Comprehensive Annual Financial Report - City of Santa Monica
Comprehensive Annual Financial Report - City of Santa Monica
Comprehensive Annual Financial Report - City of Santa Monica
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CITY OF SANTA MONICA, CALIFORNIA<br />
Management’s Discussion and Analysis, Continued<br />
Year ended June 30, 2009<br />
1. Revenues reflect a net decrease <strong>of</strong> $2.6 million over the prior fiscal year primarily from a 12.5%<br />
decrease in sales taxes ($4.1 million) resulting from decreased sales in the <strong>City</strong>, a 3.1% decrease<br />
in other taxes ($3.3 million) due to decreases in transient occupancy tax, utilities users’ tax and<br />
business license tax, a 9.1% increase in charges for services ($2.3 million) due to increased<br />
zoning application and variance fees and interfund services provided and used and a 46.8%<br />
increase in other revenues ($2.4 million) due to various miscellaneous revenues.<br />
2. Expenditures were $16.3 million higher than the prior fiscal year primarily due to increased<br />
general government, public safety, and general services expenditures. These increases were<br />
partially <strong>of</strong>fset by a reduction in housing and community development expenditures. Transfers in<br />
increased by $60.7 million due to transfer <strong>of</strong> MTBE settlement monies from the Special Revenue<br />
Source Special Revenue Fund.<br />
Special Revenue Source Special Revenue Fund<br />
The Special Revenue Source Fund fund balance decreased by $54.1 million from the prior year. The<br />
decrease was primarily due to a transfer <strong>of</strong> MTBE settlement monies to the General Fund.<br />
Downtown Redevelopment Project Fund<br />
The Downtown Redevelopment Project Fund fund deficit increased by $0.3 million from the prior year.<br />
This increase was primarily due to decreased capital improvement project expenditures and increased<br />
incremental property tax revenues received in the current year.<br />
Earthquake Recovery Redevelopment Project Fund<br />
The Earthquake Recovery Redevelopment Project Fund fund balance increased by $5.4 million from the<br />
prior year. This increase was primarily due to increased property tax increment <strong>of</strong> $4.2 million and<br />
decreased capital improvement project expenditures <strong>of</strong> $21.0 million from the prior year.<br />
Nonmajor Governmental Funds<br />
All other governmental funds’ fund balances increased $15.4 million or 11.2% from the previous fiscal<br />
year. This increase was primarily due to an increase <strong>of</strong> $12.1 million in revenues.<br />
Proprietary funds. The <strong>City</strong>’s proprietary funds provide the same type <strong>of</strong> information found in the<br />
government-wide financial statements, but in more detail.<br />
The total net assets <strong>of</strong> the enterprise funds increased by $36.9 million. This was due primarily to increases<br />
in operating revenues <strong>of</strong> $4.4 million, an increase in sales tax proceeds <strong>of</strong> 2.0 million and a $33.2 million<br />
increase in capital contributions received.<br />
Total net assets <strong>of</strong> internal service funds at June 30, 2009 increased $0.8 million. In the prior year, the<br />
fund balance increased $11.3 million. This fiscal year operating revenues decreased $5.4 million and<br />
expenditures increased $5.2 million, so that revenues essentially equaled expenditures.<br />
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