Agenda - City of Santa Monica

CITY OF SANTA MONICA
REGULAR CITY COUNCIL MEETING AGENDA AND
(REGULAR MEETING OF THE REDEVELOPMENT
SUCCESSOR AGENCY CANCELLED)
CITY HALL COUNCIL CHAMBERS - 1685 MAIN STREET
TUESDAY, APRIL 23, 2013
MEETING BEGINS AT 5:30 P.M.
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
(Please note that Agenda Items may be reordered during the Council meeting at the
discretion of the City Council.)
1. CLOSED SESSIONS:
1-A:
1-B:
1-C:
Conference with Legal Counsel – Anticipated Litigation: Anticipate
significant exposure to litigation pursuant to Government Code Section
54956.9 (d)(2) – 4 Cases - 1) Claim of Danny Galvan & Sandra Ramirez –
Claim Number 12-1050 2) 2009 La Mesa 3)Regional Water Quality
Control Board - City of Santa Monica Order and Proposed Settlement No.
R4-2011-0185M (Hydraugers Installation Project Palisades Bluff) 4) 1
case
Conference with Legal Counsel – Existing Litigation – Litigation has been
initiated formally pursuant to Government Code Section 54956.9 (d)(1) -
Santa Monica Lodge No. 906, Benevolent and Protective Order of Elks of
the United States of America v. City of Santa Monica, Los Angeles Superior
Case Number BC 483305.
Threat to Public Services or Facilities:
Consultation with Police Chief Seabrooks
The following is the order of business for items to be heard no earlier than 6:30 p.m.
1
April 23, 2013

SPECIAL AGENDA ITEMS:
2-A:
2-B:
Recognition of April 2013 as Fair Housing Month
A presentation from Grades of Green/Muir/SMASH
3. CONSENT CALENDAR: (All items will be considered and approved in one motion
unless removed by a Councilmember for discussion.)
3-A:
3-B:
3-C:
3-D:
3-E:
Approval of minutes of the November 27, and the December 11, 2012, City
Council meetings.
Authorization from the City Manager to negotiate and execute a License
Agreement with Cirque du Soleil for Use of a Portion of the 1550 PCH
Parking Lot – recommendation to authorize the City Manager to negotiate and
execute a proposed License Agreement with Cirque du Soleil for use of a portion
of the 1550 PCH parking lot for theatrical performances from January 2 through
March 29, 2014.
2525 Michigan Purchase and Sale of Parcel – recommendation to authorize
the City Manager to negotiate and execute a purchase and sale agreement with
the Exposition Construction Authority to sell a 19,389-square-foot portion of Cityowned
property at 2525 Michigan Avenue for the construction and operation of
the Exposition Light Rail Transit station.
Agreement with MuniServices, LLC for Utility Users Tax and Franchise Fee
Audit and Revenue Enhancement Services – recommendation to authorize
the City Manager to negotiate and execute a contract with MuniServices, LLC for
a fixed fee component of $425,000 for a five year term plus a contingency fee
component for certain specific audits for the City for Utility Users Tax (UUT) and
Franchise Fee audit and revenue enhancement services.
Award Construction Contracts for Lincoln Boulevard Resurfacing Project,
Federal Aid Project No. STPL-5107 (034) – recommendation to authorize the
City Manager to negotiate and execute a contract with Sully-Miller Contracting
Co., in an amount not to exceed $2,010,872 for the resurfacing of Lincoln
Boulevard from the Santa Monica Freeway to the southern City limit; authorize
the City Manager to negotiate and execute a contract with Onward Engineering,
in an amount not to exceed $176,000 for construction management and
inspection services for the resurfacing of Lincoln Boulevard; authorize the
issuance of an after-hours construction permit to perform work between the
hours of 8 PM and 6 AM, Monday through Friday over the project duration,
contingent on satisfying notification requirements as contained in Santa Monica
Municipal Code 4.12.110; and authorize the Director of Public Works to issue
any necessary change orders to complete additional work within budget
authority.
2
April 23, 2013

3-F:
3-G:
Agreement Modification for Environmental Services for City Corporation
Yard and Olympic Well Field – recommendation to authorize the City Manager
to negotiate and execute a third modification to Agreement No. 8914 (CCS) with
ICF Consulting Services, LLC, in the amount of $1,370,805 to provide
groundwater monitoring, well installation, technical oversight, and support
services for Olympic Well Field; and appropriate the budget increases as
outlined in the Financial Impacts and Budget Actions of this report.
Presentation of Independent Auditor Report - recommendation that the City
Council receive and file the independent auditors’ unqualified audit report for the
City’s financial statements for the fiscal year ended June 30, 2012 and the
attached Auditor’s Letter to Council.
REGULAR MEETING OF THE REDEVELOPMENT SUCESSOR AGENCY
ROLL CALL
3-H:
Cancelled, no business to consider.
ADJOURNMENT
7. ORDINANCES: (Public comment is permitted on ordinances for introduction and
first reading. No public discussion is permitted on ordinances for second reading and
adoption.)
7-A:
7-B:
Second reading and adoption of an Ordinance Amending Section 6.36.095 of
the Municipal Code Related to Late Night Vending on Main Street. (Introduced
on April 9, 2013)
Second reading and adoption of an Ordinance Amending Articles III and VI of
the Santa Monica Municipal Code Regarding Licensing and Regulation of
Pedicabs. (Introduced on April 9, 2013)
8. STAFF ADMINISTRATIVE ITEMS:
8-A:
Options for Addressing Use of City Parks and the Beach for Commercial
Fitness Instruction, Classes or Camps – recommendation that the City
Council review and comment on a proposed regulatory system to address the
use of City parks and the beach for commercial fitness instruction, classes or
camps; and direct staff to prepare an amendment to Chapter 4.55 of the
Municipal Code to create a new regulatory structure, permit system and use
charges for all commercial fitness instruction, classes or camps in City parks and
the beach.
3
April 23, 2013

8-B:
Modification to Development Agreement Application Process to Require
Separate Architectural Review Board and Planning Commissions Float
Ups– recommendation that Council modify the recently adopted Development
Agreement application review process to require separate Architectural Review
Board and Planning Commissions float ups rather than one combined float up.
9. PUBLIC HEARINGS:
9-A:
Public Hearing and Approval of the Proposed FY 2013-14 One-Year Action
Plan Allocating Federal Community Development Block Grant (CDBG) and
HOME Investment Partnership Act Program (HOME) Entitlement Grant
Funds – recommendation that the City Council hold a public hearing, receive
public comment, and approve the Proposed FY 2013-14 One-Year CDBG and
HOME Action Plan; and authorize the City Manager to submit all documents
required to receive the City’s annual Community Development Block Grant and
Home Investment Partnerships Act entitlement grant funds to the U.S.
Department of Housing and Urban Development.
13. COUNCILMEMBER DISCUSSION ITEMS:
13-A: Appointment to one unscheduled vacancy on the Airport Commission for a
term ending on June 30, 2014.
13-B: Recommendation to accept Albin Gielicz’s resignation from the Social
Services Commission and authorize the City Clerk to publish the vacancy.
13-C: Request of Councilmembers O'Day and Winterer that to help to achieve the
goals of our Climate Action Plan the Council direct staff that development
agreement negotiations should seek from projects the greatest amount of
photovoltaic panels feasible given the rooftop configuration and
orientation of proposed buildings.
13-D: Request of Councilmembers McKeown, Winterer, and Davis that staff
negotiate more aggressive Average Vehicle Ridership (AVR) targets in
Development Agreements, especially for employees in projects along the
Expo Corridor, with periodic performance reviews, options for higher AVR
targets as local standards evolve and enhanced compliance incentives
after successive years in which a project fails to achieve its AVR targets.
13-E: Request of Councilmembers McKeown, Winterer and Vazquez that Council
direct staff to explore how best to prohibit and prevent relocation and other
settlement agreements with tenants which are in any way conditioned on
the tenants' agreement to forego legal rights to communicate with or
petition their government or elected or appointed officials, or to testify at
hearings regarding projects that may displace their homes.
4
April 23, 2013

14. PUBLIC INPUT: (Public comment is permitted only on items not on the agenda
that are within the subject matter jurisdiction of the City. State law prohibits the City
Council from taking any action on items not listed on the agenda, including issues
raised under this agenda item.)
ADJOURNMENT.
Any documents produced by the City and distributed to a majority of the City Council
regarding any item on this agenda will be made available at the City Clerk's Counter
located at City Hall, 1685 Main Street, Santa Monica, and at the City’s public libraries
during normal business hours. Documents are also available at
http://www.smgov.net/departments/clerk/agendas.aspx.
For a free subscription to City Council Agendas sign up at http://www01.smgov.net/win
or call the City Clerk’s Office at (310) 458-8211.
Any member of the public unable to attend a meeting but wishing to comment on an
item(s) listed on the agenda may submit written comments prior to the meeting by
mailing them to: City Clerk, 1685 Main Street, Santa Monica, CA 90401. Comments
may also be e-mailed to: clerk@smgov.net
Si desea comunicarse con alguien en español, llame a nuestra oficina al (310) 458-8211 y
pida hablar con Esterlina Lugo.
City Hall and the Council Chamber is wheelchair accessible. If you require any special
disability related accommodations (i.e. sign language interpreting, access to an
amplified sound system, etc.), please contact the City Clerk’s Office at (310) 458-8211
or TDD: (310) 917-6626 at least 3 days prior to the scheduled meeting. This agenda is
available in alternate format upon request by calling the City Clerk’s Office.
Parking is available in front of City Hall and on Olympic Drive and in the Civic Center
Parking Structure (validation free).
5
April 23, 2013

(NOT APPROVED)
CITY OF SANTA MONICA
CITY COUNCIL MINUTES
TUESDAY, NOVEMBER 27, 2012
A regular meeting of the Santa Monica City Council was called to order by Mayor Bloom at 5:33 p.m., on
Tuesday, November 27, 2012, at City Council Chambers, 1685 Main Street.
Roll Call: Present: Mayor Richard Bloom
Mayor Pro Tem Gleam Davis
Councilmember Pam O’Connor (arrived at 5:54 p.m.)
Councilmember Robert T. Holbrook
Councilmember Kevin McKeown
Councilmember Terry O’Day
Councilmember Bobby Shriver
Also Present:
CONVENE/PLEDGE
CLOSED SESSIONS
Councilmember O’Connor
arrived at 5:54 p.m.
City Manager Rod Gould
City Attorney Marsha Jones Moutrie
City Clerk Sarah Gorman
On order of the Mayor, the City Council convened at 5:33 p.m., with
Councilmember O’Connor absent. Councilmember Shriver led the
assemblage in the Pledge of Allegiance.
Member of the public Denise Barton commented on Closed Session Item
1-D.
On order of the Mayor, the City Council recessed at 5:35 p.m., to consider
closed sessions and convened at 6:40 p.m., with all members present, to
report the following:
1-A:
Conference with Legal Counsel – Anticipated Litigation:
Anticipate significant exposure to litigation pursuant to
Government Code Section 54956.9 (b)- 2 cases: 1) Village
Trailer Park and 1 case
The City Attorney Marsha Moutrie reported that this item was heard with
no reportable action taken.
1-B:
Conference with Legal Counsel – Anticipated Litigation:
Consideration of whether to initiate litigation pursuant to
Government Code Section 54956.9 (c) – 1 case
1 November 27, 2012

The City Attorney Marsha Moutrie reported that this item was heard with
no reportable action taken.
1-C: Conference with Legal Counsel – Existing Litigation: Lamle v.
City of Santa Monica, et al., United States District Court, Case
No. CV 04-06355 HGK (SHx).
The City Attorney Marsha Moutrie reported that this item was heard with
no reportable action taken.
SPECIAL AGENDA
ITEMS:
CONSENT CALENDAR:
2-A: Special Recognition of Mayor Richard Bloom and Councilmember
Bobby Shriver, was presented.
All items were considered and approved in one motion unless removed by a
Councilmember for discussion.
Members of the public Joy Fullmer, Denise Barton, Adam Pines, Ruthann
Lehrer, Jerry Rubin, Diane Dykema, Alex DeGood, Peter Nelson, Dick
Newman, Richard Corlin, and Harvey Eder commented on various Consent
Calendar items.
Motion by Councilmember McKeown, seconded by Mayor Pro Tem Davis,
to approve the Consent Calendar, except for Item 3-J, reading resolutions
by title only and waiving further reading thereof. The motion was
approved by the following vote:
AYES: Councilmembers Shriver, O’Connor, Holbrook, O’Day,
McKeown, Mayor Pro Tem Davis, Mayor Bloom
NOES: None
ABSENT: None
MINUTES
PIER TELESCOPES AND
BINOCULARS
CUSTODIAL SUPPLIES
3-A: The minutes for the September 11, 2012, City Council meeting, were
approved as submitted.
3-B: Coin-Operated Telescopes and Binoculars on the Santa Monica
Pier and Palisades Park – recommendation to authorize the City Manager
to negotiate and execute License Agreement No. 9666 (CCS) with Fare
Share Enterprises for the installation and maintenance of new coinoperated
telescopes and binoculars on the Santa Monica Pier and Palisades
Park, was approved.
3-C: Citywide Custodial Supplies – recommendation to award Bid No.
4035 to Clean Source, Empire Cleaning Supply, Royal Corporation, and
Staples, in the cumulative annual amount of $405,000 for the purchase of
custodial supplies with an amount not to exceed $1,215,000 over a threeyear
period, was approved.
2 November 27, 2012

HYDRAULIC
FRACTURING
3-D: Resolution for a Moratorium on Hydraulic Fracturing in
California – recommendation to adopt Resolution No. 10720 (CCS)
entitled: “A Resolution Of The City Council Of The City Of Santa Monica
In Support Of A Moratorium On Hydraulic Fracturing (Fracking),” was
adopted.
RUSTY’S LEASE 3-E: 256 Santa Monica Pier Leasehold (Rusty’s) – recommendation to
authorize the City Manager to negotiate and execute Amended and
Restated Lease Agreement No. 9667 (CCS) with Hospitality Industry
Management Group, LLC d.b.a. Rusty’s Surf Ranch for 256 Santa Monica
Pier, was approved.
ASPHALT BID 3-F: Bid Award for the Purchase of Asphalt Materials for Street
Maintenance – recommendation award Bid No. 3098 to Vulcan Materials
Company, in the amount of $155,000 for FY 2012-13 for the purchase and
delivery of asphalt materials, with one additional one-year renewal option
in the amount of $250,000, for a total amount not to exceed $405,000 over
a two-year period, was approved.
WATERPROOFING BID 3-G: Bid Award for Waterproofing Services at Various City
Facilities – recommendation to award Bid No. 4037 to Surfside
Restoration & Waterproofing, as the primary contractor; and Allstate
Engineering, as the secondary contractor, in a cumulative amount not to
exceed $75,000 for FY 2012-13 for waterproofing services at various City
facilities, with two one-year options to renew, for a cumulative amount not
to exceed $225,000 over a three-year period, was approved.
BERGAMOT REQUEST
FOR PROPOSALS
3-H: Request for Proposals for Bergamot Station Arts Center
Development - recommendation that the City Council adopt the project
objectives listed and authorize staff to issue a Request for Proposals (RFP)
to development teams led by Bergamot Station Ltd./Worthe Real Estate
Group, Lionstone Group/Industry Ltd. And Rethink Development/Kor
Group for development of the City-owned property located at 2525
Michigan Avenue, home to the Bergamot Station Arts Center, was
approved.
GEOTECH TESTING 3-I: Amend Contract for Geotechnical Testing Services for Civic
Center Parks – recommendation authorize the City Manager to negotiate
and execute a first modification to Professional Services Agreement No.
9395 (CCS) with Koury Engineering & Testing, in an amount not to exceed
$86,460 to provide additional geotechnical testing services for the Civic
Center Parks (Palisades Garden Walk and Ken Genser Square Project),
resulting in a new agreement in the amount of $155,030, was approved.
BIN TRUCKS 3-K: Bid Award for Purchase of Three Bin Trucks – recommendation
to award Bid No. F4028 to Wondries Fleet Group in the amount of
$127,183, for the purchase and delivery of three bin trucks to the Resource
Recovery and Recycling Division, was approved.
3 November 27, 2012

RESIDENT SURVEY 3-L: Amend Agreement for Bi-Annual Resident Survey for FY 2012-
13 – recommendation to authorize the City Manager to negotiate and
execute Professional Services Agreement No. 9668 (CCS) with Fairbank,
Maslin, Maullin, Metz & Associates (FM3), in the amount of $30,495 to
conduct the bi-annual resident survey for FY 2012-13, resulting in an
agreement for conducting two bi-annual resident surveys in the amount of
$60,990, was approved.
BANKING SERVICES 3-M: Banking Services Agreement with Wells Fargo Bank –
recommendation to authorize the City Manager to negotiate and execute
Contract No. 9669 (CCS) with Wells Fargo Bank, in an amount not to
exceed $375,000 for banking services over a five year term, was approved.
2009 LA MESA DRIVE
3-J: New Mills Act Contract at 2009 La Mesa Drive –
recommendation to adopt a Resolution authorizing the City Manager to
negotiate and execute a Historic Property Preservation Agreement (Mills
Act Contract) between the City of Santa Monica and the property owner of
the designated City Landmark at 2009 La Mesa Drive, was presented.
Mayor Pro Tem Davis removed this item to question staff regarding timing
and Mills Act issues.
Discussion ensued regarding the Mills Act process, code compliance, and
related issues. Direction was given to staff.
Motion by Mayor Pro Tem Davis, seconded by Councilmember O’Connor,
to continue the item to December 11 th and direct staff to research code
compliance and interior historic features. The motion was approved by the
following vote:
AYES:
NOES:
ABSENT:
Councilmembers McKeown, O’Day, Holbrook, O’Connor,
Mayor Pro Tem Davis, Mayor Bloom
Shriver
None
Councilmember Holbrook requested that the item be heard on December
11 th in Closed Session.
ORDINANCES:
2930 COLORADO AVE.
7-A:
Second reading and adoption of Ordinance No. 2414 (CCS)
entitled: “AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA APPROVING THE
DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
SANTA MONICA, A MUNICIPAL CORPORATION, VILLAGE
TRAILER PARK LLC, A CALIFORNIA LIMITED LIABILITY
COMPANY, AND VILLAGE TRAILER PARK INC., A
CALIFORNIA CORPORATION,” was presented.
4 November 27, 2012

