Comprehensive Annual Financial Report - City of Santa Monica

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2009
Pledged Revenue
The City has a number of debt issues that involve the pledging of revenues. The amounts and terms of
the remainder of these commitments and the purposes for which the proceeds of the debt issuances are
utilized are indicated in the summery of long-term bonds and loans outstanding at year end presented in
this note. For the current year, debt service payments as a percentage of the pledged gross revenue (net
of certain expenses where so specified in debt covenants) are indicated in the table below. These
percentages also approximate the relationship of debt service to pledged revenue for the remainder of
the term of the commitment.
Annual amount of
pledged revenue (net
of expenses, where
required)
Annual debt service
payments (of all debt
secured by this
revenue)
Debt service as a
percentage of
pledged revenue
Description of pledged revenue/debt:
Base rental payments
Parking Authority 2002 $ 1,076,923 1,108,399 103%
Public Finance Authority 1999, 2002 2,413,333 2,413,333 100%
Public Finance Authority 2004 2,548,187 2,529,463 99%
Total Base Rental Payments 6,038,443 6,051,195
Tax increment
Ocean Park Redevelopment 2002 3,953,132 1,725,998 44%
Earthquake Recovery Project 2006 65,674,456 4,403,981 7%
Line of credit (1) 13,250,221 - -
Total Tax Increment 82,877,809 6,129,979
Library bond tax revenue
Main Library Improvements 1998, 2002 2,501,448 2,490,202 100%
Wastewater charges for services
Hyperion Project Revenue 1993, 2005 7,673,017 2,571,812 34%
Total $ 99,090,717 17,243,188
(1) Subordinates to the Earthquake Recovery Project 2006 bonds.
(10) FUND DEFICITS
Capital Projects Fund. A deficit fund balance in the amount of $15,344,514 exists in the Downtown
Redevelopment Project Fund. This fund balance deficit is primarily due to interest expense on advances
from the General Fund. Management plans to use future tax increment revenues to pay off the advances
and eliminate this fund deficit.
Enterprise Funds. A net deficit in the amount of $2,407,678 exists in the Cemetery Fund due to
expenditures outpacing increased revenue. The deficit is expected to be funded by increased operating
revenues and improved operating efficiency. Cemetery is currently implementing a business plan which
anticipates increased future revenues.
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