consideration is given to the adequacy of the internal control& 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 € isposition; and to e assure treat
transactions are properly recorded to permit the preparation of financial statements in accordance with generally accepted accounting principles. The concept sof
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 ire evaluating these casts and benefits.
In addition, the City maintains budgetary controls. The subjective 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 Inas the authority to amend the budget at any time daring 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 2001-02, the
City Council and City Manager rade 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, € ndesignated fund balance in the General Fund and working capital balances in the Electric, dater and
Sewer enterprise funds of at least 15% of operating expenditures. The General Fund maintained a fund balance of $3,063,922 or 10% sof operating expenditures at
the end of fiscal year 2€ 01-02.
Carryover Policy
A two-year Financial Plans 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 sane -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 Marr and Budget allows for the
unexpended operating budget balances to be carried forward to the second year of the Financial Pian provided Haat the farad balance exceeds the required operating
reserve.
Cash Management
east
The City has written investment policies that address a wide range of investments, These policies describe the City's investment objectives, investment authority,
alleawable investment vehicles, maturity terms and eligible fmancial 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 ofreturn on
public funds while minimizing risks arid preserving capital. In evaluating the performance of the City's investment portfolio, investments are expected to yield a
rate of returns that regularly meets or exceeds ars 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 acrd assistance in
developing and improving existing investment policies in the govern-ment sector. In addition, the Treasurer and Deputy Treasurer of the City are Certified
California Municipal Treasurers (CCMT).
Appropriation Limitation
Article X111 B of the Constitution ol'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 c4.
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 X111 B, the City is required to
annually establish and adopt its appropriations limit by resolution. For 2001-02, the City's appropriations subject to linift were $25,610,753 and the appropriation
limit was $56,959,824 a favorable variance of $31,349,071.
Debt Administration
The City issued a $5,0 million Certificates of Participation (1995) COP that was issued to fund its share of the improvements downtown and Cherokee Lane.
These bonds were recently refunded by the issuance of the 2002 Certificates of Participation. The City also issued 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; the 2002 Certificates of Participation also reftmded these
bonds. 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. These bonds were also refunded by the issuance of the 2002 Electric Systems Revenue Certificates of
Participation. 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 downtown area. At June 30, 2002, the City had outstanding Certificates of Participation of $101,675,34& 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 operations. 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. Thereports.provide-current period and
year to date revenues, expenditures and encumbrances for all activities and funds, including year to date estimates and variances.
13
Single alf
nt of all local
' subject t� fi�aa�ial as c�r�pl4ce rels�arti€�g teslr��1 y the lie �.�d� stars � Amendments� �8�t�nir�� � qacy f i� mal �.santrt�ls,� �ca�tir�.�, that
.e City is s �
and ,stag gc�vernmersts receiving federal financial awards, A� � of the Single Audit,
portion related to federal financial awards, as �veid as to determine that the �.i 1i complied with a���tai �la�a�r�� 1a�ras arar� regulations ��v�r�� ���rafl f�tr�5.
est
under the Cit -Y's
Competitive Bidding PORCY
rocedures as ,
All required
purchases #car materials, e��aiprs�e�st and services during 20 01-02 were made �Surataar�t to competitiveding r�ed�� bidding established by theState dof Califor iR for
1Snrchasiz�g ordinance. Contracts for ce�strcties Projects were awarded pursuant to �®repetitive iiid
projects in excess of $5,1000,
VeDsatiOn 1 nunempiO)Tnent insurance. C neral liability and workers' �,on
City is self-insured for dental care, workers' compensation,general liability and The Self-insurance transactions are accounted for under the C ty s Claims and ars
administered by outside agencies, The pity administers r�err�pi�syet insurance
Benefits Fund.
At June 30, 2002, the Claims and BenefitsFund'h had a deficit of $1,552,94(3. The City plans to i piea�er�t the deficit reduction pias recommended
by an actuary to gradually eliminate the defcit its the internal Service Fund.
FINANCIAL HIGHLIGHTS As demonstrated by
the statements and schedules included in the €�.ar�ciai section of this report, the City continues to meet its responsibilityfor effectively
managing the financial resources Of the City -
General l Government Functions
tabu resents a summary of the general fad, special revenue fsaz��is�capital
el t � ��jsa p� r�y�arxrevenues. Astrust
pro provided and discussed below, revenues
the fiscalfolloea P
the fiscal year ended June 30, 219€12, and the amount of increases and decreases
Increased by $11,749,029 or 27.94 % from 2001,
on IM -no so an No on
2002 2001
Other factors include Sales Tax which reflects an average increase of 3.2% or $256,365 over the same period last year; Cable TV franchise revenue increased
by 55.5% or $101,152; an increase in -Bela franchise fees of $319,307 and the increase in refuse, franchise in -Berl by S174,601
2. Intergovernmental revenue. The increase of $10,358,655 is primarily from reimbursements received from State and Federal grants for the multiple street and
capital projects during the year. it also includes the S4.0m received from the State for the construction of'the new public safety building.
3. Charges for services. The decrease of $361,023 is mainly dire to the decrease in development impact fees. The developers pay development impact fees
before construction; hence, the neve subdivisions constructed during the year were paid in the prior year.
4. investment and rental income. The decrease of $279,628 is the result of lower interest rates on investments and the decrease in rental activities in Parks
and Recreation facilities_
5. Miscellaneous revenues. The increase of $983,964 is mostly due to a one-time sale of City property of $907,505 and an increase in donations of
$70,000 from the Private Sector Fund to the Library Capital Fund.
Im
% of
%cif
Variance by Variance by
_.m Amount
Total
Amount
Total
Amount_
Percent.--
ercent'laxes
'Taxes
23 043,057
42.83%
S 21,909,208
52,09!
$ 1,133,849
5.18%
L.acenses and Permits
1,464,450
2.72%
1.592,227
3,79%
(127,777)
_&03%
Intergovernmental Revenge
21,999,9.59
40.8911/o
11,641,304
27.68%
10,358,655
88.98%
Charges for Services
3,887,563
7.22%
4,248,586
1(). i 0%
(361,023)
_8.50%
Fines, Forfeitures and Penalties
806,212
1,50%
765,22.3
1.82%
40,989
.5.36%
Investment and Rental Income
1,2381926
2.30%
1.518,554
3.61%
(279,628)
-18,41%
Miscellaneous Revenues1,367,084
�
2,54%
383,120
0.91%
� 983,964
256.83%
TOTAL
S 53,807,251
100.00%
42,058,222
100.00"/m
$ 11,749,029
27.94%
Factors contributing to material changes in general government revenues from the prior
year are provided below:
l . "faxes. Property Tax - Current secured growth in Lodi for the period of 2031®02
increased by 10.22%,
which is
$222,770 over last year.
Other factors
contributing to the increase of property
taxes were the annexation of Tecklenburg
eckman Annexation
(27.8 acres) and the Woodbridge
Middle School
Annexation (11.'75 acres).
Other factors include Sales Tax which reflects an average increase of 3.2% or $256,365 over the same period last year; Cable TV franchise revenue increased
by 55.5% or $101,152; an increase in -Bela franchise fees of $319,307 and the increase in refuse, franchise in -Berl by S174,601
2. Intergovernmental revenue. The increase of $10,358,655 is primarily from reimbursements received from State and Federal grants for the multiple street and
capital projects during the year. it also includes the S4.0m received from the State for the construction of'the new public safety building.
3. Charges for services. The decrease of $361,023 is mainly dire to the decrease in development impact fees. The developers pay development impact fees
before construction; hence, the neve subdivisions constructed during the year were paid in the prior year.
4. investment and rental income. The decrease of $279,628 is the result of lower interest rates on investments and the decrease in rental activities in Parks
and Recreation facilities_
5. Miscellaneous revenues. The increase of $983,964 is mostly due to a one-time sale of City property of $907,505 and an increase in donations of
$70,000 from the Private Sector Fund to the Library Capital Fund.
Im
Expenditures
The following table presents a summary of general fund, special revenue funds, capital project fronds, expendable trust funds and debt service fiord expenditures for
the fiscal year eroded June 30, 2002, and the increases and decreases in relation to prior year amounts, Current expenditures increased by $5,667,133 or 12.35% iu
2002 over 2001.
Capital Outlays. The increase of 55,903,755 is attributed to the, numerous major streets and capital projects undertaken during the year i.e., Lower Sacramento
Road expansion, Beckman Road reconstruction, Stockton Street reconstruction, Elia Street reconstruction, construction of the Lodi Station Parking structure.
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,
2002, the City operated four enterprise funds that include electric, sewer, water, and transit. Total fiscal year operating loss was $29,959,182 and is mainly cine to
the increase in balk power costs. The City Council has approved a 5% electric rate increase which will become effective December 6, 2002, to recover these casts.
Tectal frond equity is $55,233,830 and represents a 27% decrease quer fiscal year 2001 _ Additional enterprise fund financial information can be found in Acte I8 of
the general-purpose financial statements.
Internal Service Activities
Internal service funds are used to account for financing goads or services provided by erre department or agency to another can a cost reimbursement basis, At June
3€3, 2002, the City maintained one internal service fund for claims and benefits. The total fiscal year 2001-02 net loss after operating transfers was $17,797 with a
retained deficit balance o $1,552,940. Additional information can be found in Nates 16 and 17 of the general-purpose financial statements.
M
MMM800M MMMMMMMM =mums" MM
EXPENDITURES
�
200 _ _
2001
� W
_ Variance
- Variance
Amount
% of Total
�
Amount
% of Total
� s o :alt
y Percent
General Government
8,986,8 32
27.76%
8,8621,277
27.22%
S 124,525
1,410/r,
Public Protection
0,561,918
41,891/10
13,190,372
40.51%
371,546
2.82%
Public Words
5,740,71-4
17.23%
6,312,323
19.39%
(571,611)
-9,06®/0
Library
1,227,663
3.79%
1,198,449
3.68%
29,214
.2.449/o
Parks and Recreation
2,866,433
_ 8.83%
2,999,186
9.21°/m
(13 ,753
-4.63%
$ 32,377,528
10€3:13f1%
32,562,607
100.130%
(185,079)
-0-57%
Capital Outlay
17,948,191
12,044,436
5,443,755
49M%
Debt Service
1,233,594
1,285,242_
51,543
-4.01%
TOTAL
S 51,559,418
S
45,892,285
5,667,133
12,35%
Factors contributing to material changes
of 10% or higher in
general government
expenditures frrarn the prior year are provided below.
Capital Outlays. The increase of 55,903,755 is attributed to the, numerous major streets and capital projects undertaken during the year i.e., Lower Sacramento
Road expansion, Beckman Road reconstruction, Stockton Street reconstruction, Elia Street reconstruction, construction of the Lodi Station Parking structure.
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,
2002, the City operated four enterprise funds that include electric, sewer, water, and transit. Total fiscal year operating loss was $29,959,182 and is mainly cine to
the increase in balk power costs. The City Council has approved a 5% electric rate increase which will become effective December 6, 2002, to recover these casts.
Tectal frond equity is $55,233,830 and represents a 27% decrease quer fiscal year 2001 _ Additional enterprise fund financial information can be found in Acte I8 of
the general-purpose financial statements.
Internal Service Activities
Internal service funds are used to account for financing goads or services provided by erre department or agency to another can a cost reimbursement basis, At June
3€3, 2002, the City maintained one internal service fund for claims and benefits. The total fiscal year 2001-02 net loss after operating transfers was $17,797 with a
retained deficit balance o $1,552,940. Additional information can be found in Nates 16 and 17 of the general-purpose financial statements.
M
MMM800M MMMMMMMM =mums" MM
Fiduciary Fund Operations
The City maintains Expendable Trust Funds to account for and administer bequests for the Hutchins Street S uare/Comm.unity Center .acrd 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 ofthe City by an independencertified public accountant The accounting firm 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 CeTtificate of.Achievement for Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report (CAFR) for the fiscal year
ended June 30, 2001. These Certificates of Achievement are prestigious national and state awards recognizing conformance with the highest standards for
preparation of state and local goverrunent financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized CAFR, whose contents conform
to program standards. The CAFR must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City has received a Certificate of Achievement for the last nine years (fiscal years ended
June 30, 1993 through 2€i01). . e believe our current report continues to conform to the Certificate of Achievement program requirements and we are submitting
it to GFOA and C-SMFO.
ACKNOWLEDGMENTS
The professionalism, dedication and efficiencyof 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, Accountant If, for their continued attention to detail and proactive
approach to meeting future challenges such as GASB 34.
I would also like to thank you for your continued interest and support in plannitig and conducting the financial operations of the City in a responsible and
progressive manner.
Respectfully submitted,
Vicky MeAthic
Finance Director
x1v
Presented to
of Lodi
ualiff ornia
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2001
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting-
The Goveniment Finance officers Association of the United States and Canada (GFOA)
Certificate of Achievement for Excellence in Financial Reporting
lh� 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,
2001, The Certificate of Achievement is a prestigious national award recognizing
Qonfonnance with the highest standards for preparation of state and local government
financial reports.
In order to be awarded the Certificate of Achievement, a govemment Tim, —da
easily readable and efficiently organized comprehensive annual financial report,
whose contents conforin to program standards. Such reports must sati* both generally
accepted accounting principles and applicable legal requiremen-M
A Certificate of Achievement is valid for a period of one Year only. 2001 was the 9th 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
GFOX
Xvi
a 1 i . r nia S o cie I y of
15 �zu
which reflect a high level of quality in the annualfinanci::v«—
:...:«e»»<« ».«&
lsatendnteudelyngaccontig system from which the repons were prepared.
YJ
an MW no M on MM no MW M im in
Library Board
City Attorney
City Council
IMEZ=
commumty Electric Utility F1 r,-
Center I I I
Community Finance Hun
ma
. Deve . lopme . fit Resources
Parks and
Recreation Public Works
W=
sand
Commissions
DIRECTORY OF OFFICIALS AND ADVISORY BODIES
CITY COUNCIL
ORION"
Emily Howard
Keith Land
Alan Nakanishi
Planning Commission
Library Board
Recreation Commission
Site Plan and Architectural Review Committee
I•tM121WIMAITA'
H. Dixon Flynn
Randall Hays
Nancy Marlimez
Vicky McAthie
Mike Pretz
Charl��ne Lange
Joanne Narloch
Richard Prima
Alan Vallow
Jerry Adams
Roger Baltz
0M
Mayor
Mayor Pro Temp
Council Member
Council Member
Council Member
Eastside Improvement Committee
Lodi Arts Commission
Youth Commission
Lodi Senior Citizens' Corn mission
City Manager
City Attorney
City Clerk
Library Services Director
Finance DirectorfTreasurer
Fire Chief
Community Center Director
Human Resources Director
Public WorksDirector
Electric Utility Director
Community Development Director
Police Chief
Parks & Recreation Director
N PURPOSE
Three Embarcadero Cenlet
San Framisca, CA 94111
Independent Auditors' Report
The Honorable Members of City Council
City of Lodi, CalifornW
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,
2002, 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. These 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 managrment, as well as evaluating the overall financial statement presentation. We believe that our audit provides -a
reasonable basis for our opinion.
In out opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City ofLodi,
California as of June 30, 2002, 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.
ID accordance with Government Audifing.Standards, we have also issued our report dated October 30, 2002 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 Aiedifing 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 Systern on page 44 is not a required part of the general purpose financial statements, but is a disclosure required by
Goveniment Accounting Standards Board, and we did not audit and do not express an opinion on such information, We have applied to the schedule of
fading progress certain limited procedtircs 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. Thc
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 put of the general purpose financial
statements of the City. The supple mfntal financial statements and schedules listed in the accompanying table of contents are, presented forpurposes 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 flee
general purpose financial statements of the City. Such additional information has .not been sujected to the auditing procedures applied in our audit of the
general purpose financial statements, and, accordingly, we do not express an opinion thereon.
October 30, 2002
Is
Aasmelg �amlthqr_ —DeU
Cash and iflvasstmerets, aflote, 3)
Restricted assets (notes I and 3)
Advance receivables Odes I and 16)
Recaivatges:
A=urils
Prop" taxes {.mote 4)
Spedm assessments
IrAenasd
Due from rather funds or
govewimental agencies inote a)
lrwentM
Dewred fmaridnq casts
Other— assets
Fixed assets (note 5)
Other debit:
Amount to be provided for general
"-term debt obikjaVons
Total assets andothef debit
CITY OF LODI
COMBINED BALANCIE 5856T - ALL FUND WPES AMC ACCOUNT OROUPS
June 30, 2002
Fiduciary
Guvemmes tal Fund lVe Fund TUnd TyL>-- Account Groups
General General
special Capital Intemat Trust and Fixed Long -Term, Total
Ge'lefal Revenue —Se -18 2 �atbns _2a�e�_andumir_*Yl__
772,943 176,542
1,084,U00
3,423,316 304,1$3
762,232 23,398
263,0H 4,212,259
IZ0,623
23,130
la,339,787
2,557,023
12,781,863
22,962,827
692, 887
706,701
5,226,915
319,1%4
93,733
43,178
40,090
5,573,428
1,979,890
1,370,2ig
I I'm
92,371,896
978,977 1,272_,n4
186,911 1,598
40,894
8,922
6,250 9,776
91,538,624
16,097,576
35,744,6913
149,413
10,089,863
2,100,513
1,370,219
50,975
183,908,420
33,773,224 13_,773224
S5,365,3326,800,382 24,281,736132,79%032 1, 89,56191,328,152 91,538,524 33,773,224 5 296,055,494
(continued on nad page)
Sec accompanyiTig nvtvs to general purpose Financial stazemenqs. 2
155j
hies. Fluity-and dither credits
Uabifille&
Accounts payab3e and other liabiIjiies
Accrued salaries and wages
Aomed interest
Due to other funds or other goner mentai agencies (note a)
accrued compensated absences (note 7)
Oefefferd revenue
Self-insurance reserve (notes 14 and 16)
Capitalized lease odigations (note 7)
Certirmtes of participation payable,
net Of discount (note 7)
Notes payable (note 7)
Total fiabilifies
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 fitarwy
Reserved for encumbrances
Reserved for inventory
Unreserved -undesignated
Totaf fund equity (deficit) and other credits
Cornrdtments and confingent fisMes (notes 6 and 20)
Total fiat)Pies, fund equitY and other cmdfts
MY OF LORI
CO ED BALANCE SHEET - ALL FUNOTYPES AND ACCOUNT GROUPS - confinued
June 30, 2002
FWudwy
Governmental Fund T r ietary Fur3d hype F6 TyeAccount
Generw General
Special capital $rrlernai Trust and Fixed Long -Term Total
General Revenue fM22!j_ j2!tMrlae femce n Assets
1,426,920
144,894
289,422
3,032,459 718,785
3
5,591,380
574,590
475,644
260,041 1,358,721 2,003,771
2
120,623
574,&t2
1,514,028 17,904,714 609,367
20,328,1W
2,207,614
886,89'9
3,063,922 3,172,749 10,90.8,465 65,233,830 (1,552,940) 6G.9,367 91,536,524
886,899
1,398,739
3,624,831
1,720,079
6,743,649
3139, 000
1,469,414
5,923,459
7,S32,873
1,004,000
480,000
884,466
2,40,46193
2,7az,000
2,733,000
859,76.5
859,765
661,903,052
26,745,000
93,648,052
2,301,410
2,1527,6334.,378,253
77,556,252 2,733,000 711,785
33,773,224
124,083,557
13,310,898
13,310,898
91,536,624
91.,536,524
41,922,932 (1,552,940)
40,309,992
475;644
475,644
260,041 1,358,721 2,003,771
3,622,533
120,623
12{3 623
1,514,028 17,904,714 609,367
20,328,1W
2,207,614
2,207414
3,063,922 3,172,749 10,90.8,465 65,233,830 (1,552,940) 6G.9,367 91,536,524
171,971,937
5i36,5,332 5,800,382 24,281;738InL91,082 1,1w,0613 1,32M52 91,$W,6243Z,773,224 $ 296,055,494
See accompanying notes to general pwpse financial statements.
MORONI! 11
.Q
CITY OF LODI
COMWNED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES W FUND BALANCE$
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRU$T FUNDS
year ended jww 30, 2002
Expenditures:
16,045,449
Governmental Fungjffe
.3i.8 U36
General government
8,986,802
Special Debt
Capita
Public works
Genera9
Revenue Service
1,157,663
Revenues:
2,860,433
Capital outlay
--f!2Le-CtS
Taxes
$ 20,575,333
775,524
1,692,230
Licenses and permits
1,464,450
ToW expenditures31�279
778
lnterqavernrnentai revenues
4,515T275
13,228,633
4,256,051
Charges for services
1,74.6,0415
1,333,524
807,994
Fines, forfeits and penalties
806,212
Proceeds from bond refunding
Investment and -entM income
515,748
110,617
607,581
Miscellaneous revenue
137,087
24,746
1 186890
Total revenues
29,760,150
15,473�044
;x,945,678
Expenditures:
16,045,449
Current:
.3i.8 U36
General government
8,986,802
Public protection
13,094,347
Public works
5,032,251
Library
1,157,663
Parks and recreation
2,860,433
Capital outlay
148,282
Debt service:
interest and fiscal charges
Principaipayments
ToW expenditures31�279
778
(Deficiency) excess of revenues (under) over expenditures
(1,519,628)
Other financing sources (uses):
Operating transfers in (note 10)
5,372,694
Operating transfers out (note 10)
(4,883,104)
Capital lease proceeds (note 7)
148,282
Proceeds from bond refunding
Payment to refunded bond escrow
Proceeds of. Certificate of Participation
Total other financing sources (uses)
637,�72
(Deficiency) excess of revenues and other financing sources
(under) over expenditums and other financing uses
(881,756)
Fund balance, June 30, 2001
;x,945,678
Fund balance, June 30, 2002
063,922
j_
Q . , . , 1 ..,1-n .... ; . I , , ... . ., .II . L ' 1 . . . . . . . . . .