Motion by Mayor Bloom, seconded by Councilmember O’Connor, to adopt
the Ordinance No. 2414 (CCS), reading by title only and waiving further
reading thereof. The motion was approved by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers O’Connor, Holbrook, O’Day,
Mayor Bloom
Mayor Pro Tem Davis, Councilmember McKeown
None
Shriver
Mayor Pro Tem Davis stated, for the record, that her “no” vote was based
in large part on the fact that the Council was not provided with on-site
appraisals and without these appraisals, she could not fully analyze the
tenant impact report and tenant relocation packages.
Councilmember McKeown stated, for the record, that his “no” vote was to
reflect his opposition to removal of vulnerable senior homeowners and
because this agreement fails to meet even the City’s minimum adopted
policy for affordable housing production. He stated that Council should
have waited to hear this after the Bergamot Area Plan and for a new
Council. He stated that he was then changing his vote to yes to reflect
Council Rules that provide only a member who voted for the prevailing
side of an item to bring a motion for consideration of the item at later
meeting.
The motion was approved by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers O’Connor, Holbrook, O’Day, McKeown
Mayor Bloom
Mayor Pro Tem Davis,
None
Shriver
STAFF
ADMINISTRATIVE
ITEMS:
EXPO MAINTENANCE
FACILITY
8-A: Tri-Party Real Estate Exchange to Create Buffer Area Adjacent
to Exposition Light Rail Phase 2 Maintenance Facility -
recommendation to authorize the City Manager to negotiate and execute
real estate and ancillary Agreement No. 9670 (CCS) with Santa Monica
College and Agreement No. 9671 (CCS) with the Exposition Metro Line
Construction Authority related to the purchase, lease, and exchange of real
estate interests in properties located at 2909 Exposition Blvd, 2900
Exposition Blvd and 3400/3500 Airport Avenue, to allow for the creation
of the proposed buffer area adjacent to the proposed Phase 2 Exposition
Light Rail Maintenance Facility, was presented.
Members of the public Christel Andersen, Zina Josephs, and Irma Carranza
spoke regarding the recommendation.
Motion by Mayor Pro Tem Davis, seconded by Councilmember Holbrook,
5 November 27, 2012

to approve the recommendation. The motion was approved by the
following vote:
AYES:
NOES:
ABSENT:
Councilmembers Shriver, O’Connor, Holbrook, O’Day,
McKeown, Mayor Pro Tem Davis, Mayor Bloom
None
None
3402 PICO BLVD FLOAT-
UP
Councilmember O’Connor
was excused at 10:26 pm.
8-B: Development Agreement float-up for a new mixed-use project
at 3402 Pico Boulevard – recommendation that City Council discuss the
applicant’s Development Agreement proposal and provide direction
regarding the appropriateness of the site development and potential
community benefits; initiate the Development Agreement negotiation and
review process between the City and Developer, was presented.
Members of the public Clare Thomas, Adam Gross, Leslee Mickshaw,
Diane Kuyoomjian, Jack Gregory, Frans Klinkenberg, Chris Bailey, Nancy
Morse, Elena Estrin, Steve Kandell, Ted Hutman, Jennifer Kozicki, Lori
Goldstein, Victor Gonzales, Debbie Miller, Grace Phillips, Andrew Stolz,
Cathy McCabe, Terry Draut, Armen Melkonians, Krantz Jody, Christen
Andersen, Jennifer Polhemus, Jan Flack, Joe Perches, Sally Allen, Joanne
Curtis, Cathy Larson, Zina Josephs, Larry Arreola, Jeff Gottesman, Paula
Mazur, Robert Mickfelson, David Engelberg, Steve Duron, Andrea Hricko
and Irma Carranza spoke in opposition to the recommendation or suggested
more study is needed before moving forward on this matter.
Discussion ensued on topics including EIRs, community benefits, health
issues to prospective residents, and alternative uses of the site.
Motion by Davis, seconded by Councilmember O’Day, to direct staff and
the developer to do an Environmental Impact Report, and amongst the
alternatives in the EIR would be a purely commercial use of the property, a
much smaller mixed residential / commercial use, and other alternatives
either required or appropriate under CEQA. In addition, staff and the
developer would, at the developer’s cost, engage in study of the impacts of
being so close to a freeway in whatever use for the property so that the
health effects of the use can be evaluated; staff would not negotiate
community benefits or development agreement at this time. The motion
was approved by the following vote:
AYES:
NOES:
ABSENT:
Councilmembers Shriver, Holbrook, O’Day, McKeown,
Mayor Pro Tem Davis, Mayor Bloom
None
O’Connor
PUBLIC HEARINGS:
HOMELESS SERVICES
9-A: Public Hearing of the Annual Review of the City’s Plan for
Homeless Services – recommendation that the City Council: Hold a public
hearing and receive public comment on the Annual Review of the City’s
6 November 27, 2012

Plan for Homeless Services, pursuant to the Municipal Code; Review and
comment on strategies to address homelessness; and, direct staff to proceed
with next steps, was presented.
Member of the public Valecia Adams commented on this matter.
After discussion, on order of the Mayor, the information was received and
filed.
FAIR HOUSING CHOICE 9-B: Analysis of Impediments to Fair Housing Choice –
recommendation that Council review the Draft Analysis of Impediments to
Fair Housing Choice and hold a public hearing, receive public comment
and approve the Draft, was presented.
Members of the public Richard Hilton, Denise Barton, and Christel
Andersen commented on the recommendation.
After discussion, on order of the Mayor, the information was received and
filed.
COUNCIL ITEMS:
FOSSIL FUEL
INVESTMENTS
13-A: Request of Councilmember McKeown that the Council direct
staff to evaluate how best to divest fossil fuel investments from the
City's portfolios, and return with policy options as part of the
February mid-year budget review, was presented.
There was no one present for public comment.
Motion by Councilmember McKeown, seconded by Councilmember
O’Day, to approve the recommendation with broader research on socially
responsible investing. The motion was unanimously approved by voice
vote with Councilmember O’Connor absent.
PUBLIC INPUT:
Members of the public Denise Barton, Dhun May, Armen Melkonians, and
Primo DeJesus commented on various local issues.
ADJOURNMENT On order of the Mayor, the City Council meeting was adjourned at 12:48
p.m., with Councilmember O’Connor absent.
ATTEST:
APPROVED:
Sarah Gorman
City Clerk
Richard Bloom
Mayor
7 November 27, 2012

(NOT APPROVED)
CITY OF SANTA MONICA
CITY COUNCIL MINUTES
DECEMBER 11, 2012
A special meeting of the Santa Monica City Council was called to order by Mayor Pro Tem Davis at 6:30
p.m., on Tuesday, December 11, 2012, at City Council Chambers, 1685 Main Street.
Roll Call: Present: Mayor Pro Tem Gleam Davis
Councilmember Robert T. Holbrook
Councilmember Kevin McKeown
Councilmember Pam O’Connor
Councilmember Terry O’Day
Councilmember Bobby Shriver
Absent:
Also Present:
Mayor Bloom
City Manager Rod Gould
City Attorney Marsha Jones Moutrie
City Clerk Sarah P. Gorman
CONVENE/PLEDGE
SPECIAL AGENDA
ITEMS:
INSTALLATION OF NEW
OFFICERS
On order of Mayor Pro Tem Davis, the City Council convened at 6:30 p.m.,
with Mayor Bloom absent. Councilmember Shriver led the assemblage in
the Pledge of Allegiance.
2-A: Resolution Accepting the Official Canvass and Official
Statement of Votes Cast for the Consolidated Municipal Election Held
on November 6, 2012, and Declaring the Results Thereof -
recommendation to adopt Resolution No. 10721 (CCS) accepting the
official canvass for the Municipal Election held November 6, 2012, was
presented.
Motion by Councilmember O’Connor, seconded by Councilmember
McKeown to adopt the resolution by title only and waiving further reading
thereof.
AYES:
NOES:
ABSENT:
Councilmembers Shriver, O’Connor, Holbrook, O’Day,
McKeown, Mayor Pro Tem Davis
None
None
Members of the public Joy Fullmer commented on the selection of the new
1 December 11, 2012

Mayor and Mayor Pro Tem.
ADJOURNMENT OF
CURRENT COUNCIL
Councilmember Shriver was
excused at 7:25 pm.
On order of the Mayor Pro Tem, the City Council, as presently constituted,
was adjourned, and the meeting was turned over to City Clerk Sarah P.
Gorman.
ATTEST:
APPROVED:
Sarah P. Gorman
City Clerk
Gleam Davis
Mayor Pro Tem
ADMINISTRATION OF
OATH OF OFFICE TO
NEWLY ELECTED
OFFICIALS
2-B: Administration of oath of office to new Santa Monica-Malibu
Unified School District Board of Education Members.
City Clerk Gorman administered the oath of office to newly-elected School
District’s Board of Education Members Ben Allen and Maria Leon-
Vazquez. Board member Jose Escarce was not present at the meeting.
2-C: Administration of oath of office to new Santa Monica Rent
Control Board Members.
City Clerk Gorman administered the oath of office to newly-elected Rent
Control Board Members Isle Rosenstein and Christopher Walton.
2-D: Administration of oath of office to new Santa Monica City
Council Members.
City Clerk Gorman administered the oath of office to newly-elected City
Councilmembers Gleam Davis, Terry O’Day, Tony Vazquez, Ted
Winterer.
ELECTION OF THE
MAYOR
On order of the City Clerk, with the newly constituted City Council seated,
the Council meeting was convened at 7:03 p.m., with all members present.
City Clerk Gorman opened the floor for nominations for Mayor for the
ensuing two years.
Councilmember Vazquez nominated Councilmember O’Connor as Mayor.
Councilmember O’Day nominated Mayor Pro Tem Davis.
Councilmember Winterer nominated Councilmember McKeown as Mayor.
All nominations failed by the following vote:
O’Connor:
Councilmembers Vazquez, O’Connor, Holbrook
2 December 11, 2012

Davis:
McKeown:
Councilmember O’Day, Mayor Pro Tem Davis
Councilmembers Winterer, McKeown
Councilmember Winterer nominated Councilmember McKeown as Mayor
and Mayor Pro Tem Davis as Mayor Pro Tem for the first year, and for the
second year, Mayor Pro Tem Davis as the Mayor, and Councilmember
O’Connor as the Mayor Pro Tem.
Councilmember Vazquez nominated Councilmember O’Connor as Mayor
for two years.
Councilmember O’Day nominated Mayor Pro Tem Davis as Mayor for two
years.
All nominations failed by the following vote:
McKeown Mayor/Davis Mayor Pro Tem first year, Davis
Mayor/O’Connor Mayor Pro Tem second year: Councilmembers
McKeown, Winterer
O’Connor:
Davis:
Councilmembers Holbrook, O’Connor, Vazquez
Councilmember O’Day, Mayor Pro Tem Davis
Councilmember Vazquez nominated Councilmember O’Connor as Mayor.
Councilmember McKeown nominated Mayor Pro Tem Davis as Mayor for
first year and Councilmember McKeown as Mayor for second year.
Councilmember O’Day nominated Mayor Pro Tem Davis as mayor for two
years.
All nominations failed by the following vote:
Davis Mayor first year/McKeown Mayor second year: Councilmember
Winterer, McKeown
O’Connor:
Davis:
Councilmembers Vazquez, O’Connor, Holbrook
Councilmember O’Day, Mayor Pro Tem Davis
Councilmember Holbrook nominated Councilmember O’Connor as Mayor
for two years.
3 December 11, 2012

Councilmember Winterer nominated Councilmember McKeown as Mayor
for two years.
Councilmember O’Day nominated Mayor Pro Tem Davis as Mayor for two
years.
All nominations failed by the following vote:
O’Connor:
McKeown:
Davis:
Councilmembers Holbrook, O’Connor, Vazquez
Councilmembers McKeown, Winterer
Councilmember O’Day, Mayor Pro Tem Davis
Councilmember Holbrook nominated Councilmember O’Connor as Mayor
for two years.
Councilmember Winterer nominated Councilmember McKeown as Mayor
and Mayor Pro Tem Davis as Mayor Pro Tem for the first year, and for the
second year, Mayor Pro Tem Davis as the Mayor, and Councilmember
O’Connor as the Mayor Pro Tem.
Councilmember O’Connor was appointed as Mayor for a term of two years
by the following vote:
McKeown Mayor, Davis Mayor Pro Tem first year/Davis Mayor,
O’Connor Mayor Pro Tem second year: Councilmembers Winterer,
McKeown, Mayor Pro Tem Davis
O’Connor:
Councilmembers Vazquez, O’Connor, Holbrook, O’Day
NEW MAYOR ASSUMES
CHAIR
Mayor O’Connor assumed the Chair and opened the floor for nominations
for Mayor Pro Tem.
Mayor Pro Tem Davis nominated Councilmember O’Day as Mayor Pro
Tem.
Councilmember Winterer nominated Mayor Pro Tem Davis as Mayor Pro
Tem for two years.
Councilmember O’Day was appointed as Mayor Pro Tem for a term of two
years by the following vote:
Davis:
O’Day:
Councilmembers McKeown, Winterer
Councilmembers O’Day, Holbrook, Vazquez, Mayor Pro
Tem Davis, Mayor O’Connor
4 December 11, 2012

END OF INSTALLATION
OF NEW OFFICERS
CLOSED SESSIONS
On order of the Mayor, the City Council meeting continued with the
regular agenda.
Member of the public Andrew Hoyer commented on a closed session item.
On order of the Mayor, the City Council recessed at 7:47 p.m. to consider
closed sessions and returned at 8:31 p.m., with all members present, to
report the following:
1-A: Conference with Legal Counsel – Anticipated Litigation:
Anticipate significant exposure to litigation pursuant to Government
Code Section 54956.9 (b) - 4 cases: 1) Village Trailer Park 2) 2401
Beverly Avenue and 2 cases
City Attorney Marsha Moutrie reported that these items were heard with no
reportable action taken, with the exception of the 2401 Beverly Avenue
item, which was not heard.
1-B: Conference with Legal Counsel – Anticipated Litigation:
Consideration of whether to initiate litigation pursuant to Government
Code Section 54956.9 (c) – 2 cases
City Attorney Marsha Moutrie reported that these items were heard with no
reportable action taken.
1-C: Conference with Legal Counsel - Anticipated Litigation:
Initiation of Litigation pursuant to Section 54956.9(c): California
Regional Water Quality Control Board, California Water Code
Section 13267 Order- Former Douglas Aircraft Site, 2902 Exposition
Blvd., Santa Monica, CA 91601 (Site ID 20443H00).
City Attorney Marsha Moutrie reported that these items were heard with no
reportable action taken.
REQUEST TO HEAR ITEM
OUT OF ORDER
PLANNING
COMMISSION
At the request of Mayor O’Connor, item 13-D was pulled to be heard
before the consent calendar.
13-D: Recommendation to accept Ted Winterer’s resignation from the
Planning Commission and authorize the City Clerk to publish the
vacancy.
Motion by O’Connor, seconded by Davis, to accept resignation. The
motion was unanimously approved by voice vote, with all members
present.
CONSENT CALENDAR:
There being a Consent Calendar for the Redevelopment Successor Agency,
5 December 11, 2012

JOINT MEETING WITH
THE REDEVELOPMENT
SUCCESSOR AGENCY
AND THE PARKING
AUTHORITY
and the Parking Authority, the Mayor, with the consensus of Council,
combined the Consent Calendars into a joint meeting so as to hear them
concurrently.
Members of the public Denise Barton and Christel Anderson commented
on various Consent Calendar items.
Motion by Agency/Authority Member/Councilmember McKeown,
seconded by Agency/Authority Member/Councilmember Holbrook , to
approve the Consent Calendar, reading resolutions by title only and
waiving further reading thereof, but pulling item 3-J for discussion. The
motion was approved by the following vote:
AYES:
NOES:
ABSENT:
Agency/Authority Member/Councilmembers Vazquez,
Davis, Holbrook, Winterer, McKeown, Chair/Mayor Pro
Tem O’Day, Chair/Mayor O’Connor
None
None
MEETING
CANCELLATION
3-A: Cancellation of the December 25, 2012 Regular City Council
meeting – recommendation to cancel the regular City Council meeting
scheduled for December 25, 2012, was approved.
MEDICAL SERVICES 3-B: Professional Medical Services – recommendation to authorize the
City Manager to negotiate and execute Professional Services Agreement
No. 9673 (CCS) with Westchester Medical Group Center for Heart and
Health, in the amount not to exceed $25,000 for professional medical
services, with four additional one-year renewal options in the amount of
$100,000, for a total amount not to exceed $125,000 over a five-year
period, with future year funding contingent on Council budget approval,
was approved.
ICE RINK 3-C: License for Seasonal Ice Skating Rink – recommendation to
authorize the City Manager to negotiate and execute License Agreement No.
9674 (CCS) with Downtown Santa Monica, Inc., for the continued use of
City-owned property at 1324 5 th Street as a seasonal public ice skating rink
for $1 for the 2013/14 winter season, with options for annual renewals at
the City’s discretion, was approved.
WITHDRAWN 3-D: Lease for the Office of Emergency Management Warehouse –
recommendation to authorize the City Manager to negotiate and execute a
month-to-month lease with 2800 Wilshire Boulevard, LLC. for $1.00 per
month for the storage of essential emergency management supplies, was
withdrawn by staff, was approved.
BID NO. 4032 3-E: Purchase of Uniforms and Protective Gear – recommendation to
6 December 11, 2012

award Bid No. 4032 to Galls, in the amount of $233,613 for the purchase
and delivery of Police and Fire Department uniforms and protective gear,
for one year with two additional one-year renewal options for a total
contract amount not to exceed $700,839, with future year funding
contingent on Council budget approval, was approved.
WORKERS’
COMPENSATION
3-F: Modification to Agreement for Workers’ Compensation Data
Analysis Services - recommendation to authorize the City Manager to
negotiate and execute professional services Agreement No. 9675 (CCS) in the
amount of $107,400 with TCS Risk Management Services, for workers’
compensation data analysis services, resulting in a new five-year agreement
in the amount of $166,150, was approved.
BID NO. F4034 3-G: Award Bid for Crosswalk Striping Services – recommendation to
award Bid No. F4034 to Super Seal and Stripe, for an amount not to exceed
$460,000 for crosswalk striping services, and to appropriate the budget
increases as outlined in the report, was approved.
BID NO. 4036 3-H: Award Bid for Granular Activated Carbon Replacement
Services – recommendation to award Bid No. 4036 to Carbon Activated
Corporation, in an amount not to exceed $882,000 to provide granular
activated carbon replacement services at the Charnock Well Field for one
year, with two one-year renewal options at a 3% increase in price each year
and an anticipated increase in GAC demand, requiring additional number of
changeouts each year, for a total amount not to exceed $3,341,000 over a
three-year period, with future year funding contingent on Council budget
approval, was approved.
BID NO. 4033 3-I: On-Call Traffic Signal Repair Service – recommendation to
award Bid No. 4033 to KDC, Inc. dba Dynalectric, Inc., in the amount of
$43,547 to provide on-call traffic signal maintenance, repair, and
installation services, for a total amount not to exceed $205,516 over a
three-year period, was approved.
JOINT MEETING WITH
THE REDEVELOPMENT
SUCCESSOR AGENCY
AND THE PARKING
AUTHORITY
FINANCIAL SERVICES
3-K: Professional Services Agreement with Public Resources
Advisory Group for Financial Advisory Services – authorize the City
Manager to negotiate and execute professional services Agreement No. 9676
(CCS) with Public Resources Advisory Group for an amount not to exceed
$250,000 for financial advisory services for a term of five years, on behalf
of the City, the Redevelopment Successor Agency, and the Parking
Authority, was approved.
1320 FOURTH STREET 3-J: Solicitation of Cinema Development Proposals for 1320 Fourth
Street – recommendation to authorize staff to negotiate in the open market
for cinema development at the City-owned property at 1320 Fourth Street,
was presented.
7 December 11, 2012

Councilmember Winterer advised that he removed this item to make a
comment regarding strategy. Staff provided information.
Motion by Councilmember Davis, seconded by Mayor Pro Tem O’Day, to
approve the recommendation. The motion was approved by the following
vote:
AYES:
NOES:
ABSENT:
Councilmembers Vazquez, Davis, Holbrook, Winterer,
McKeown, Mayor Pro Tem O’Day, Mayor O’Connor
None
None
CONTINUED ITEMS:
2009 LA MESA DRIVE
5-A: New Mills Act Contract at 2009 La Mesa Drive –
recommendation to adopt a Resolution authorizing the City Manager to
negotiate and execute a Historic Property Preservation Agreement (Mills
Act Contract) between the City of Santa Monica and the property owner of
the designated City Landmark at 2009 La Mesa Drive, was presented.
Staff responded to questions from Council.
Members of the public Peter Nelson, Ruthann Lehrer, Margaret Bach, Ania
Patterson, Diane Dykema, Dick Newman, Dick Stugger, Carol Lemlein,
and Richard Corlin spoke in opposition to the recommendation.
Members of the public Robert Chattel, Jenna Snow, Gary Culotti, Ben
Resnik, Elaine Culotti, and Lanny Hoover spoke in favor of the
recommendation.
Discussion ensued on completeness of the application, the Landmark
Commission recommendation, and the use of the Mills Act for this
property, among other issues. Direction was given to staff.
Motion by Councilmember Davis, seconded by Councilmember Vazquez,
to continue the hearing on the Mills Act application until the resolution of
the issues of third floor space and pool equipment, until the certificate of
appropriateness has been issued, and until there is a determination that the
garage was built pursuant to the certificate of appropriateness.
Substitute motion by Councilmember Holbrook, seconded by Mayor Pro
Tem O’Day, to grant the Mills Act request for a contract and to have staff
negotiate the contract, including any outstanding work to be done. The
substitute motion failed by the following vote:
AYES:
NOES:
Mayor Pro Tem O’Day, Councilmember Holbrook
Councilmember McKeown, Winterer, Davis, Vazquez,
Mayor O’Connor
8 December 11, 2012

