Comprehensive Annual Financial Report - City of Santa Monica

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
Year ended June 30, 2009
1. Revenues reflect a net decrease of $2.6 million over the prior fiscal year primarily from a 12.5%
decrease in sales taxes ($4.1 million) resulting from decreased sales in the City, a 3.1% decrease
in other taxes ($3.3 million) due to decreases in transient occupancy tax, utilities users’ tax and
business license tax, a 9.1% increase in charges for services ($2.3 million) due to increased
zoning application and variance fees and interfund services provided and used and a 46.8%
increase in other revenues ($2.4 million) due to various miscellaneous revenues.
2. Expenditures were $16.3 million higher than the prior fiscal year primarily due to increased
general government, public safety, and general services expenditures. These increases were
partially offset by a reduction in housing and community development expenditures. Transfers in
increased by $60.7 million due to transfer of MTBE settlement monies from the Special Revenue
Source Special Revenue Fund.
Special Revenue Source Special Revenue Fund
The Special Revenue Source Fund fund balance decreased by $54.1 million from the prior year. The
decrease was primarily due to a transfer of MTBE settlement monies to the General Fund.
Downtown Redevelopment Project Fund
The Downtown Redevelopment Project Fund fund deficit increased by $0.3 million from the prior year.
This increase was primarily due to decreased capital improvement project expenditures and increased
incremental property tax revenues received in the current year.
Earthquake Recovery Redevelopment Project Fund
The Earthquake Recovery Redevelopment Project Fund fund balance increased by $5.4 million from the
prior year. This increase was primarily due to increased property tax increment of $4.2 million and
decreased capital improvement project expenditures of $21.0 million from the prior year.
Nonmajor Governmental Funds
All other governmental funds’ fund balances increased $15.4 million or 11.2% from the previous fiscal
year. This increase was primarily due to an increase of $12.1 million in revenues.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
The total net assets of the enterprise funds increased by $36.9 million. This was due primarily to increases
in operating revenues of $4.4 million, an increase in sales tax proceeds of 2.0 million and a $33.2 million
increase in capital contributions received.
Total net assets of internal service funds at June 30, 2009 increased $0.8 million. In the prior year, the
fund balance increased $11.3 million. This fiscal year operating revenues decreased $5.4 million and
expenditures increased $5.2 million, so that revenues essentially equaled expenditures.
10