467,571
708,461
11,563,048
12,739 080
2,733,964
578,216
(3,189,750)
678,699
555,000
1,233,69.9
(1,233,699)
1,233,699
�11 5 3 2 1,233,699
6,236,861
2,313,855
5,315,056
(4,979.,211)
13,269,086
(13,269,086)
13,395,749
1:22,432
16,045,449
3,050,317
.3i.8 U36
3,172,749
19,908,485
Fiduciary
Fund . e
.Expendable
Trust
4,980
-18,361
91'441
70,000
70,000
(46,659)
(18,361)
____118,361i
(65;020)
1574,357
01,367
'Total
Etm—ora—n—dum<)Wy)
$ 23,043,057
1,464,450
21,999;959
3,887,563
806,212
!,238,926
1,367,084
8,986,802
13,561,918
5,740,712
1,227,663
2,860,433
17,948,191
678,699
555.000
51, 55.9,4'18
2,247,833
12,499,667
(13,070,426)
148,282
13,269,086
(13,269,086)
13,395,749
1Z9731272
15,221,105
11533418
26 ,754,.523
Revenues
Taxes
tiranses and pernA�,
inYesgauernmersiai revenues
Charges for ser mes
Fines. foTfafts and penaffies
)nvqstmem and famal income
misceyarecus revanue
TaiaE revenue
Expenditures:
Curretl
General gone mme-N
pubin pmtec6m
Public wo*s
Library
Parks and facrealon
Capital outlay
inial expendilures
{Defieienry) excess of revenues )under] aver expendPuras
Other financing sources (uses;):
Operaturgtransfers in
Op-etkV Iransfars out
Capital lease proceeds
Total ottwr fmancing sooroes juses)
(Defmiaricy) egeessof rayenues and oWhw
Anencog souross (w,dar) over expendliures
and other fv,4ming uses
Fuf)d balance, June 30, 2001
Pmr,d balance, JLTte 30, 2002
CITY OF LOM
COMWNED STAY§WENT OF RVENUES, EXPENOTURES AND rHANGES W FUND BM-ANCES
BUDGET AND ACTUAL - GENERAL AND SP�MAL aFVEMUE FUNDS
Year anded June 30, 2
Ste."Companying notes to gvnernl purpose flmsnciad sfatemcvats
0
mmmm M MIM Mao M M = mmm M M m m
General
Rewsed
Fav4ab4e
Revised
-22 �-abl�
mm.Favorable
-I�L, �Wawe
20,676,333
186,394
753,405
775,524
22.11e
21,142,344
$
203,513
1,595.504
1,45A.450
(131,*4)
1,595,5a4
1,454,450
131,134)
4,457,772
4,515,275
57,503
16,026,373
13.228,633
(2,791r74£:)
20,478,145
17,743,908
(2,734237)
1.644,914
1,746,045
101,131
808,wo
1X3,524
525,524
2.452,914
3 07%569
626,655
8138,032
805,212
(1,ma)
eC8.032
8f16,212
(1,820)
779,2()4
515,748
1263,456)
228,3W
110,817
(117,763)
1,007'584
526,365
{381,219)
79.775
...... 137,087
57,312
24745
X46
61,833
2,058
�29.754 22f)
7,810,158
5.473,0"
337,114
7,554.376
10,092,125
8.9m,802
1,105,323
94,Q92,125
8,986.802
1,105,323
*,I3(3,102
13,(394,347
35.755
653,354
467,571
225,783
13,823,4.5.6
13,6ial,918
261,538
5,331,616
5,032,251
299,365
2,358,970
701),461
1,65#1,609
7,600,586
5,740,742
1,949,874
1,198,273
1,157,663
40,610
1,196,273
1,157,863
40,610
3,1311,3461
2,860,433
277,907
3,1313,340
2,a5O,433
277,907
14�8 282
148,282
-
_14,465,518
11,5630482
SOZ-%B
14 613,698
11,711.33fl
33,038 738
31,279,778
758,%O
I_
7,517,940
I_
1.2,73S,9W
4,77E�,W
... �2,55S�678
4,018,658
6,537 820
{3,284,518)
{1,519,628)
1,764,8W
292,218
2,733,964
2,441,746
(2,992.3130)
1,214,336
4,206,636
5,372,694
5,372,694
575,215
578,218
5,9W,912
5,960,912
)4,883,104)
{4,883,I(94)
(3,189,750)
(3,1U,750)
{8,072,854)
(8,072,854)
148,282
948.282
148,282
945,282
637J372
637,1572
j611.,532
611,532
973,660
973,66€6
)2,646,648)
(EP311,756)
1,754,890
(2,319,314)
122,432
2,441,746
(4r965,960)
(759,324)
4,206,636
3,945,675
3,945,678
3,066,317
3,00,317
6,995,9`35
6r995,995
1,299,032
3,063922
3,172,149
2,441.746
2,030,1135
6,236,671 5
4,206,6,36
Ste."Companying notes to gvnernl purpose flmsnciad sfatemcvats
0
mmmm M MIM Mao M M = mmm M M m m
CITY 0F.L001
COMOWED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQU;TY
ALL PROPRIETARY FUND TYPES
Year ended June 30, 2002
Internaf
TON
opefabng revenues
Charges for servres
$
operating exwee&
Personnel sLrWces
5,482,639
2e9,042
5,751,599
SWpfies, rnftp. gals and sarytes
23,23.4,519
Z7$6,994
25,971,503
utliftiss
54,090,914
54,090,914
DepredaVon and amortizallort
2,836,319
2,836,319
Makns payments
1,401,350
-_1,401,350
Total operating expenses
85,644,391
4,407,376
90,051,767
Operating lass
(29,959,182)
(4,066,723)
(34,025,9115)
Nonow3fing revenues (expenses):
investment Jnr,e (expenses), Tset
g661'090)
54,441
(506,649)
Rent
219,770
219,770
Fees received from developers
570,959
570,95,c)
(31herrevenues
9.,907-6215
163,218
.6,070,833
TOW nonoperafing revenue$
6,037;254
217,659
6,254,91:3
Loss beftwe capital contTibutlons and operat" translefs
(23,921,92-0)
83,849,064)
(27.770,992)
Cap4aB wntritxaticrns
6,237,582
6,237,582
Operaling transfers in (n&,e 10)
2,865,902
3,831,267
6,697,169
operating Iransfers oiA (note 10)
L6j26,44L3j
6,126,410)
Total operating Iransfws
2,977,D74
3,831,267
6,3M,341
Net loss
{20,944,854)
OT797)
(20,962,1551)
Add: DepMcWlan on c�raatriWed assats
455,858
455,869
Net decrease to rete�ned eamhgs
(20,488,885)
(17,797)
(20,5(36,782)
RatWned earnings (deft t), Jwne W, 2001
62,411,917
_____jL535,14j-3_
62,1376.774
Ratakmd earnings (WICK), June 30, 2002
41.,922,932
�1,552,940)
40;369,992
Contributed capft'.. Une 30, 2WI
13,766,767
13,766.767
Depradation w =Wbutedessels,
(455,0
(456,0
Contributed capital, June 30, 2002
13j32.Fi,838
15,310AW.
Total fund eqv4y (defxft June 30, 2002 (note 17)
55,233,S30
(1,552,940)
3 53,680,39.0
Set accompanying DOW w general pulpose finCW malcments,
6
Ci[Ty OF LORI
COMBINED STATEMENT OF CASH FLOWS
PROPRiETARY FUND TYPES
Year ended .Base 30, 2002
Enterprise Funds - The City received donated fixed assets valued at $5,237,582 for the year ended June 30, 202
S- wco"Wymg potw so gen- w prpsrs_ fmnciw M -Mme'. 7
internal
T, Qui
Cash Vows from Qperztrig ac*miss:
Operating loss:
9 (29,959,182
Adjustmems to recomoe operaiinq JQs to
net cash provided try (used ars) operafing actaAes:
Doe! rec#efion and arnartization
2,83e,315
2,836,319
Other revenues
5,907;615
183,21E
S,ti70,533
f,hangas in assets and fiabitifies:
Decrease (increase) in accotmts TeoBivame
3,272,845
3,171,409
Decrease in advance receivab!e
4,040,2V9
4,040,209
Increase in advarw,* dLpos4
(507)
(sire)
Decrease in interest receivable
111,848
18,657
130,505
Decrease in due ftom other funds
958,639
958..639
increase in inventory
(269,41.6)
(269,416)
D=ense (increase) in other asset$
42,868
(6,250)
36,618
Decrease in ac:counta payable and other ilaNitias
(826,407)
(826,407)
Decrease .in accrued salaries and wages
(35)
(35)
Decrease in accrued interest
(188,866)
S%gss)
Increase in due to rather funds
318,76.8
315,758
Increase in ar-crued compwisated sb$endes
347,135
34.7,135
Increasa in deferred revenue
18,248
16,248
Change in self-insurance reserve
-
_L84.3
�6�29
(943,5291
Ntis cash used � operathg aitvities
l3 399.998
U8,229,162
Cash flows from noncapital flnamc'ng activilies:
Operallng transfers in
2,865,902
3,831,267
8,697,169
Operating transfers out
(6,126,410)
(6,126,41o)
Fess req:mWed from developers
570959
Net cash (used In) provided by non -capita( financing activities.
8g 54
3,531�
1 141,718
Cash flows from capital fmaricing activities:
Proceeds from Cert aates of Participation
16,153,507
)ssuanc-- oasts- Certificates of parlicpation
(1.216,398)
(1,216,395)
Acquisition and construction of capital assets
(8,005,611)
(8,006,611)
Priri,�i al payments an debt
(1,M , 837)
interest payments an deb!
(2,101.,743)
(2,109,743)
Capital contributed
4,131. ,651
4,131AI
Net cash provided by rapital finandrag activities
7577779
7577779
Cash Bows from lave ng adyqikies:
Rest of City property
219,7770
299,70
interest Gn investments
1,727,342
54,441
1,781,783
Net cash provided by investing activities.
. . 1 �947 112
54441
2 ,001 553
Net decrease in cash and cash equivalents
(6,556,657)
(950,455)
(7,507,112)
Cash and cash pqjwateots at haginning 19 year
9113680
1,329,432
11,043,112
Cash end cash equivatents at and of year
2,557023
979 977
� 3,536,0130
Noncash Invesbou.. Caoftai.and FifrandrM Activ
Enterprise Funds - The City received donated fixed assets valued at $5,237,582 for the year ended June 30, 202
S- wco"Wymg potw so gen- w prpsrs_ fmnciw M -Mme'. 7
C
- ITY OF LOD I
Notes to General Purpose Financial Statements (contiuued)
June 30, 2002
(1) Seminary 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 tinder a Council -Manager form of government and provides the followitig services. general govemment, public works, public protection
(police and fire), public utilities, library, parks and rccreation
The accounting policies of the City conform to generally accepted accounting principles (GAAP) as applicable to governments in the United States cif 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-mernber 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 ref 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 (LPIQ 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 cif 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, (refunded by the issuance of the 2002 Certificates of Participation) and the recent issuance of the 1999
Certificates of Participation to finance the Electric Systems improvements (refunded by the 2002 Electric improvement bonds), The City Council
constitutes the Board of Directors of LPIC, The funds of LPIC have been included in the Enterprise (Electric and Sewer) and and in the Capital
Projects Fund in the accompanying general-purpose financial statements.
The Lodi Financing Corporation (LFC) was fortned 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 was authorized to issue Variable rate Certificates of Participation quarterly on each January 1,
April 1, July I and October 1, beginning October 2000; provided however, that the aggregate principal amount shall not exceed Sixteen Million
Dollars ($16,000,000). Total bonds issued as of June 30, 2002, were $I 1,500,000. These 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 poutions...ofthe
City's groundwater and soil located within an area approximately 600 acres and encompassing & 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 slate m ents,
CITY OF LORI
Notes to General purpose financial Statements (continued)
June 30, 2002
(b) Basis of Presentation - Fund Accounting
The accounts cit"the City are organized on the !iasis of funds and account groups, each of which is considered a separate accounting entity. The operations of
each flea -d are accounted for in a separate set of self -balancing accounts that comprise its assets, liabilities, f -€cad equity, revenues and expenditures or expenses
as appropriate. Goverr€mental resources are allocated to and accounted for in individual (ands based upon the purposes for which they are to be spent and the
means by which spending activity is controlled, The various funds are suminarized by type in the general-purpose financial statements. The City uses the
following fund types and account groups:
Governmental Fund T --
Governmental Funds are those through which most governmental functions of'the Cit} 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 govent ental 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:
Ggneral 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.
i t tev� a � F ai ds: 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,
bt Service Fund: The Debt Service F€and is -used to account for the payment of general long-term debt principal, interest and related casts.
Ca ital Flro"ects 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 fa nds).
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 foliowing are the Citys propriety fund types:
Enterprise Funds: Enterprise Funds are used to account for operations haat 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 ) where the goveu Ing body has .decided that periodic determination ofrevenues earned, e pedses incurred, and/or
net income is appropriate for capital maintenance, public policy, management control, accountability or other purposes.
CITY OF LODI
Notes to General. Purpose Financial Statements (cenfinued)
June 30, x€02
Enterprise funds have been established for the Electric, Water, Sewer and Transit Divisions of the City.
internal Service Funds: Intemai 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 east-reirabursement
basis, Internal Service Funds have been established for the City's Claims and Benefits accounts.
Fiduciary Funds are used to account for assets held by the City in a trustee capacity or as an agent for individualls, private organizations, other
goveminental units and/or other funds,
AgRZU 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.
K,xpendable 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 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:
General, Fixed Assets Account Grou : This account group is established to account for fixed assets of the City,
other than those accounted for in the proprietary funds.
General This account group is established to account for ail long-term
obligations of the City except those accounted for in the proprietary funds.
(c) 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) nmatured interest on general long�tenn:obligations which are recorded when due,
and (b) the, noncurrent portion of accrued compensated absences, which is recorded in the General Lon -Term Obligations Account Group.
M
CITY OF LORI
Notes to General Purpose Financial Staterraents (continued)
June 30, 2002
In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual re uirerhaems .of tlae numerous individual w ands are
used as guidelines. There are, however, essentially two types of revenues, In one, moneys mast 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 fbr 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 ret,
Property taus 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 revemm 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
Iia ilities) and thus do richt involve measurement of results of operations. In addition, the City has Expendable Trust funds that are accounted for in the same
man,neT, as are ether governmental gads. All of these funds are accounted for on the modified accrual basis of accounting,
(d) Proprietary Fund Accounting
The City has elected under GASB 20, Accounting and Financial.Repiningfor Proprietary Fiends 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 leo. 20, the City will continue to apply all applicable GASB pronouncements as well as Statements sof Interpretations of
FASB, accounting Principles Board (APB) Opinions and Accounting, Research Bulletins (ARBs) of the Committee on Accounting Procedure issued on or
before November 30,1989, unless those pronouncements conflict or contradict GASB pronouncements.
(e) Deferred Compensation Flans
The City applies the provisions of Government Standards Boars! Statement No. 32, accounting and Financial .Reporting for Internal Revenue Cade Section
457 Deferred Compensation Mang (457 flans). For 457 flans in compliance with the 19961 Small Business Job Protection Act, the City neither: as custody of
the plan assets, nor directs or accounts for the plan investments; therefore, such plans are excluded from the financial statements.
M
CITY OF LORI
]rates to General Purpose Financial Staternert.ts (continued)
,lune 30, 2002
( Enpumbrarices
Encumbrance accounting, render which purchase orders, contracts and other corn.rrsitrraents 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 rt!servatio s 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.
(g) 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 sleet 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 5364'7.
(h) Restricted Assets
Ins the Enterprise (Electric) Fund, restricted assets represent the proceeds of the 1919 .Certificates of Participations held by the trustee for the planned
improvements of the city electric systems. In the Capital Projects Fund, the restricted assets represent the proceeds of the 2002 Improvement bonds intended
for the construction of the new public safety building,
(i) Advance Rec.eivA les
Advance receivables reported in the Special Revenue Fund represent Community Development Block Grant (CDBG) funds and Hume program funds the City
loaned to a developer for a low-income housing project. The City will receive principal and interest from the original loam in thirty years and quid use it for
allowable projects or make new loans.
Advance receivables reported in the Enterprise Fund represent the Clay's portion of the CPA's General Operating reserve that is refundable on demand by the
City. (See Note 15,)
) Inventory
General fund inventories are recorded at cost and are recognized as expenditures when consumed rather than when purchased. For the Proprietary fiend types,
inventories are recorded at cost rising weighted average cost method, which approximates market and expense is recognized when inventories are consumed in
operations..
M
CITY OF f,O.Dl
Notes to General Purpose Financial Statements (continued)
;lune 30, 2002
() General Faxed assets
General fixed assets purchased are recorded as expenditures in the governmental fiends 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 Dong -'berm Obligations Account Croup. Contributed fixed .assets are recorded at estimated fair warket value at the time received. the costs
sof normal maintenance and repairs that do not add to the value of the asset or materially externs asset useful lives are not capitalized.
Improvements considered to be infrastructure such as roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and fighting systems are not
capitalized as these assets are normally immovable and of valve only to the City. 'Therefore, the purpose of stewardsbip for capital expenditures is
satisfied without recording these assets. Depreciation has not been provided on general fixed assets, rarer has interest been capitalized.
(1) Hared Assets - Proprietary Fund Types
Fixed assets € caned by the Proprietary Funds are stated at cost. Contributed faxed assets are recorded .at estimated fair market value at the, time received,
Depreciation has been provided over the estimated useful lives rasing the straight -lune method.
The estimated useful lives are as follows:
Years
Buildings and improvements 3-40
Machinery and equipment 2-40
Vehicles 5-15
Depreciation recognized on contributed fixed assets is charged to contributed capital for assets acquired before .the implementation of GASB .Statement No, 33
(m) Compensated Absences/` acation and Siem 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 Haat would be
required .to be provided frown 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 Farads record vacation and sick leave as an expense and liability when earned by employees
1.3
CITY OF LODI
Notes to General Purpose Fbiancial Statements (continued)
June 30, 2002
(n) 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 clainis arising prior to year-end including claims incurred but not reported.
(o) 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 coluams 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,
(p) 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.
(q) 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.
(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 C4 CouncA The accompanying financial statements present budget
and actual data only of funds for which ars 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,
M
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
The City Council follows the following procedures in establishing the budgetary data reflected in the accompanying general -purpose finano ial statements:
On or prior to the first regular Council meeting in June of each year, the City Manager submits to the City Council a proposed 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 enacte-d 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 ameadment& 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 find level. The City Manager may transfer appropriations from one activity to
another within a deparlanent 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,
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, 2002
Pooled cash and investments:
Demand deposits S 437,282
Certificates of deposit 1,569,500
Investments _L3,7-51,321
Total pooled cash and investments 15,758,103
CITY OF L, Dl
Notes to General Purpose Financial Statements (continued)
June 30, 2002
(a) Cash
The City's demand deposits and certificates of deposit at year-end ars; covered by either federal depository insurance or by collateral held by the
custodial bask. The coliateaal pool of the custodial bark 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 -I by standard & Poor's or P -I by body's Commercial Paper Record, bankers` acceptances,
repurchase agreements, mutual £grads and the State of California Local Agency Investment Fund (LAIF). The City is also authorized to eater into reverse
repurchase agreements. The City selects its investments based on safety, liquidity and yield, At no time during the year disc the City borrow funds thioagh the
use of reverse repurchase agreements,
The cost of investments in the state of'Caiifornia Local Agency Investment ligand (L.AIIj) approximates the fair value of The external investment pool
shares.
(c) Restricted Cash with Fiscal Agent
This represents the balance of the 2002 Public Improvement Certificates of Participation held by US Bank and proceeds of the 1999 Electric Utility Certificates
of Participation held by Bank of New York.
() Custodial Risk
In accordance with GASB 3, deposits and investments are classified as to custodial risk by tlarec categories as follows:
Deposits-
Category
re osits-Category I
Insured or collateralized with securities geld by the City or by its went in the City's name.
Category 2
Collateralized with securities held by the pledging financial institutiorfs trust department or agent in the City's.name.