ABSENT:
None
The main motion was re-stated and amended by Councilmember Davis to
include resolution of the interior defining features of the property. The
amendment was accepted as friendly to the seconder. The main motion, as
amended, was approved by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Councilmembers Vazquez, Davis, Mayor Pro Tem O’Day,
Mayor O’Connor
Councilmembers Winterer and McKeown
None
Councilmember Holbrook
Further staff direction was provided.
STAFF ITEMS:
AFFORDABLE HOUSING
8-A: Affordable Housing Policy – recommendation to (1) direct staff to
prepare an ordinance for Council consideration which establishes an
affordable housing linkage fee for commercial development and to continue
to pursue all other approaches to financing affordable housing; (2) direct
staff to prepare amendments to the Affordable Housing Production
Program to support extremely low-income housing, to establish minimum
occupancy standards, and to allow for for-profit developers to contract with
non-profit developers for affordable housing; (3) affirm the existing
approach to establishing income-eligibility limits and calculating rents for
the AHPP; (4) direct staff to cease offering new loans under the TORCA
loan program for lack of demand and authorize the City Manager to
approve 10-year extensions of existing TORCA loans; (5) affirm an
affordable housing monitoring approach that uses a random sampling of the
total City-funded affordable housing portfolio; and (6) authorize staff to
pursue disposition of the City-owned property at 1122 22 nd Street and to
explore approaches to the disposition of two other City-owned properties,
419 Ocean Avenue and Mountain View Mobile Home Park, returning to
Council with specific recommendations, was presented.
Staff responded to questions from Council.
Members of the public Denise Barton, Patricia Hoffman, Ken Ward,
Christel Andersen, Ellen Hannan, and Michael Tarbet spoke regarding the
recommendation.
Discussion ensued regarding the various issues and concerns and direction
was given to staff including, but not limited to: the commercial
housing/linkage fee, new funding sources, AHPP extremely low income,
minimum occupancy, partnership option, and income and rents, TORCA
new loans and loan extensions; monitoring of City-funded housing; and
properties at 1122 22 nd Street, 419 Ocean Ave, and Mountain View Mobile
9 December 11, 2012

Home Park.
Motion by Councilmember McKeown, seconded by Mayor Pro Tem
O’Day to direct staff to cease offering new loans under the TORCA loan
program for lack of demand and authorize the City Manager to approve 10-
year extensions of existing TORCA loans and authorize staff to pursue
disposition of the City-owned property at 1122 22 nd Street.
Council provided staff direction and requested new information regarding
the existing approach to establishing income-eligibility limits and
calculating rents for the AHPP.
Motion by Councilmember Winterer, seconded by Mayor Pro Tem O’Day
to direct staff to prepare an ordinance for Council consideration which
establishes an affordable housing linkage fee for commercial development
and to continue to pursue all other approaches to financing affordable
housing; direct staff to prepare amendments to the Affordable Housing
Production Program to support extremely low-income housing, to establish
minimum occupancy standards, and to allow for for-profit developers to
contract with non-profit developers for affordable housing; affirm an
affordable housing monitoring approach that uses a random sampling of the
total City-funded affordable housing portfolio; and authorize staff to
explore approaches to the disposition of two other City-owned properties,
419 Ocean Avenue and Mountain View Mobile Home Park.
AYES:
NOES:
ABSENT:
Councilmembers McKeown, Winterer, Holbrook, Davis,
Vazquez, Mayor Pro Tem O’Day, Mayor O’Connor
None
None
CONTINUING WITH
REMAINING AGENDA
ITEMS
DEVELOPMENT
AGREEMENTS
CONTINUATION OF
ITEM 8-B
Motion by Councilmember McKeown, seconded by O’Connor, to continue
with the remaining items on the agenda. The motion was approved by
voice vote with Councilmember Holbrook opposed and all members
present.
8-B: Development Agreement Application Processing Procedures
and Consideration of Policy Related to Average and Minimum Unit
Sizes in Mixed-Use Residential Developments – recommendation to
approve the proposed slowdown in the processing of pending Development
Agreement applications and confirm that average and minimum residential
unit sizes should be sought in Development Agreement negotiations.
Motion by Councilmember Holbrook, seconded by Mayor Pro Tem O’Day,
to continue Item 8-B to the January 8, 2013 Council meeting.
Motion to amend by Councilmember Winterer to apologize to those
waiting for the item.
10 December 11, 2012

Motion by Councilmember Holbrook, seconded by Mayor Pro Tem O’Day
to approve the original motion including the friendly amendment. The
motion was unanimously approved by voice vote, with all members
present.
PUBLIC HEARINGS:
TOURISM DISTRICT
9-A: Formation of a Santa Monica Tourism Marketing District –
recommendation that City Council: Hold a public hearing and adopt
Resolution No. 10722 (CCS) of Formation to establish the Santa Monica
Tourism Marketing District (SMTMD); and, authorize the City Manager to
negotiate and execute Amended and Restated Services Agreement 9240
(CCS) for a term of five years between the City and the Santa Monica
Convention and Visitors Bureau (CVB) to include CVB’s management of
the SMTMD, was presented.
Members of the public Denise Barton and Christel Andersen spoke in
opposition to the recommendation.
Motion by Councilmember Davis, seconded by Mayor Pro Tem O’Day, to
approve recommendation. The motion was approved by the following
vote:
AYES:
NOES:
ABSENT:
Councilmembers Vazquez, Davis, Holbrook, Winterer,
McKeown, Mayor Pro Tem O’Day, Mayor O’Connor
None
None
COUNCIL ITEMS:
SENIOR COMMUNITY
13-A: Appointment to one unscheduled vacancy on the Commission
for the Senior Community for a term ending on June 30, 2014.
On order of the Mayor, the floor was opened for nominations for one
unscheduled vacancy on the Commission for the Senior Community.
Councilmember McKeown nominated Simone Bess Robbins Gordon.
There being no other nominations, Ms. Gordon was appointed by
acclamation, with all members present.
DISABILITIES
COMMISSION
13-B: Appointment to one unscheduled vacancy on the Disabilities
Commission for a term ending on June 30, 2015.
On order of the Mayor, the floor was opened for nominations for one
unscheduled vacancy on the Disabilities Commission.
Councilmember Winterer nominated Denise Cecilia Neal.
Councilmember Davis nominated Joseph Carr O’Connor. Councilmember
11 December 11, 2012

McKeown stated that Mr. O’Connor may not meet the qualifications for
this particular seat, and Councilmember Davis withdrew the nomination.
Ms. Neal was appointed by acclamation, with all members present.
MEASURE V
COMMITTEE
13-C: Appointment to three vacancies on the Measure V Citizens
Oversight Committee for terms ending on December 31, 2014.
On order of the Mayor, the floor was opened for nominations for three
unscheduled vacancies on Measure V Oversight Committee.
Councilmember McKeown nominated Grace Phillips for reappointment to
the Committee. There being no other nominations, Ms. Phillips was
appointed by acclamation, with all members present.
Councilmember McKeown nominated Kirsten James for an open seat on
the Committee. There being no other nominations, Ms. James was
appointed by acclamation, with all members present.
Councilmember McKeown nominated Steve Duron for an open seat on the
Committee. There being no other nominations, Mr. Duron was appointed
by acclamation, with all members present.
On order of the Mayor, and with acclamation from the Council, items 13-E
and 13-F were heard together.
2930 COLORADO
AVENUE
2930 COLORADO
AVENUE
13-E: Request of Councilmember McKeown that the Council discuss
and vote whether to reconsider the November 27th adoption on second
reading of an ordinance enabling Development Agreement 07-005 and
Tentative Tract Map 12-001 to Allow a Mixed-use Project Consisting
of 377 Residential Units (161 Apartments and 216 Condominiums) and
up to 24,940 Square Feet of Ground Floor Neighborhood-serving
Retail of which up to 4,250 Square Feet Could Be Converted to
Production Space at 2930 Colorado Avenue.
13-F: Request of Councilmember McKeown that the Council
reconsider the November 27th adoption on second reading of an
ordinance enabling Development Agreement 07-005 and Tentative
Tract Map 12-001 to Allow a Mixed-use Project Consisting of 377
Residential Units (161 Apartments and 216 Condominiums) and up to
24,940 Square Feet of Ground Floor Neighborhood-serving Retail of
which up to 4,250 Square Feet Could Be Converted to Production
Space at 2930 Colorado Avenue; and direct staff to continue
negotiations with the developer on issues including alternate
configurations, relocation benefits, and affordable housing
replacement production, and return to the Council at a future date.
12 December 11, 2012

Members of the public Sue Himmelrich, Andrew Hoyer, Patricia Hoffman,
Catherine Eldridge, Ellen Hannan, Christel Andersen, Nancy Morse, Ron
Goldman, Lorrain Sanchez, Zina Josephs, David Engelberg, Ellen Brennan,
Brenda Barnes, Michael Tarbet and John Smith spoke in favor of the
recommendation in item 13-F.
Applicant Marc Luzzatto spoke in opposition to the recommendation in
item 13-F.
Considerable discussion ensued regarding affordable housing.
Motion by Councilmember McKeown, seconded by Councilmember
Winterer to reconsider the matter. The motion was approved by the
following vote:
AYES:
NOES:
ABSENT:
Councilmembers Vazquez, Davis, Winterer, McKeown
Councilmember Holbrook, Mayor Pro Tem O’Day,
Mayor O’Connor
None
Motion by Councilmember McKeown, that on reconsideration, Council not
adopt on second reading the ordinance that would enable the Development
Agreement with Village Trailer Park as particularly specified the way the
item is identified in the agenda.
Motion to amend by Councilmember McKeown, seconded by
Councilmember Vazquez, to state that on reconsideration, Council not
adopt on second reading the ordinance that would enable the Development
Agreement as identified in the agenda and that Council rescind and deny
the adoption on November 27 the second reading of the ordinance that
approve the Development Agreement.
Motion to amend by Councilmember McKeown to additionally direct staff
to continue to work with the developer on issues including alternate
configurations, relocation benefits, and affordable housing replacement
production, and return to the Council as appropriate at some future date.
The motion was accepted as friendly by the seconder.
Motion to amend by Councilmember McKeown to state that on
reconsideration, Council not adopt on second reading the ordinance that
would enable the Development Agreement as identified in the agenda, that
Council rescind and deny the adoption on November 27 the second reading
of the ordinance that approve the Development Agreement and to direct
staff to negotiate with the developer on issues including affordable housing
replacement production. The motion was amended as friendly to the
seconder.
13 December 11, 2012

AYES:
NOES:
ABSENT:
Councilmembers McKeown, Winterer, Davis, Vazquez
Councilmembers Holbrook, Mayor Pro Tem O’Day,
Mayor O’Connor
None
ADJOURNMENT On order of the Mayor, the City Council meeting was adjourned at 12:44
p.m. in memory of Gary Squier.
ATTEST:
APPROVED:
Sarah P. Gorman
City Clerk
Pam O’Connor
Mayor
14 December 11, 2012

City Council Report
To:
Mayor and City Council
City Council Meeting: April 23, 2013
Agenda Item: 3-B
From:
Karen Ginsberg, Community and Cultural Services Director
Subject: License Agreement with Cirque du Soleil for Use of a Portion of the 1550
PCH Parking Lot
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a proposed License Agreement with Cirque du Soleil, a Delaware based
company, for use of a portion of the 1550 PCH parking lot for theatrical performances
from January 2 through March 29, 2014.
Executive Summary
In accordance with the 1550 PCH Parking Lot Cultural/Entertainment Event Policy,
following a competitive process, staff recommends Cirque du Soleil (CDS) for the 2013-
2014 Event Season. CDS would present “Totem” beginning January 2014. The total
occupation period, including move in and tear down, would be from January 2 through
March 29, 2014. The proposed rental fee to the Beach Fund for the portion of the 1550
lot for this period is $1,088,808. Additional anticipated economic benefits to the City
include patron parking revenues at the Civic Center parking structure, purchase of local
supplies and services by CDS for its operation, and collateral spending by CDS visitors
in local restaurants and businesses. This third return of CDS would incorporate
mitigations, proven practices, and lessons learned from previous performances to
reduce impacts on Pier businesses and nearby residents.
Background
Council first approved a policy to allow commercial events in the 1550 PCH parking lot
(1550 lot) on September 14, 2004. The purpose of allowing commercial events is
threefold: (1) to provide much needed revenue to the Beach Fund to support ongoing
operations and capital improvements, (2) to meet the community’s demand for
increased cultural offerings, and (3) to provide economic benefits to the cultural tourism
sectors of the community. The policy has been modified over time to provide greater

flexibility in the review process and evaluation criteria, and to incorporate concerns of
the Santa Monica Pier Corporation (SMPC), formerly the Pier Restoration Corporation.
CDS returned to the 1550 lot in 2009 and again in 2012. Prior to each visit, efforts were
made to identify and address concerns of the SMPC and Pier lessees about reduced
parking availability in the 1550 lot for Pier visitors and the potential negative impacts on
Pier businesses. The license agreement for each of the prior visits included a full range
of conditions and mitigations to address these concerns. These mitigations included
incorporating prepaid discounted parking for CDS patrons with their online ticket
purchase at offsite parking lots, providing a free shuttle service to and from the offsite
parking as well as a weekend shuttle for Pier visitors from the 2030 Beach lot, offering
cross promotion opportunities to Pier merchants, and providing direct financial and inkind
partnership support to the SMPC and the Santa Monica Pier Lessees Association
(SMPLA).
Council directed staff to prepare an economic impact analysis during the 2009 visit to
examine the impacts and benefits of CDS. Staff reported on October 26, 2010 clear
economic gains to the City as a whole from commercial events through spending by
visitors in restaurants, hotels, shopping, parking and transportation, as well creating
additional employment opportunities during the period of the event. The impacts to Pier
businesses are more mixed and differ depending on the specific types of business, with
restaurants generally benefitting more than entertainment businesses. The timing
change in 2012 from a Fall run to the January to March window is viewed by the Pier
lessees as a positive move and there is general agreement that the 2012 visit was more
favorably received by the Pier businesses.
Discussion
Vendor Selection
In September 2012, staff issued a Request for Event Proposals (RFP) for the 2013-
2014 Event Season. The RFP was posted on the City’s online bidding website and was
sent to the list of event producers who had expressed an interest in staging an event in
2

the 1550 lot over the past several years. Staff received proposals from CDS and
Cavalia in response to the RFP.
The Extended Events Review Committee, which includes representatives from the
Santa Monica Pier Corporation, Convention and Visitors Bureau, and City staff,
reviewed both proposals. Each was evaluated based upon criteria established in the
1550 PCH Parking Lot Cultural/Entertainment Event Policy, including the degree to
which the event offers a unique cultural or entertainment experience, demonstrates
clear measurable economic benefit to the City and local businesses, including Pier
lessees, contributes to the Beach Fund, addresses traffic and parking impacts, and
minimizes environmental impacts. Based upon these criteria and the demonstrated
commitment of CDS to satisfy all City requirements, the committee recommends
selection of CDS as the best bidder to provide theatrical performances for the 2013-14
event season. The Cavalia proposal included a larger footprint than CDS, required a
longer set up and tear down period, and provided a much lower financial offer.
Cirque du Soleil Proposal
The CDS proposal builds on the successful performance plan of their prior two visits.
Highlights of CDS’ proposal are as follows:
• CDS would present “Totem”, a visual and acrobatic exploration of the
evolutionary progress of the human species.
• The Occupation Period would run from January 2 to March 29, 2014.
• The Performance Period would be from January 17 to March 16, 2014, with one
show per day on Tuesdays through Fridays, two shows on Saturdays, and
Sundays, with an option to add six additional Thursday or Friday shows at the
discretion of the Cirque. This represents a one week reduction in the
performance period and a reduction in the number of shows on Fridays from the
2012 visit.
• CDS would occupy the same footprint as in 2012, using 719 of the 1,173 spaces
in the 1550 lot, as shown in Attachment A. The base rental for the site is
3

$1,088,808 for the 2.9 month period. This reflects a CPI increase in the $1.28 per
square foot rate from 2012.
• CDS would follow the Parking and Traffic Management Plan, first prepared in
2009 and updated in 2012 to reflect the removal of the temporary parking lot that
had been installed by CDS in 2009 in the location now known as Tongva Park.
Efforts to better manage the overall supply of spaces in the beach lots to the
north and south of the Pier and in the Civic Center, and nearby private lots in
2012 helped to minimize parking and traffic impacts would be implemented.
• CDS would provide a free Pier shuttle on Friday, Saturday, and Sunday from the
2030 Beach lot for visitors to the Pier and the beach.
• CDS proposes to build on and strengthen prior cross promotions with the SMPC,
Pier tenants, and Convention and Visitors Bureau (CVB) and integrate special
Pier/local partner offers onto the CDS website. CDS is also committed to joint
packaging and initiatives with the Santa Monica Pier Lessees’ Association
(SMPLA) to direct CDS patrons to the Pier before and after the performances.
• CDS would continue to provide financial and in-kind sponsorship to the SMPC for
the Twilight Concert Series as well as support to the SMPLA, CVB, and other
business groups.
• CDS would continue its educational outreach to the Police Athletic League (PAL)
with the Cirque du Monde program and to the Santa Monica Malibu Unified
School District.
• CDS proposes to work with the SMPC and SMPLA to relocate Pier employees to
adjacent beach lots and/or explore arrangements at nearby private lots.
• Sustainability practices would include a recycling program in public areas and
employee work space, composting of food residue in the employee cafeteria,
replacement of plastic souvenir gift bags with oxi-biodegradable bags, products
made with organic cotton and bamboo, booklets printed on 100% recycled paper
and CD releases made with compostable product.
• CDS proposes to pay all City costs and services associated with the event
including but not limited to police services for crowd/traffic control, fire safety
4

officers, event licensing/liaison and location supervision, parking staff, utility
charges, sanitation services, and custodial/maintenance services.
Public Outreach
Following the 2012 visit, staff held a Community Meeting on March 14, 2012 to gain
feedback about the CDS visit and events, in general. Although postcards were mailed to
over 150 residents and businesses in the area, only five people attended the meeting.
The discussion focused on traffic and parking impacts on residents, who rely on parking
in the Appian Way lots. One of the suggested improvements was for the installation of
electric gates to control access to these lots for residents with overnight permits. This
improvement is scheduled for completion this spring.
Staff attended the SMPLA meeting on April 3, 2013 to review the CDS proposal. There
is general agreement among the Pier lessees that the January to March time frame is
better for Pier businesses and the group acknowledged the commitments CDS has
shown in the past. The main concerns relate to parking and the impacts of Pier
construction. The lessees asked if the weekend shuttle hours might be extended and
expressed interest in working with CDS on promotion partnerships.
The SMPC discussed the CDS proposal at the April 3 Board meeting and heard from
Pier lessees in attendance. Hearing no objections, the SMPC voted unanimously and
enthusiastically to welcome back CDS and encourage staff and the SMPLA to work
together to make the CDS visit successful for all visitors to the Pier.
If the license agreement is approved by Council, CDS will seek approval from the
California Coastal Commission for the event.
Environmental Analysis
The License Agreement with CDS for use of a portion of the 1550 Lot is categorically
exempt from environmental review pursuant to the California Environmental Quality Act
(CEQA) Guidelines, Section 15304(e), as these actions constitute minor temporary use
5

of land having negligible effects on the environment. CEQA Guidelines specifically
include uses such as carnivals and circuses.
Financial Impacts & Budget Actions
Approval of CDS’s proposal will generate $1,088,808 in Special Event revenue to the
Beach Fund. A portion of this revenue will offset the estimated loss in parking revenue
due to spaces occupied by the CDS in the 1550 Lot. Based on a three–year review of
the parking revenues in the 1550 Lot, the average revenue per space per month has
been calculated at $193.78 for the 2.9 month long occupation period. The estimated
total parking revenue loss is $444,807. Reduction in other revenues related to the 1550
Lot, such as staging for filming on the Pier or the beach, is expected to be minimal since
alternative staging locations may be provided at the 1640 Appian Way or the 1150 PCH
lots.
Parking revenues to the General Fund for the Civic Center Parking Structure are
expected to increase by $60,000, which is the additional amount generated in 2012. If
the license agreement is approved by the City Council, the revised revenue projections
for the Beach and General Fund will be included in the City’s FY 2013-15 proposed
Budget.
The 2009 economic impact study reported $200,000 in sales and transient tax
increases to the General Fund, which is anticipated again in 2014. All direct City staff
time and expenses will be reimbursed by CDS to achieve full cost recovery by the City.
Prepared by: Judith Meister, Beach Administrator
Approved:
Forwarded to Council:
Karen Ginsberg
Director, Department
Rod Gould
City Manager
Attachment A: Proposed Cirque du Soleil Site Plan
6

