Comprehensive Annual Financial Report - City of Santa Monica

ensure ongoing revenues are sufficient to cover expenses. The Big Blue Bus fund remains balanced in the
short term even though State Transit Assistance funds were cut as the State addressed its financial crisis.
Over the long term, however, corrective action is needed. The Big Blue Bus plans to propose a fare
adjustment in FY 2010-11.
Although the Cemetery Fund is currently subsidized by the General Fund, the Public Works Department has
developed a business plan for the operation that is projected to eliminate the subsidy in future years.
Likewise, the Pier Fund continues to be subsidized in FY 2009-10, requiring approximately $3.3 million from
the Parking Authority Fund and General Fund. Finally, the Civic Auditorium Fund is expected to require
approximately $1.3 million in General Fund subsidy in FY 2009-10.
The Annenberg Community Beach House opened in April 2009 and is expected to complete a first year of
operations with a subsidy of $1.3 million from the Beach Fund. In future years, a growing General Fund
subsidy is anticipated.
Major Projects
The City is currently undertaking improvements at two existing City-operated water service facilities: the
Charnock Well Field site and the Santa Monica Arcadia Water Treatment Plant. The proposed improvements
include a new water treatment system at the Charnock site and upgrades to the water treatment process plant
at the Arcadia Water Treatment Plant to soften, disinfect, and fluoridate the water. The improvements will
provide a multiple barrier treatment process to remove contaminants from groundwater and restore this
resource as a water supply for the City. This project is funded by a settlement with oil companies over MTBE
contamination.
The planned Expo Light Rail Phase 2 project between Culver City & Santa Monica is a significant transit
alternative that will connect to the regional rail system and provide new transit options for Santa Monica
residents, employees, & visitors. The project will provide relief for the tremendous and growing congestion
on the I-10/Santa Monica Freeway, one of the busiest travel corridors in the country. City staff is currently
working to ensure rail line and stations are integrated into streets, neighborhoods and districts, provide highquality
service, and connect to major destinations. Phase 2 construction is scheduled to begin in 2012 and
service is anticipated to commence in 2014-15.
In November 2006, Santa Monica voters passed Measure V: The Clean Beaches and Ocean Ballot Measure to
fund over $40 million in projects for new urban runoff treatment projects that will prevent unhealthful water
pollution from reaching Santa Monica beaches & Santa Monica Bay. The Pier storm drain was identified as
Council’s highest priority project and installation was complete in May 2009. The project eliminates dry
weather urban run-off onto the beach which has been a source of bacteria and beach water contamination
during the dry season. A diversion to the sanitary sewer was constructed eliminating water from draining from
the end of the storm drain onto the beach.
The Palisades Bluffs Stabilization Project is a federally funded project involving the installation of horizontal
drains to remove groundwater that accumulates behind the bluff face to minimize future landslides. The
horizontal drains are to be installed near the base of the bluffs adjacent to Pacific Coast Highway, north of the
California Incline. The project also involves debris removal at several locations, and a limited demonstration
of surface grouting and soil nailing methods within a section of the bluffs that is visually hidden from Pacific
Coast Highway. The project is on schedule for completion before May 31, 2010.
Long-Term Financial Planning. The City is dedicated to financial planning in all areas of the organization.
Financial planning takes the form of continuous review and refinement of fiscal policies, development of
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