Catwry
Uncotlateralized. (includes any bank balance that is collateralized with securities held by the pledging financial
institution, or by its trust department or agent but not in the City's name.)
M
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
At year-end, the City's carrying amount of deposits was 5437,282 and the bank balance was $1,932,922. Ofthe bank balance, $217,457 was covered by
federal depository insurance or by collateral held by the City's agent in the City's name. The remaining balance of $1,715,465 was collateralized with
securities held by the pledging financial institution or by its 'trust department or agent but not in the City's name,
Category I
Insured or registered, or securities held by the City or its agent in the City's name;
Category 2
Uninsured and unregistered, with securities held by the counterpartys trust department or agent in the Citys name;
Category 3
Uninsured and unregistered, with securities held by the counterparty or by its trust department or agent but not in the City's name.
Investments and restricted cash with fiscal agent of the City as of June 30, 2002 are summarized below,
Category Not Subject Carrying
I to Ca��rjza�tiun Amount
Pooled investments:
Federal Agency Issues
Federal Home Loan Mortgage
Higgins Capital Medium Term Note
State of California
Local Agency Investment Fund (LAIF)
Total pooled investments
Investments held in trust:
1,001,560
1,049,701
- -__I 1.2700,060
2,051,261 11,700,060
1,001,560
1,049,701
11,700,060
13,751,321
Shares of stocks 339,473 339,473
Restricted cash with fiscal agent 35,744 ,690 35,744,690
Total investments $ 2,390,734 47,444,750 49,835,4.84
The custodial risk level indicated above is generally reflective of the risk assumed by the City during the year ended June 30, 2001
17
on among= am on am so unsommuniin 01510111=0110M 1W
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
The LAiF is a special fund of the Caxliforraia State 'Freasnry through which local governments pool investments, Each governmental agency may invest tip to
$20,000,000 pier account In i AK The City maintains two LAff accounts. Investments in LAW are highly- Hqui€3, as deposits car, be converted into cash
within twenty -foot hours without loss of interest. Investments in LAIF are secured by the full faith and credit of the State of California,
According to the LAW report as of June 30, 2002, the Pooled Money Investment Account Portfolio has not invested in, nor will it invest in, derivative
products. The Pooled Money Investment Board, Local Agency Advisory Board and the Auditor Generai monitor the investment pool.
(4) Property 'faxes
Sara Joaquin County is responsible for assessing, collecting and distributing property taxes it accordance with enabling legislation. Revenue received is based
on an allocation factor calculated by the County under the provisions of Proposition 13 plus a percentage of the increase its market valve in specific: areas. The
CiVs property tax is l ened based on the assessed value listed .as oft e prior Marcia Ist for all real and personal property located in the City. Property sold
after the assessment date (March Ist) is reassessed and the amount of property tax assessed is prorated. The assessed value at March I, 2001, upon which the
2001 levy was based, was 3,298,994,000,
Secured property taxes .are levied. on October I and are due in two installments on November 1 and February 1. The tax becomes delinquent on
December 10 and April 10, respectively. Unsecured property tax is levied on July 1, dace on Jody 31 and becomes delinquent oar .August 31.
Property taxes levied for the year ended hone 30, 2002, are recorded as receivables, net sof estimated uncollectible lectib.le aro aunts. Property taxes paid to the City by
The County within 60 days of the fiscal year end are considered "available" and are, therefore, recognized as revenue.
In 1943, the City made an agreement with the San Joaquin County to participate in the Teeter Plan. The "Teeter plata is an alternative method of apportioning
property tax money. The cities receive 95% of the property taxes in advance from the County and the 5% remaining after reconciling the cities' balances at
Juane 30, As part of the agreement, the County keeps the penalties and interest on the delinquent taxes,
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
Fixed Assets
Fixed assets owned by the City are either recorded in the General Fixed Assets Account Group or in the Proprietary Fund types. Activity for the
year ended June 30; 2002, consists of the followin&
19
Beginning
Ending
General Fixed Assets
Balan!ce
Increws
Decreases
Balance
Land
21,059,805
2,213,716
(848,174)
22,425,347
Buildings and improvernents
37,635,750
141,654
37,777,404
Machinery and equipment
5,743,372
1,203,189
6,946,561
Vehicles
4,887,961
663,109
5,551,070
Construction in progress
12,125,017
5,479,758
(192,719)
17,412,056
Capital lease assets
1,512,265
148,282
L236,461)
____L,424,086
Total
X2,9.64,170
9,849,708
(1,277,354)
$ 91,536,524
Enterprise Funds
Land
5,228,853
77,901
5,306,754
Buildings and improvements
28,507,037
3,612,752
32,119,789
Machinery and equipment
69,185,945
3,612,539
72,798,384
Vehicles
5,762,962
41,064
5,804,026
Construction in progress
__.6,692,908
_§,450,016
(3,612,752)
9,530,172
Subtotal
115,377,605
13,794,272
(3,612,752)
125,55.9,125
Less accumulated depreciation
(30,414,202)
I2,773,027
(33,187229)
Net enterprise funds fixed assets
$ 84,963,403
11,021,245
2,=6 l2,7 �52
92,371,896
19
CITY OF' ,ODI
Notes to General Purpose Financial Staternents (continued)
June 30, 2002
(6) Operating Leases
The City is obligated under various uperating leases for the use of buildings and office space. Total costs for such leases were $93,343 for the Year ended June
30, 2002.
Future minimum lease payments required by lease agreements that has initial .or rernaining noncancella ble Jza5e terms of one year or more as of3une 30, 2002,
are as follows:
Fiscal dears ca �wn
2003
2004
2005
2006
Total minim.um lease payments required
under operating leases
lu
95,323
20,000
20,000
20,000
155,323
CITY OF LOD]
Dotes to General Purpose Financial Statements (continued)
June 30, 2002
(7) Long -Term Obligations and Capitalized Lease Obligations
s
The following is a sarmmary sof debt transactions of the City for the year ended Jane 30, 213432:
Interest
Rates
june 30, 200101 --
Additions �
- �
Retirements
June 0, 002
General Long -Terga Obligations Acco nt Grou
_
Compensated absences
� 5,592,499
330,960
$—__5,923,459
5,923,459
� — -
1995 Certificates of Participation
5, I€3-5.9%
4,175,11110
4,175,000
1996 Certificates of Participation
5.10-5.9%
- 8,805,000
8,805,2043
_
2002 Certificates of Participation
3,0-5.0%
---1---___._.____
26,745,000
.._
26,745,00.0
Notes Payable
5%—
245,000
245,000
Capitalized lease obligations:
First Municipal Leasing Corporation
4,49%
669,772
148,282
117,979
700,.075
IBM Corporation
6.12%
25,010
25,010
Zest America utak
5.39®!o
233,653
73,963
159;6943
928,435
148,282
236,952
§59,765
Total General Dong -'term Obligations Account Group
$ 19,500,934
27,469,242
13,196,952 $
33,773,224
Enterprise Funds.
California Safe Drinking Water Note Payable
3.41%
$ 2,793,718
133,837 $
2,659,881
1991 Certificates of Participation, net of $354,652 discount
4.50-6.60%
9,545,873
135,525
9,370,34$
1999 Certificates of Participation, net of $532,631 discount
5.11 - 5.75%
43,425,€152
43,425,052
2000 Environmental Abatement Certificates of Participation
7,000,000
4,500,400
11,500,000
2002 Certificates of Participation, net of refunding
Variable
47,132,704
1,100,000
46,032,704
Total Enterprise Funds
$ 62,724,643
51,632,744
44,794,414 $
69,562,933
21
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
Long-term debt payable at June 30, 2002, comprised the following individual issues:
California Safe Drinking Water Note Payable
Tian City entered into a contract on October 16, 1991, wills the State of California Department of Water Resources to assist the City in financing the
construction of water wells enabling the City to meet safe drinking water standards established by the State. The note is secured by the project and a pledge of
user fees collected by the Water Enterprise Fund. Semiannual payments of $114,0.06, are pay -able each October I and April I through 2016.
Note Payable
The City issued $245,000 prornissory note to James E, Dean and Carol Dean, as trustees of the James E. Dean Family Trust, for the purchase of 307 W. Elm
Street property, which will be the future site of the new Public Safety Building, Interest is payable quarterly and principal is due on April 1, 2007,
Certif-mates of Participation
$11,170,000 Certificates of Participation (1991 Wastewater Treatment Plant Expansion Refunding .Project), were sold in December 1991
for the repayment of the 1988 Wastewater Treatment Plant Expansion Project at a lower interest rate with approximately $1,400,000 of
additional proceeds. Principal is payable annually on August I in amounts fToni $100,000 to $760,000 with final payment due
August 1, 2026.
$26,745,000 Certificates of Participation (2002 COP) were issued in January 2002 to provide funds to finance the costs of constructing, furnishing and
equipping a new police building and jail for the City; to finance portions of certain other projects, to refund the outstanding 1995 and 1996 Certificates of
Participation. The 1995 Certificates of Participation (1995 COP) were sold in October 1995 to finance the City Downtown Revitalization and the Cherokee
Lane Beautification projects. The 1996 Certificates of Participation (199.6 COP) were sold in August 1996 to finance the construction of the Hutchins Street
Square Conference and Performing Arts Center. Principal is payable annually on October I in amounts from $730,000 to $1,500,000 with final payment due
October 1, 2031.
$46,760,000 2002 Variable Rate Demand Series A and $8,400,000 2002 Taxable Series B Electric System Revenue Certificates of Participation were sold to
provide funds to refund the outstanding 1999 Electric System Certificates of participation Series A and the 1999 Series B Capital Appreciation certificates.
The proceeds of the 2002B Certificates were deposited in the Rate Stabilization Fund and applied to certain power purchase costs of the City, (The 1999
Series A and Series B Revenue Certificates of Participation were sold on August 18, 1999, to provide funds to finance the costs of certain improvements to the
distribution and transmission facilities of the City's Electric System,) Principal for Series A is payable annually beginning 2011 to 2032 in amounts ranging
from $1,175,000to$3,460,000. Series B is payable armually beginning 2002 to 2006 in amounts ranging from $1,100,000 to $3,600,000,
These certificates were issued with variable interest rates hence the City entered into an agreement that allows Salomon Brothers Holding Company to enter
into fixed interest rate swap when the market is favorable.
$11,500,000 Variable rate Certificates of Participation were issued for the Environmental Abatement Program of which $4.5 million were issued during the
2002 fiscal year. Repayment of the bonds is contingent upon litigation settlements.
M
MY OF l ODI
Notes to General Purpose Financial Statements (continued)
Jane 30, 2002
Advance and Current Refunding
The City issued $14,685,0€14 Certificates of Participation Refunding bands to provide resources to purchase US. Government and Local Government Series
securities that were placed in an irrevocable trust for the purpose of generating resources fest all future debt service payments on the $3,985,000 Certificates of
Participation; (1995) and on the $8,440,000 Certificates of Participation (1995), .As a result, the refunded bonds are considered to be defeased and the liability,
has been removed from the general bang -term debt account group This current refunding was undertaken to reduce total debt service payments over the next
29 years resulting in economic gain of $479,072.
In addition, the City issued $46,760,000 ,000 Electric revenue Refunding Bonds for an advance refunding of the $46,719,550 principal amount including accreted
valise of capital appreciation certificates of Electric System Reve ue Certificates of Participation 1999 Series A Current Interest Certificates and the 1999
Series B Capital Appreciation Certificates. Tl e refunding was undertaken to reduce total future debt service payinents. The reacquisition price exceeded the
net carrying amount of the old debt by $8,313,985. This amount is being netted against the new debt and amortized over the refunded debt's life, which is
shorter than the life of the nese debt, At Jute 30, 2002, the unamorlized deferred amount on refunding was $8,027,296. The transaction also resulted in an
economic gain of $9,317,772 and a reduction of $30,158,802 in future debt payments.
The annual principal and interest requirements to amortize all debt outstanding as of June 30, 2002, are as rilicsws:
Year
Ending
June 30,
Mater Note Payable
Principal Interest
1991
Certificates of Participation
Principal Interest
2002 Public Improvement
Certificates of Participation
Principal Interest
2003
$ I3$,44fi
89,533
160,000
639,040
730,400
1,244,672
2404
143,029
84,448
175,000
627,975
485,0000
1,186,447
2005
148,287
79,690
185,000
616,135
500,00.0
1,171,572
2006
153,220
74,758
195,000
643,460
520,000
1,156,372
2€07
158,489
69,488
210,000
589,600
535,000
1,140,547
Thereafter
1;918,416
361,976
8,80.0,000
6,829;64523,975,000
.17,439,661
$ 2,659,981
760,397
9,725,000
9,90-5,815
26,745,000
23,299,371
2002 Electric System revenue Grated Total
Certificates of Participation Principal &
Principal Interest Interest
3,600,000
265,570 $
6,827,219
2,600,000
152,530
5,454,929
1,100,000
49,834
3,850,614
2,7€32,$10
2,703,124
46,760,000
Variable rate
1115;084,698
54,060,000
467;930 $
127,623,394
The various indentures contain significant limitations and restrictions on annual debt service requirements, maintenance of and flow of moneys through various
restricted accounts and minimum revenue bond coverage. The City is in compliance with all such significant limitations and restrictions.
23
CITY OF LODI
Notes to General Purpose Financial Statements (continued' )
June 30, 2002
The present values of future minimurn capital lease payments as of June 30, 2002, are as follows:
Fiscal Years Ending
2003$
217,921
2004
217,514
2005
13.1,345
2006
131,345
2007
131,345
thereafter
131,345
Total minimurn lease payments
960,815
Less amounts representing interest
(101,050)
Present value of minimum capital lease payments
859,765
Special Debt
The City has issued limited obligation improvement bonds on July 22, 1996, for the " Lodi Central City Revitalization Assessment District." These bonds have
no governmental commitment and debt service is recorded in an Agency Fund. These bonds were issued under the Improvement Act of 1915 and will mature
in the year 2011, The City's liability in the event of delinquent assessment shall not exceed the balance of the established Reserve Fund. The amount
outstanding as of June 30, 2002, is 51,39.5;000.
The City of Lodi has lent its name to the City of Lodi Industrial Development Authority for the purpose of issuing the following industrial development bonds:
Minton Corporation $5,000,000; Dart Corporation $8,000,000; Wallace Computer Services $3,000,000; and Luster -Cal Nameplate Corporation $3,000,000.
These bonds are special obligation bonds only, payable solely out of the bond revenues or rather sources of the above companies and are not a pledge of the
general credit of the City, The City is not obligated for the redemption or administration of these industrial development bonds.
0
CITY OF ,ODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
(8) Due To/From Other Funds or Governmental Agencies
Individual fund interfund receivable and payable balances, as weit as amounts due from other government agencies, by fund type at June 30, 2002, are as
follows:
Fund
General Fund:
County of San Joaquin - grant
Capital Outlay Reserve
Sub Total General Fund
Special.Revenue Funds:
Community Development Block Grant
Horne Program
Police Special Revenue Fund
Streets Fund
Sub Total Special Revenue Funds
Capital Projects Funds:
Hutchins Street Square Capital
Capital Outlay Reserve
Sub Total Capital Projects Funds
Enterprise Funds:
Electric fund
Sewer fund
Water fund
Transit Fund
Sub Total Enterprise Funds
Total
M.
Due From
Other Funds
2.1 ,200
218,200
713,240
63,899
277,139
500,000
777,139 777,139
73,000
3,551,831 6,521
3,624,831 6,521
Due To Other
Government
___Agencies
_.�21,600
621,600
Due From Other
Government
S 44,886
EM
732,423
63,899
29,860
2,608,938
33,569
33,569
1,750,000
1,443,660
1,926,529 3,239
1,720,079 450,000
1,720,079 5,120,189 453,239
S 6,122,049 S 6,122,049 S 621,600 3,966,814
Amounts due to other funds from the Community Development Block Grants, Transportation and Transit funds represent interfund payable/receivable for overdraws of
their share -of the pooled cash account, Amounts due from other government agencies represent expenditures made by -the City for various grant programs not
reimbursed by the State of Califortlia. or Federal Government prior to June 30, 2002, Due to other government agencies represent a loan froom the San Joaquin County
Council of Governments for the Hi -way 99 and Hi -way 12 Interchange project.
99
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
(9) Nature and Purpose of Reported Fund Equity
The following is a summary of restricted, reserved, unreserved -designated and unreserved -undesignated fund balances and/or retained carningsat June 30, 2001
Fund balances:
Reserved for
Library
Encumbrances
Inventory
metal Reserved
Unreserved -designated for:
Specific projects and programs
Total Designated
Governmental Fund Types
Special Capital Internal Trust &
General Revenue Projects Enterprise Service —Agency Total
475,644
260,041 1,358,721 2,003,771
120,623
856,308 1,358,721 2,003,771
1,814,028 17,904,714
1,834,028 17,904,714
475,644
3,622,53.3
120,623
4,218,800
6()9,367 20,328,109
609,367 20,328,109
Unreserved - undesignated 2,207,614 2,207,614
Retained earnings (deficit) 41,922,932 (11552,940) 40,369,992
Contributed capital — — 13_,310,898 — — L3,3_'0A98
Total Fund balances/Retairied earnings (deficit) S 3,063,922 3,172,749 19,908,485 55,233,830 (1,552,940) 609,367 $ 80,435,413
keserved Fund Ballance and/or Retained Earnings
Reserved represents that portion that is legally segregated for specific purposes and is not available for discretionary appropriation.
Unreserved- besignated Fund Balance
Designated represents that portion for which the City has made tentative plans.
Unr.eserved-Undesignated Fund Balance
Undesignated represents that portion which is available for budgeting in future periods.
M
(a) Plan Description
The City of Lodi contributes to the California Public Employees' Retirement System (PERS); an agent multiple -employer public employee defined benefit
pension plan. PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. PERS
acts a common investment and administrative agent for participating public entities within the State of California, Benefit provisions and all other requirements
are established by state statute and city ordinance, Copies of PERS' annual financial report may be obtained from their Executive Office- 400 P Street,
Sacramento, CA 95814.
(b) Funding policy
Participants are required to contribute 7% (9"/o for safety employees) of their annual covered salary. The City makes the contributions required of City
employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate; the current rate is 0.0% for miscellaneous
employees, 0.0% for fire employees and 11.371% for police employees, of armual covered payroll, The contribution requirements of plan members and the
City are established and may be amended by PERS.
27
swan Hem M M M M M M I= M M MMM M "M
CITY OF LODI
Notes to General Purpose Financial Statements
(continued)
June 30, 2002
(10) Operating Transfer's
Total operating transfers by fund for the year ended June 30, 2002, were as fohows:
Operating
Operating
Fund
Transfers In
Transfers Out
General Fund
S 5,372,694
4,883,104
Special Revenue Funds
578,218
3,389,750
Debt Service Fund
1,233,699
Capital Projects Funds
5,315,056
4,979,211
Enterprise Funds
2,865,902
6,126,410
Internal Service Funds
3,831,267
Expendable Trust Fund
18,361
$ 19,196,836
19,196,336
(a) Plan Description
The City of Lodi contributes to the California Public Employees' Retirement System (PERS); an agent multiple -employer public employee defined benefit
pension plan. PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. PERS
acts a common investment and administrative agent for participating public entities within the State of California, Benefit provisions and all other requirements
are established by state statute and city ordinance, Copies of PERS' annual financial report may be obtained from their Executive Office- 400 P Street,
Sacramento, CA 95814.
(b) Funding policy
Participants are required to contribute 7% (9"/o for safety employees) of their annual covered salary. The City makes the contributions required of City
employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate; the current rate is 0.0% for miscellaneous
employees, 0.0% for fire employees and 11.371% for police employees, of armual covered payroll, The contribution requirements of plan members and the
City are established and may be amended by PERS.
27
swan Hem M M M M M M I= M M MMM M "M
CITY OF LODf
Notes to General Purpose Financial State cents (continued)
June 301 2002
(e) Annual Pension Cost
For fiscal 2002„ the City's annual pension cost of $569,423 for PEAS was equal to the City's required and actual contributions. The required contribution was
determined as part of the June 30, 2000, actuarial valuation using the entry age norinal actuarial asst method. 'The actuarial assumptions. included (a) 8.25%
investment .rate of return (stet of administrative expenses) (b) projected annual salary increases that vary by age, length of service, and type of e ployment (w)
3.75% payroll growth, and (d) 3.501/9 inflation, The actuarial value of PEAS assets was determined usi g.techniques that smooth the effects of short -fierce
volatility in the market value of investments over a three-year period (smoothed market value). PERS unfitrided actuarial liability is being amortized as a level
percentage of projected payroll on a closed basis. A orti tion of remaining period varies (a) safety police plan over 8 years (b) safety fire plan over 7 years,
and (c) miscellaneous plan over 41 years as of the valuation date.