City Council Report
To:
From:
Subject:
Mayor and City Council
City Council Meeting: April 23, 2013
Andy Agle, Director of Housing and Economic Development
Kathryn Vernez, Deputy City Manager
Agenda Item: 3-C
Sale of a portion of City-owned property at 2525 Michigan Avenue
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a purchase and sale agreement with the Exposition Construction Authority to
sell a 19,389-square foot portion of City-owned property at 2525 Michigan Avenue for
the construction and operation of the Exposition Light Rail Transit (EXPO LRT) station.
Executive Summary
To accommodate the EXPO LRT station at 26 th Street and Olympic Boulevard, Expo
must acquire a 19,389-square foot portion of City-owned property located at
2525 Michigan Avenue. City staff and Expo staff have agreed to recommend a sale
price of $4,076,835, based on the property’s appraised fair market value.
Background
Phase 2 of the EXPO LRT line will connect Downtown Los Angeles to
Downtown Santa Monica with three stations in Santa Monica: Olympic Boulevard/26 th
Street Station (at Bergamot Arts Center); Colorado Avenue/17 th Street Station (at
Memorial Park), and; the Downtown Terminus Station (at Colorado Avenue/4 th Street).
Phase 1 of the EXPO LRT line connecting Downtown Los Angeles and Culver City
opened in April 2012. Phase 2, extending from Culver City to Santa Monica, is
scheduled to open in 2016.
The City acquired the nine-acre parcel located at 2525 Michigan/2715 Exposition
Boulevard/1800 Stewart Street (Attachment A, Map) from Southern Pacific
Transportation Company in 1989. The eastern portion of the City-owned property
1

covering 1800 Stewart Street is approximately four acres and is leased to Agensys, Inc.
under a long-term ground lease. The western portion of the site is approximately
5.4 acres and is leased to Bergamot Station, Ltd. This entity manages the Bergamot
Station Arts Center, a complex comprised of over 30 art galleries, creative businesses,
and a non-profit theater company.
Discussion
To accommodate the proposed EXPO LRT improvements at the Olympic
Boulevard/26 th Street station, the Exposition Light Rail Construction Authority (Expo)
and its design-builder, Skanska-Rados, have determined that 19,389 square feet of land
is needed from City-owned site at 2525 Michigan Avenue. This portion is located along
the northern portion of the City-owned site, adjacent to the light rail line. It is
semi-rectangular in shape (Attachment B, Property Impact Statement). Due to the
EXPO LRT schedule, Expo filed a condemnation to acquire the property quickly, and
took possession on December 6, 2012.
The light rail station construction required the demolition of two existing structures on
the site. Demolition of the buildings occurred on January 28, 2013. Another
12,821 square feet of land on the site will be used as a temporary construction
easement (TCE) for 24 months. An additional 7,818 square feet of City-property was
also required as a demolition access easement for one month, and was returned to the
City after demolition occurred.
The City and Expo each hired independent appraisers to determine the property’s fair
market value. The City’s appraiser determined the value to be approximately
$4,435,000, including temporary construction easements. Expo’s appraisal determined
the value to be approximately $3,718,000. City, Metro, and Expo staff have exchanged
appraisals and reviewed the underlying assumptions of the appraisals. Based on
review of both appraisals, City, Expo and Metro staff recommend a settlement of
$4,076,835 as fair compensation for the acquisition.
2

Financial Impacts & Budget Actions
Proceeds in the amount of $4,076,835 will be deposited into account 41642.401801.
Metro will be responsible for ongoing maintenance of the station itself.
Prepared by: Erika Cavicante, Senior Development Analyst
Approved:
Forwarded to Council:
Andy Agle, Director
Housing and Economic Development
Rod Gould
City Manager
Approved:
Kathryn Vernez
Deputy City Manager
Attachments:
A. Map
B. METRO Property Impact Statement for 2525 Michigan Avenue, E2-1001
3

Skanska-Rados Expo 2 Joint Venture
Exposition Light Rail Transit Phase 2
444 South Flower Street, Suite 2200
Los Angeles, CA 90071
Phone: 213-785-0112 Fax: 213-785-0113
CONTRACT NO.: XP8902-002
PROJECT: Expo LRT Phase 2
JOB NO. 098004
TO:
ATTN:
Exposition Construction Authority
707 Wilshire Blvd.
34th Floor
Los Angeles, CA 90017
Richard D Thorpe
DATE: 3/29/2012
REF:
TRANSMITTAL
No. 01064
Submittal No. 6.3.l.H.002.00
Property Impact Statement
E2-1001
WE ARE SENDING:
D Shop Drawings
D Letter
D Prints
D Change Order
D Plans
D Samples
D Specifications
@Other: Pro_perty Impact Statement E2-l 00 I
SUBMITTED FOR:
0 Approval
0 For Information I Record
D As Requested
D Review and Comment
SENT VIA:
0 Attached
0 Separate Cover Via:
ACTION TAKEN:
D Approved as Submitted
D Approved as Noted
D Returned After Loan
D Resubmit
D Submit
D Returned
D Returned for Corrections
D Due Date:
ITEM NO. DATE COPIES DESCIUPTION
01 03/29/2012 Submittal No. 6.3. 1.H.002.00.Property Impact Statement E2-J 00 I
Remarl

Skanska-Rados Expo 2 Joint Venture
Exposition Light Rail Transit Phase 2
444 South Flower Street, Suite 2200
Los Angeles, CA 90071
Phone: 213-785-0112 Fax: 213-785-011 3
SUBMITTAL
CONTRACT NO: XP8902-002 PACKAGE NO: PS-CH.06
PROJECT:
JOB NO:
Expo LRT Phase 2
098004
SUBMITTAL NO:
SRJVTRK NO:
RESP. DUE BY:
PS-CH.06- 6.3.1.H.002
00396
04/21/2012
TITLE:
Property Impact Statement E2-1001
TO:
Richard D Thorpe
Exposition Construction Authority
707 Wilshire Blvd.
34th Floor
Los Angeles, CA 90017
213-243-5500
SRJV/SUBCONTRACTOR/SUPPLIER:
Skanska-Rados Expo 2 Joint Venture
Michael Armienti
444 S. Flower Street, Ste. 2200
Los Angeles, CA 90071
213-785-0150
REV
NO.
DESCRIPTION
RECEIVED
SENT
RETURNED
STATUS
00
Property Impact Statement E2-1001
3/29/2012
3/29/2012
NEW
1 Richard D Thorpe (EXP02)
3/29/2012
NEW
REMARKS:
APPROVED BY:
DATE:
f_sb_sucs

~~w.\ t llft&~
--$ ~
~m ~~ @
SKANSKARADOS
Exposition Light Rail Transit Phase 2
SUBMITTAL REVIEW
Input Submittal No. Based on CDRL
Document Control
Item No.: PS-06-8 !Section No.: 6.3.1.H Sub No.: 6.3.1.H.002-
0General Requirements 0 Contract ® Performance Specifications Rev No.: 00
Dwg. Reference(s): A-S5-1 01 Progress Print 2/21/2012 !spec. Section(s):
Submittal Description: Property Impact Statement Certification - E2-1 001 (26th Street Station Partial Acquisition Parcel)
Submittal Prepared By: Michael Armienti !Date Submitted: 03/29/12 Requested Response Date: 04/29/12
If Applicable: !subcontractor/Supplier Name:
Reference No.:
Deviation: No((!)) Yes(Q See Notes I Substitution: No({!) YesQSee Attached Information
Deviation/Substitution Notes (attach additional pages if necessary):
Submittal Reviewer's Checklist YES NO N/A
1. Are specification and contract drawing references correct? (If not change them) El 0 0
2. Are the submittal date & requested return date included? (ASAP is not acceptable) ID 0 0
3. Have you reviewed the specification section which requires this submittal? (!) 0 0
4. Do all materials submitted meet the applicable specification(s)? ® 0 0
5. Are any deviations or substitutions clearly defined in the submittal notes above? 0 0 ®
6. Have all resubmittal comments been addressed? 0 0 ®
7. If required, does the submittal have a PE stamp from a Professional Engineer? 0 0 (!)
8. Has the subcontractor/supplier signed and dated the submittal? (!) 0 0
9. Have you spot checked dimensions, unit weights, quantities, size, etc .. . with Plans? (!) 0 0
10. If required, are samples the correct quantity, size, type, and are labeled correctly? 0 0 (!)
11. Is the presentation satisfactory (pages numbered, bound, tabs, spelling/grammar, etc.)? (!) 0 0
12. Is the correct number of legible copies being submitted? (!) 0 0
All of the materials included in this submittal have been reviewed and are in conformance to the contract documents except as
noted:
Reviewed By Michael Armienti
Firm: SRJV
(P_RINTNAME}~ ~~
. Signature: ~ Date: 03/29/12
Submittal Review's Notes/Remarks:

Routing Sheet
Expo Phase 2 Design-Build Project
Exposition LRT Phase 2 Contract No. XP8902-002
444 South Flower Street, Suite 2200
Los Angeles, CA 90071
Phone: 213.785.0112 Fax: 213.785.0113
ORIGINATOR:
SUBMITIAL NUMBER:
SUB RESPONSE DISTRIBUTION:
DELIVER SUBMITIAL TO:
1 AGENCY:
CONTACT NAME:
HARD COPIES:
SUBMITIED FOR:
DATE RESPONSE DUE:
Michael Armienti
6.3.1 .H.002.00
-----------------------------------------------------
Exposition Metro Line Construction Authority
Nell Mardirosian
COs: QTY FUll SIZE: QTY HALF SIZE: REPORTS: 1
4/29/12
APROVAL(!)
FOR RECORD ONLYO
2 AGENCY:
CONTACT NAME:
HARD COPIES:
SUBMITIED FOR:
DATE RESPONSE DUE:
COs: QTY FUll SIZE: QTY HALF SIZE: REPORTS:
APROVAL (!)
FOR RECORD ONLYO
3 AGENCY:
CONTACT NAME:
HARD COPIES:
SUBMITIED FOR:
DATE RESPONSE DUE:
COs: QTY FUll SIZE: QTY HALF SIZE: REPORTS:
APROVALO
FOR RECORD ONLYO
4 AGENCY:
CONTACT NAME:
HARD COPIES:
SUBMITIED FOR:
DATE RESPONSE DUE :
COs: QTY FULL SIZE: QTY HALF SIZE: REPORTS:
APROVALO
FOR RECORD ONLY0
Response Distribution:
INSTRUCTIONS TO AGENCY REVIEWERS
1 Review attached submittal and compile comments from your agency.
2 Return compiled comments electronically to expo2doccontrol@skanska.com by t he due date
3 Comments or drawing markups that cannot be returned electronically must be returned to
Doc Control in the LA office.
1 of 2

CERTIFICATION MEMORANDUM
EXPOSITION LRT PROJECT PHASE 2
Friday, March 23, 2012
Parcel Number: E2-1001
Attachments:
PROPERTY IMPACT STATEMENT
EXHIBIT "A"- Legal Description for Fee Purposes
EXHIBIT "B" - Plat
EXHIBIT "C"- Plan Set Drawing
EXHIBIT "D"- Right-of-Entry Exhibit
A permanent fee take of E2-1001 is in order based on the current Skanska-Rados
Expo 2 Joint Venture design progress print dated 2/21/2012, I certify that the
permanent partial acquisition of Parcel Number E2-1001 containing 19,389
square feet of property is required for the construction and operation of Metro's
EXPOSITION LRT PROJECT PHASE 2.
x ____________________________ _
Samantha Bricker
Chief Operations Officer
Exposition Construction Authority

Property Impact Statement
Prepared: Friday, March 23, 2012
Reference Drawings: A-S5-101
Reference Plat: E2-1001
Parcel Address: 2525 Michigan Ave, Bldg C-1 Santa Monica, CA 90404
Affected APN: 4268-013-902
Owner:
City of Santa Monica
1. LOCATION AND DESCRIPTION
Parcel Plat E2-1001, containing 19,389 sq. ft. is a semi-rectangular shaped parcel that is
east of 26th Street and south of Olympic Blvd., in the City of Santa Monica {see Exhibit
C). The site appears to be developed with an existing industrial building that faces south
into the Bergamot Station Art Gallery. The City of Santa Monica is currently leasing this
building to Bergamot Station, LTD and the building is currently occupied by two {2)
separate art galleries and related businesses.
2. NEED FOR THE PROPERTY
The existing Metro right-of-way is located north of the Bergamot Station Art Gallery and
Olympic Blvd. The proposed right-of-way take is located within Parcel4268-013-902 and
outlines the proposed 26th Street Station for the Expo Phase 2 Project. Please see Exhibit
"B" for the locations of the proposed right-of-way acquisition. Metro's existing ROW is
not wide enough to accommodate the dual station platform in this area, thus requiring
a partial take. Exhibit A, Legal Description, Exhibit B, Plat, and Exhibit C, Plan Set
Drawings, are attached.
A Right-of-Entry ("ROE") Permit will be required to complete the demolition of the
existing buildings and construct the 26th Street Station. Exhibit D, Right of Entry Exhibit,
is attached.
3. DESIGN REQUIREMENTS
The EXPOSITION METRO LINE CONSTRUCTION AUTHORITY selected the EXPOSITION LRT
PROJECT PHASE 2 and the location ofthe 26th Street Station within the City of Santa
Monica.
APN# Project Use Sq. Ft. Req. ROW Take {Full or Partial)
4268-013-902 At Grade ,Dual Platform 19,389 Partial
Station
4. CONSTRUCTION REQUIREMENTS AND TECHNIQUES

The subject property has two buildings within the proposed station footprint that will
require demolition. The first building is used as a maintenance storage closet and the
second building is occupied by two art galleries. The larger art gallery called "Track 16"
includes an art gallery, a theatre, a book store and a mail order internet business. The
second business is a smaller art gallery. The duration of construction is anticipated to be
intermittent for approximately 36 months.
5. CONSTRUCTION IMPACTS
a. DURING CONSTRUCTION
i. Construction activities will include periods where property is used as a
lay-down area for equipment, materials and other contractor
requirements related to the construction of the 26'h Street Station.
ii. Buildings, hardscape, and related improvements within the parcel take
will be removed during construction. There are currently two (2)
buildings located within parcel E2-1001 that will need to be demolished.
iii. Construction activities will disrupt normal vehicular parking and
pedestrian traffic within the parcel take area and temporary construction
area. Approximately sixty (60) parking spaces will be impacted during the
building and hardscape demolition and station construction. (See "AFTER
CONSTRUCTION" item ii. for permanent impacts to parking.)
iv. Construction activities will be in accordance with City of Santa Monica
standards for traffic management.
v. Noise, dust, and visual impacts common to construction projects will
exist for the duration of construction. Measures will be used to minimize
these disruptions.
vi. Trucks making deliveries and hauling excavated material may cause
traffic congestion in the general area of the site.
vii. Construction activity may require access to surrounding areas of the
property in order to protect adjacent structures.
viii. Temporary utility disconnections may be necessary as they will need to
be reconfigured when the Track 16 building is demolished.
b. AFTER CONSTRUCTION
i. A Metro Dual Platform at Grade Station will be located in the area
acquired under parcel E2-1001. The remaining portion of the parcel will
be owned and maintained by the City of Santa Monica.

ii. The footprint of the existing building to be demolished exceeds the
square footage needs of the permanent acquisition area. Approximately
8,100 square feet will be restored to the remaining property after
construction is completed.
iii. When construction is complete, approximately forty-nine (49} parking
spaces will be permanently removed from the area. Additional parking
spaces may be added to the 8,100 square feet mentioned in item (ii)
above.
6. TYPE OF RIGHT OF WAY
Acquisition of fee estate (E2-1001} will be required to accommodate the proposed 26th
Street Station.
Acquisition of a Right-of-Entry Permit ("ROE"} containing approximately 7,818 square
feet will be required for building demolition. Use of the ROE shall cover a one {1) month
time period.
Acquisition of a Right-of-Entry Permit ("ROE") containing approximately 12,821 square
feet will be required for the 26th Street station construction. Use of the TCE shall cover
a twenty-four (24} month time period.
7. RECOMMENDED ACQUISITION
Acquisition of fee estate (E2-1001} per the attached Exhibit A, Legal Description, and
Exhibit B, Plat, is recommended.
Acquisition of a ROE Permit per the attached Exhibit D, Right-of-Entry Exhibit, is
recommended to construct the 26th Street Station and complete the demolition of the
existing two {2) buildings.

PSOMAS
EXHIBIT 'A'
2
LEGAL DESCRIPTION
3
4 E2-1001
5
6 In the City of Santa Monica, County of Los Angeles, State of California, being that
7 pmiion of the land described in the Grant Deed recorded October !3, 1989 as Instrument
8 No. 89-1657788, of Official Records of said County, lying northerly and northwesterly of
9 the following described line:
10
II
Beginning at the northwesterly corner of said land, said corner being a point on the
12 southeasterly line of26 111 Street, 74.00 feet wide, as described in said Grant Deed; thence
13 southwesterly along said southeasterly line South 16°10'03" West 42.15 feet to the Tt·ue
14 Point of Beginning; thence North 68°10'02" East 10.51 feet;
15 thence North 88°59'56" East 3.79 feet to the begirming of a curve concave nmiherly
16 having a radius of 10.00 feet; thence easterly along said curve 3.01 feet through a central
17 angle of 17°13'54"; thence southeasterly along the prolongation of the radial line
18 South 18°13'58" East 2.30 feet; thence North 68°10'02" East 69.50 feet;
19 thence South 21 °49'58" East 1.79 feet; thence Nmih 68°10'02" East 1.79 feet;
20 thence South 21 °49'58" East 10.77 feet; thence Nmih 68°10'02" East 121.53 feet;
21 thence South 21 °49'58" East 3.00 feet; thence Notih 68°10'02" East 143.92 feet;
22 thence North 21 °49'58" West 3.00 feet; thence Nmth 68°10'02" East 67.29 feet;
23 thence Nmth 21 °49'58" West 7.21 feet; thence Nmih 68°10'02" East 50.68 feet;
24 thence South 21 °49'58" East 44.20 feet; thence North 68°10'02" East 18.51 feet;
25 thence North 21 °49'58" West 62.76 feet; thence Nmth 68°!0'02" East 66.53 feet to that
26 course in the northerly line of said Grant Deed having a bearing and distance of
27 "South 70°55'34" West 471.68 feet" (South 71°23' I 8" West for purposes of this
28 description).
29
30 Containing 19,389 square feet.
31
M:\2SKAO I 0 I OOISURVEYILEGALS\X-LG-E21 00 I. do ex
8/2/2011
Page I of2

PSOMAS
2 All as shown on Exhibit "B" attached hereto and made a part thereof.
3
4 Distances as described above and as shown on said Exhibit "B" are grid distances.
5 Ground distances may be obtained by dividing grid distances by the mean combination
6 factor of the courses being described. The mean combination factor for this conversion is
7 0.99999943.
8
9 This legal description is not intended to be used in the conveyance of land in violation of
10 the Subdivision Map Act of the State of California.
II
12 This legal description was prepared by me or under my direction.
13
14
15
16
Date
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
M:\2SKAO I 01 OO\SURVEY\LEGALSIX-LG-E2 1 OO I.docx
8/2/2011
Page 2 or2

GRAN TOR : CITY OF SANTA MONICA
The dolo shown on plot ore bosed on o field survey prepared by
1------------------------ ---tPsomos doted April2009 - Au9ust 2009. Bearings and distances
DESCRIPTION :PORTION OF hAND DESCRIBED IN THE GRANT DEED RECORDED OCT. 13, 1989 AS ~b~o~~~e1r~~ cg~i~~~~o c~op_t~.te System 83 Zone 5 coordinates
INST. N0.89-1657788, O.R., CITY OF SANTA MONICA, COUNTY OF hOS ANGELES,
STATE OF CAhiFORNIA.
TITLE REPORT : STEWART liTLE ORDER NUMBER 424682 DATED 1117/2011
ASSESSORS REF: 4268-013-902 ROW REF : RWX -010
0
0 25' 50' 100'
SCALE 1" • 50'
~ /
~I /
EXHIBIT "B"
- -- -- -- ---- ;-- - ---- -- -- -
~~ /
~ '
~~/ / p
I
I
I
I
1
L()
L()
0 2-17-2012 ORIGINA~ SUBMITT Ah
NO. OATE REVISION DESCRIPTION
OLYMPIC BLVD.
- - --- -
- ---- - SPTC R/W
I
I
SEE DETAIL "A"
,.,.,
u...
0
N
DETAIL "A"
--- - - -
N68° 10'02"E
143.92'-
PREPARED BY:
' \ ~ -*~ ! ·"'-
SUBMITTED BY: PROJECT MANAGER OA E EXPO PROJECT IJANAGER
DATE
SHEET 1 OF 3
l!lY. OlTE

