Comprehensive Annual Financial Report - City of Santa Monica

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
Year ended June 30, 2009
Additions to the Wastewater Fund in FY 2008-09 include $2.7 million paid to the City of Los
Angeles for Santa Monica’s share of the Hyperion Plant capital expenditures and $2.3 to
construction in progress to complete the Colorado Ocean relief sewer.
Additional information on the City’s capital assets can be found in note 7 to the basic financial
statements.
Long-term Debt. At the end of the current fiscal year, the City’s total long-term debt outstanding was
$204.0 million, an increase from the prior year of $5.8 million or 2.9%. This amount was comprised of
$93.6 million of revenue bonds which are secured by both governmental and business-type revenue
sources, $72.9 million of tax allocation bonds which are secured by future tax revenues, $18.5 million of
general obligation bonds which are backed by the assets of the City, $15.5 million drawn on a line of
credit for low and moderate income housing programs of the Redevelopment Agency and secured by low
and moderate income tax increment and it subordinates to the bonded indebtedness, and $3.5 million of
various loans payable. This is shown in the following table:
CITY OF SANTA MONICA
Outstanding Debt
(in millions)
General obligation bonds
2008-09 2007-08 2008-09 2007-08 2008-09 2007-08
(backed by the City) $ 18.5 20.1 - - 18.5 20.1
Revenue bonds and notes
(backed by specific tax and fee 140.7 147.5 25.8 27.2 166.5 174.7
revenues)
Line of credit, Redevelopment 15.5 - - - 15.5 -
Agency (backed by specific
tax revenues)
Governmental activities Business-type activities Total
Other loans 0.4 - 3.1 3.4 3.5 3.4
Total $ 175.1 $ 167.6 28.9 30.6 204.0 198.2
Additional information on the City’s long-term debt can be found in note 9 to the basic financial
statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City’s adopted General Fund budget for FY 2009-10 supports the basic responsibilities of local
government, the policy interests of City Council Members and diverse concerns of the residents.
Management feels that there are adequate resources available to fund the proposed expenditures.
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