(d) Trend Information
Three -Year Trend info atign($ AnLounts_in Thousands):
K p,
Net
eatsaon
Obligation
$0
�0
$0
The City provides no past -employment benefits for its employees. however, employees who retire with at least ten years of service may elect to
convert all accrued sick lease at the time of retirement to establish an individual medical insurance account. Depending on the bargaining unit of the
employe-, the value of the insurance account shall be determined by the following options:
a) Option I (available to Management and Mid -management Employees only)
The number of accumulated hours shall be reduced by 16-2/3% and the remaining balance converted into days. The days are then multiplied by the
current monthly premium being paid for the employee and, if applicable, MAer dependents, Fifty percent of that amount will be placed into an
account to be used by the City to pay medical insurance prem itims for the employee and, if applicable' hiAer dependents. For each year of employment
over tela years, 2,5% will be added to the 50% used in determining the account amount, Total premiums shall be paid from the account until its depletion, at
which time the benefit ceases,
Annual
Percentage
Fiscal Year
Pension
Of evc
Ended
Cost (APC)
Contributed
6/30/00
66
1 W/o
6130101
54.3
100/%
6130/0'
569
10011/1,
K p,
Net
eatsaon
Obligation
$0
�0
$0
The City provides no past -employment benefits for its employees. however, employees who retire with at least ten years of service may elect to
convert all accrued sick lease at the time of retirement to establish an individual medical insurance account. Depending on the bargaining unit of the
employe-, the value of the insurance account shall be determined by the following options:
a) Option I (available to Management and Mid -management Employees only)
The number of accumulated hours shall be reduced by 16-2/3% and the remaining balance converted into days. The days are then multiplied by the
current monthly premium being paid for the employee and, if applicable, MAer dependents, Fifty percent of that amount will be placed into an
account to be used by the City to pay medical insurance prem itims for the employee and, if applicable' hiAer dependents. For each year of employment
over tela years, 2,5% will be added to the 50% used in determining the account amount, Total premiums shall be paid from the account until its depletion, at
which time the benefit ceases,
(14)
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
b) Option If (available to all employees)
Calculation is the same as Option I except that the employee must pay any increase in premiums.
c) Option III (available to all employees)
A retiring employee will be able to choose a cash pay-off of accumulated sick leave at the rate of 30% of base pay per hour,
Claims and Benefits
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees: and
natural disasters, The City is self-insured up to certain limits for certain losses as discussed in the following paragraphs for which reserves are recorded in the
Internal Service Fund.
The City is self-insured for general liability up to the first $500,000 per occurrence with claims from $500,000 to $15,000,000 per occurrence and in the
aggregate insured through the California Joint Powers Risk Management Authority. ;See note 16)
The City is self-insured for workers' compensation up to the first $250,000 per claim. Any claims of $250,000 up to California Statutory Limits are covered
under a purchased policy through the membership with the Local Agency Workers' Compensation Excess Joint Powers Authority. (See note 16)
The City is fully self-insured for dental, unemployment and long-term disability for its employees
General liability and workers' compensation claims are administered by an outside agency and all other claims are administered by the City
The City has accrued a liability of $2,733,000 at June 30, 2002, for all self-insured claims in the Internal Service Fund that includes an amount for
incurred but not reported claims. The reserve amount is based on the requirements of Governmental Accounting Standards Board Statement No. 10,
which requires that a liability for claims be reported if Information prior to the issuance of the financial statements indicates that it is probable that a liability
has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. In the opinion of the City, the amounts accrued
are adequate to cover claims incurred but not reported in addition to known claims,
Changes in the self-insurance reserve for fiscal years ended Jun-, 30, 2002 and 2001, are as follows:
Fin "nin
FY 00-01 S 3,576,629
FYOI-02 $ 3,576,629
Current -Year
Claims and Changes
Claim
Ln Estimates
RU—Ments
1,530,242
(1,530,242)
768211
(1,611,840)
IR
M M M M M M W M M M M
Ending
$ 3,576fi29
$ 2,733,000
MM mm Now mm
C l f a'' OF NODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
15$ Participation in Joint Ventures
Northern California Power Agency
The City, along with fourteen other public agencies, is a member of the Northom California Power Agency (NCPA) that was formed in 1968 as a joint pourers
agency. its membership consists of eleven cities with publicly owned electric utility distribution systems, one irrigation district, one public utility district, one
part authority and seven Cather associate member entities. NCPA is generally empowered to purchase, generate, transiriit, distribute and sell electrical energy.
Members participate in the projects of NCPA on an elective basis.
A commission comprising of one representative from each member organization governs NCPA. The commission is responsible for the general management
of the affairs, property and business of NCPA. Linder the direction ofthe general manager, the staff of NCPA is responsible for providing varies
administrative, operating and planning services for NCPA and its associated power corporations.
Project Fanancinp- and Construction
NCPA's project construction and development programs have been individually financed by project revenue boards collateralized by NCPA's assignment of
all payments. revenues and proceeds associ
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
The NCPA members and their percentage share at June 30, 2041,
which is the most recent available data, are as fbfiows:
Hydro
Combustion
Multiple
Geothermal
Electric
Turbine
Capital
Transmission
prg—est—
.-t-et
Facilities
Alameda
16.8825
10,00
13.092
19.430
30.3590
Biggs
0.2270
0,4082
Gridley
03360
0.7103
Healdsburg
3,6740
1,66
3.500
6M68
Lodi
10,2800
1037
34.780
39.50
18.4861
Lompoc
3.6810
2.30
31.500
5.00
6,6194
Palo Alto
22,92
11,0736
Plurnas-Sierra Rural Electric Cooperative
0,7010
1.69
1.090
1.46147
Roseville
7,8830
1100
13,584
36,50
34.1756
Santa Clara
44.3905
37.02
25,000
Turlock Wrigation District
6,3305
Ukiah
5.6145
2.04
5,454
10.0963
Bulk power purchased by the City through NCPA amounted to $52,375,146 during the year ended June 30, 2002 and is reflected in utilities expense in the
enterprise fun&
NCPA Geothermal Proiect
A purchase power agreement with NCPA obligates the City for a 10.28% share of the operating costs and debt service of two of NCPA's. 110- megawatt steam
powered plants, Project Number 2 and Project Number 3. Outstanding long-term debt related to this project was approximately $340 million at June 30,
2001,
CITY OF LODI
Notes to General Purpose Financial Statements (confiriud)
June 30, 2002
CalaverasLlydroel�Cectric
_ELpj_w
NCPA contracted to finance, manage, construct and operate Hydroelectric Project Number One for the licensed owner, Calaveras County Water District, in
exchange, NCPA has the right to the electric output of the project for 50 years from February 1992, NCPA has also the option to purchase power frow, the
project in excess of the District's requirements fbi- the subsequent 50 years, subject to regulatory approval.
Under a power purchase agreement the City is obligated to pay 10.37% of the debt service and operating cost& At June 30, 2001, approximately $526
million in long -terra debt used to finance this project was outstanding.
NCPA Qombustion Turbine
In October 1984, NCPA financed a five -unit, 125 -megawatt combustion turbine project. The project, built in three member cities, began full commercial
operation in June 1986, providing reserve and peak power. Under the NCPA power agreement, the City is obligated to pay 34.78% of the debt service and
operating costs. At June 30, 2001 approximately $35 million in long-term debt was outstanding.
Transmission.R[Piect
The project was undertaken to meet certain obligations of NCPA under the NCPA/PG & E Interconnection Agreement. The project includes an ownership
interest in PG & E's 230 Castle Rock to Lakeville Substation Transmission Line in Sonoma County, additional firm transmission rights in that Transmission
Line, and a central scheduling and dispatch facility in service at the NCPA headquarters in Roseville, California, Under a power purchase agreement, the City
is obligated to pay 18.4861% of the debt service and operating costs, At June 30, 2001, approximately $8 million in long-term debt was outstanding.
multi 9e -Ca itai Facilities Pro'�ct
The Project consists of two separate components: (1) A 49.9 megawatt combustion turbine, "Unit One", located in Lodi, California and owned and operated.by
the NCPA; (2) Improvements to the electric syitcrn owned and operated by the City of Lodi. Each of these components is supported by separate and unrelated
member participation agreements.
Under a power purchase agreement, the City is obligated to pay 39.5% of the debt service and operating costs, At June 30, 2001, approximately $145 million
in long-term debt was outstanding.
KN
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
The following are the most recent available audited condensed financial state meats of NCPk
Combined Balance Sheet
June 30, 2001
Assets
Current assets 66,422,000
Restricted assets 338,962,000
Electric plant, net 555,485,000
Other assets and deferred charges 274,528,000
Total assets $ 1,235,297,000
Combined Statement of Revenue and Expenses
Year ended June 30, 2001
Salts to participants for resale
342,505,000
Operating expenses
(229,031,000)
Other revenues (expenses)
(59,377,000)
Future recoverable coats
j3,540,0002
Net revenues before refunds
50,557,000
Refunds to participants_
(64,896,0(0)Q
Net revenues
(14,329,000)
Accumulated net revenues,
beginning of year
23,818,000
Accumulated net revenues,
end of year
S 9,489,000
Liabilities and Capitalization
Current portion of long-term debt 55,880,000
Other current liabilities 49,078j000
Other liabilities and deferred credits 134.,680,000
Long-term debt 986,170,000
Accumulated net revenues 9,489,000
Total liabilities and capitalization 1,235,297,000
Combined Statement of Cash Has
Year ended June 30, 2001
Net cash provided by operating activities 186,822,000
Net cash provided by investing activities 51,911,000
Net cash used in capital and related
financing activities (122,423,000)
Net cash used in noncapital
and related financing activities . . . j29;978,000
Increase in cash and cash equivalents 86,332,000
Cash and cash equivalents, beginning
of year 65,081,000
Cash and cash equivalents end of year 151,413,000
At June 30, 2001, NC -PAs total outstanding long-term debt was $1,042,050,000 at an average interest rate of 5%" The current portion of long-term debt at
June 30, 2001, was $55,880,000,
Complete financial information for NCPA may be obtained at the following administration Office,
Northern California Power Agency
180 Cirby Way
Roseville, CA 95678
99
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
Transmission .Agency of Northern California
The Transmission Agency of Northern California (TANQ was organized under the California Government Code pursuant to ajoint powers agreement entered
into by fifteen Northern Califomia 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 TANCs activities can be financed or recovered through assessment of its members or user charges through transmission contrattl
with its members. Each TANG 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,
ect Entitlement PeLcentage
Upon the failure of any Project Participant to make any payment, which failure constitutes a default under the Member Agreement for the projects, and e?wept
as sales and transfers are made pursuant thereto, the Member Agreements provide that Project Entitlememt for each non -defaulting Project Participant shall be
automatically increased for the remaining term of the Member Agreement,, pro rate with those of the no 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 no Project
Participant, an accumulated maximum of 25% of the non -defaulting Project Participant's original Project Entitlement Percentage Share.
Cal ifbrnia-Oreg2ajjqas issican Pica act
'PANG is a participant and also the Project Manager of the California-0regon Transmission Project (Project), a 339 -mile long, 500 -kilovolt alternating
current transmission project between Southem Oregon and Central California. As a Project Manager, TANG 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 oaf the
Pacific Northwest and those in California. The major environmental requirements for the Project have been successfully met anti completed.
In connection with its participation in the Project, TANG has an entitlement percentage in Project transfer capability and cons"ction cost sharing of
85,2557%. "PANG has incurred cogs for Project construction of approximately $4372 million as of June 30, 2001, These costs have been capitalized by
TANG since they are expected to be recovered thirough reimbursement from Project participants and the successful operation of the Project's transmission
lines. The Project agreement as the participating members provides that each member agrees to make payments, from its revenues, to TANG for Project
costs incurred and for the payment of debt service.
Under the TANG joint powers agreement, the City is obligated to pay 1.89% refits debt service and operating costs, At June 30, 2001, approximately $367
.million in long-term debt was outstanding of which $6.2 million is considered current,
W
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
The following are the most recent available audited condensed financial statements of'TANC;
BALANCE SHEET
dune ,30,2001
Electric Utility plant, net 359,559,903
Restricted Assets 37,021,W
Current Assets 17,661,461
Noncurrent assets and deferred charges 55,157,840
Total Assets 469,400,268
Capitalization and Liabilities
Total members' equity 615,697
Accuniulated other comprehensive income 1,316,817
Long-term debt 3L0,860,831
Total capitalization 362,793,345
Current liabilities 92,633,491
Noncurrent liability and deferred credit 13,973,432
Total capitalization and liabilities $ 469,400,268
STATEMENT OF INCOME
For the Year Ended June X 2001
Revenues.-.
Operating revenues $ 47,354,671
Interest income 3,7859365
'Total revenues 51,14.0,036
Costs and expenses
General and other operating costs
11,380,338
Interest and other financing costs
25,787,042
Loss on interest swap valuation
3,735,000
Depreciation and amortization
12,192,916
Total costs and expenses
51,095,296
Net income
44,740
Members' equity, beginning of year
570,957
Members' equity, end of year
615,697
Other comprehensive income
1,316,817
Total equity
1,932,514
Complete financial information for TANC may be obtained at the following administration office. -
Transmission Agency of Northern California
31 Oil Zinfandel Drive, Suite 600
Sacramento, CA 93670
35
M-0
am
CITY OF LODT
Notes to General Purpose Financial Statements (continued)
June 30, 2002
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 Managernem 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 C; PRM These deposits are
recorded as expenditures in the year paid, as they area reasonable estimate of the actual cost of the program. During the year ended June 30, 2€
deposits of $233,940 were paid to CJS A.
The most recent condensed audited financial information of CJPRMA as of June 30, 2001 follows:
Balance Sheet
June 30, 2001
Total Assets, primarily investments $ 65,276,721
Liabilities
Reserve for losses, Liability program $ 30,474,668
Reserve for losses, Worker's Compensation program 57,670
Claims payable 35,125
Current liabilities 20,366
Total liabilities 30,587,829
Ye2r Ended June 30,2001
Total Revenues
Total Expenses
Operating Income
Investment Income
Net Income
7,160,479
(4,196,246)
2,964,233
6,921,295
9,885,528
Fund Equity Retained Earnings, beginning of year 27,602,810
Retained earnings 34,688,892 Refunds to members (2,799,446)
Total Liabilities and Equity 65,276,721 Retained earnings, end of year S 34,6.98,892
The participants and their percentage shares at June 30, 2001, are as follows: City of Alameda 3.681/o, C CCMRMIA 4,96%, Chico 1.62%, Central San Joaquin
Valley is Management Authority 1 ;99%, Fairfield 2,91 %, Fremont 6.161%, Liv tare 2.50%,:Lodi 2.201/1o, Manteca 1.470/a. NC SIF 2-V/16, Petaluma
1.70%, Redding 3.93%, Redwood Empire Municipal Insurance Fund 5.71%, Roseville 3.30%, San Leandro 2. . 991/1o, San Ra . faei 2.54%, Santa Barbara Area
W
CITY OF LODI
mNotes to General Purpose Financial Statements (continued)
Daae 30, 202
Joint Powers 1ps ranee Authority 0.72%. Sasha Rosa 5.50%, Small Cities Orgaatizcd Risk EMyri 2,0%, Stockton 7,84 �'f Sunnyvale 6.23%, Vacaville 2,17%,
Vallejo 3,33%, and Yelo County Public Agencies disk Management Insurance Authority 8,76%
Local Agency Workers' Compensation Excess Joint Powers Authority
Tim City, along with 30 ether public agencies, is a member of'the Local Agency Workers' Compensation Excess Joint Powers A: tharity (LA C ) which
was formed July 1992, for the purpose of sharing the risk of workers' compensation losses. All members are self-insured yap to $250,000 per .occurrence.
LA CX 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 folluws:
Balance Sheet
June 30, 2001
Total Assets, primarily investments
Liabilities,
Accounts Payable
Deferred Revenue
Reserve for Known Claims
Deserve for Claims Incurred But Not Reported
Reserve for Unallocated Loss Adjustment Expertise
Total liabilities
Retained €3eficic
Total Liabilities and Equity
Statement of Revenues, Expenses and Retained deficit
Year Ended June 30, 2€ 01
4,542,207' Total Revenues $ 1,680,217
$ 29,98.8 Total Expenses ___(L,233,218)
109,033
2,13$,635
2,494,544 Net Income 446,993
65,786
4,827,996
(285,779) Retained Deficit, beginning of year (732,779)
$ 4,542,247 Retained Deficit, end of year (295,779)
The City paid $58,972 in deposits to LAWCX during the fiscal year ended June 30, 2002.
The participants at June 30, 2001, are as follows: City .of Alameda, Albany, A WA, . risbane, Central Saar Joaquin Valley Risk Mgmt Authority, Clovis
Desert Hot Springs, East.Bay regional Park District, Emeryville, Management of E eryvitie.:Se ices.Authoriiy> FremontLivermore, Lodi, i, I cis Gatos,
Merced, Morgan Hill, Newark, PARSAC, Piedmont, Roseville, Small Cities Org. Risk Effort (SCORE), Som Lake Tahoe, Sardine Transit Agency, Union
City, Vacaville, Vallejo and Vector.Control JPA.
W
CTTY OF LODI
Notes to General PwWse Financial Statements (continued)
June 30, 2002
California Transit Insurance Pool
The City, along with 27 other public agencies is a member of California Transit Insurance Pool (CaITIP), a joint powers insurance authority which was
formed for the purpose of sharing the risk of property damage, bodily ij�lury, personal injury and public officials errors and omissions losses for public transit
systems.
Liability protection coverage is provided under two prograrn&
PMgLami I applies to member properties with a pre -funded deductible or a self-insured retention of less than $ 100,000 per
occurrence. Under this programclaims processing is provided by CaMPs claim administrator,
Program 11 applies to all member properties with se If- insured retention of 100,000 or greater per occuiTence. Under
this program, claims administration services are performed at the discretion of the member agency, subject to CaMP bylaws,
Cal` P 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 CaITIP, 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 litnit for certain member agencies, at the option and expense of those
agencies.
M
CITY OF LODI
Notes to General Purpose. Financial Statements (continued)
June 30, 2002
The schedule below reflects the liability protection coverage at April 30, 2001, which is the most recent available data, for each of Gal P's member agencies:
1E
0
10
10
10
10
5
10
10
5
5
5
5
5
S
5
10
10
10
16
10
10
10
10
10
10
To
10
Self -Insured
Ageney
Program
Retention
Arcata Mad River Transit System
$ Prefunded
City of Azusa Transit System
I
25,000
Butte County Transit System
Y
25,000
Central Contra Costa Transit Authority
1
25,000
Culver City Municipal Bus Lines
II
250,000
City of Dixon Transit System
I
Prefunded
El Dorado County Transit
I
Prefunded
City of Folsom Transit System
II
250,000
Hu bolt Transit
I
Prefunded
City of Lincoln Transit System
if
250,000
City of Lodi Transit System
I
Prefunded
Mendocino Transit Authority
I
25,000
Monterey -Salinas Transit
II
100,000
Morongo Basin Transit Authority
I
Prefunded
Napa Valley City Bus
I
Prefunded
Nevada County Transit District
I
Prefinided
Placer County Transit
II
100,000
Riverside Trawit Agency
I
25,000
Santa Cm7 Metropolitan Transit District
II
I00.000
Santa Rosa County Transit
if
Wo 100 . 0
Siskiyou County Transit
I
Prefunded
San Luis Obispo Regional Transit Authority
I
Prefunded
South Coast Area Transit
I
Prefunded
City of Vacaville
1
Prefunded
Vallejo Transit Lines
1
25,000
Westem Contra Costa County Transit Authority
I
Prefunded.
City of Whittier Transit System
II
109'1100
Yolo County Transit Authority
i
Prefanded
1E
0
10
10
10
10
5
10
10
5
5
5
5
5
S
5
10
10
10
16
10
10
10
10
10
10
To
10
MW no, to . M on ow "N AN so #-M- No an W so SM an on
CITY OF LODI
Notes to General Purpose Financial Statements (continued)
June 30, 2002
The most recent condensed audited financial information of CaITIP as of April 30 2001, is disclosed as follows:
Balas ce 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 TotalRevenues $ 3,880,492
Total Expenses (2,934,164)
Total Liabilities $ 9,145,867 Cumulative affect of accounting change (492,4'23)
Net Income 453,905
Retained earnings 2,713,960 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 ftorn the prior year and there were no insurance settlements in excess of insurance coverage in any of the
last three years.
(17) Deficit in and Equity
Internal Service Fund -Q.1airnLand Benefits - A deficit in fund equity at June 30,2002, in the amount of $1,552,940 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 -repotted (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,
N
CITY OFLOD1.