GRANTOR : CITY OF SANTA MONICA
The dolo shown on plot ore bosed on o lieiiurvey prepared by
1--------------------------~Psomos doted April2009 - Au9ust 2009. Be gs oild distances
OESCRPTION :PORTION OF ~AND DESCRIBED IN THE GRANT DEED RECORDED OCT. 13, 1989 AS ::1,~ 0 ~~~"1r~~ c~~i~~~~/~Pt~.te System Zone 5 coordinates
INST. N0.89·1657788, O.R., CITY OF SANTA MONICA, COUNTY OF ~OS ANGELES,
STATE OF C~IFORNIA.
TITLE REPORT : STEWART TITLE ORDER NUMBER 424682 DATED 11/7/2011 0 2-17-2012 ORICINA~ SUBMITTAl.
ASSESSORS REf: 4268·013-902 ROW REF : RWX ·010 NO. OATE REVISION DESCRIPTION
OLYMPIC BL VO.
----------------- - - ----- ----------
SPTC R/W
L5
-
BEARING
L1 S2t• 49'58"E
L2 N21• 49'58"W
L3 N68• 10'02"E
L4 S21• 49'58 "E
L5 N68• 10'02"E
L6 N21• 49'58"W
POH. l Ns·r o NO o
89- l 657788 ~ 0. fL
DISTANCE
3.00'
7.21'
50.68'
44.20
18.51'
62.76'
,.,.,
LL..
0
,.,.,
N76o 24'15"E
----------- - -- 5.33.96' N46oo ,
0
----- -----------~--
SCALE 1" - 50'
100'
_
--- 2;_~~~~[
N76°24'15"E
--- 914.36' ~
6 -- --- - ~
N8Jo 4.6Jt ---- ,..--" ------_:::;.----- ~
39'5Y''[ ./ ./ \\\G.~ ---- - "'
./ ~\~(';\\JS ~
././ _..--- v i\.\\~\~ ././ ~
1-------------~----------~---------~~----~--------~-~r~---------'----~ TOTAL AREA OF PROPERTY E2·1001 ADDRESS: SANTA MONICA, CA ~
~~--------+-------r~-----~--_,----~~~----------;~
~24=0,=65=3=SO=·=FT= . (=LE=SS=A=G=EN=SY=S=L=EAS=E=l====19=,3=89=S=O-=f=T.====2=21=,2=64=S=O=.F=T.=ll=ES=S=A=GE=NS=YS==LE=AS~El====================~~;=======~ ~
LOS ANGELES COUNTY 2SKAOIOIOO ~
.. -. so-l· §
....--
,----t!!i
APPROVED BY:
.... C(:u;CX;.,. EO "'BY------1~
..U/PJF ~
SHEET 2 OF 3
UV.Ol 1£
Rf:V.NO. N
EXPO PROJECT MANAGER DATE 0 ~

GRANTOR CITY OF SANTA
"DNICA The dolo shown on pial ore based on o field survey prepared by
1--- - -' - ----M--------------------1Psomos doled April2009 • Au9ust 2009.Beorings and dislonces
DESCRIPTION : PORTION OF ~AND DESCRIBED IN THE GRANT DEED RECORDED OCT. 13, 1989 AS ~b~a~~~·~,~~ cg~~~~~a C~oP.~~~-Ie System 83 Zone 5 coordinales
INST. N0.89·1657788, O.R., CITY OF SANTA MONICA, COUNTY OF WS ANGELES,
STATE OF CMIFORNIA.
TITLE REPORT : STEWAAT TITLE ORDER NUMBER 424682 DATED 1117/2011 0 2·17·2012 ORIGINA~ SUBMITTM
ASSESSORS REF: 4268-013-902
I ROW REF : RWX -010 NO. DATE REVISION DE SCRIPTION
SPT C R/W
£)

Expo Phase 2 Design-Build Project
EXHIBIT "C"
PLAN SET DRAWING
444 Soutl1 Flower Street, Suite 2200, Los Angeles, CA 90071 o Phone: 213-785-0112 Fax: 213-785-011 3