Notes to General Puipose Financial Statements (continued)
June 30, 2002
(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, 2002, are as follows,
Operating revenues
Operating expenses:
Depreciation and amortization
Other
Operating loss
Nonoperating revenue (expense)
Current capital contributions
Operating transfers, net
Net (loss) income
Property, plant and equipment additions (deletions)
(including construction in progress), net
Net working capital
Total assets
Cettificates of participation, net
$ 47.266,575
(778,235)
J§�3,544,89�2
(17,056,552)
945,264
623,420
(2,249,419)
(17,737,Z87)
Sewer Water Transit Total
4,138,729 4,045,705 S 234,200 S 55,685,209
(1,062,962)
(620,586)
.... ... .. .. _........(4,907,716)
(8,531,056)
(1,731.,949)
(5,105,937)
586,085
952,483
800,094
682,209
(1,010,250) _(ELfi46)
(1,356,020) (4,444,891)
(374,536)
(2,836,319)
3,9249408)
___(K,808,072
(6,4fr4,744)
(29,959,182)
3,653,422
6,037,254
4,131,859
6,237,582
872,807
(3,260,509)
$ 2,593,344 S MM4;854)
3,5912498 155X1 126,881 S 4,131,861 S 8,005j611
......... 7,378,726 1,263,330 872,134 (1,422,369) S 8,091,821
S . . 63,769,976 -- 36,901,417 - 19,671,759 $ 12,446,930 $ 132,790,082
S� 46,032,704 9,370,348 11,500,000 $ $ 66,903,052
Total -equity 14,322,055 . . . . 16,550,964 3,805,719 S IL549,j92 $ 55,233,830
IF
(20) Commi tments 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 frog such litigation would not materially affect the financial condition oft e 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, The City has arbitrage liability of $154,585 as of June 30, 2002.
(21) Subsequent Events
in February 2001, the City entered into an energy purchase agreement (the Original Agreement) with Calpine Energy Services L.P. (Calpine) to purchase 25
MW of energy at $65/mwh for a ten-year period beginning January 1, 2002. Since the execution of the Original Agreement, actions of the State in connection
with the energy market conditions, including the initiation of conservation programs, and other factors, have resulted in lower electric load requirements and
reduced energy costs throughout the State, As a result, the City's need for the energy purchased under the Original Agreement to serve its load has been
reduced.
The Original Ageement was arfiended oft September 49 2002, and was divided into three parts, The City sold its interests in the energy pumbased under the
Original Agreement to Calpine and nets the payments due from the City with respect to its purchase of such energy against the payments due from Calpine with
42
CITY OF LOBI
Notes to General Purpose Financial Statements (continued)
June 30y 2002
(19) Contributed Capital
Contributions of property, plant and equipment for the proprietary funds are as follows:
Depreciation
Balance at
Balance at
on Contributed
End
Beginning of Year
Assets
of Year
Enterprise Fund
Electric Fund
592,964
(9,219)
S 583,745
Sewer Fund
5,068,632
(154,669)
4,913,963
Water Fund
3,530,108
(102,877)
3,427,231
Transit Fund
4;575;0.63
(189,104)
4,3851959
Total Enterprise Fund
$ 13,766,767
(455,869)
S 13,310,898
(20) Commi tments 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 frog such litigation would not materially affect the financial condition oft e 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, The City has arbitrage liability of $154,585 as of June 30, 2002.
(21) Subsequent Events
in February 2001, the City entered into an energy purchase agreement (the Original Agreement) with Calpine Energy Services L.P. (Calpine) to purchase 25
MW of energy at $65/mwh for a ten-year period beginning January 1, 2002. Since the execution of the Original Agreement, actions of the State in connection
with the energy market conditions, including the initiation of conservation programs, and other factors, have resulted in lower electric load requirements and
reduced energy costs throughout the State, As a result, the City's need for the energy purchased under the Original Agreement to serve its load has been
reduced.
The Original Ageement was arfiended oft September 49 2002, and was divided into three parts, The City sold its interests in the energy pumbased under the
Original Agreement to Calpine and nets the payments due from the City with respect to its purchase of such energy against the payments due from Calpine with
42
CITY OF.LORI.
Notes to General Purpose Financial Statements (continued)
June 30, N69
respect to its purchase of the City's rights to such energy. On November 21, 2002, the City issued $21,225,000 Revenue Certificates of Participation 2002
Series C and $22,740,000 Reve-nue Certificates of Participation 2002 Taxable Series D to buy out the amended contract in the amount of $42,406,175.
IE
iiiiiiiiiiii! iiiiiiiiiiii� Iiiiiiiiiiii I I I III iiiii I I � � � � � � I I I I I I I I I � 11111111111
III :; ii I � illiql
REW"UIRED SUPP�LEMENTARY [NFORMATION
PE.NS.10:N PLAN -.S�C:KEDPLE OF FUNDING PROGRESS
City of Lodi
equired Supplementary nfor tion
Sel edu e of Paneling progress - Pension Plan
(ire thousands of dollars)
I
Unfunded
Unfunded
(Overfunded)
Entry Age
(Overfun&d)
Actuarial
Actuarial
Actuarial
Liability as
Actuarial
Actuarial
Accrued
accrued
Funded
Covered
Percentage of
Valuation
Asset Value
Liability
Liit ty
Ratio
Pwu13
Covered Payroll
Date
(A)
( )
[(B) - (A)]
[(A) / ( )l
(C)
( [(B) — (A))I(C))
6/30/95
S 70,518
b 69,253
S (1,265)
102%
S 15,499
(8.16%)
6/30(96
79,694
77,581.
(2,113)
1031io
15399
(13.2.1%)
6130/97
91,769
79,787
(11,982)
115%
16,871
(71.632%)
6/313/98
108,165
88;222
(19,943)
123%
17,6611
(113-31%)
6/30/9;
125,286
1€34,459
(26,927)
120!11/a18,534
(112.370%)
6/30/
136,603
€13,'75 7
(22,846)
1200/0
191595
(11&65%)
6/30/01
140,463
125,7.5.2
(14,711)
11.1°!0
21,4.46
(68.613116)
I
am
SUPPLEMENTAL FINANCIAL STATEMENTS
M mom MM Mew Mmallm Nommum's . n an
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:
Of of the City Manager
Implementation of City Counci I policies
Intergovernmental relations
Community Prornotion
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. arlhe City Clerk
Official City Recordkeeping/Elections
Council Meeting Agendas and Minutes
Chamber of Commerce
Human Resources Department
Employee Relations
Recruament, Selection and Classification
Affuinative 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
Hazwd Prevention
Weed Abatement
Parks and Recreation Department
Park Maintenance
Youth Programs
Ad ult 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 there 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 Fnterprise Fund Activities, Special Revenue Fund Activities and Capital Outlay Fund Activities, Reimbursement
transiers are made from the other funds to the General Fund based on a formula calculated each year as compensation for these services.
Em
C17Y OF ::
June 30, 2002 a 2001
ASSETS
Cash and Investments
Receivables:
Accounts
Property taxes
Interest
Clue from Queer funds or govemmental agencies
Inventory
Other assets
TOTAL ASSETS
AccruedLIAMLITIES
Accounts payable and other ilabilifies
TOTALAccrued compensated absences
ReservedFUND BALANCE
Reserved
o;
Reserved o. inventory
TOTAL FUND BALANCE
TOTAL LIABILITIES 'I AND FUND BALANCE
47
2002
2001
772,943
1,487,883
3,423,313
3,194,533
72,232
729.,274
300,000
18,290
263,086
207,479
120,623
117,584
_
_ 58,. 5�52
$� ]].23,130
5,.3.65,33
-
$ 5;813,1$
$ 1,426,820
$
1,054,7f 6
57°4,
512,791
300,
300,000
$ 2,.301,410
$
—1.,.867,517
$ 475,844
$
316,45€
260;041
97,709
120,623
117,584
2,207,61
3,413,935
3,06.3,922
3,945:6173
$ 5,3U,332
$
5,813,195
CITY QFL.QDJ
GENERAL FUN 0
COMPARATIVE STATEMENTS OF REVENUES, EXPENCHTURES AND CHANGES IN FUND BALA
LA . NCE
BUDGET AND ACTUAL
Yaws ended June: 30,1602 aid 206t
REVENUES
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines, forfeits and penalties
Investment and rental income
revenue
Totaf revenues
EXPENDITURES
Current
General government
Public protection
Public works
Library
Parks and recreation
Capital outlay
Total expenditures
(DEFICIENCY) EXCESS OF REVENUES (UNDER) OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Capital iease, proceeds
total other ft . nandng sources (uses)
(DEFICIENCY) EXCESS OF REVENUES AND OTHER
RNANCWG SOURCES (UNDER) OVER EXPENDITURES
AND OTHER FIA CNG USES
FUND BALANCE, as prevlausky reparted, June 30, 2001
Adjustment to fund batance
FUND BALANCE, restated, June 30, 2001
FUND BALANCE, June 30, 2002
2002 2001
3,9495,678 3,945,678
3,945,678 3,945,676
3,188,220 3,788,220
1022721 1,022,721
4,�1 11,94111,941 4,81€3,341
1,299,032 3,063.922 1,764.,890 3 1,396,847 3,945,678 2,148,831
i
VARfANCE-
VARIANCE -
Favorable
Favorable
BUDGET
ACTUAL
_111a�Eav°r,rabte
BUDGET
ACTUAL�favorable
$ 20,388,939
20,575,333
166,394
18,435,758
19,37%363
94.3,605
1,595,564
1,464,450
(131,134)
1,423,183
1,592,227
10 644
4,457,772
4,515,275
57,503
4jM2,908
4,025,225
22:317
1,644,914
1,746,045
101,131
1,524,9811
1,642,666
117,679
808,032
806,212
(1,820)
1,026,362
765,223
(261,139)
776,204
515,748
(263,456)
638,974
745,405
106,431
_79,77.5.
1.37;087
57,312
74,574
716, 82,0
il46
29,T54,220
29,760.156
F9307
�126,7�40
28,226,623
_1.099,883
10j092,125
8,966,802
1,105,323
9,548,803
8,862.,277
686,526
13,130,102
13,094,347
35,755
12,868,076
12,804,032
64044
5,331,616
5,032,251
35
299 '6
5,337,326
;5 ,2R8,598
38:728
1,198,273
1,157,662
40;5`to
1,228,635
1,183,449
45,186
3'1*340
2,860,433
277,907
3l016'650
2,802,186
214,464
148,282_.
(48,232
6LV7269�772
3.3,038,73831,279,778
1,758,960
32,66:9;262
31,620314
1,048,948
(3,284,518)
(1,519,628)
1,764,8130
(5,542,522)
(3,393,691)
2,148,831
5,372,694
5,3721694
4,188,561
4,188,56!
(4.883,104)
(4;883J44)
(2,329,905)
82,329,1306y
148,282
148,2a2
669,772
669772
6-37,872
637,872
2,528,429
2,528,428
_24
J56
1,764,8903,014,O94L
263
2,148,831
3,9495,678 3,945,678
3,945,678 3,945,676
3,188,220 3,788,220
1022721 1,022,721
4,�1 11,94111,941 4,81€3,341
1,299,032 3,063.922 1,764.,890 3 1,396,847 3,945,678 2,148,831
i
PUBLIC PROTECTION
Police Department
DepartmentFire
Total Public Protection
FARMS AND RECREATION
M
2002
VARIANCE-
Favorable
CF-
F r e
BUDGET ACTUAL_ (Unfavorqb!��j
81524735
4,605,367
MUM
8.,515,725
✓/egg, 1
2 aV++^y., �p7g a6g�J�y..
e35y S 5
lost mail lint solos an Sims moil mass mile iiis I= on no milli illis 121=11 some viol 681=0
SUPPLE
MENTAL A . ' STATEMENTS
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 accotmt 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 netded to serve new
development. The fees are calculated on a per acre basis and are collected at subdivision final map approval or with building pemift stage
effective November 4, 1991.
Master Storm Drain
To account for the funding of censtmction 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,
niaintenance and constniction must be for street-reiated projects.
latermodal Surface Transportation Efficiency Act IST D)
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 prqjects.
In
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 enacment of the Transportation Development Act, which extended the 6% sales to to in. clude
purchases of gasoline. Revenues allocated to the City of Lodi under this program are divided into two categories: Article 8.ftmds, 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 said 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,
a
wMawsw memo aws"Ma" on sown wommew ftwv=�Mw
ASSETS
Cash and Investments
Receivables:
Ac:counts
Interest
Due from other funds or govemmental agencies
Advance receivables
TOTAL ASSETS
LIABILITIES
Accounts payable and other fiabiffies
Due to other funds of other governmental agencies
Deferred revenue
TOTAL LIABILITIES
FUND EQUITY
Fund balances'.
Reserved for encumbrances
Unreserved - designated
TOTAL FUNO BALANCE
TOTAL LIABILITIES AND FUND BALANCE
CITY OF LODI
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
June 30,2002
Community
Development
Polke speclaf Block Home Totals
Revenue Streew !TPSP2�rtatlon Grants Program 2002 2001
$ 66,798 41,671 68,073
$ 176,542 $ 1,001,271
304,183 304 1:83 436,82
'53
3,516 19,241 641 23'398 38 '1
306,999 3,108,938 732,423 63,899 4,212,25 9 401,
393,M 690,015 1,Q84Wo I,—.
14
$ 377,313 3169850 26 40� 4 $ 5,800382
$ 8,423 117,288 19,183
$ 144,894 $
774,658
621,600 713,240
63;899 1,398,739
2,117,009
393,985
690,015 1,084,GW ____1,27S,828.
$ 8,423 — 138,888 1,126,408
753.L914 $ 2=Mr-li, 6278633 $
---------- — --------
4171495
1,358j.721
368,890 ---- 1=072,241 -----L72,897
368,5.90 2 3720897
430 962
1A581721 61.1,2-38
L81 .028 2,439,07
—_3,172,749 3050,317
$ 377431:3 M69,850. 372897 1, 126,408 753 221812
914 $ S�M382 $ 7
— —
52
CITY OF LODI
SPECIAL: REVENUE FUND&
G SM Imp Mle v T, A M;&% T- a F- n - Im U 6 e Ru..'W.D�MA NISEisi-w- V11M.1-MALM-4se
(,wfth comparative1ota is for: the year ended June 30, 2001):
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
Totai expenditures
EXCESS OF REVENUES OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Operating transfers in
Operating transfers out
Total oftr Financing sources (uses)
EXCESS (DMCIENCY� OF REVENUES AND OTHER
FINANCING SOURCES OVER:(UNDER) EXPENDITURES
AND OTHER FINANCING USES
FUND BALANCE, as previously reported, June 30,2001
Adustrnent to fund balance
FUND BALANCE, restated, June 30, 2004
FUND BALANCE, JUNE 30, 2002
Community
Development
Police Special lock Home
- Revenue Streets 12ILsportation Grants _ EE22ram
$ 775,524
626,732 10,131;549 1,846,183 477,075 139,094
1,333,524
23,402 84,500 2,715
24,746
650,134 12,157,843 1,848,898 477,075 139,094
467,571
92,292 477,075 139,094
11,534j60 28,888 _
467,571 11,626 452 28,888 477,075 139 94
182,563 731,391 1,820,010
39,748 538,470
(1,545,871) (1,502,650)
181,082 (376,010) 317,360
187.806 2,806,972 55,537
187MB 2.,806,972 55;537
$ 368:890 2,430,962 372,897
53
Totals
386,340
2002
2001
$ 776,524 $
933,117
13,228,633
7.2'33,600
1,333,624
1,351,243
110,617
251,351
24,746
920
15,473,044
9
.8-30,231
467,571
386,340
708,461
1,013,725
197,000
19;563,048
7, 1 �59 23
12,739,080
86-1218
2,733,964 1,217,243
578,216 1,498,984
1189,750 5 278
122,432
(3,OD2,051)
3,050,317
5,950,875
101,493-
3,050X7
6 05Z368
$ 3,172,749j,,050317
Cffy OF LODI.
EPtCTAL REVIKNUE FUNDS
COM PAR ATIVE STATEMENT OF REVINUE, EXP EDNIDITURS AND CHANGES IN MNn BALANCE
BUMU ANDACTUAL
Veor emded June 3% 2002
POLICE SPECIAL REVENUE
SPECIAL GRANTS
VARIANCE-
VARIANQE-
Famabis
Favorable
BUDGET
ACTUAL
kjyAvorable)
BUDGET
ACTUAL iUnfaverebtal
REVENUES
Taxes
{star �ernrraenta6 revenues
721,M
626,732
(94,356)
650,000
650,0013
Charges for --mvVes
Investmeot and rental it me
31,105
23,402
(7,703)
miscemaneous revenue
ToW Revenue
�762 193
6`53;1341
2 �O59
�650 000
650000
EXPENDiTURES
current
Putflic proteagon
6S3,354
487,571
225,783
Public woft
Capital ougay
TOW Evendituras
__A93,35446_7
-571
225,76-3
EXCESS:.(DEFICIENCY)OF REVENUE OVER
(UN . DER)EXPENDfTURES
58,639
182,563
123,724
$50,000
M'am
OTHER FINANCING SOURCES (€J ES)
o&g.ransfars -m
39j4$
39,748
operarmg vangfers 01.1�229
Tetat *ther fmancin sour es (uses)
EXCESS (DEF0ENCY) OF REVENUES AND OTHER
I:ft4AM6jNG'50URCES OVER (UNDER) EXPENDITURES
AND OTHER NNANC-iNG USES
57,358
181,082
12'3,724
650tam
650,000
FUND BAtANCE, BEGMMMG OF YEAR
187a!C S_
-187,M
FUND BALANCE, END 0;-- YEAR
5245;165366,$90
__ 19.690
121,724
65 R
CITY OF Lf)pl
SPECIALREWNUE FUNDS
COMPARATWE STATEMENT OF REVENUE, EXPENDITUPES AND CHANGES IN FUND BALANCE
RUMETAms AICTUAL
Year ended Sure 3 0, 2N2
REVENUES
Chameafar services
Investment and renta! income
Mpscefflaneo us revenue
Total Revenue
EXPENDITURES
Current
PuNic protectfon
pubft wotts
Capital 0offay
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUE OVER
(UNDEREXPENDITURES
OTHER FINANQING SOURCES (USES)
Operaft transfers in
Capes rating tmnsfws out
Total other financirtq sources (user)
EXCESS (DEFfC;ENCY) OF REVENUES AND OTHER
FINANCING.SOURCES.OVER. (UNDER) EXPENENTURES
AND 0 THER RHANCING USES
FUND BALANCE, REGINWNG-OFYEAR
FUND BALANcS, ENO OF YEAR
9
TRANSPORTAT 1014
VAMANEF--
Favorab4e
BUDGET ACTUAL _(U �vorablai
1,98-7,873 1,846,183 (141,650)
5,1300 2,715 (2.265)
1,848,898 �39 n
32'292
92,292
VARIANCE -
Favorable
BUDGET
ACTUAL
(Ur4avCwab1L-j
3 753,406
775,624
22,11:9
10,a94,734
10,lag.,5.49
(256,185)
Bokow
I,335;524
525324
192,275
84.506
(107;775)
(2,3180,WS)
1 :24:746
24746.
12,948,414
12,357,843
20S,429
9
TRANSPORTAT 1014
VAMANEF--
Favorab4e
BUDGET ACTUAL _(U �vorablai
1,98-7,873 1,846,183 (141,650)
5,1300 2,715 (2.265)
1,848,898 �39 n
32'292
92,292
28,88883888
!4,529;0 0
11,&26>452
2 �902 56's
28;a
�28 SaL.
(2,3180,WS)
731,391
3.111,957
1,963,985
1,820,010
(143,475)
538,470
538,470
LAL5,871j
_ILL45 �871
5q2650
2650
j 401
�j 7
1502 Sol
2650
(3,488,007)
(876,01o)
3,111,957
461,335
317,3641
(143,975)
�SW972 _
?,808__ 972L_
55,537
— 55,537
$ 6tII.0351
. _
2,430,962
1 111,997
S C072
___
L
72,897
_.__
I
3,
__jj�L_11�75
no no 9w IN . 0 8" W.0 9 . =SWIM gas" swung" swum 0 . 0 an 66
crry OF LODI
SPEC LkL REVENUF FUNDS
COMPARATIVE STATE NENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET ANDA CTVAL
Y mded Junt 210, 2(*2
REVENUES
Taxes
revenues
Charges for services
Mvestmentand rental Income
Wscanecus revenue
Totaf Revenue
EXPENINTURES
Currant
Public protecfion
Pub5c Works
Capiw outlay
ToW Expenditures
EXCESS (DEFICIENCY) OF REVENUE OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
operztransfers In
opemrmg transfers out
i aW. other financing sources (uses)
EXCESS (DERCIENCY) OF REVENUES AND OTHEP
PWANUN83 SOURCES OVER (UNOER) EXPENOtTURES
AND OTHER FINANCING USES
FUND BALANCE, BEGiNNTW, Or YEAR
FUND BALANCE, ENO OF YEAR
DEVELOPMENT
DEVELOPMENT BLOGK GRANT$.
HOMEPRgaRAM_
TOTALS
VARIANCE-
VARIANCE-
VARIANCE-
Famable
Favorable
Favoratge
BUDGET ACTUAL
BUDGET
ACTUAL (g �yomtAe)
BULfGEr
ACTUAL
(Um4w-bfej..
$
753,405
775,524
22,119
1,474,585 477,075 (997,516)
792,093
139,094 (552,9991
16,020,373
131229.;633
(2,791740)
80a,000
1,333,524
625,524
22e,380
1ia,617
(117,7153)
—�24
746
Y4'746.
9,474,585 :::::4—_'17075 ::�5�O
7S2 OS3
13�9OK -[662JE99).