:rn~~··O~~------~~
-
0
I
<
«>
"' -i-
00
~~
0.
1-:
-
. . . . . . . . . . . . . . - ~ /' ~~. -- 0 ----------~ \ I \ A
> · ·; · ·/;· // f' · -~------------- -- --- ~ -- X~ -------- ~.---""A~-----------~ - - --~ -c=--~~-- ~ - · --:~ ~RT~AcK
· · · · · · · · · · o. .- - - - - - - - - - - ~ -- - - - - -..... - - - - - - - - - - - - - - - - - - - - - - - - - - - - ""- -~- \1'-!LJR~C!$. _ \
· • · · · · · · - C ll~no~v\cvoT .I I "-, / _ I I J _{ ~'
-
~ REMOVE .AND RECONFIGURE
EXISTING STEEL STAIR
0 0
!'lQlE_:
1. PUBLIC ENTRY TO EAST END OF
PLATFORM - PENDING METRO AND
CPUC APPROVAL
SITE PLAN
1"·2o·-o,.
,.._._
20' 10' 0 20' 40'
2. SEE PACKAGE JA SHEET CG-A-JA-301
FOR DRAINAGE.
5: PROGRESS PRINTS - 2/21/201 2 NOT FOR CONSTRUCTION
DEStGNEO BY
CONTRACT NO
J. JACOBSEN
~Expos i tion M etro Line Construction Authority
XP8 902-002
~~~w~:~P~T~~NO~INT~~ED BY f--f-- - t--t- --/---t---\-------\-----------4 °~.A~NH~8A8 1AN
DRAWiNG NO
~ Expo
THE fAJ(ES OF THE CITIZENS OF CHECKED BY
c LOS N«lELES COUNTY M'O OF c. SUERO
~ THE STATE OF' CN..IF'ORiflA. IN CH.ARGE
-~ A 11/11111 601. SUBMITTAL J. TRAUTMANN
!! REV DATE BY N'P REG NO EXPIRES SER. HOlDER OESCRtPTION 11/11/11
"144 South Flower Street PARSONS
,,••"'·""'""••., Sulfo 2200 BRJNCKERHOFF
E f X p '} Q Loa Ano••••. CA •oo11
SKANSKA RADOS :~~ :~: ~: ;::=:::~
EXPOSITION LRT PROJECT- PH ASE 2
OLYMPIC/26TH STREET STATION
SITE PLAN
SCR..E
SHEET NO
A-55-101
1" - 20'-0"
REV

Expo Phase 2 Design-Build Project
EXHIBIT "D"
Right-of-Entry Exhibit
444 South Flower Street, Suite 2200, Los Angeles, CA 90071 e Phone: 213-785-011 2 Fax: 213-785-0113

RIGHT OF ENTRY EXHIBIT
EXPO 2 - 26TH STREET STATION
/ ~- =-To - - - - - ---- ------ ----- ------ ----- - - - ----------
~-/ r• ___ . . OLYM[IC BLVD.
-4"1 I . .··..·.. ··.··.~·:·~~ ·.·..·.. ··..·..·..·..
··..·.. ·..·-~·.~ ·.·..·..·..·..
··..·.. ·._;..·..
··.'.·..·. ~-· .'·, .'·.. ·.. ·.··.. ·..·..·..
-----·---
----- - --
-- ·- --- -·- - -- - · --· -·-
II
a
METRO ROW
--,
+1- 12,821 sf
I
.__
X--x o
SRJV TO MAINTAIN A MINIMUM DISTANCE OF 20'-0"'l
FOR ACCESS DURING BUILDING DEMOLITION
TYPE
D
D
D
D
ROE-LEGEND
DESCRIPTION DURATION PRELIM NEED DATE
26TH STREET PARTIAL ACQUISITION· (19,389 SF) N/A AUGUST 2012
26TH STREET STATION CONSTRUCTION - (12,821 SF) 24 MONTHS AUGUST 2012
BUILDING DEMOLITION- (7,818 SF) 1 MONTH AUGUST 2012
MAINTAIN DRIVEWAY ACCESS 24 MONTHS N/A
DESICNEO BY
1--+--+--+--ll--+- -+- --- -+- -------t DRM. ARMIENTI
CHECI

City Council Report
To:
From:
Subject:
Mayor and City Council
Gigi Decavalles-Hughes, Director of Finance
City Council Meeting: April 23, 2013
Agenda Item: 3-D
Agreement with MuniServices, LLC for Utility Users Tax and Franchise
Fee Audit and Revenue Enhancement Services
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a contract for Utility Users Tax (UUT) and Franchise Fee audit and revenue
enhancement services with MuniServices, LLC, a Virginia-based company. The
contract will include a fixed fee component of $425,000 over a five year term plus a
contingency fee component for certain specific audits requested by the City.
Executive Summary
The City began using MuniServices, LLC (formerly Municipal Resource Consultants
(MRC)) to conduct sales tax audits in 1988. At its July 25, 2000 meeting, Council
approved an amendment to the existing agreement with MBIA MuniServices
Company/MRC to conduct UUT and Franchise Tax audit services on behalf of the City.
The Utility Users Tax Program, of which the City is a member, provides ongoing
legislative monitoring, technology updates, ordinance updates, tax geo-coding
information, and statewide tax application compliance and business detection.
1) The fee for the overall Utility Users Tax/Franchise Fee audit and revenue
enhancement services is a not-to-exceed amount of $425,000 over five years.
2) The fee for specific audits of the Utility Users Tax and Franchise Tax payments
would be negotiated when the audit is requested for a fee not-to-exceed 25% of
the audit findings.
Discussion
The City levies local taxes on the use of electricity, natural gas, telephone, cable, and
water/wastewater services (Utility Users Tax), and on the use of City rights-of-way by
certain utility companies (Franchise Tax).
The City may not receive all the tax revenue that it is legally entitled to due to
administrative errors or omissions by either the taxpayer or the utility service providers
1

esponsible for collecting and distributing taxes. This may be due to human error, the
complex nature of the business, or fraud. Audits are conducted to ensure proper
payment of the taxes.
Consultant Selection
A Request for Proposals (RFP) for Utility Users Tax (UUT) and Franchise Fee audit and
revenue enhancement services was posted on the City’s online bidding website in
February 2013. Two firms submitted proposals.
A panel composed of City Treasury and Business and Revenue Operations Division
staff evaluated the proposals. Proposals were evaluated based on the criteria in SMMC
2.24.072, including the firm’s understanding of the project and the tasks to be
performed, recent experience of the firm in the areas necessary to complete the
required tasks, and the fees proposed. Based on these criteria and the panel’s
evaluation of the proposals, it was determined that MuniServices is best able to provide
the full range of services that meet the City’s needs. MuniServices is the only firm that
provides the full range of audit and revenue enhancement services required by the City.
Specific decision factors included Muniservices’ experience in performing compliance
reviews on major utility providers, its existing UUT payment databases allowing for
detection of companies that may be paying UUT to a neighboring City, but not to Santa
Monica, and their expertise in legislative and regulatory analysis and consulting.
MuniServices LLC (MuniServices) has been providing Utility Users Tax (UUT) audit and
revenue enhancement services to a number of California cities, including Santa Monica,
for over twenty years. Over the last four years, MuniServices’ efforts have generated
over $1 million in additional revenue for the City.
Financial Impacts & Budget Actions
The contract to be awarded to MuniServices, LLC will have a fixed fee component in an
amount not to exceed $425,000 for the five year term of the contract. Additionally, for
audits specifically requested by the City, a fee of 25% of revenues recovered by the City
2

through MuniServices efforts will be applied. Funds are available in the FY 2012-13
budget in division 224. Budget authority has been requested in the 2013-15 biennial
budget proposal for Council approval in account 01221.555060.
Prepared by: David Carr, Assistant City Treasurer
Approved:
Forwarded to Council:
Gigi Decavalles-Hughes
Director of Finance
Rod Gould
City Manager
3

City Council Report
To:
From:
Subject:
Mayor and City Council
Martin Pastucha, Director of Public Works
City Council Meeting: April 23, 2013
Agenda Item: 3-E
Construction Contracts for Lincoln Boulevard Resurfacing Project, Federal
Aid Project No. STPL-5107 (034)
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a contract with Sully-Miller
Contracting Co., a California-based company, in an amount not to exceed
$2,010,872 (includes a 10% contingency) for the resurfacing of Lincoln
Boulevard from the Santa Monica Freeway to the southern City limit.
2. Authorize the City Manager to negotiate and execute a contract with Onward
Engineering, a California-based company, in an amount not to exceed $176,000
(includes a 10% contingency) for construction management and inspection
services for the resurfacing of Lincoln Boulevard.
3. Authorize the issuance of an after-hours construction permit to perform work
between the hours of 8 PM and 6 AM, Monday through Friday over the project
duration, contingent on satisfying notification requirements as contained in Santa
Monica Municipal Code 4.12.110.
4. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within budget authority.
Executive Summary
The Lincoln Boulevard Resurfacing Project would resurface the roadway and perform
related maintenance repairs, install video detection at five signalized intersections, and
update the pavement striping and markings to current standards using the City
allocation of Surface Transportation Program-Local (STPL) funds and Federal Earmark
funds. In March 2013, the City solicited bids for construction services. After reviewing
the four bids received, Sully-Miller Contracting Company, the lowest responsible bidder,
is recommended for construction of the project at a cost not to exceed $2,010,872.
In January 2013, the City solicited statements of qualifications for construction
management and inspection services. After reviewing statements of qualifications from
eight firms, Onward Engineering is recommended to provide construction management
and inspection services in an amount not to exceed $176,000. The issuance of an
1

after-hours construction permit is recommended to allow paving-related activities
between the hours of 8 PM and 6 AM, Monday through Friday, in order to minimize
traffic and congestion during construction. After-hours work would be limited to no more
than three non-consecutive nights for any block-segment or address.
Background
On August 23, 2011, a Cooperative Agreement with the State of California to relinquish
to the City the portion of Lincoln Boulevard from the Santa Monica Freeway to the
southern City Limit was authorized. The Cooperative Agreement was fully executed on
May 14, 2012, and subsequently recorded in the Office of the County Recorder,
finalizing the relinquishment process and transferring ownership of the Lincoln
Boulevard right-of-way to the City.
Discussion
Under this project the contractor would resurface the existing asphalt pavement on
Lincoln Boulevard from the Santa Monica Freeway to the southern City Limit, near
Ozone Avenue, repair damaged sections of the concrete parking lane, install video
detection at five signalized intersections within the project limits, and update the
pavement striping and markings to address current traffic requirements and standards.
In order to mitigate congestion and construction related traffic impacts along this busy
transportation corridor, staff recommends that the paving and striping work would be
performed at night between the hours of 8 PM and 6 AM, Monday through Friday,
consistent with established traffic control and lane closure guidelines for Lincoln
Boulevard. An after-hours construction permit is recommended for this project,
contingent on satisfying notification requirements as contained in Santa Monica
Municipal Code 4.12.110. A temporary traffic control and phasing plan would also be
prepared and implemented during the paving and striping phases to minimize impacts
of the night work to a maximum of three non-consecutive nights for any specific blocksegment
or address within the project limits. Additionally, operations that generate
higher noise levels such as grinding would be scheduled between 8 PM and 12 AM
(midnight).
2

Contractor Selection
On March 12 and 14, 2013, the City published a Notice Inviting Bids in the Santa
Monica Daily Press and on the City’s online bidding site. Four sealed bids were
received by the City Clerk’s office and publicly opened on April 2, 2013 by the Deputy
City Clerk. The bid results are as follows:
Bidder Company Location Bid Amount
Sully-Miller Contracting Co. Brea, CA $1,828,065
All American Asphalt Corona, CA $1,977,977
PALP, dba Excel Paving Co. Long Beach, CA $2,228,142
Hardy & Harper, Inc. Santa Ana, CA $2,399,000
The bids were evaluated on competitive pricing, understanding of the project’s scope,
direct experience with similar projects, approach to the work, technical competence,
qualifications of the proposed staff, and the ability to meet the project schedule.
Pursuant to requirements for federal-aid construction projects, the award of the contract
shall be to the lowest responsible bidder whose bid complies with all the requirements
prescribed. Staff recommends Sully-Miller Contracting Co., located in Brea, CA, as the
lowest responsible bidder based on their price, quality of services offered, and
experience with similar projects. Sully-Miller Contracting Co. provided over twenty
references for recently completed projects, and a similar number for on-going projects.
Staff contacted references for five representative projects from the cities of Torrance,
Long Beach, West Hollywood, Cerritos, and La Mirada. All references reported that the
work performed by Sully-Miller Contracting Co. was completed in a timely and costeffective
manner while maintaining consistent quality. Additionally, in 2012 Sully-Miller
Contracting Co. successfully completed the Robson Avenue and Marine Street
Reconstruction Project, a federal-aid project, for the City. Staff also verified with the
Contractors State License Board that Sully-Miller Contracting Co.’s and its
subcontractors’ licenses are current, active, and in good standing.
3

Construction Manager Selection
In January 2013, the City requested Statements of Qualifications for construction
management and inspection services for this project. The request for Statements of
Qualifications was advertised on the City’s online bidding website. Eight firms
submitted Statements of Qualifications for this project, which were reviewed and rated
by Public Works staff. Selection criteria included technical competence, staffing
capability, project approach, past performance, dispute resolution, quality control, cost
control, management services, customer service and the ability to meet required time
frames. The top four firms were invited to interview with Public Works staff. Onward
Engineering is recommended as the best firm to provide construction management and
inspection services based on their competitive prices and past performance delivering
similar projects at the cities of Brea, La Habra, Diamond Bar, and Commerce. Onward
Engineering’s services would include public outreach, construction management,
material testing, and continuous inspection of the contractor’s work. Staff contacted
reference agencies and all respondents reported that Onward Engineering provided
exceptional construction management and inspection services.
Public Outreach
On September 10, 2012, staff conducted a community meeting with area residents and
business owners regarding the planned maintenance work and the proposed peak-hour
bus-lanes on Lincoln Boulevard. The bus-lanes were subsequently deleted from the
project scope based on community feedback, and after additional analysis conducted by
Big Blue Bus staff, as described in the February 7, 2013 information item to Council.
Public outreach during construction of this project would be provided by Onward
Engineering as part of the construction management effort. The outreach process would
include public notifications on the scope of the project, potential impacts, schedule, and
periodic project updates. Properties impacted by the project would receive two
construction notices. The first general notice would be mailed to properties within 500
feet of the proposed work three weeks prior to the start of construction. A second twoday
notice would be subsequently hand-delivered to each adjacent property with
4

detailed information regarding the planned construction activity, potential impacts and
contact information. The notices would be prepared by the City and distributed by the
Contractor. For work requiring temporary closures or detours, highly visible electronic
changeable message signs would be placed at strategic points one week prior to the
planned work to notify the travelling public. Updates regarding the project would be
provided on the City’s website and various social media channels.
Construction Schedule
Work is anticipated to begin the week of June 3, 2013 and be completed by August 16,
2013.
Financial Impacts & Budget Actions
The construction contract to be awarded to Sully-Miller Contracting Co. is for an amount
not to exceed $2,010,872 (includes a 10% contingency). The construction management
and inspection contract to be awarded to Onward Engineering is for an amount not to
exceed $176,000 (includes a 10% contingency). Funds are included in the FY2012-13
Capital Improvement Program budget at the following accounts:
Account Name Amount
C207041.589010 Lincoln Boulevard HPP (Federal Earmark) $ 1,590,357
C207041.589000 Lincoln Boulevard Resurfacing - STPL $ 596,515
TOTAL $ 2,186,872
Prepared by: Allan Sheth, Civil Engineering Associate
Approved:
Forwarded to Council:
Martin Pastucha
Director of Public Works
Rod Gould
City Manager
5

City Council Report
To:
From:
Subject:
Mayor and City Council
Martin Pastucha, Director of Public Works
City Council Meeting: April 23, 2013
Agenda Item: 3-F
Professional Services Agreement Modification for Environmental Services
for City Corporation Yard and Olympic Well Field
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a third modification to
Professional Services Agreement #8914 (CCS) in the amount of $1,370,805
(including a 10% contingency) with ICF Consulting Services, LLC, a Californiabased
company, to provide groundwater monitoring, well installation, technical
oversight, and support services for the Olympic Well Field. This will result in a
five year amended agreement with a new total amount not to exceed $3,775,098,
with future year funding contingent on Council budget approval.
2. Appropriate the budget increases as outlined in the Financial Impacts and
Budget Actions section of this report.
Executive Summary
The City has an existing agreement with ICF Consulting Services for environmental
assessment and groundwater monitoring services in the Olympic Groundwater Basin
which has proven beneficial in achieving the Gillette/Boeing settlement agreements.
Continuing work pursuant to regulatory requirements include the installation of
additional monitoring wells, ongoing groundwater monitoring, and continuing technical
support. Additional funding in the amount of $1,370,805 is necessary to complete
additional tasks for the period from May 14, 2013 to June 30, 2014.
Background
On April 8, 2008, Council approved ICF Consulting Services, LLC (ICF) to provide
environmental remediation services at the City Corporation Yard (CCY) for up to five
years. The resulting contract for environmental services (Professional Services
Agreement #8914 CCS) included quarterly groundwater monitoring, remediation system
1

installation, and technical support related to potential contamination from the The
Gillette Company (Gillette) and its impact on the Olympic Well Field.
On May 12, 2009, a first modification Agreement #8914 (CCS) was executed to include
allowances for additional remediation services at CCY, technical support related to the
City’s dispute with Gillette over contamination of the Olympic Well Field, and associated
interactions with the Regional Water Quality Control Board (RWQCB). In 2009, it
became apparent that the former Papermate facility (owned by Gillette and, by
acquisition, Proctor & Gamble) was a significant source of the Perchloroethylene (PCE)
and Trichloroethylene (TCE) observed in groundwater. City staff requested additional
assistance from ICF to help develop a technical argument supporting the City’s position
that releases from Gillette’s operation had indeed contaminated groundwater in the
Olympic Well Field. The work involved the review of reports, work plans, modeling, and
correspondence prepared by Gillette.
On June 14, 2011, a second modification Agreement #8914 (CCS) was executed to
extend the term of the contract for an additional two year period beginning May 13,
2011 through May 13, 2013, and provide additional funding for continued environmental
assessment and remediation services. During this period, ICF was instrumental in
providing technical support to the City in addressing contamination originating from the
Boeing property, formerly the Douglas Aircraft Facility in Santa Monica.
Discussion
Throughout 2011 and 2012, ICF continued to conduct activities associated with
managing the Olympic Well Field and adhering to certain RWQCB requirements,
including the abandonment of additional monitor wells, installation of replacement,
monitor wells, and quarterly groundwater monitoring. In June 2012, the City submitted,
and RWQCB approved, the Olympic Well Field Management Plan (Plan). The Plan
includes very specific actions the City intends to conduct to prudently manage the
Olympic Well Field so that City is able to deliver water of the highest quality to its
2

esidents. Specifically, the Plan provides details on the long-term groundwater
monitoring program, locations of additional wells to monitor water levels and measure
contaminant concentrations, and modeling efforts that are needed to understand
contaminant migration throughout the Olympic Well Field.
In this regard, several non-routine activities in the Plan have been identified that can be
completed by ICF due to the firm’s unique knowledge of the Olympic Well Field, the
Gillette site, the Boeing site, RWQCB staff, and City administrative programs and
policies. These non-routine elements can be completed by June 30, 2014. Tasks, and
associated costs, to be performed by ICF under this amendment include:
• Installation of Groundwater Monitor Wells – Pursuant to the Boeing settlement,
and as specified in the Plan, ICF would install five additional deep groundwater
monitoring wells at RWQCB-approved locations at a cost of $550,000 including
contingency.
• Long-Term Groundwater Monitoring – ICF would continue long-term required
monitoring of old wells located on the former Gillette property, CCY and
Bergamot property, and wells installed in 2012. A few new wells would be added
to this network in 2013, after which time, the monitoring well network is expected
to be complete at a cost of $322,505 including contingency.
• City Corporation Yard Remediation System Abandonment – The City will receive
site closure status from RWQCB in 2013. Upon issuance of closure, RWQCB will
require that all remediation system components, monitor wells, sparge wells, and
ancillary equipment be abandoned. ICF would perform the abandonment of 28
sparge wells, 12 monitoring wells, horizontal conveyance piping, and other
related equipment in accordance with applicable standards at a cost of $388,300
including contingency.
• As-Needed Technical Support – ICF would assist the City is in responding to
technical inquiries from RWQCB, Gillette, Boeing, MTA, and others regarding
environmental matters. This is estimated at $110,000 including contingency.
Given the project- and site-specific knowledge and experience obtained by ICF during
the previous five years, coupled with their performance and sensitivity to City needs,
staff recommends retaining ICF for continued monitoring and support services through
June 30, 2014.
3

Financial Impacts & Budget Actions
The agreement modification to be awarded to ICF is $1,370,805, for an amended
agreement total not to exceed $3,775,098. Award of the agreement modification
requires the following budget actions:
1. Release of $1,370,805 from Gilette settlement funds fro the Olympic Basin
Remediation at 1.380237.
2. Appropriation of $1,370.805 to account 25671.555060.
3. Appropriation of budgets for transfers from the General Fund (01695.570080) to
the Water Fund (25695.570080).
Prepared by: Gil Borboa, P.E., Water Resources Manager
Approved:
Forwarded to Council:
Martin Pastucha
Director of Public Works
Rod Gould
City Manager
4

City Council Report
To:
From:
Subject:
City Council Meeting: April 23, 2013
Agenda Item: 3-G
Mayor and City Council
Gigi Decavalles-Hughes, Director of Finance
Presentation of Independent Auditor Report
Recommended Action
Staff recommends that the City Council receive and file the independent auditors’
unqualified audit report for the City’s financial statements for the fiscal year ended June
30, 2012 and the attached Auditor’s Letter to Council.
Executive Summary
As required by the City Charter, independent auditors audit the City’s financial
statements each fiscal year. The City’s financial statements for the fiscal year ended
June 30, 2012, with the independent auditors’ unqualified opinion, are embodied in the
City’s Comprehensive Annual Financial Report (CAFR). The CAFR is available at the
City’s libraries and on line. A letter from the City’s independent auditors communicating
audit findings and other matters is also submitted with this report.
Discussion
As required by the City Charter, financial statements are prepared by the City and
audited by independent auditors. The City’s independent auditors, Macias Gini
O’Connell, LLP, have audited the financial statements for the fiscal year ended June 30,
2012, issued an unqualified opinion, and have provided a letter summarizing their audit
findings and other matters, a required communication under generally accepted auditing
standards. .
With an unqualified opinion, the auditors have neither qualifications nor reservations
about the financial statements as presented. The auditors’ formal opinion and
accompanying financial statements are embodied in the City’s CAFR, which is now
accessible at the City’s libraries and on the City’s Finance website as well as attached
to this report.
1

In the letter to Council, auditors have identified sensitive disclosures related to the
dissolution of the City’s Redevelopment Agency and have summarized audit differences
and recommended reclassifications to the financial statements. The uncorrected
recommended reclassifications were proposed for presentation only and have no impact
on the financial condition of City funds.
Jim Godsey, audit partner from Macias Gini and O’Connell, LLC, will be available during
the meeting on April 23, 2013, to answer any questions.
Financial Impacts & Budget Actions
There is no budget/financial impact to receive and file this report.
Prepared by: Candace Tysdal, Financial Operations Manager
Approved:
Forwarded to Council:
Gigi Decavalles-Hughes
Director of Finance
Rod Gould
City Manager
Attachments:
A. Auditor’s Letter to Council
B. Comprehensive Annual Financial Report for the year ended June 30, 2012
2

ATTACHMENT A
Los Angeles
777 S. Figueroa Street, Suite 2500
Los Angeles, CA 90017
213.408.8700
Sacramento
Walnut Creek
April 23, 2013
To the Honorable City Council
City of Santa Monica, California
Oakland
Century City
Newport Beach
We have audited the financial statements of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Santa Monica (City) for the year
ended June 30, 2012. Professional standards require that we provide you with information about our
responsibilities under generally accepted auditing standards, Government Auditing Standards, and OMB
Circular A-133, as well as certain information related to the planned scope and timing of our audit. We
have communicated such information in our letter to you dated July 30, 2012. Professional standards also
require that we communicate to you the following information related to our audit.
San Diego
Seattle
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 to the financial statements. No new
accounting policies were adopted and the application of existing policies was not changed during 2012.
We noted no transactions entered into by the governmental unit during the year for which there is a lack
of authoritative guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the governmental activities’ and
business-type activities’ financial statements were:
Management’s estimate of depreciation is based on the estimated useful lives of capital
assets. We evaluated the key factors and assumptions used to develop the depreciation
expense in determining that it is reasonable in relation to the financial statements taken as
a whole.
Management’s estimate of the claims payable is based on reports prepared by third party
administrators, actuarial valuations, and the reports prepared by management. We
evaluated the key factors and assumptions used to develop the claims payable in
determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimates of the net pension obligation and other post-employment
benefits obligation is based on reports prepared by third party administrators and actuarial
valuations. We evaluated the key factors and assumptions used to develop the net pension
obligation and the other post-employment benefits obligation in determining that they are
reasonable in relation to the financial statements taken as a whole.
www.mgocpa.com

Management’s estimate of the pollution remediation obligation is based on expected
outlays to be incurred to settle those liabilities. We evaluated the key factors and
assumptions used to develop the pollution remediation obligation in determining that it is
reasonable in relation to the financial statements taken as a whole.
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The most sensitive disclosures affecting the financial statements were:
The disclosure in Note 17 to the financial statements, which discusses the California State
Legislature’s enacted legislation that dissolved redevelopment agencies in the State of
California as of February 1, 2012. On February 1, 2012, the City, as the Successor
Agency to the City of Santa Monica Redevelopment Agency, became responsible for the
overseeing of the dissolution process and the wind down of redevelopment activity.
The disclosure in Note 17 to the financial statements, which discusses the Moody’s
downgrade of all California redevelopment Tax Allocation Bonds within the State,
including the City of Santa Monica Redevelopment Agency’s (Former Agency)
Earthquake Redevelopment Bonds Series 2006. This downgrade triggered an event of
default in two of the Former Agency’s loans, making them subject to call. The lender on
one of the loans has agreed to forbear on exercising default remedies at least through
April 2013, at which time the status of this loan will be evaluated for continuing
forbearance. The lender on the other loan has taken no action.
The disclosure in Note 18 to the financial statements, which discusses the State of
California Department of Finance’s (DOF) determination regarding the Due Diligence
Review required under redevelopment dissolution law. The Successor Agency does not
agree with the entire amount included in the DOF’s determination. Due to the inherent
uncertainties involved in the application of the redevelopment dissolution law,
management cannot presently determine the ultimate outcome of this issue.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are clearly trivial, and communicate them to the appropriate
level of management. The attached schedule summarizes audit differences and reclassifications
recommended for the financial statements. Management has determined that the effects of these
differences are immaterial, both individually and in the aggregate, to the financial statements
taken as a whole.
The uncorrected recommended reclassifications in the attached schedule were proposed for
management consideration. There is no impact to the financial condition of City funds. They are
proposed for presentation purposes only.
2

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated January 31, 2013, as updated through February 25, 2013.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves
application of an accounting principle to the governmental unit’s financial statements or a determination
of the type of auditor’s opinion that may be expressed on those statements, our professional standards
require the consulting accountant to check with us to determine that the consultant has all the relevant
facts. To our knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the governmental unit’s auditors. However,
these discussions occurred in the normal course of our professional relationship and our responses were
not a condition to our retention.
Other Matters
With respect to the supplementary information accompanying the financial statements, we made certain
inquiries of management and evaluated the form, content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United