17810,158
1-5 �47-3 044
(2,337,114)
633,354
467,571
225,783
1,474,585 477,075 9127,510
792,093
1139,094 652,999
2,369,970
708,461
1,650,509
14.6 �616
_11,563,048
2,902,568.
_1,474,5F5 47_7,075_ 7510
2,091139094
52,992
17.617.940
�12739 QLWL
ki78 86_0
292,218
2,733,864
2,441,746
12
578,2'F8 578.7.18'
(2,319,314) 122,432 2,441r746
3,050,3 17��,Q!O 317
$ 73t,003 _3117 2749_ 2,441746
.
sm on an a=. am. am am sm
SUPPLEMENTAL FINANCIAL STATEMENTS
DEBT SERVICE FUND
on am as ow am on an an no no
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:
1"5 Certificates of Participation
These bonds were issued in September 1995 to finance the Central C4 Revitalization and City Hall remodel. These bonds were refunded in January 2002.
1996 Certificates of Participation
The bonds were issued in August 1996 to finance the Conference/Performing Am and Center. These were refunded in January 2002.
2062 Certificates of Participation
These bonds were issued in January 2002 to refund the 1995 and 1996 Certificates of Participation and to finance the New Public Safety
building,
58
DEBT SERVICE FUND
COMPARATIVE STATE Et T OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
TTIUMN41
EXPENDITURESDEFICIENCY OF REVENUES UNDER
OTHER FINANCING SOURCES
Operating transfers in 1,33,699 1,286,242
Total other financing sources 1,233,699 1,285,242
DEFICIENCY OF RE VE.N D OTHER SOURCE
UNDER EXPENDITURES
FUND BALANCE, BEGINNING OF YEAR
FUND ,I CE, ENCS OF YEAR
INNS loss $000o 11015 1011 WO slim fill loop fill NOWN Boom poll SOON fill loop loss am
on im am 01M am on am am am 1101111 fMW am oft MIS
Tice City uses the following hinds 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 f6r 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
Men 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 C ity'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.
ME
CITY OF LODI
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
June 30, 2002
LIABILMES AND FUND BALANCE
UABILITIES
Hutchins
Capital
Lodi
Accounts payable and other kabilities
$ 40,760
Vehicle and
Library
SubdiVision
Street Square
Outlay
Lake
-Totafs
Equ!g�nt
Gita{Reserve
3,624,831
2,022°226
q2pltaf
2002
2001
ASSETS
400,80 .
4
TOTAL LIABILMES
40,760
422
73 WO
Cash and investments
$ 215,540
51,564
300,339
3,577
9,673,735
95,032 $
10,539,787 $
5,784,965
Restricted assets
Fund balance&
12,781,863
12,781,863
1,098
Receivables,
Reserved for encumbrances
121j823
11062
1,879,886
1,000
2,003,771
Accounts
Unreserved -designated
g,957
50 54.1 3 0 39
_q_�L3 _
73,000
632,940
761
706,701
73,0130
Property taxes
.. 174 80
51�603 3003313
..... 3�577�
19�.281,498 _____96�688
319,564
9908495
319,564
6;539
Interest
3Wa�33
464
23,540;6
92,377
895
93,733
56;281
Due from other funds or governments! agencies
40,090
40M 1
37,283
Other assets
-
- 1,b65
TOTAL ASSETS
$ 2t5,W
.___§�Q25
_ 300,339
76 5771354%569
L_
... 2�� 688
24,281>73 _ $
5s960271
LIABILMES AND FUND BALANCE
UABILITIES
Accounts payable and other kabilities
$ 40,760
422
221,2410
$
268,422 $
49,133
Due to other fu rf& or other governmental agencies
73,000
3,561,631
3,624,831
2,022°226
Deferred revenue
400,80 .
4
TOTAL LIABILMES
40,760
422
73 WO
4,251a 071
4373253
2:071 359:
FUND BALANCE
Fund balance&
Reserved for encumbrances
121j823
11062
1,879,886
1,000
2,003,771
377,475
Unreserved -designated
g,957
50 54.1 3 0 39
_q_�L3 _
35 7
_7
17,401 12
.Q
95688
17,9Q4,714 __L
3,511
_,4Z?
TOTAL FUND BALANCE
.. 174 80
51�603 3003313
..... 3�577�
19�.281,498 _____96�688
9908495
?,,889,5T2
TOTAL UASMTIES AND FUND BALANCE
$ 215,540 mm��52025
3Wa�33
7r,,577
23,540;6
24,28.1,738 S==5�9�svl
6t
an an MW ME MM an an low am on ma no
CITY OF Loo
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
Year ended June 30, 2002
(Wo comparative totals for the year ended June 30 2001)
62
Hutchins
Capital
Lodi
Vehicle and
Library
Subdivision street
Outlay
Lake
Totals
nt�tal
gWtal agLL�!re Cafsetal
Reserve
Capital
2002
2001
REVENUES
Taxes
3
1,692,200
$
1,692,200
S
1,598,728
Mtergovemmental revenues
4,258:€3 r1
4,2%,651
322,479
Charges for seryces
807,994
907,994
1,254,663
Investment and rentat income
157
6GO'S99
6,425
607,581
512.40
Misceltaneaus fevenue
61,159
7�O 000
1,052,069
3; 662
--L�
11W 890
Total revenue
$
61,159
�70 157
10,W
S
6AS50 716
$�3992,063
EXPENDITURES
Current
Public works
$
197,548
S
197,548
$
Capital oufty
__#jL772
$4'4;2
4�S93 307
0 32a
860
6. 03S�.31 3
4,358,7 41
Total expepditures
820,772
144,S06
5190855
60328
T,
6;236,88$
$
�4358 741
(DEF[aENCY) EXCESS OF REVENUE (UNDER) OVER EXPENDITURES
(759,613)
(74,743)
3,218,458
(70,241)
2,313,855
(366,678)
OTHER FINANCING SOURCES (USES)
Operating transfers in
738,269
2,715
4,420,204
153,748
5,315,056
2,382,044
Operating transfers out
(80,185)
(4,899,026)
A97R'21 1)
(2,041,242)
Proceeds frorn bond refundgng
13,269,086
13,269,086
Rayment.to refunded bond esevew
(13,2. 9,08.6)
(13,26%086)
Pr . 0 . ceeds of . Ce . �fifxate of paw*ipafion
13'395 �0€3:395,749_
Tataiother fInancing sources (uses)
658.,2 .
Zi- 15
12,91§,927
�153 748
13,731.594346,$812,
(DEFICIENCY) EXCESS OF kEVENUES AND OTHER SOURCES
(UNDEKj OVER EXPENDiTURE-S AND OTHER USES
001,409)
(72,014)
16,135,385
83�507
16,045,449
(25,676)
FUNO BALkNCE , BEGINNING OF YEAR
�276 189
jZ
�3,637
�30O 339 1577
�3.146 113
1_3 10 1
3,863 036
38 88 12
FUND BALANCE, END OF YEAR
174 7W
�3577
9F;M
5
$__386306
62
iiiiii!llllill! I 111 111 11111 i I I I I i I � � I � � � � � 11! 11111 1111111 11111111111 1 1111111111! 1 111 111111111 WIIIIIIIIIIW� I I I I I I I I I I I � � � � � � I I III I
SUPPLEMENTAL FINANCIAL STATEMENTS
7,77-"
ENTERPRISE FUNDS
no 90 WE on an an
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 fmancial
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 estabiished 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 Grapefine bus system,
M
ASSETS
Cash aead:?rsvesfiner�ts
Restricted a sselse
Remvables:
Acmunts
interest
Dae Rm othw funds ar governmental agandes,
Advance receivables
hVentory
Offier assets
Fixed asset ,Oel)
Defemd fhancing costs
TOTAL ASSETS
UASILMES AND FUND EQW7 Y
UAVILiTIES
Acts paygWs and other bbitffles
AcrSi d salaries and wages
Ac=ed. interest
Due la other ftmds or other govemmerfti agencies
A=Uad mnVemated absences
Deft ed revenue
G&Mates of.psacipation payable, net of dizowm
wa%r note paysWe
TOTAL LIA&LMES
FUN EQINTY
ConOtL4ed ca 1st
petained eGmhgs
TOTAL FUND EWTY
TOTAL LIABtLMES AND FU14D EWTY
MY OF LODI
ENTERPRISE FUNDS
COMBINING BALANCE SHEET
June 30, M2
(vAth compamOve UK*ls for the year ended June 30, 2001)
Etectric
5 2;423.175
22,991,976
4,120,694
22,eM
1,750,4M
692,887
1,775,1516
vm
28,$30,205
933,499
46,032,704
!45 44=7 E2 -I
Sewer
VV2W
$ 3,M,867
IS3,m
587
264
759,307
345,733
14,421
S,M
1,445,399
1,928,029
13,195
191,179
5,213
3,555
34,4W,928
17,093,202
�194 367
5,573,428
_36,901 417
59574,759
692,887
107,147
M, j 78
324,460
23,188
526,350
16,248
5,3743,348
t 03,344-,553
9,575
668,218
157,513
3,032459
$ 3,M,867
ansil
2 002
=I
20,146
2,557.023 3
9,1 13;661§
1,720,079
22,962,827
31,264,989
25,181
5,226,915
8,499,760
43,178
155,026
450,4 5
5,573,428
6,532,067
692,887
4,733.096
�l 89-1,738
1.979,89[3
1,710,474
188
1ul3
94,688
52371,1395
84,963,4W
1„3783;219
2-02638
12,446;034
$ ID82
_9'3=&=7=9�0
157,513
3,032459
$ 3,M,867
2
37
20,146
886,899
1,075"786
1,720,079
i,72D,079
1,401,310
1,46%414
T, 122,277
884,466
868,218
66,90a,062
59;93U25
2;,58:4
1_793JIS
�l 89-1,738
�77556 252
$ �7105i 117
5133J45 4,913,963 3,427,41 4.38ss;959 $ 13,310,898 13,766,767
73,738,344 64&901�6.163.233 �41522 932 �620 i Sl 7
370480
14,322,055 &A26_864 38Ea575 192
!k5.2MOM �.761 78 664
4179 .6717-%12446�M 132 961222 147229,601
CHANGES IN FUMB tourty
Year ended Juna 30, 2002
. . . . . . . . . . . ................. .....
Totals
Electric Sewer Water Transit 20G2 2G61 —
M 20-ff94t2 M MT �-M
Charges for services
$ ------47.266575
�4138 729
�4045 705
�234 200 $
�55 685 209
$ �48632 W2
Rent
6,000
174,674
OPERATING EXPENSES
2,593,344
219,770
194,181
Fees recaNed from developers
-
97,148
Person nei semces
S,07 6,71 56
1,503,326
831,445
71,082
5,482,639
5,461,464
Supplies, materials and services
7,602,871
2,851,848
6,955;850
5,823,950
23,234,519
16,444,362
(itmes
52,865;235
452,642
743,761
29376
54,M,914
39,570,924
Depreciation and amortization
. 778;235
1,02 .962
6213;586
34,536
2836,319
2 ;565
TOTAL OPERATIN43 EXPENSES
$ 64;:323,121
— _587D 678
�9151 642
�6298,944 $
�65644 391
S �65�841 312
OPEPATING LOSS
552
$ __Ia,068J
(1,731,949) .
105,9371
64 44� $
(29,,i,82
9M59
$ 17,201960)
NONOPERATING REVENUES ¢EXPEHSE)
Interest, net
3 175,808
(695,1 U)
(94,769)
(146,961)
(661,090) $
2,440,378
Rent
6,000
174,674
29,196
2,593,344
219,770
194,181
Fees recaNed from developers
-
97,148
473,611
(4,342,014)
570,959
04,337
Other revenues
763,456
909,431
�444 2453
.
. . . ,7�90483
5;9[37; 615
�41'7 3 415
TOTAL NOMOPERATING REVENUES (EXPENSE)
9415:264
586085
. .852 ,483
3653422 $
�6 037 254 $
_7302�311
.......
LOSS BEFORE CAPITAL CONTRIBUTIONS AND OPERATING TRANSFERS
(16,111,288)
(1,146,864)
(4,253,454)
(2,411,322)
(23,921,928)
(9,906,649)
Capital rontributions
Opera" Transfers ln
Operating Transfers out
Net Operating Transfers k, (out)
Met (;oss) lnwme
Add: bepreciation on contributed asselq
Net (deasase) increese to retained earnings
RETAINED EAR14INGS - BEG;NNING OF YEAR
RETAINED EARNINGS - EEND OF YEAR
CONTRIBUTED CAPITAL:
Saginning of year
Depre&ataon on contributed assets acq&ed through. June 30, 20W
Ehd of year
TOTAL FUND EQUITY
623,420
somn
t2,767,B521
800,094
871,355
0,881MS�
682209
312;583
€1.,28.6;209)
4,131,659
1,173,511
13,766,767
210156
1 tLa7a
�SOD4 6W
(17,737,287)
89.104)
(4,444,M)
2,593,344
Q 944
__L54�Mq_
� 102 $77
1a9,104
(1-7,728,068)
�13786 -767
(4,342,014)
2,782,448
6,237,582 9,800,570
2,865,902 3'803'234
6 126 .4101 A,212409L
2.977,074 9. - 391.395
(20,944,&-A) (515j254)
�455 869 455;8&9
(20AW965) (50,385)
31,466.,378 �22§�44252 , 44 72Q 502 _ 3,38q,765 62 43 �5 917 62.471,332
13;738'310 21 ��42 $01 378 488 6183233 41922932. .62,"111;917
592,1164
5,0681632
3w630008
4,674,068
13,766,767
14,222x636
89.104)
455 SaS
45 8
58" 745
�4 813 �9833
_ �4272$1
4386959
13 31 0 898
�13786 -767
$.. 14 22 �GSS
26,556864
3.80.5719
1.0549192 $
55 233 8316
76,17 �684
0
CITY OF LODI
ENTERPRISE FUNDS
COMBINING STATEMENT OF CASH FLOWS
Year ended June 30, 2002
Neith comparative totals for the year ended June 30,2001)
Totals
Electric Sesiter Water Transit 2002 2001
Cash flows from operating activities
operating loss $
(17,056,552)
(1,731T949)
(6,105,937)
(6,064,744) 11
(29,959,182)
(17,208,960)
Adjustments to reconcile operating loss to
net cash used in operating iadlvffies:
Depreciation and amortization
778,235
1,062,962
620,586
374,526
2,836,319
2,364,565
Other revenues
763,456
909,431
444,245
3,790,483
5,907,615
4,173,415
Change in assets and liabilities:
Decrease (imsease) in amounts receivables
3,511,789
(152,968)
(72,795)
(13,181)
3,272,845
(4,100,184)
Decrease (hirresse) in advance receivables
4,040,209
4,040,209
(2,360,609)
Increase in restricted deposit
(583)
(4)
(587)
(260)
Decrease in interest receivables
78,175
24,908
8,765
111,848
101,095
Decrease lincrease) in due from other funds
1,840,537
(1,402,626)
(259,754)
780,482
958,639
(2,532,722)
(iemesis) decrease in inventory
(304,051)
91
34,544
(269,416)
191,634
Decrease :(increase} in other assets
44,655
(757)
(1,920)
890
42,868
(48,525)
(Decrease) Inman in amounts payable and other liabilities
(616,730)
7,948
(302,678)
85,053
(826.407)
1,806,052
(Discesse) increase in accrued salaries and wages
(35)
(35)
(114,284)
Decrease (nionsai in accrued interest
(176,613)
(4,575)
(694)
(6,984)
(188,866)
485
increase (deoresse) in due to other funds
318,768
318,768
(256,126)
Increase (deneasim, in compensated absences
169,633
177,042
1,509
(1,049)
347,135
164,132
Increase in defamed revenue
t6 248
�16 24B6
L 1 �2481
Net cash used in operating activities
�927 292�
JL09,1l,8�28
63af�33
735,746
1999
aLVI', fig()
Cash tims from noncispital financing activities:
Operating parishes in
508,433
871,3135
312,563
1,173,511
2,865,902
3,803,234
Operating transfers out
(2,757,852)
(1,881,645)
(1,186,209)
(300,704)
(6,126.410)
(4,212,409)
Fees received from developersg7
14if
!L73d1I
570,559
494,337
Net cash [used in) provided by nonciiintat financing activities
12��249419
J399,8351
�872 807
689,5493
85 162
..
Cash flows from capital financing activities:
Proceeds from Certificates of Participation
11,653,507
4,500,000
16,153507
9,227,375
issuance casts- Certificates of Participation
(1,216,398)
(1,216,398)
Acquisition add construction of capitai assets
(3,691,498)
(155,371)
(126,881)
(4,131,861)
(8,005,611)
(10,093,628)
Proutimal payments on debt
(1,100,000)
(150,000)
(133,837)
(1,363,837)
(274,687)
Interest payments on debt
(1,359,377)
(648,920)
(93,446)
(2,101,743)
(2,146,855)
Capital crintributed
4;131,861
�4131 861
3908;289
Net cash provided by (used in) capital financing activities
4,86;234
L954i,29�1
4.145,836
____
__T577 779
. ..... j�2O594
Cash ficiva from investing acfivfties�
Ford of City property
6,000
174,674
29,196
9,900
219,770
194,181
Interest on Investments
�1821 874
53752
1,3231
6,951
1 727 342
__4 87 ,234
Net cash provided by (used in) investing activities
874228:426_
�27 873
41611
�1947 112
4.781415
�1827
Net decrease in man and cash equivalentS
(2.962,603)
(2,733,795)
(860.259)
(6,556,657)
(12,349,409}
Cash and cash equivalents at beginning of year
�5386 778
�2J�33795
934 11#
9113680
21 �463 089
Cash and cash equivatents at end of year It
�2423 175
-
�133 848
$
2557023
9,193,680
Norman investing-Coronaland -Finanang-Agsvd�s
Enterprise Funds - The City received donated fixed assets valued at $6,227,582 for the year ended June 30, 2002
67
mmmwmwmmmmwwmmm owmamm own" Ems=
SUPPLEMENTAL FINANCIAL STATEMENTS1
INTERNAL SERVICF FUND
111111111111111111 NIPPON 111111!111111 1111111111111 1 111111111111 1111111111 111111 111111 liq
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 empioyee benefits:
General Liability
Workers' Compensation
Dental
Chiropractic
Lifelacciderital insurance
Medical
Employee assistance program
Employee recognition program
Unemployment insurance
Flexible spending program
Long Term Disability
Vision
M
Cash and investments
Receivables:
Accounts
Interest
Other r assets
TOTAL ASSETS
LIABILITIES
Self-insurance reserve
TOTAL LIABILITIES
FUND DEFICIT
Retained deficit
TOTAL FLING DEFICIT
TOTAL LIABILITIES AND FUND DEFICIT
CITY OF O
INrTbk"L��t�CE FUND
't June 30j 2002 and 2001
I,
Totals
2002 2001
185,911
8,922
mmow
---2,0441,.4 6
$ 2,733,000. $ 3,576,629
$ 2,733,000 $ 3,576;629
.1,552,94 $ (1,535,143)
MM Mw MW am am "a.
MR an ow I= on a . M MW M 0 . a an goo
Totals
2002 2001
Charges for services
$340,663
2,571,428
OPERATING EXPENSES
Personnel services
269,042
166,761
Supplies, materials and services
2,736,984
2,669,319
Claims payments
1,401,350
1,406A18
TOTAL OPERATING EXPENSES
4,4137,376
4,242,898
OPERATING LOSS
(4;066,723)
(1,671,270)
ON TI REVENUES
Investment income (expenses), net
54,441
192,309
Other revenues
79,21.6
TOTAL NONO PERATING REVENUES
217,669
271,525
LOSS BEFORE OPERATING TRANSFERS
(3,849,064)
(1,399,745)
Operating transfers in
38831,267
1,160,995
Net loss
(17,797)
(238,750)
RETAINED DEFICIT - BEGINNING OF YEAR
Y296,393
RETAINED DEFICIT - END OF YEAR
(1,535,143)
70
CITY OF LODI
Cash ftd from operating activities. -
Operating toss
Adjustments to reconcile operating loss to net cash used in operating activities:
other revenues
Changes in assets and liabilities.
(Increase) decrease in accounts receivables
Decrease (increase) in interest receivables
(increase) decrease 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
3ME���
Cash and cash equivalents at end of year
71
Totals
2002 2001
(4,066,723)
0 -RM
IMIMM IMM
1,929,432
978,977
(1,671,270)
79,216
14,950
(4,414)
4,186
1,160,995
1,160,995
192,309
(224,0281
2,153,460
1,929,432
S�UPPLEMENTAL F[NANCIAL STATEMENTS
r, 7777 . . . . . . . . . . . . . . . . . . . . .
TRUST AND AGENCY FUVX
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
st
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.
isce ianeo s 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 spam of time.
Agency Funds
Special Assessments
This fund was established to account for special assessments collected or the property tax roll by the City on behalf of the property owners within
the Industrial Way Berkman Districts and the Downtown and Cherokee Lane Districts.