States of America, the method of preparing it has not changed from the prior period, and the information
is appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
This information is intended solely for the use of City Council and management of the City of Santa
Monica and is not intended to be, and should not be, used by anyone other than these specified parties.
Very truly yours,
Los Angeles, California
3

CITY OF SANTA MONICA
Audit Difference and Reclassification Summary
June 30, 2012
DESCRIPTION
Recommended
Journal Entry
Debit Credit
GOVERNMENTAL ACTIVITIES/ BUSINESS-TYPE ACTIVITIES
Net Pension Asset- Governmental Activities $ 15,218,168
Net Pension Asset- Business-type Activities 4,781,832
Expenses - General Services - Governmental Activities 7,589,096
Expenses - Business-type Activities 2,410,904
Unrestricted Net Assets - Governmental Activities 7,629,072
Unrestricted Net Assets - Business-type Activities 2,370,928
To record a net pension asset for the discretionary payment made to PERS in FY11 and FY12
GENERAL FUND
Other Revenue 66,954,121
Redevelopment Income 66,954,121
To reclassify transfers of funds from the former RDA to a separate line item
RESOURCE RECOVERY & RECYCLING FUND
Liab. Pay from Restricted Assets - Noncurrent 8,639,844
Liab. Pay from Restricted Assets - Current 8,639,844
To reclassify liabilities payable from restricted assets from current to noncurrent to correspond with related restricted asset
WATER FUND (AGGREGATE REMAINING OPINION UNIT)
Fund Balance - Unrestricted 566,149
Water Purchase Expense 25671.522140 566,149
To reclassify water purchases expense in FY12 for amounts that should have been recorded in FY11.
CITY FUND (AGGREGATE REMAINING OPINION UNIT)
Advance Refunding Escrow - Debt Service 364,583
Pmt to Refunded Bond Escrow Agent - OFS 364,583
To reclassify payment to refunded bond escrow agent to debt service as payment was made from cash on hand.
4

ComprehensiveAnnualFinancialReport
YearendedJune30,2012

City of Santa Monica
California
Comprehensive Annual Financial Report
Year ended June 30, 2012
Prepared by the Finance Department
Gigi Decavalles-Hughes Director of Finance/City Treasurer
Candace Tysdal Financial Operations Manager
Randy Chow Financial Reporting Supervisor
Scott Lowe Financial Reporting Supervisor
Imelda De Leon Senior Accountant
Steven Hull Senior Accountant
Stella Huang Accountant II
Michael Towler Accountant II
Steve Gomez Accountant II
Martha Romero Accountant I
Tex Yamada Accountant I
Jennifer Young Executive Administrative Assistant

City of Santa Monica, California
Year Ended June 30, 2012
INTRODUCTORY SECTION

CITY OF SANTA MONICA, CALIFORNIA
Comprehensive Annual Financial Report
For the fiscal year ended June 30, 2012
INTRODUCTORY SECTION
Table of Contents
Page
Letter of Transmittal .......................................................................................................................... v
Officials of the City of Santa Monica ................................................................................................ xi
Organizational Chart – City of Santa Monica ................................................................................... xii
GFOA Certificate of Achievement for Excellence in Financial Reporting ....................................... xiii
FINANCIAL SECTION
Independent Auditor’s Report ........................................................................................................... 1
Management’s Discussion and Analysis (Required Supplementary Information) ............................ 3
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets .............................................................................................................. 23
Statement of Activities ................................................................................................................ 24
Fund Financial Statements:
Balance Sheet – Governmental Funds ........................................................................................ 26
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide
Statement of Net Assets .............................................................................................................. 27
Statement of Revenues, Expenditures, and Changes in Fund Balances –
Governmental Funds ................................................................................................................ 28
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund
Balances of Governmental Funds to the Statement of Activities ............................................. 29
Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
(Non-GAAP Basis) – General Fund ........................................................................................ 30
Statement of Net Assets – Proprietary Funds .............................................................................. 34
Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds ........ 35
Statement of Cash Flows – Proprietary Funds ............................................................................ 36
Statement of Fiduciary Net Assets – Fiduciary Funds ................................................................ 40
Statement of Revenues, Expenses and Changes in Fiduciary Net Assets – Fiduciary Fund ...... 41
Notes to Basic Financial Statements:
Note 1 – Summary of Significant Accounting Policies ............................................................ 43
Note 2 – Budgetary and Legal Compliance .............................................................................. 52
Note 3 – Reconciliation of Fund Financial Statements to Government-Wide Financial
Statements .................................................................................................................. 53
Note 4 – Pollution Remediation ................................................................................................ 56
Note 5 – Cash and Investments ................................................................................................. 58
Note 6 – Notes Receivable ........................................................................................................ 64
Note 7 – Capital Assets ............................................................................................................. 71
Note 8 – Deferred/Unearned Revenue ...................................................................................... 72
Note 9 – Long-Term Liabilities ................................................................................................ 74
Note 10 – Fund Deficits .............................................................................................................. 78
Note 11 – Interfund Transactions ................................................................................................ 79
Note 12 – Restricted Net Assets .................................................................................................. 83
Note 13 – Fund Balances ............................................................................................................ 83
Note 14 – Litigation and Contingencies ...................................................................................... 87
Note 15 – Self-Insurance ............................................................................................................. 89
i

CITY OF SANTA MONICA, CALIFORNIA
Comprehensive Annual Financial Report
For the fiscal year ended June 30, 2012
Table of Contents, Continued
Page
Note 16 – Employee Benefit Programs ....................................................................................... 90
Note 17 – Successor Agency… ………………………………………………………………. . 97
Note 18 – Due Diligence Liability…………………………………………………………. ..... 103
Note 19 – Subsequent Event… ………………………………………………………………. .. 104
SUPPLEMENTARY INFORMATION
NON-MAJOR FUNDS / OTHER FINANCIAL INFORMATION
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet – Nonmajor Governmental Funds by Fund Type ................................ 107
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
(Deficits) Nonmajor Governmental Funds by Fund Type .............................................................. 111
Schedule of Revenues, Expenditures and Changes in Fund Balance (Deficit) – Budget and
Actual (Non-GAAP Basis) – Major and Nonmajor Governmental Funds –
Capital Projects Funds:
Special Revenue Source .......................................................................................................... 115
Earthquake Recovery Redevelopment Project ......................................................................... 116
Clean Beaches and Ocean Parcel Tax ...................................................................................... 117
Beach Recreation ..................................................................................................................... 118
Housing Authority ................................................................................................................... 119
Disaster Relief Fund ................................................................................................................ 120
Tenant Ownership Rights Charter Amendment (TORCA) ...................................................... 121
Housing Projects ...................................................................................................................... 122
Low/Mod Housing Projects ..................................................................................................... 123
Downtown Redevelopment Project ......................................................................................... 124
Ocean Park Redevelopment Project ......................................................................................... 125
Community Development Block Grant (CDBG) ..................................................................... 126
Miscellaneous Grants ............................................................................................................... 127
Citizens Option for Public Safety ............................................................................................ 128
Air Quality Management District (AQMD)............................................................................. 129
Parks and Recreation .............................................................................................................. 130
Gas Tax .................................................................................................................................... 131
Combining Statement of Net Assets – Nonmajor Enterprise Funds .............................................. 134
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets –
Nonmajor Enterprise Funds ........................................................................................................ 135
Combining Statement of Cash Flows – Nonmajor Enterprise Funds ............................................. 136
Combining Statement of Net Assets – Internal Service Funds ...................................................... 140
Combining Statement of Revenues, Expenses and Changes in Net Assets – Internal Service
Funds .......................................................................................................................................... 141
Combining Statement of Cash Flows – Internal Service Funds ..................................................... 142
Combining Statement of Fiduciary Assets and Liabilities – Agency Funds .................................. 144
Combining Statement of Revenues, Expenses and Changes in Fiduciary Assets and Liabilities
– Agency Funds ......................................................................................................................... 145
ii

CITY OF SANTA MONICA, CALIFORNIA
Comprehensive Annual Financial Report
For the fiscal year ended June 30, 2012
Table of Contents, Continued
STATISTICAL SECTION
Table Page
Financial Trends Information
Net Assets by Component – Last Ten Fiscal Years .............................................................. 1 149
Changes in Net Assets – Last Ten Fiscal Years ................................................................... 2 150
Fund Balance of Governmental Funds – Last Ten Fiscal Years .......................................... 3 153
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ........................ 4 154
General Fund Tax Revenues by Source – Last Ten Fiscal Years ......................................... 5 156
Revenue Capacity Information
Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years ................ 6 157
Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years .................................. 7 158
Principal Property Tax Payers – Current Fiscal Year and Nine Years Ago ......................... 8 159
Property Tax Levies and Collections – Last Ten Fiscal Years ............................................. 9 160
Taxable Transactions by Type of Business – Last Ten Calendar Years ............................... 10 161
Debt Capacity Information
Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ............................................. 11 162
Ratios of General Bonded Debt – Last Ten Fiscal Years ..................................................... 12 163
Direct and Overlapping Governmental Activities Debt as of June 30, 2012 ........................ 13 164
Computation of Legal Debt Margin – Last Ten Fiscal Years ............................................... 14 165
Wastewater Enterprise Revenue Bonds Coverage ................................................................ 15 166
Redevelopment Agency Earthquake Recovery Project Tax Allocation Bonds Coverage .... 16 167
Redevelopment Agency Ocean Park Project Tax Allocation Refunding Bonds Coverage .. 17 168
Parking Authority of the City of Santa Monica Lease Revenue Refunding Bonds
Schedule of Debt Service Payments Made ....................................................................... 18 169
Santa Monica Public Financing Authority Lease Revenue Bonds:
Series 2011A Public Structure 6 Project Schedule of Debt Service Payments Made ....... 19 170
Series 2011B Public Safety Facility Project Schedule of Debt Service Payments Made .. 20 171
Series 2004 Civic Center Parking Project Schedule of Debt Service Payments Made ..... 21 172
Refunding Bonds, Series 2009 Public Safety Facility Project Schedule of Debt
Service Payments Made .................................................................................................... 22 173
City of Santa Monica General Obligation Bonds, Series 2012 Library Improvement
Project Schedule of Debt Service Payments Made ............................................................ 23 174
Demographic and Economic Information
Demographic and Economic Statistics – Last Ten Calendar Years ..................................... 24 175
Principal Employers – Current Year and Nine Years Ago ................................................... 25 176
Operating Information
Full-time Equivalent City Government Employees by Function/Program –
Last Nine Fiscal Years ...................................................................................................... 26 177
Operating Indicators by Function/Program – Last Seven Fiscal Years ................................ 27 178
Capital Asset Statistics by Function/Program – Last Seven Fiscal Years ............................ 28 179
iii

THIS PAGE INTENTIONALLY LEFT BLANK
iv

Finance Department
1717 Fourth Street, Suite 250
Santa Monica, CA 90401
February 25, 2013
Dear Honorable Mayor and Members of the City Council, City Manager, and Citizens of Santa Monica:
Attached is the Comprehensive Annual Financial Report (CAFR) for the City of Santa Monica for the
fiscal year ended June 30, 2012 (FY 2011-12).
The CAFR has been prepared by Finance Department staff in conformance with the principles and
standards for financial reporting set forth by the Governmental Accounting Standards Board (GASB),
the authoritative body establishing U.S. generally accepted accounting principles for local governments.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive framework of internal controls established for that
purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to
provide reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
The CAFR has been compiled in a manner designed to fairly set forth the financial positions and results
of operations of the City. The CAFR includes disclosures designed to enable the reader to gain an
understanding of the City’s financial affairs.
In accordance with generally accepted accounting principles, a narrative overview and analysis of the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A) is provided
and can be found immediately following the independent auditors’ report. This letter of transmittal
complements the MD&A and should be read in conjunction with it.
Macias Gini & O’Connell LLP has issued an unqualified (clean) opinion on the City of Santa Monica’s
financial statements for FY2011-12. Their report is located at the front of the financial section of this
report.
PROFILE OF THE CITY OF SANTA MONICA
The City of Santa Monica, bordered by the City of Los Angeles on three sides and by the Pacific Ocean
on the west, encompasses an area slightly greater than eight square miles and serves a residential
population of 90,223 making it the 19th largest of the 88 cities in Los Angeles County.
The City of Santa Monica, incorporated in 1886, adopted its City Charter in 1945, and established a
council-manager form of government in 1947. Elections are held every two years for either three or
four Council members elected to serve four-year terms on the seven-member City Council. Elected
Council members select a Mayor and a Mayor Pro-Tempore to preside over Council meetings.
v
tel: 310 458-8281 ● fax: 310-394-0644

The City Council appoints a City Manager, a City Attorney and a City Clerk. The City Manager,
responsible for supervising day-to-day operations of the City and for carrying out policies set by the
Council, appoints Department directors.
The City provides a full range of services, including police and fire protection, water and wastewater
utilities, street maintenance, public transportation, parking, parks and recreation, planning, and building
and safety. Elementary and secondary education is provided by the Santa Monica Malibu Unified
School District, and community college education is provided by the Santa Monica College District.
Court, health, and social services are provided by the County of Los Angeles. Gas, electric and
telephone services are provided by private utility companies.
Financial data for all funds through which services are provided by the City have been included in this
report based on the criteria adopted by GASB.
FINANCIAL CONDITION AND OUTLOOK
Recent economic news indicates that an economic recovery appears to be taking hold. Unemployment
data is slowly improving, the economy is growing modestly, and the housing market continues to show
signs of recovery. On a State level, in November 2012, following two years of budget cuts, voters
passed Proposition 30. On January 10, 2013, the Governor’s FY 2013-14 Proposed Budget showed that,
as a result of new revenue from Proposition 30’s temporary sales tax increase and increase to income
taxes on California’s top three percent of income earners, as well as higher than anticipated revenues
coming from a recovering economy, and a continuation of spending cuts made in past years, the State no
longer faces a deficit. The State’s unemployment rate continues to be the third highest in the country, at
9.8 percent in November 2012. However, the forecast is positive overall, as California continues to
outpace other states in job growth (it currently ranks eighth in the country) and the state’s housing
market shows strong signs of recovery.
Santa Monica tends to weather economic downturns better and recover faster than other jurisdictions
due in large part to its geographic location and to its diversified tax revenue base, which generally
protects the City from downturns that impact one or a limited number of sectors of the economy. The
City’s major tax revenues have recovered significantly and, for the most part, have reached or exceeded
pre-recession levels. Property values in the City increased by 3.6 percent in 2012, the second
consecutive yearly gain. Total assessed value ranked third in Los Angeles County after only the cities of
Los Angeles and Long Beach. Modest growth is expected to continue.
Sales tax receipts, which declined for two consecutive years due to the economy and the temporary
closure of Santa Monica Place for remodeling, have also turned around as the economy recovers and
Santa Monica Place has re-opened. Additionally, the City’s voters approved a half-cent transaction and
use tax in November 2010, resulting in an overall sales tax revenue increase of 44 percent in FY 2011-
12. As with property taxes, modest growth is expected to continue.
Tourism, which provides a major stimulus to the local economy by creating jobs and producing
revenues, continues to exhibit strength as FY 2011-12 Transient Occupancy Tax revenues grew by 10.4
percent over the previous year. Moderate growth is expected to continue.
Utility users’ taxes are projected to remain relatively flat, while business license taxes are expected to
grow slowly, following the general course of the local economy. Interest rates, which fell to historically
low levels over the last three years, significantly impacting the City’s investment income, are expected
to remain at relatively low levels for several more years.
vi

In November 2010, Santa Monica voters passed Measure Y, establishing a ½ cent transaction and use
tax. This tax is assessed similarly to a sales tax, became effective on April 1, 2011, and has no sunset.
Along with Measure Y, voters passed Measure YY, an advisory measure that recommends that Council
allocate half of the revenue from Measure Y for school purposes. In FY 2011-12, the tax generated
nearly $13 million in additional sales tax revenues, which was shared with the Santa Monica Malibu
Unified School District according to the Program Agreement approved by Council on May 26, 2011.
Overall, the City’s fund balances continued to benefit from a number of cost saving measures approved
by Council and implemented since FY 2011-12. The most noteworthy changes relate to compensation
structure changes approved by employees during the collective bargaining process, including annual
incremental increases to public safety employee pension contributions and a second tier of reduced
retirement benefits for new miscellaneous employees, and to decreased pension costs as a result of a
second $10.0 million paydown (total of $20 million over two years) of the City’s unfunded pension
liability. However, changes to actuarial demographic assumptions and the slow economic growth that
threatens to keep CalPERS returns on investments lower than anticipated, require the City to continue to
assess the possibility of increased contribution rates in the future. The City will continue to prepay its
contributions to CalPERS, as it has done each year since FY2007-08, and to set aside related savings for
future pension costs or further paydowns of unfunded liability. While these one-time funds will buffer
the impact of increasing annual pension costs, it is important for the City to continue to work with its
employees to identify measures that will ensure that increases in ongoing compensation costs do not
outstrip those of revenue growth. The passage of the Public Employee Pension Reform Act, or PEPRA,
in September 2012, will assist in further controlling cost increases in the future, as new employees will
be required to increase their share of contribution costs.
In addition to pension costs, health insurance costs are also increasing significantly and that trend is
expected to continue in the near future. In FY2009-10, to mitigate the impacts of increasing health
insurance costs, the City reached an agreement with miscellaneous and Fire Department employees to
share in the cost. Beginning in FY2011-12, members of the Police Officers Association began
contributing to their health insurance costs.
On December 29, 2011, the California Supreme Court issued its decision in the case of California
Redevelopment Association et al v. Matosantos et al. The lawsuit challenged the constitutionality of the
State’s plan to eliminate redevelopment agencies unless cities agree to make one-time and on-going
payments to the State. The Court upheld the part of the legislation that dissolves redevelopment
agencies (AB1x26) while striking down the legislation that allowed for survival of redevelopment
agencies that give money to the State (AB1x27). The net effect of the decision was to require all
California redevelopment agencies, including the Redevelopment Agency (Agency) of the City of Santa
Monica (RDA), to be dissolved as of February 1, 2012. On January 10, 2012, the Council elected to
become the Successor Agency to the Redevelopment Agency in order to satisfy obligations of the
former agency, as well as to retain housing assets and functions of the former agency. Subsequently,
Council approved draft Recognized Obligation Payment Schedules (ROPS) and administrative budgets
for the January – June 2012 (ROPS I), July - December 2012 (ROPS II), and January – July 2013
(ROPS III) periods, as required by law. Pursuant to the requirements of the City-Agency Cooperation
Agreement adopted on August 10, 2010, as well as State law at the time, the former Redevelopment
Agency made payments to the City for implementation of priority projects. With the funds received
from the Agency, the City entered into contracts with designers and contractors to implement priority
projects. On June 27, 2012, as part of the FY 2012-13 State budget package, the State Legislature
passed and the Governor signed AB 1484, a measure meant to clarify existing legislation related to the
dissolution of redevelopment. To date, the Successor Agency has submitted to the California
Department of Finance (DOF) an inventory of all housing assets and an accounting of all available cash
and cash-equivalent housing assets (the Housing Due Diligence Review) and non-housing assets (the
Non-Housing Due Diligence Review), as well as the ROPS for January through June 2013, and, held
vii

meet and confer sessions with the DOF on the non-housing DDR and the ROPS to appeal a number of
DOF denials. Despite the appeal, the DOF maintained its decisions with one exception.
Pending the outcome of these reviews, staff has been modeling various scenarios depending on the
DOF’s potential decisions related to the City’s and Successor Agency’s ability to retain obligations and
funds. In each scenario, the City would be required to cancel or defer capital improvement projects, or
find new ways to finance other projects, such as the Civic Auditorium Renovation, Fire Station 1, and
the Corporation Yards, as well as use General Fund capital and possibly economic uncertainty reserves
to avoid impacts on services.
Given the uncertain state of the economy and the largely unknown impacts from the elimination of
redevelopment, staff has been monitoring the City’s fiscal condition on a frequent basis and has
recommended adjustments as needed. The City ended the fiscal year with a positive operating balance
and a record General Fund Balance of $416.3 million Large reserves provide flexibility and resources
for capital projects, future expenditures, retirement contribution increases and economic uncertainty, and
Santa Monica continues to be a top destination for visitors and a high demand location for employers.
While the cost saving measures and unanticipated revenue growth are assisting the City in maintaining a
balanced budget over the next several years, an additional safeguard lies in the economic uncertainty
reserve, which Council created in FY 2008-09 at $8.2 million, and increased in FY2010-11 by $1.5
million for a $9.7 million balance at June 30, 2011. As noted above, the reserve will be used as a buffer,
if needed, to allow the City to bring its budget into balance in a measured way, minimizing the impact to
our employees and residents to the greatest extent possible. As stated previously, corrective actions to
date have allowed the City to avoid the need to use any of the reserve so far.
Citywide Budget
On June 21, 2011, Council adopted the FY 2011-12 Budget and approved the FY 2012-13 Budget Plan
as part of the City of Santa Monica’s FY 2011-13 Biennial Budget. On October 25, 2011, January 10,
2012, and June 12, 2012, Council approved certain revisions to the FY 2011-12 Revised Budget that
adjusted revenues, expenditures and staffing. On June 12, 2012, Council also adopted the FY 2012-13
Budget, adopted the first year (FY 2012-13) and approved the second year (FY 2013-14) of the CIP
Biennial Budget. The FY2012-13 Budget includes $599.3 million in expenditures, net of
reimbursements and transfers, for all funds. This represents an increase of 0.7% from the revised
FY2011-12 Budget. Citywide revenues, net of reimbursements and transfers, are estimated at $503.1
million, a decrease of $181.4 million or 26.5%, from the revised FY 2011-12 budget. While the City
continues to benefit from a diverse source of revenues, particularly in the General Fund, the slow
national and struggling State economies require ongoing assessment of revenue assumptions.
The General Fund operating budget for FY2012-13, net of reimbursements and transfers, is estimated at
$255.4 million and Capital Improvement Projects add an additional $34.6 million for a total General
Fund budget of $290.0 million. Capital expenditures are offset by $10.6 million in reserve funds set
aside from previous years’ savings. Operating expenditures are anticipated to decrease $5.1 million, or
1.9%, as compared to the revised budget for FY2011-12. General Fund revenues for FY2012-13, net of
reimbursements and transfers, are budgeted at $274.0 million, a decrease of $140.0 million or 33.8%
from FY2011-12 actual revenues.
The FY2011-13 Budget reflects self-supporting funds in generally sound financial condition. The Water
and Wastewater Funds remain healthy following multi-year rate increases approved by Council in
FY2008-09. To avoid a future year deficit in the Solid Waste Fund, the City has employed a consultant
to conduct a rate analysis and has decided not to undertake capital expenditures associated with a waste
disposal partnership entered with the Allan Company and Southern California Disposal and instead will
viii

develop a new material processing plan along with Southern California Disposal to achieve effective
and efficient waste diversion. 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,
corrective action is needed. It is anticipated that beginning in FY2014-15, the Pier Fund will require a
total General Fund subsidy of approximately $0.8 million through FY2017-18, if it undertakes planned
infrastructure improvement projects. Finally, the Civic Auditorium Fund, which was expected to require
approximately $2.0 million in General Fund subsidy in future years, is pending a decision on whether
the Civic Auditorium will cease or significantly reduce operations in FY 2013-14. The City Council
will be deliberating on this issue in January 2013.
Major Projects
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, and 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 high-quality service, and connect to major destinations. Phase 2 construction
began in 2012 and service is anticipated to commence in 2016.
The Palisades Garden Walk and Ken Genser Square will create seven acres of park space bounded by
Interstate 10 and Olympic Drive, City Hall and Ocean Avenue. Envisioned as a central component of
the Civic Center Specific Plan, these new parks will provide a critical link between the Civic Center,
Palisades Park, the Pier and downtown. In FY2009-10, following a competitive process, the City
Council selected James Corner Field Operations and placed them under contract to design the parks.