72
CITY OF LODI
TRUST AND AGENCY FUNDS
COMBINING R��E SHEET
June 30, 2002
b m 0-yi,
In
�Xpendable Trust Funds
Agtncy Fund
Pflvate
Hutchins steet
Special
Totals
-Sector Trust
SguaLe�uest
A.ssessments
2002
2001
ASSETS
Cash and Investments
$
608,973
390
282,692
380,249
$
1,272,304
$
1,111,038
Receivables:
Accounts
1,598
1,598
1,598
Special assessments
40,894
40,894
40346
Interest
4
3,576
3,580
5,
Other assets
a,776
9,776
9,062
TOTAL. ASSETS
$
608,973
394
294M§
4240719
$
1,328,152
$
1167,637
UABiLITIES AND FUND BALANCE
UAWLITIES
Accouhts payable and other liabiPfies
$
424,719
$
7L8,765
$
493,260
TOTAL 'JASWTIES
294,066
424,719
$
718,785
$
493,250
FUND BALANCE
Unreserved�designated
608,973
394
674,387
TOTAL FUND BALANCE
606. 973
394
674,387
TOTAL. LIABILITIES AND FUND BALANCE
608,973
394
294,066
424,719
$
1,326, V 2
1,167,637
In
EXPENDABLE
Year ended June 3 k.
,2002
(with comparative totals for the year ended June 30,2001)
Expendable Trust Funds
Private Hutchins Street Miscellaneous
Sector Trust §g22 e�Et
REVENUE
Investment and rental income $ 41963 17
Miscellaneous revenue 16,361
Total revenues $ 4,963 17 18,361
EXPENDITURES
Current
Library $ 70,000
Total expenditures $ 7
(DEFICIENCY) EXCESS OF REVENUE (U E � COVER E PEN E s (65,037) 17
OTHER FINANCINO SOURCES
Operating transfers out
Total other financing sources
(OEE1 lE ) EXCESS: OF REVENUE AND OTHER FINANCING
SOURCES (UNDER) OVER EXPENDITURES (65,037) 17
FUND BALANCE, BEGINNING OF YEAR 674,010 377
FUND BALANCE, END OF YEAR $ 6(1 , 7 ... 394
74
16,361
Totals
2002 2001
$ 4,964 9,305
16,.361 17,227
$ 23,341 $ 26;532
$ 70,000 $ _ 15,00
(46,659) 11.,532
�� 7,227L
(18,361) (17,227
(65,020) (5,695)
674,387 680,182
$ _ 609,3. 7. $ $748387
Cash and investments
2s,,Re%-smf---nt receiv**,le
Interest receivable
T®P L ASSETS
.' Ali . _ � ...
TOTAL . A IT
�peqial Assessments
Balance Balance
711/01 Additions Deductions ,
384,911
229,016
233,678
380,249 $
384,911
40,346
40,894
40,346
40,894
40346
5t588
3,576
5,588
3,576
5,588
$ 430,845
. i .
-A"i' �:
_12
430845 6,126 424,7 430,845
In
on so an On an am on am so IMM un am
SUPPLEMENTAL
GEN.ERAL FIXED ASSETS
AND
GENERAL LONG-TERM OBLIGATIONS
Dal an on an on an low an so an me so an am no an an an M
YB_11��
General Long -Term Obligations Account Group
The City's long term obligations, except these relating to the proprietary fund ty
, pes, 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
Notes Payable
M
%
CITY OF LODI
June 30, 2002and `-
Total 91,536;524
Total ,536.,524
77
82,964,170
;`2Z874,468
g yy pg .5 +y�p6
725.,235
16.399A 91
82964170
Function and Activit ---
General Government:
City clerk
City manager
Finance
Total General Government
Public protection
Public works
Library
Parks and recreation
Non-depaftmental
Total general fixed assets
CITY OF LODI
BY FUNCT110N AND ACTIVITY
June 30, 2002
78
Buildings and
Machinery and
Capital Lease
Construction
Land
I.. . rovements
nt
me
Vehicles
Assets
in Pr�Ss
Total
_.E
$
48,533
$
48,533
901,293
35,784
937,077
591,666
202,791
12,874
807,331
M
$
1,541..492
238,575
12,874
$
1,792,941
$ 984,187
739,336
3,274,586
2,670,089
1,424,086
3,499,803
$
12,592,087
1,037,952
814,260
1,016,838
1,843,897
2,713,338
7,426;285
205,286
328 524
169,001
702,811
13,636,988
21,370'422
679„975
607,960
2,531,220
38,2261 ,565
7,160,934
14,5241 862
264 669
190,549
8.654.821
30,795;835
$ 22 425,347
17,777,404
5,405,069
5,312,496
1,424,086
17,399.182
$—
39,743,5 83
$ 22,425;34.737;777,4.
==
6%946,561
551,070
1,4248066
17,�412,056
$
91,536,524.
78
Function and ActM
General Government:
City Clerk
City Manager
Finance
Total General Government
By.function and.Activity
Year ended June 30, 2002
General Fixed
Assets
June 30, 2001 Additions
$ 48;533
339,722 597,355
1,036,626 7,166
°1,424,631 604,521
General Fixed
Assets
Deletions June 30, 2002
(236,461)
(236,461)
$ 48,533
937,077
807,331
1,792,941
fir
8,746,277
3,845,810
12,592,087
7,080,062
346,223
7,426 ' 285
696,395
6,.416
70.2,811
,creation
36,284,455
2,083,766
(141,666)
380226,566
ental
28,732,100
2,981 j926
(911,191)_
30,795,835
Total General Fixed Assets
Allocated to Functions $
81,539,289
9,264,141
(1,059,847) $
89,743,583
Total General Fixed Assets $
82,964,170
9,868.662
(1,296,308) $
91,536,524
79
son am amp am am am wn ow ow ow =01 am ow am an I=
CITY OF LODI
COMPARATIVE SCHEDULES OF GENERAL LONG-TERM OBLIGATIONS
June 30, 200 d 2001
Im
Amount to be provided for retirement
of general long-term obligations
Total 33,773,224
General Long -terra Obligations
Compensated absences
5,923,459
Capitalized lease obligations
859,765
Certificates of panicipation
26,745,000
Notes Payable
- 246,000
Total
$ 33,773,224
. ... ... .. . ..
I
WIT"
$ 19,500;934
$ 19,500,934
R
5,592,499
928,435
19,500,934
no I= sm ion =m am
UNAUDITED
M
5,GW
via on goo ow 8" on am low am No
CrrY OF a.
CIFEWFER-A AL -REVENUES BY . SOURCE
LAST *1* IP�AL YEARS
(Amounts
1992-93 1893-94
ffil Taxes
Fires, Fc eitaf Penalties
1994- 1996-97 1997-98 199 l 1 2601-02
19 License Permits 0 Inter - Governmental 0 Charges for Services j
13 Use of Money & Property H Mme. Revenue �
-Due to in4ieu taxes from Enterprise Funds.
Charges
use or
Fiscal
LIcensest
inter _
fw
Fines, ForfeW
momy
mitc.
Year
Taxes
Permits
Governmental
Services
Penalties
_1ropedy
Revenge
Total
l9
f1,462
317
$ 5{i4
s,75
336
t,k
649
24,926
1993-94
12,579
507
4,7.56
2,100
407
1,157
199
21,705
1994-95
16,209 `¢
634
5,929
2,517
4€36
808
201
26,703
1995-96
17,070
042
6;642
2,425
421
1,063
140
26,606
1996-97
17,029
1,612
6,316
1,906
453
1,216
60
26,014
1997-98
17,790
I,W3
6,291
2,871
662
1,060
524
30,361
1998-99
16,5.94
1,267
8,493
3,074
676
982
243
34,331'
1999. 00
19,601
1,406
95054
4,611
714
982
764
37,332
2000-01
21,909
1,502
11,641
4,249
765
1,509
383
42,048
2001m.02
23,043
1,464
22,000
3,886
506
1,234
1,349
53,764
General Governmental Revenues include General,
Spe6al l eveftue, Debt Serve and Capital Projects Funds.
Exdudes Expendable Trusts.
SOURCE- CKy
Finance Department
* Cue to change in accourding.for ruse revenge.
-Due to in4ieu taxes from Enterprise Funds.
20,000
19,0M
16,00
14,=
6.
2,MO
0
IN2-03 11993-,34 1904�95 4M5-96 1998-97 1997-" IM -99 M9-00 2=101 2m -02
8 Genam; Gwarnment
0 Public Protection
0 Public woft
0 s8nitation
3 Library
M Park-- & Roomfion
m DOIA SerAce
0 Czpftl OL61-ay
Reral
Geserol
public
Public
y
Total
Park$ &
year
Govemment
405
Works
-5528
Sanitation
Librar
Recreabon
1 2.g3
$ 5,033 $
_!Lotacdan
9,903 s
s
4,M3 $
852 $
2,407
I9
4,9M
9,949
4,296
0
eel
2,307
6.420
5,211
10,401
4,382
0
1,233
2,299
1995- . 96
5,217
10J72
6,1112
0
954
2,198
1
5,1 &2
11,059
5,749
G
1,012
2,312
1957M
7,0M
10,896
4,810
0
m
2.174
1-098-99
7,239
11,226
5,451
0
1'mo
2,230
1990 . Do
7"813
1!430
5,03e
0
1,040
2,870
2000-D1
6,862
13:190
OX2
0
1,184
2,M
2061-02
8,987
13,562
5,741
0
1,158
2,860
Gafterat Govemmental Expenditufft MOUdes General, Spf Revenue, Debt Service and Caphaf Pfojs Funds
Exftudes EgpendabTrusts.
$GURCE° Cly Fsce Department
, Due to change in Soccumbing for refuse lwpandftures.
m
Debt
Capital
Service
y
Total
396
5 941 $
25'63
405
2.203
24,949
345
2,652
28,246
Sw
5,376
33.431
ns
10,810
37,763
1,288
18,383
45,585
1,282
6,640
34,797
1,282
6.420
35,694
1,285
12,045
45:877
1,233
17,948
51,459
"""Ifts"Maw "now Onew
CfTY OF LODI
LAST TEN FISCAL YEARS
(Amottnts In Thousands)
19!92.93 1993-94 199445 i ISM%7 1997-98 19M99 1999-00 2000.01 2001-€
I Property
0 Safes & use
a Transient Occupancy
0 Franchise 19 Documentary Tmnsfw
2 Motor Veh . in Lieu
a Pubfic Pr ars
0 Business License
Sin Llau Franchise
Fiscal
Sales
Transient
Documentary
Motor Veh.
Pubife
Bust"ess
in Lieu
year
Prype
& Use
_2SEu ane
Franchise
Transfer
In Ueu
Cigarette Pr on
License
Franchise
ot-if (1)
1992-93 S
4,618 $
4,966
$ 236
447$
58
$ 1,858
7 - s
95 s
$ 12,297
1993-94
4,950
5,221
247
506
68
1,972
96
92
13,156
1994-95
4,077
5,320
248
506
68
1,885
149
169
5,300
17,722
199.5-96
4,206
5,763
276
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
GIB
119
2,221
180
612
5,027
20,722
1999-00
4,932
7,085
318
675
116
37008
r 196
658
5,721
22,719
2000-01
5,322
8,028
390
820
158
3,051
242
736
6,015
24,762
2001-02
51641
8,300
439
931
172
3,276
231
767
6,589
26,346
(1) General governmental tax revenues are included in taxes, licenses and pemits, htergovernmetital revenues and misTelfa neous revenue of the C's Genesi Fund
SOURCE: City Finance Depadment
R4
LAST TEN FISCAL YEARS
jAmountg 10 Thousands)
2,=
� P
13 1994 1945 Me 17 1998 1999 2tl(i 2011 2902
.—Tax t„_—TexCoffeefions
SOURCE: County Auditr €troger
Total
Current Year's
Fiecat
Tax
Tax
Year
—Levy
Collections
1993 $
4,3' 5
3,809
i'394
3;639
3;.461
1995
3,670
3,519
1..
3.7xl
3,816
17
3;1127
31882
1996
4,444
4,433
Im
4,653
4,579
zow
5,M
4,917
21
5,192
5,118
2062
51757
5.640
SOURCE: County Auditr €troger
95
Percent
Percent Of
Delinquent
Total
of Total
all
Tax
Tax
coffections
to Tex Levy
Coll tons
Colleclkms
to Tax Levy
67.1%
$ go
$ 3,899
891
95.1%
624
4;005
112:3%
952%
9
3:57.5
96.E
95.6
3,615
982%
3,W2
98.2%
99.8%
4,433
99.8%
99:4%
4,578
9$,4
97.3%
4,917
973%
98.
5.118
9&6
96.9%
5,940
9&0%
95
CITY OF LOM
ASS SSEi3 FULL CASH VALUE OF ALL 'T SLE PROPERTY
LAST TEN FISCAL YEARS
(Arildufft In Thousands)
Fiscal
Secured
Mineral
cltiw
Unsecured
Tax
Less
NO Tax
Y r
131111
Roil
ROM
wl
Roll
a asps
Roll
5992-93
$ 2,200,657
S 12
5 2,782
S 100,982
S 2,M4,333
$ 16€9,068
$ 2;144.,265
1953-94
2,305.937
12
2,736
107,159
2,.415,836
125,486
2,290,350
1994-55
2,353,061'
3,564
115,180
2,471,753
164;532
2,307,161
1995-96
2,427,757
3,560
125,011
2, 556.32E
179,BW
2,355,429
1996=97
2,4193,536
3;557
925,9£!7
2,593,013
172;94
2,420,055
159738
2,.515;478
3;699
129,396
2,646,573
176,500
2,472,073
19981-99
2:574:622
3;1525
146,345
2,724;793
179.835
2,544,958
i99g.-w
2,707,343
3,.525
963,299
2,874,167
181,294
2,640,973
21700-01
2,580,201
3,494
377,€340
3,M,725
185,473
2,876,252
21101-02
3,1199,937
3:373
138.678
3,298,994
19€,252
3,108,742
Fiscid
pert"Al
Less
Mt Assets"
Year
Land
PMprovements
rOPT:E !
Tali
yeas
kfalue
1992-93
$ 597,785
$ 1,524,596
$ 781,952
$ 2,364.333
$ 160,066
$ 2,144265
4993~94
634;421
1,575,875
208';74€8
2,415:$36
15,486
2.29i&k35ib
9994-95
663,227
1,6€38,564
193,062
2,471,753
154,592
2,367,161
1935-96
691,116
1,654,842
2943,3711
2,556;328
179,899
2,U5,429
IM -97
705,296
1,673,877
209,827
2,593,000
172,945
2,42U,055
1997-38
728,10
1,7055
294;
2;6461573
176;660
2,472;073
1998-99
756,166
1,748,3417
220,240
2,724,793
vq,835
2,5544,955
9999-00
787,249
1,847,800
23%IiS
2,874,167
183,294
2:SW,873
2000-01
832,788
1,882,665
246;269
3,060,725
185,473
2,875252
2006-02
889,262
2.1.64.421
245,611
3,238;994
19€3,252
3,108,742
96
LAST TEN FIMALYEARS
(Amounts In Thousands)
on am am sm am sm MIN an =a
CITY OF LODI
PROPERTY
LAST TEWFISCAL YEARS
P , 3 of Assessed Value
SO'UR'CE_ San Joaquin Coin Au rlCantro#iee"s Office
m
Basic
Fiscal
ty- ode
Year
imy
-
Icy..
Total
1992-93
1.0.000
0.0150
0.0248
0.0034
1.0432
1993-94
1.0000
0;0146
0.0246
0.0034
1.0428
199495
1,0000
0.0125
0.0140
0:0034.
1.0300
1995-3"
1.0€00
€3.€1123
C LOO28
0,0034
1.13185
1996.97
1:0000
0.0000
U022
G.0034
1.0056
1597-96
1.0000
0.0000
0.0019
0.034
1.0053
1:998-99
1.0000
0.00010
0.0001
0.00.34
1.0035
1999-00
1,0000
0.0000
0.0002
0,0034
1.0036
2000-01
1.0660
0,00130
0,0002
0. °0
1.00€12
200x-02
1.0000
0.0000
0,0002
010000
1,0002
SO'UR'CE_ San Joaquin Coin Au rlCantro#iee"s Office
m
Fiscal
Year -
1992 -93
1993-94
1994-95
1995-96
19963-97
1997-98
1998-99
1999-00
2000-01
2001-02
CITY OF LODI
SPECIAL ASS MF
(Amounts:ln Thousands)
current
Current
Assessments
Assessments
Due
Coff ected
49
46
52
52
49
48
51
50
125
125
SOURCE: City Finance Department
M
TOW
Collection
Total:
As Percent of
Outstanding
Current
Current and
Assessments
Delinquent
Due
Assessments
93.90/0
3
100.0%
-
9&0%
1
9&0%
M%
0,0%
0.0%
0,0%
0 , M/0
ow so sm WIM em sm am low
CITY OF
RATIO OF NET GENERAL BONDED DEBT
LAST TEN M$OAA� YEARS
(Amounft in Thousands)
SOURCE: City Finance epa ent
El
Debt
payable
Gross
Gross
From
et
ftreent of Net
Not
Fiscal
Assessed
Bonded
Enterprise
Bonded
Bonded Debt to
Bonds Debt
Year
!0-Pulation
Vale
Debt
RevenueDebt
Assessed Value,
r Capita
1992-93
53
2,344,333
11,564
10,355
1,2115
0,0523%
22.61
1993-94
54
2,415, 637
143,840
10,270
5703
4. i3 3611/6
10.58
1994-95
55
2,471,754
11,379
10,174
1,2615
0.0486%
23.91
1995-96
54
2,556,328
15,475
14,478
5,WO
43.195611/0
92.59
199697
55
2,593,091
24,948
91978
14,974
43.5773%
272.18
1997-95
56
2,648,573
24,372
9,872
14,504
0,5475%
258.93
1998-99
57
2,724,793
23,776
9,762
14,414
4.5143%
245.86
1999-463
58
2,374,167
23,146
9,636
13,5143
€ -47(30%
232.33
2 -91
59
3;064,725
72„911
59,934
12,961
0.4241%
220.02
2001-02
59
3,298,994
101,675
74,.930
26,745
43.8107%
453.31
SOURCE: City Finance epa ent
El
DIRECT DEBT: M
CERTIFICATE OF PARTICIPATA
RM
,11
11115iT5111 H!111111111111EI
0
ON,
26,745,000
0
$ _26,745,000
percent city's Sha
I
SA
p
, pilcablof DebADeb
e t
100,0011/0 $ 26,745,000
M
Ratio of Direct Ovedapping Oeft to Assessed Full Cash Value = 26,745,WO 1 3,2981994,0W 0.81%
Direct and Overlapping Debt Per Capita =26,745,000 159,431 $450
Taxable Assessed FuN Cash Va�ues Per Capita = 3,298,994,000159,431 $55,510
SOURCE: City Finance Department
9�
ow as an as
CITY OF L001:
COMPUTATION OF LEGAL DEBT MARGI . N
June 30, 2002
Assessed Full Cash Value as of June 30, 2002 (1)
$ 3,298,993,58.9
Debt Limit - 15 Percent of Assessed Full Cash Value (2) $ 494,849,038
A of Debt Applicable to Debt Limit 0
LEGAL DEBT MARGIN 494,849,038
(1) Assessed Value before exemptions applicable to 2001-02 Tax Roll
(2) Section 43605 California Government Code
SOURCE. San Joaquin County Auditor/Controller's Office
City Finance Department
M
Year
principal
1992-93
156
1393-94
165
1994-95
114
1995-96
113
1996-97
0
1997-98
479
1996-9
485
1999-00
505
2000-01
536
2301-2
555
Interest
21
1
8
4
0
813
797
777
755
679
TOW
Debt
Service
177
180
122
122
1,266
1,282
1,262
1,255
1,234
Yt
23,693
024,949
26f , 246
39,431
37,763
45,56'5
34,797
504
45,877
51®439
Zero balances occured in 1996-97 due to general obligation bonds paid off in 1995-96.
SOURCE City Finance Department
Ox
2.83%
3.68%
.59%
2,80%
2A0%
SOURCE: C5Iy of Lodi Finance Depadment
9`53,247
1,423,630
1,107, 06
37,.554
581,580
1,032,089
977,844
727,819
360,668
(668,987)
94
Current Fiscal Yeaes
4, "#
Principal
interest
Direct
Fiscal
Gross
operating
Year
Revenue
xss
1992-93
$ 2,923,038
$ 2,009,791
1993.94
3,454,258
2,030,628
1994-95
3,5965,313
2,489,307
1995-96
3,339,315
3,301,761
1996-97
3,444,597
2,863,017
1997-98
3,948,058
2,913,969
19W919
3,935,OW
2,957,162
1999-04
3,874,750
3,146,931
2000-01
4,697,052
4,336,384
2€301-02
4,138,729
4,807,716
SOURCE: C5Iy of Lodi Finance Depadment
9`53,247
1,423,630
1,107, 06
37,.554
581,580
1,032,089
977,844
727,819
360,668
(668,987)
94
Current Fiscal Yeaes
4, "#
Principal
interest
Total
raga
$ 330,000
$ 710,390 $
1,040,390
0.88
100,000
705,690
805,690
1.77
110,000
700,355
810,355
1.37
110,000
896,357
806,357
0.05
115,000
688,818
803,818
0.72
120,000
682,218
802,218
1.29
125,004
675,030
800,030
1,22
140,000
666,770
8065,770
4.90
145,000
658,070
803„070
0.45
150,000
648,920
798,920
(0.84)
a City Population E Son Joaquin County Populabon
45
Rank M Size
of California
clues
120
124
121
61
123
1:24
124
125
126
129
Poputaftn
San joaqlAn
Po on
Fiscal
square
city
Per
County
Pement
yea
o E--
miles
�e
of CIMY
1992-93
11,82
–tn—faffon
52,900
---2!Lan
0.0%
—Eevl—adw
50%400
10.5%
1993-94
1214
53,000
0,2%
521,500
10.2%
1344-95
12.32
53,575
1.1%
530,700
10.1%
19951W
12.32
54,473
1.7%
529,300
1013%
95 -37
12.32
54,800
0.6%
535,420
10,2%
13 7_3
12-32
55,700
1 .6'y.
545200
1012%
1998-99
12,32
56,900
2.2%
554,400
103%
19919-00
12,50
57,900
1.811/0
566,600
10,2%
20.00-01
T2,60
58;600
12%
583,700
10.0%
2001- 2
12.62
59,451
1.4%
596,060
10.01
SOURCE:
She of Caffornia, Depeftment of Finance, Demographic
Research Unk
C3ty Finance Department Budget
45
Rank M Size
of California
clues
120
124
121
61
123
1:24
124
125
126
129
SOURCE. Ofty Communityev f p€ ent Department
96
Number of
Estimated
mt
Building Permits
Percent
Valuation
Percent
Year
Issued
Change
(in toss
—Change
1993 -
903
30.54%
18,123
-32.9011/*
1994
995
10,19%
31,517
7191%
1995
994
- .100%
44,881
42.40%
1996
1464
47.2411/6
29,019
-35.34%
1997
1486
1,50%
5745297.981/16
1998
1632
9.83%
59,790
0711/4
1999
1749
7.17%
74,012
23.79%
2000
1356
.12%
77,613
4.37%
1
2275
2158%
104$380
34,49%
20 02
2090
69$693
-33.23%
SOURCE. Ofty Communityev f p€ ent Department
96
WORM
700,000
wo,ox
wo,oDo
Lo
C
400,0M
CfTY OF LODI
1 " j
OA�N�MDWPO,$�ITS
1989 19M 1991 1992 1993 1994 1995 IM 1997 19"
2 BANKS 0 SAVtNGS & LOANS M CREDiT UNIONS
Fiscal
SAVINGS &
CREDIT
Year
BANKS
LOANS
UNIONS
1989
S 49216
282,339 $
14,111
1.990
540,545
267,501
12,613
1991
691,677
183,936
12,465
1992
649,252
198,756
13,993
1993
668,342
191,014
15t405
1994
627,132
M1159
15,689
1 s
643,109
159,276
16,036
196e
682223
121,183
15,721
1997
698,080
118,200
16,994
Me
725,210
113,431
17,729
Sourm Califomia State Department of Banking -
Lit ,,enslng & Statiatca Semon
Womadon m Jdg page is the nkmi reomf d= avabbkL
97
NMI' am I= am =M an an In ow IMI am MW we so Mal
15q!gpyer
Lodi Unifted School Dist,
Lodi Memorial Hospital
General Mills
Pacific Coast Producers
C4 of Lodi
Wal-Mart
Lodi Fab Industries, tnc.
Target
Valley Industries
Farmers and Merchants Bank
I
LC �Ivl
Emp!iVqes
Education
2,247
Heafth Care
650
Cereals and Food Mixes
575
Can Manufacturer and Cannery
530
Govemment
429
General Merchant
226
tndustrial Storage Racks
200
General Merchant
200
Trailer Hitches
191
Bankin
183
SOURCE - City of Lodi Communfty Development Department
99
xsja�
� 'PAYERS
JUNE 30,2001*
Rm2Lqjt owner
Land Use
Assessed Valuaflon
Percent of TojgU1
General Mills, Inc.
Food Processing
$ 171,116,463
5.94%
Pacific Coast Producers
Manufacturing
59,325,814
Z06%
Certsinteed Corporation
Manufacturing
15,531,735
O 54%
Dart Container Corporation
Warehousing
13,486,205
OA7%
King Video Cable Company
Communications
12,363,403
0,43%
Edmund N. Richmond
Industrial
11,852,374
0,41%
Wal Man Stores
Department Store
10,893,893
0.38%
Waflace Computer Service
Warehousing
10,854,802
0.38%
interiake Uater€al Handling, Inc
lndustFW
10,837,233
0,38%
Dayton Hudson Corporation
Depadment Store
10,504,046
0.36%
32.617 6 5 1975
11,35%
(1) Local Secured Assessed Valuatiom 2,880,201,262
Source: San Joaquin County Assessors Office
information on this page is the most recent data available.
99
........ ...
........... . . . . . . . . . . . . . . . . . . . . . ................... ...............
JUNE 30� 2002
Cit :tanager
$500,000
Deputy City Manager
500,000
City Attorney
500,OGO
C4 Clark
5GG,GOO
Public Works Director
500,000
Police Chief
500,000
Fire Chief
5GO,000
Finance Director
600,000
Community Development Director
500,000
Bectric Utilities Director
500,000
Community Center Director
500,000
Parks and Recreation Director
Soo . '00 . 0
Human Resources Director
500,Wo
City empioyees arecovered by.a commercial fidelity bond
amounting to a maximum of $500,000 per loss.
SOURCE: City of Lodi
1()rj
Last Ten Fiscal Yeam
FISCAL
LIMIT
P1 air
POPULATION
GROWTH
APPROPRIATION
BUDGET SUBJECT
YEAR
BASE
INCOME
GROWTH
FACTOR
LIMITATION
TO LIMIT
VARIANCE
1992-93 $
24,782,072
0.9936
1,0241
1.0175
$ 34,027,028
17,255,606 $
16,771,422
1993-94
34,027,028
1.0272
1.0213
1.0491
35,697,755
16,646,590
19,051,165
1994-95
35,697,755
1.0071
1.0157
1.0229
36,515,234
17,292,960
19,222,274
1995-96
36,515,234
1.0470
1.0131
1.0 09
38,739,012
18,683,360
20,155,652
1996-97
38,739,012
1.0467
1.0168
1.0643
41,229,332
19,243,568
21,985,764
1997-98
41,229,332
1,0467
1.0070
1,0540
43,456,825
24,0 ,975
23,359,850
199899
43,456,825
1.0536
1D120
1 D420
45,785,303
20,491,809
25,293,494
1999-00
45e 785303
1
1 �0453
1�0194
1.0656
48,787,849
210,907,397
27,890,452
2000-01
48,787,849
1.0491
1,0129
1.0626
51,843,597
22,482,923
29,360,674
2001-02
51,843,597
11.0782
1.0190
1.0987
56,959,824
25,610,753
31,349,071
SOURCE� City Finance Department
mm
CITY OF LODI
PETSONVEL AMG22M LAST TEN YEARS
§Administr"on NCommunityDevetopment DElecticUtflity
0 Finance Department R Fire Department E3 Ubrary
IN Parks & Recreation 0€ olice Department N Pub4c Works Department
DEPARTMENT
199243
1993-94
1994-96
1996-96
1996-97
1997-9S
1998-99
19"-M
2000-01
2001-02
Administration
17
22
17
21
24
26
30
32
34
34
cornmunfty Oevelopment
11
11
11
13
14
14
15
is
17
17
Efectx- Uft
41
40
38
39
43
44
44
46
47
50
Finance Department
39
36
35
35
34
34
32
34
34
35
Fire Oepattm ent
49
48
47
48
48
46
49
50
52
55
Library
is
15
is
15
14
14
14
14
14
14
Parks & Racreation
36
29
26
27
26
27
26
26
29
29
PONC6 Oolvftment
105
104
104
106
112
112
113
113
114
t 15
Pubk Works Department
97
89
86
$7,
92
94
95
99
103
108
Totaf
410
394
379
391
407
413
418
42.9
444
457
SOURCE City of Lodi Finance Department
102
' Rrsf throe quviers are actuiv, ft Iburm quarter ks an estimate.
SOURCE: State Board of Equafizatiw, State of Caiifomia
W�
1992
1993
1994
1995
IM
1997
1998
1999
2000*
2002
SALES (W THOUSANDS OF DOLLARS) �
Apparel Stores
8,429 $
6,467
6,106 S
5,970
5,651
5,633
5.026 S
4,778 5
4,458 9
5,417
Geowal Merchandise Stores
49,944
60,764
73,765
79,420
84,977
105,423
111,930
120,952
120,283
131,371
Drug Stores
16,373
13,184
13,57"3
13,235
13,411
Food StDres
42,13()
33,033
28,692
33,237
34,029
34,247
34,344
37,328
42,977
43,V1
Packaged Uquor Stores
61470
6,041
5,M
5,684
6,150
Eating & Drinking Ptaces
38548
30,161
39,714
43,770
44,598
45,$49
46,316
49,803
$2,860
59,5N
Home Furnishings & Appliances
13,5s3
16,038
14,327
12,396
12,608
12,138
17,319
22,254
17,988
15,886
Building Materials & Farm Tool
30,278
37,639
34,250
S1,80i
31,8 58
20,5
86
32A24
39,369
47,467
46,64��
Auto Dealan & Supplies
02,725
85,917
63,198
103,241
102,783
101,933
106,531
123,667
141,640
imm
Service Stations
29,001
31;221
36,514
34,34
35,096
35.748
29,200
36,491
46J94
46,130
Other Retail Stores
23,069
511,68
-A-
26j$47
29,261
502
_
Q1,7515 __L�
5WQ ---j7
,022
48,759
49,26�2
Total ReW Stores
341,160
364,031
36e;722
392,403
401,867
410,091
426,778
481,664
523,128
662,081
Al Mar Outlets
62,149
96,92102i504
94,440
00 16,0
136,660
33,453
43,207
154,690
48,736
TOTAL $
433,329 S
451,952
4625-1-6
486,U3
I7,867 S
540,:75f S
562,229
24,671 S
577,71.6 S
710AV
PERMfTS:
Apparei Stoms
29
32
25
23
22
28
28
28
28
19
Genersi MaTchandise, Stores
17
14
is
is
13
22
21
23
24
21
brag Stores
10
9
9
9
8
Food stores
42
44
47
45
45
47
51
53
613
61
Packaged Liquor Stoma
6
8
7
7
7
rZoung t efinkiry Fnecas
135
I32
136
144
146
146
151
151
148
160
Home FumjsHngs & Appliances
43
44
46
46
41
47
43
53
65
63
bodigg ma"Is & Frm Tom,
38
36
36
29
30
25
22
22
23
24
Auto Dealers & SupDflea
83
66
ea
62
86
78
81
77
63
83
sarW-191ftfionis
is
18
1.8
20
19
17
10
15
Is
10
Othw RetS4 Stores
186
182
196
20f4.91
1
229
258
211
m
Total Retail Sims
590
577
598
699
594
615
642
680
703
743
Ali Otho; Outlets
987
929
926
912
gig
900
839
876
5.82
912
TOTAL
1577
15M
1524
1511
1512
1 1
1511
1555
1585
1.0.5
' Rrsf throe quviers are actuiv, ft Iburm quarter ks an estimate.
SOURCE: State Board of Equafizatiw, State of Caiifomia
W�
General Merchandise Stores El Drug stores
Packaged Liquor Stores El Eating sinking Pieces
Building Materials & Fara fool Is Acta Dealers & Supplies
Other Retail Stores
IN
ApparelStoren
lmi
Food Stores
Howse Farr shings & APPliances 0
Service Stations 0
General Merchandise Stores El Drug stores
Packaged Liquor Stores El Eating sinking Pieces
Building Materials & Fara fool Is Acta Dealers & Supplies
Other Retail Stores
IN
TYPE OF BUSINESS NQ OF BUSINESSES PERCENT
Agriculture, Forestry and Fishing
113
3-82%
Mining
0
0-00%
Constructiefl
283
9.56%
Manufacturing
89
3.01%
Transportation and Public, Utilities
42
1.42%
Wholesale trade
84
2.84%
Retail trade
656
22-17%
Finance, Insurance and Real Estate
249
8,42%
Services
1,443,
48.78%
Total
2,969
100.40%
Located outside Lodi:
Agriculture, Forestry and Fishing
30
3.46%
mming
0
0.00%
Construction
526
60.48%
Manufacturing
1
1.15%
Transoortation and Public Utilities
12
138%
Wholesale "de
42
4.84%
Retail trade
36
4.03%
Firwance, Insurance and Real Estate
31
156%
Smices
183
21.0811/0
Totai
868
100,00%
Grand "Total
3,827
1P5
SOURCE: City Finance Records
CITY OF LORI
MISCELLANEOUS STATISTICS
JUNE $0, 2OG2
BE
POPULAMN
ELECTRIC UTiL;TY
population
59,431
Number of Customers
24,634
Assessed Value
$3.1b
Energy Sales (KVVH)
36,6r56,340
SwIding Permits Issued
2,D9G
Peak Demand(M
11€3.5
Data of Incorporation
Deverriter 6, 1906
Form. of Government
Council -Manager
PARKS & RECREAT$ON
Employees
457
Parks Developed
25
Area
11616
Acres Parks Developed
293
Parks Undeveloped
5
FIRE PROTECTS ON
Acres Parks UndeveloW
98.5
Number of Stations
4
Community Center
1
Number of Firefighters
44
Surnramg •Pools
3
Number of Resetve Fire fifers
a
Tannis Courts
11
Number of Calis Answered
4,333
Boat Romp
I
Piavygraunds
17
POLICE PROTECTION
Ball Parks Varbus
26
Number of Stations
I
Soccer Fields
37
Number of Porice Offic-ers
78
Footbag Field
I
Number of Baser Y8 Officers
4
Handt,,alifBasketbaiiNdleyball Courts
7
Number of Suppad Perwnnel
a7
Wirseshoe Pits
10
Number of Cabs Answered
41,282
PUBLIC MRKS
EDUCATION
mites Of streets
180.8
Elementary Schools (public)
27
Was of Agey Ways
16
Middle S�ks (PuNic)
7
Number of Street Lights
6,033
High Schools (public)
5
Numb ar of Traffic Signals
53
Elementary Schoots Enrollment (pubiic)
14,127
Mid&e, Sohods Enroltiment (puNir,)
4,112
WATE RNVA,STEWA TEP
fth Schools Enroiifneit (pub6c)
8,643
Wes of Water Mains
212
Wes of Wastewater Lfne-s
174
K-8 Schwis (private)
5
Number of Wastewater Treatment Plants
I
HO schocis (Pfiva!a)
2
Average Daily Treatmsint
6,6 MG
K-6 Enrollment (pfivala)
1427
maximum Daily Capacity
8:5 MG
High School Enrognient (private)
333
HOSPITALS
Number of Hospitats
I
Number of Patient Beds
181
BE
III INS
SINGLE AUDIT REPORTS
. �7777�7
CITY OF LODI, CALIFORNIA
Schedule of:Expenditures of Federal Awards
Year ended June 30, 20€32
Federal granter1program title
U.S. Department of Housing. and Urban Development:
(Pass-through Sari Joaquin County — De a;tment of Planning and Building Inspection,
Urban coon€y,arrangernent, and therefore no pass-through number.)
Comintinity 13evel6pmeritBlock Grants:
200.1-24()2 Program Year
20413-20 31 Pro.gnun Y
1999-2004 progtam Year
1998-1999 Progra Year
1995-1996 Program Year
1994-1935 Program Year
U -S.- Department of Transportation-.
(Pass-through California Department € f Transportation)
Transportation Enhancement Activity for 2 i st Century (TS21)
Federal Transit Assistance (FTA):
2001-2002 Program Year
2 0-2001 Prograrn Year
Total 2€1.5517
U.S, Department ofJustice:
Office of the Justice Programs
1498 COPS MORE Grata
Local Law E f6rcemen, Block Grant:
2000 -LB -BX -1138
21141-LB-AX4 215
Total 16.592
(Pass-through State Office of Criminal Justice Planning)
Crac-Net DC 97 80390
Total federal awards
Sec accompanying sautes to schedule of expenditures of €ederal awards,
107
Federal CFDA Pass-thrqugh
nuraber Hummer Expenditures
14.228
N/A
S 273,656
14:238
N/A
29,262
14.228
N/A
112,081
14:228
N/A
28,735
14.228
NIA
24,278
14.228
N/A
111;961
47'7,073
20.205
N/A
1,971.,647
2€1.507
N/A
367,444
213.507
N!A
2,602,074
2,969,518
4,941,165
16.710
N/A
38,413
16.592 N/A 5€,7€15
16.592 N/A 7,905
59,694
16,579 DC 97083 77,413_
175,616
� 5,593
M- M
Notes to Schedule of Expenditures of Federal Awards
Year ended June 30, 2002
HIMM=
The accompanying Schedule of Expenditures of Federal Awards (SEES} for the year ended June 30, 2002 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. 'flie SEFA includes all federal awards received directly from federal agencies and federal awards passed through other government
agencies.
(2) Basis of Accounting
The aceompanying SEER is presented using the modified accrual basis of accounting in the governmental ftmds and the accrual basis of accounting
in the proprietary fund which is described in note I to the City's general purpose financial statements.
M
Three Embarcadefo Center
San Francisco, CA 94111
. . . . . . . . . . .
Based on an Audit of Financial Statements
Performed in Accordance with GovernmentAuditing Standards
The Honorable Members of Cityy 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, 2002, and
have issued our report thereon dated October 30, 2001 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 Stand6rds, issued by the Comptroller
General of the United States.
MIM=
As part of obtaining reasonable assurance about whether the City's general purpose financial statements are free of material misstatetnent, we
performed tests of its compliance with certain provisions of laws, regulations, contract 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 -,ucb an opinion. The results ofour tests disclosed. no instances of noncompliance
that are required to be reported tinder Government Auditing Standards.
1419
In planning and performing our audit, we considered the City's internal control over financial reporting in order to determine our auditing
procedur(-,s for the purpose of expressing our opinion on. the general purpose financial statements and not to provide assurance on internal control
over fimbeial reporting. Our consideration of the internal. control over financial reporting would not necessarily disclose all matters in the iate mal
control over financial reporting that inight be thaterial 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. However, we noted other matters involving internal control over financial reporting, which we have reported to
management of the City in a separate letter dated October 30, 2002.
This report is intended solely for the information and use 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 30, 2002
110
OPINION
Three Embarcedera Cenlar
San Framisco, CA 94111
Report on Compliance with Requirements
Ap,1liev,A,le tt Dtc% Mintr Pr+grw-M I-&-iila. 11,term.1 (_.NnArQl 0V
Compliance in Accord2nee with OMB Circular A-133
The Honorable Members of City Council
City of Lodi, California,
We have audited the compliance of the City of Lodi, California (the City) with the types of compliance requirements described in the U.S. Office of
Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to its major federal programs for the year ended
June 30, 2002. The City's major federal programs ate identified in the summary of auditors' results section of the accompanying schedwe of
findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grant applicable to its major federal programs
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 OM -B
Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-! 33 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.testas asis, 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
require i ts.
Jn our ormion, the City co Pied, in. all material respects, with the reqiiirements referred to above that. are applicable to its major federal programs
for the year ended June 30, 2002,
III
Internal Control over Compflance
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 perfon-ning 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 corruing 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 scheduling of findings and questioned costs as item
02-01.
A material weakness is a condition in which the design or operation of one or more internal control components reduces 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 fimetions. Our consideration of internal control over compliance would not necessarily disclose all matters in internal control that might be
material weaknesses. However, the reportable condition noted above, item 02-01, we consider to be a material weakness,
This report is intended solely for the information and use 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 30, 2002
MR
Year June 30, 2002
am
II
Schedule of Findings and Questioned Costs
Year ended June 30, 2002
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 programs: Yes Material weaknesses: Yes
(c) The type of report issued on compliance for major programs: Unqualified
(f) Any audit findings which are required to be reported under Section 5 1 O(a) of OMB Circular A-133: Yes
(g) Major programs:
CFDA #
26.507 United States Department of Transportation — Federal Transit Formula Grants
20,205 United States Department of Transportation — Highway Planning and Construction
(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: No
Findings Relating to the Financial Statements Reported in Accordance with Government Auditing Standards:
None
so
(Continued)
H
CITY OF LORI, CALIFORNIA
Schedule of Findings and Questioned Costs
Year ended June 30, 2002
Findings and Questioned Costs Relating to Federal Awards:
Finding No. 02-01 — Federal Transit Formula Grants (20.507) — Reporting
In accordance with 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.
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.
Recommendation
To help ensure that the City's required federal reports are submitted accurately, 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,
H4