Council selected O’Neill Construction to provide construction services on the two parks, which is
anticipated to be completed in 2013.
The Pico Library, slated to be an 8,300 square foot neighborhood library, will be built in the Pico
neighborhood at Virginia Avenue Park, on the corner of Cloverfield and Pico Boulevards. The library
will enhance existing park amenities, including the weekly Farmers Market, Community Center, Teen
Center, and Park Center Building. Staff issued a Request for Proposals for the design of the new library
in September 2009 and executed a contract with Koning Eizenberg Architecture in June 2010. An
updated site survey and a geotechnical report were both started in spring of 2010. Four community
workshops were held in late 2010 to gather input on the new branch library. Construction of the library
began in August 2012 and will be completed in early 2014.
The Downtown Parking Program, approved by Council in February 2006, called for Parking Structure 6
to be demolished and rebuilt in the same location at 1431 2nd Street with more than double its current
342 spaces. Parking Structure 6 has been demolished and is scheduled to be completed in 2013. The
new structure will have three subterranean and eight above-ground parking levels. The design includes
space for up to 90 bicycles in racks and 19 motorcycles, and approximately 7,000 square feet of retail
space fronting on 2nd Street. The overall design of this structure would be unique in that the pedestrian
experience continues up along the entire building face, where patrons would ascend and descend on an
exterior diagonal stair that weaves in and out of the plane of the façade. This increases public safety by
its high visibility and offers patrons unique ocean views.
The Village Santa Monica is a mixed-income, mixed-use community that will be developed in the heart
of Santa Monica’s Civic Center revitalization area. This unique public/private partnership leverages
City-owned land to provide for important public benefits. The 3.7 acre site will enhance the Civic
Center area with 160 affordable rental residences, up to 164 market-rate condominium residences, a
pedestrian-oriented “Living Street” with arts, retail and restaurant activities, public open space, public
ix

art and an extension of Olympic Drive. Environmentally sustainable features include LEED Silver
Certified design, alternative energy programs, bicycle stalls, shared parking and financial contributions
to the City’s transit programs. Community space for residents will include a computer lab, family
garden, barbeque area and outdoor and indoor children’s play areas. Preliminary work on the site began
in late 2011. Overall project construction is anticipated to last approximately 24 months.
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 five-year forecasts, and an understanding of the initiatives being undertaken by the
entire organization.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City for its CAFR for the fiscal
year ended June 30, 2011. The Certificate of Achievement is a prestigious national award, recognizing
conformance with the highest standards for preparation of State and local government financial reports.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable
and efficiently organized CAFR whose contents conform to program standards. This report must satisfy
both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City of Santa Monica has
received a Certificate of Achievement for each of the last twenty-eight years. We believe our current
CAFR also conforms to the Certificate of Achievement program requirements.
In keeping with past practice, a copy of this CAFR will be placed on file in the City libraries and sent to
City management personnel, bond rating agencies, and other agencies which have expressed an interest
in the financial affairs of the City. It is also available at www.smgov.net/finance.
ACKNOWLEDGEMENTS
The preparation and development of this report would not have been possible without the year-round
work of the Finance Department staff and their special efforts, working in conjunction with the City’s
independent auditors, to produce this report.
I would like to take this opportunity to compliment and thank the staff members of the City who were
associated with the preparation of this report. I would also like to thank the City Council for their
continued interest and support in planning and conducting the financial operations of the City in a
responsible and progressive manner.
Respectfully submitted,
Gigi Decavalles-Hughes
Director of Finance/City Treasurer
x

OFFICIALS OF THE CITY OF SANTA MONICA
As of February 25, 2013
City Council
Pam O’Connor, Mayor
Terry O’Day, Mayor Pro Tempore
Gleam Davis
Bob Holbrook
Kevin McKeown
Ted Winterer
Tony Vazquez
Administration and Department Heads
City Manager
Assistant City Manager
Deputy City Manager for Special Projects
City Attorney
City Clerk (Director of Records and Election Services)
Director of Finance/City Treasurer
Director of Human Resources
Chief Information Officer
Chief of Police
Fire Chief
Director of Planning and Community Development
City Librarian
Director of Community and Cultural Services
Director of Transit Services
Director of Housing and Economic Development
Director of Public Works
Rod Gould
Elaine Polachek
Kathryn Vernez
Marsha Jones Moutrie
Sarah Gorman
Gigi Decavalles-Hughes
Donna Peter
Jory Wolf
Jacqueline Seabrooks
Scott Ferguson
David Martin
Gregory T. Mullen
Karen Ginsberg
Edward F. King
Andy Agle
Martin Pastucha
xi

ORGANIZATION OF THE
CITY OF SANTA MONICA
as of February 25, 2013
CITIZENS
CITY COUNCIL
Records & Election Services
Sarah Gorman
City Manager
Rod Gould
City Attorney
Marsha Jones Moutrie
Assistant City Manager
Elaine Polachek
Deputy City Manager for
Special Projects
Kathryn Vernez
Fire
Scott Ferguson
Police
Jacqueline Seabrooks
Community & Cultural
Services
Karen Ginsberg
Big Blue Bus
Edward F. King
Library
Gregory T. Mullen
Finance
Gigi Decavalles-Hughes
Housing & Economic
Development
Andy Agle
Planning & Community
Development
David Martin
Human Resources
Donna Peter
Information Systems
Jory Wolf
Public Works
Martin Pastucha
xii

xiii

THIS PAGE INTENTIONALLY LEFT BLANK
xiv

City of Santa Monica, California
Year Ended June 30, 2012
FINANCIAL SECTION

LA/Century City
2029 Century Park East, Suite 500
Los Angeles, CA 90067
310.277.3373
Sacramento
The Honorable City Council
City of Santa Monica, California:
Independent Auditor’s Report
Walnut Creek
Oakland
Newport Beach
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of the City of Santa Monica,
California (City), as of and for the fiscal year ended June 30, 2012, which collectively comprise the City’s
basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City’s management. Our responsibility is to express opinions on these financial
statements based on our audit.
San Diego
Seattle
www.mgocpa.com
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, we
express no such opinion. An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting principles used and the
significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to previously present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City as of June 30, 2012, and the respective changes
in financial position and cash flows, where applicable, thereof and the respective budgetary comparison
for the General Fund for the fiscal year then ended in conformity with accounting principles generally
accepted in the United States of America.
As discussed in Note 1(A) to the basic financial statements, the California State Legislature enacted
legislation that dissolved redevelopment agencies in the State of California as of February 1, 2012. On
February 1, 2012, the City, as the Successor Agency to the Redevelopment Agency of the City of Santa
Monica (Successor Agency), became responsible for overseeing the dissolution and the wind down of
redevelopment activities.
As discussed in Note 17 to the basic financial statements, on June 14, 2012, Moody’s downgraded all
California redevelopment Tax Allocation Bonds (TABS) within the State, including the City of Santa
Monica Redevelopment Agency’s (Former Agency) Earthquake Project Redevelopment Bonds Series
2006 rating, which triggered an event of default in two of the Former Agency’s loans, making them
subject to call. The loans have an outstanding balance of $105.7 million at June 30, 2012, and are
reported as a current liability. Consequently, the lender on one of the loans has agreed to forbear on
exercising default remedies at least through April 2013, at which time the status of this loan will be
evaluated for continuing forbearance as long as the downgrade remains in effect on the Former Agency’s
TABS. The lender on the other loan has taken no action.
As discussed in Note 18 to the basic financial statements, on December 15, 2012, the State of California
Department of Finance (DOF) issued its determination regarding the housing Due Diligence Review
required under redevelopment dissolution law and disallowed $54.5 million of cash transfers and $17.9
million of capital asset transfers from the Former Agency to the City. The Successor Agency does not

agree with the entire amount included in DOF’s determination, however the Successor Agency made a
payment of $12.5 million subsequent to June 30, 2012, which has been accrued in the basic financial
statements. Due to the inherent uncertainties involved in the application of the redevelopment dissolution
law, the ultimate outcome of this issue cannot presently be determined, accordingly, no provision for any
liability that may result has been recorded in the basic financial statements.
In accordance with Government Auditing Standards, we have also issued our report dated February 25,
2013 on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of our
audit.
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 3 to 21 and the schedules of funding progress on pages 93 and 96 be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The combining and individual fund statements and
schedules are presented for purposes of additional analysis and are not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated in all
material respects in relation to the basic financial statements as a whole.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The introductory and statistical sections are presented for
purposes of additional analysis and are not a required part of the basic financial statements. Such
information has not been subjected to the auditing procedures applied in the audit of the basic financial
statements, and accordingly, we do not express an opinion or provide any assurance on it.
Los Angeles, California
February 25, 2013
2

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis
For the fiscal year ended June 30, 2012
(Unaudited)
As management of the City of Santa Monica, California (City), we offer readers of the City’s
Comprehensive Annual Financial Report (CAFR) this narrative overview and analysis of the financial
activities of the City for the fiscal year ended June 30, 2012. We encourage readers to consider the
information presented here in conjunction with additional information that we have furnished in the
City’s basic financial statements, which immediately follow this section, and the CAFR transmittal
letter in the preceding Introductory Section.
FINANCIAL HIGHLIGHTS
• The total assets of the City for its governmental and business-type activities exceeded its
liabilities as of June 30, 2012 by $1.8 billion. Of this amount, $1.2 billion is capital assets, net
of related debt, $188.0 million is for restricted uses as specified by entities outside of the City
government, and $483.9 million is for unrestricted uses in accordance with finance-related legal
requirements reflected in the City’s fund structure.
• The City’s total net assets increased $256.5 million during the current fiscal year due to an
increase in governmental activities net assets of $246.5 million and an increase in business-type
activities net assets of $10.0 million. The increase in governmental activities net assets was
primarily due to an extraordinary gain of $261.3 million related to the transfer of the net deficit
from the former Redevelopment Agency of the City of Santa Monica (Former Agency) to the
Santa Monica Redevelopment Successor Agency (Successor Agency) upon dissolution of the
Former Agency.
• At the end of the current fiscal year, the City’s governmental funds reported total ending fund
balances of $596.5 million, an increase of $11.1 million compared with the prior fiscal year.
This increase in fund balance is primarily due to: $67.0 million in revenue recognized by the
City related to a cooperation agreement between the City and the Former Agency, proceeds of
issuance of bonds of $32.2 million, and pollution remediation settlement income of $33.3
million. Additionally, governmental funds recognized a net extraordinary gain of $13.7 million
related to the dissolution and transfer of assets and liabilities of the Former Agency to the
Successor Agency. This is offset by capital project expenditures for projects related to a
cooperation agreement between the Former Agency and the City of $52.4 million plus other
governmental funds project expenditures of $48.0 million and capital expenditures of $67.0
million related to a cooperation agreement between the Former Agency and the City.
• At the end of the current fiscal year, the General Fund fund balance was $416.3 million, an
increase of $121.0 million from the previous fiscal year. Restricted, assigned and unassigned
General Fund fund balances all increased by $42.6, $73.7 and $8.8 million, respectively. This
was offset by a decrease in nonspendable General Fund fund balance of $4.1 million. Restricted
General Fund fund balance increased primarily due to $32.2 million in new bond proceeds
issued for the construction of Parking Structure 6. Assigned General Fund fund balance
increased due to increased housing, community and economic development project assignments
and $29.2 million in revenue recognized from pollution remediation settlements. Unassigned
General Fund fund balance increased primarily due to the General Fund’s overall net increase in
revenues over expenditures.
• The City’s capital assets increased by $37.2 million or 3.1%. Please see the table on page 17
and for further detail of capital assets in note 7.
3

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
• The City’s long-term debt decreased by $237.6 million or 66.1% during the current fiscal year.
Please see the table on page 19 and for further detail of long-term debt see note 9.
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements include three components: government-wide
financial statements, fund financial statements, and notes to the basic financial statements.
Government-wide financial statements. The government-wide financial statements are designed to
provide readers with a broad overview of the City’s finances, in a manner similar to statements of a
private-sector business.
The statement of net assets presents information on all of the City’s assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City’s net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will result in cash flows in future fiscal periods.
The government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that
are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities). The governmental activities of the City include public safety (police and
fire), streets, library, cultural and recreation, parks, planning and zoning, housing and community
development, and general administrative support. The business-type activities of the City include
water, wastewater, stormwater, resource recovery and recycling, pier, civic auditorium, airport,
cemetery, municipal transit and parking structures and lots.
Component units are included in the basic financial statements and consist of legally separate entities
for which the City is financially accountable and that have either the same governing board as the City
or a governing board appointed by the City of Santa Monica City Council. The blended component
units include the Redevelopment Agency of the City of Santa Monica, the Parking Authority of the
City of Santa Monica, and the Housing Authority of the City of Santa Monica. The Redevelopment
Agency of the City of Santa Monica (Former Agency) was dissolved on February 1, 2012 and its nonhousing
assets were transferred to the Santa Monica Redevelopment Successor Agency. The basic
financial statements include seven months of activity of the Former Agency as part of governmental
activities.
The Santa Monica Redevelopment Successor Agency (Successor Agency) is a separate legal entity,
which was formed to hold the assets of the former redevelopment agency pursuant to City Council
actions taken on January 10, 2012 and February 14, 2012. The activities of the Successor Agency are
reported in a private-purpose trust fund, and overseen by an Oversight Board comprised of individuals
appointed by various government agencies and the Santa Monica Redevelopment Successor Agency.
The government-wide financial statements can be found on pages 23 and 24 of this report.
4

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with financerelated
legal requirements. All the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
governmental-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available
at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the City’s near-term financing
decisions. Both the governmental funds balance sheet and the governmental funds statement of
revenues, expenditures, and changes in fund balances are accompanied by a reconciliation to the
government-wide financial statements in order to facilitate this comparison between governmental
funds and governmental activities.
The City maintains 24 individual governmental funds for financial reporting purposes. Information is
presented separately in the governmental funds balance sheet and in the governmental funds statement
of revenues, expenditures, and changes in fund balances for the General, Special Revenue Source, and
Earthquake Recovery Redevelopment Project funds, which are considered to be major funds. Data for
the other 21 governmental funds are combined into a single, aggregated presentation. Individual fund
data for each of these nonmajor governmental funds is provided in the nonmajor funds supplementary
section of this report.
The City Council adopts an annual appropriated budget for its General Fund and 17 capital project
funds (no budget is adopted for the Rent Control Fund and Asset Seizure Fund). The City Council
does not adopt budgets for the two permanent funds or the two debt service funds. A budgetary
comparison statement has been provided for the General Fund in the basic financial statements.
The governmental funds financial statements can be found on pages 26 through 31 of this report.
Proprietary funds. Proprietary funds provide the same type of information as the government-wide
financial statements, but in more detail. The proprietary fund financial statements provide separate
information for resource recovery and recycling, wastewater, airport and bus operations, which are
considered to be major funds of the City. The City maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type activities in the
government-wide financial statements. Internal service funds are an accounting device used to
accumulate and allocate costs internally among the City’s various functions. The City uses internal
service funds to account for its vehicle operations, risk management program and information
technology and communications operations. The vehicle operations and insurance services for bus
operations primarily benefit business-type activities and are included within business-type activities in
the government-wide financial statements. All other risk management functions, information
technology and communication services primarily benefit governmental funds and are included within
5

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
governmental activities in the government-wide financial statements. Individual fund data for the
internal service funds is provided in the supplementary information section of this report.
The proprietary funds financial statements can be found at pages 34 through 37 of this report.
Fiduciary funds. Fiduciary funds consist of a private-purpose trust fund and agency funds. A privatepurpose
trust fund was created on February 1, 2012 and is used to pay enforceable obligations of the
Former Agency. Agency funds are used to account for resources held for the benefit of parties outside
of the City. The fiduciary funds are not included in the government-wide financial statements because
the resources are not available to support the City’s operations.
The fiduciary funds financial statements can be found on pages 40 through 41 of this report.
Notes to the basic financial statements. The notes to the basic financial statements provide
additional information that is essential to a full understanding of the data provided in the governmentwide
and fund financial statements. The notes to the basic financial statements begin on page 43 of
this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial
position. In the case of the City, assets exceeded liabilities by $1.8 billion at the close of the current
fiscal year.
As shown below, the largest portion of the City’s net assets, $1.2 billion or 63.2%, reflects the City’s
investment in capital assets less any related outstanding debt used to acquire those assets. The City
uses these capital assets to provide services to citizens; consequently, these assets are not available for
future spending. Although the City’s investment in its capital assets is reported net of related debt, it
should be noted that resources needed to repay this debt must be provided from other sources, since
the capital assets themselves cannot be used to liquidate liabilities.
An additional portion of the City’s net assets, $188.0 million or 10.3%, represents resources that are
subject to external restrictions on how they may be used. The remaining balance of unrestricted net
assets, $483.9 million or 26.5%, may be used to meet the City’s ongoing obligations to citizens and
creditors.
At the end of the current fiscal year, the City reports positive balances in all three categories of net
assets, both for the government as a whole, as well as for its separate governmental and business-type
activities. The same situation held true for the prior fiscal year.
6

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
A summary of the government-wide statement of net assets follows:
CITY OF SANTA MONICA
Net Assets
(in millions)
2011-12 2010-11 2011-12 2010-11 2011-12 2010-11
Current and other assets $ 867.9 756.6 146.8 139.6 1,014.7 896.2
Capital assets 771.3 738.1 469.6 465.6 1,240.9 1,203.7
Total assets 1,639.2 1,494.7 616.4 605.2 2,255.6 2,099.9
Current and other liabilities 99.9 78.5 20.2 17.2 120.1 95.7
Long-term liabilities 279.4 402.8 27.6 29.4 307.0 432.2
Total liabilities 379.3 481.3 47.8 46.6 427.1 527.9
Net assets:
Invested in capital assets,
Governmental activities Business-type activities Total
net of related debt 708.6 565.4 448.0 442.3 1,156.6 1,007.7
Restricted 172.0 199.0 16.0 13.5 188.0 212.5
Unrestricted 379.3 249.0 104.6 102.8 483.9 351.8
Total net assets $ 1,259.9 1,013.4 568.6 558.6 1,828.5 1,572.0
Current and other assets increased $118.5 million or 13.2% for the current year. This increase is due to
cash received from the sale of $32.2 million in Santa Monica Public Finance Authority Lease Revenue
bonds as well as $75.1 million and $19.3 million in increased accounts and notes receivable,
respectively. Accounts receivable increased due to recording of a pollution settlement. Notes
receivable increased primarily due projects at 2802 Pico Boulevard and the Civic Center Village.
These increases in current assets were offset by a decrease in restricted cash with fiscal agent of $16.2
million, primarily due to the dissolution and subsequent transfer of the Former Agency restricted cash
and investment balances to the Successor Agency. Current and other liabilities increased $21.4 million
or 27.1%. This is primarily due to an increase in Due to Successor Agency of $36.8 million, a new
line item this fiscal year, and a decrease in Due to Other Governments of $12.2 million. These
amounts are related to pass-thru liabilities of the Former Agency. Long-term liabilities decreased
$125.2 million or 29.0% from the prior year. This decrease is due to the transfer of $249.0 million in
loans, bonds and notes payable from the Former Agency to the Successor Agency offset by an
increase in long-term pollution remediation obligation of $100.1 million and increases in accrued other
postemployment benefits liability, and long- and short-term claims payable.
7

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
A summary of the government-wide statement of changes in net assets follows:
CITY OF SANTA MONICA
Changes in Net Assets
(in millions)
Governmental activities Business-type activities Total
2011-12 2010-11 2011-12 2010-11 2011-12 2010-11
Revenues
Program revenues:
Charges for services $ 106.0 94.5 93.1 86.8 199.1 181.3
Operating grants and contributions 26.7 29.1 38.4 36.0 65.1 65.1
Capital grants and contributions 3.4 4.0 25.6 32.0 29.0 36.0
General revenues:
Sales and use taxes 45.8 31.7 — — 45.8 31.7
Property taxes 59.2 109.0 — — 59.2 109.0
Other taxes 112.2 106.9 — — 112.2 106.9
Settlement income 3.8 — — — 3.8 —
Investment earnings 5.8 8.0 1.1 1.4 6.9 9.4
Other general revenues 120.2 12.2 5.3 6.7 125.5 18.9
Total revenues 483.1 395.4 163.5 162.9 646.6 558.3
Expenses
General government 65.6 61.6 — — 65.6 61.6
Public safety 108.2 99.9 — — 108.2 99.9
General services 55.3 43.8 — — 55.3 43.8
Cultural and recreation 62.2 57.2 — — 62.2 57.2
Library 11.9 11.8 — — 11.9 11.8
Housing and community
development 182.0 89.3 — — 182.0 89.3
Interest on long-term debt 6.6 10.4 — — 6.6 10.4
Water — — 19.7 16.4 19.7 16.4
Resource recovery and recycling — — 25.1 21.3 25.1 21.3
Pier — — 5.8 5.3 5.8 5.3
Wastewater — — 18.2 16.5 18.2 16.5
Civic auditorium — — 3.2 3.6 3.2 3.6
Airport — — 5.3 6.0 5.3 6.0
Storm water management — — 0.4 0.4 0.4 0.4
Cemetery — — 1.8 2.5 1.8 2.5
Big Blue Bus — — 79.8 75.2 79.8 75.2
Parking authority — — 0.3 0.5 0.3 0.5
Total expenses 491.8 374.0 159.6 147.7 651.4 521.7
Excess (deficiency) of revenues
over expenses before transfers (8.7) 21.4 3.9 15.2 (4.8) 36.6
Extraordinary gain 261.3 — — — 261.3 —
Transfers (6.1) 1.5 6.1 (1.5) — —
Increase in net assets 246.5 22.9 10.0 13.7 256.5 36.6
Beginning net assets 1,013.4 990.5 558.6 544.9 1,572.0 1,535.4
Ending net assets $ 1,259.9 1,013.4 568.6 558.6 1,828.5 1,572.0
8

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
Governmental Activities. Governmental activities increased the City’s governmental activities net
assets by $246.5 million, or 24.3%, for the current fiscal year. This increase in governmental activities
net assets is due in part to an increase in total revenues of $87.7 million and an extraordinary gain of
$261.3 million, offset by an increase in total expenses of $117.8 million.
Revenue Sources: Governmental Activities. As shown in the chart below, the top five sources of
revenue account for 91% of total revenues. They are other general revenues at $120.2 million, other
taxes at $112.2 million, charges for services at $106.0 million, property taxes at $59.2 million, and
sales and use taxes of $45.8 million.
Other taxes, $112.2 ,
23%
Sources of Revenue for Fiscal Year 2011-2012
Governmental Activities
Settlement income,
$3.8 , 1%
($ In Millions)
Investment earnings,
$5.8 , 1%
Other general
revenues, $120.2 ,
25%
Property tax, $59.2 ,
12%
Sales and use taxes,
$45.8 , 9%
Capital grants and
contributions, $3.4 ,
1%
Operating grants and
contributions, $26.7
, 6%
Charges for services,
$106.0 , 22%
Explanations of significant variances in key revenue sources from the prior year are explained below:
1. Other general revenues increased by $108.0 million from the prior year primarily due to
revenue recognized from payments received by the City from the Former Agency for
continuing capital project obligations.
2. Other taxes increased by $5.3 million from the prior year due to increased transient
occupancy taxes of $3.4 million from increased tourism, increased real property transfer taxes
of $1.3 million from an improved real estate market and increased property transfers, and
increased business license taxes of $0.9 million from improving economic conditions during
the fiscal year.
9

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
3. Charges for services increased by $11.5 million from the prior year due to a $5.5 million
increase in general government fees collected, a $2.6 million increase in cultural and
recreation fees collected, and a $2.4 million increase in housing and community development
fees collected during the fiscal year.
4. Property taxes decreased by $49.8 million from the prior year, which reflects a decrease in
tax increment revenues due to the dissolution of the Redevelopment Agency on February 1,
2012.
5. Sales Taxes increased by $14.1 from the prior year, which reflects the City’s first full year
with Measure Y half-cent transaction tax revenues and well as increased taxable sales activity.
Fifty percent of the Measure Y tax is paid to the Santa Monica Malibu Unified School
District.
Governmental activities net assets also increased because of an extraordinary gain of $261.3 million
from the transfer of the net deficit from the Former Agency to the Successor Agency.
Functional Expenses: Governmental Activities. As displayed in the chart below, housing and
community development, general services, general government and public safety expenses accounted
for 83% of total governmental activity-related expenses.
Library, $11.9 , 3%
Functional Expenses for Fiscal Year 2011-2012
Governmental Activities
($ In Millions)
Housing and
community
development,
$182.0 , 37% Interest on long-term
debt, $6.6 , 1%
Cultural and
recreation, $62.2 ,
13%
General services,
$55.3 , 11%
General government,
$65.6 , 13%
Public safety, $108.2
, 22%
10

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
Explanations of significant variances in key City functions from the prior year are explained below:
1. Housing and community development expenses increased $92.7 million due in part to
recognition of $67.0 million in expenses related to a cooperation agreement between the City
and the Former Agency and significant capital outlays related to projects such as Palisades
Garden Walk and Ken Genser Square, Colorado Esplanade, and parking meters and vehicle
detection sensors.
2. General services expenses increased by $11.5 million mainly due to significant contributions
related to the Exposition Light Rail project.
3. General government expenses increased by $4.0 million mainly due to operating expenses
from the City’s new division, Office of Emergency Management; increased salary expenses
due to salary step, cost of living adjustments and Memorandum of Understanding related
salary increases; increases in medical and retirement costs; and increased city facilities
maintenance expenses.
4. Public safety expenses increased by $8.3 million due to salary step, cost of living adjustments
and Memorandum of Understanding related salary increases; increases in medical and
retirement costs; and the hiring of additional fire prevention officers during the fiscal year.
Program Expenses: Governmental Activities. The following chart compares program revenues and
expenses for governmental activities:
Expenses and Program Revenues - Governmental Activities
(In Thousands)
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
Expenses
Revenues
General government
Public safety
General services
Cultural and recreation
services
Library
Housing and community
development
Interest on long-term debt
11

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
Business-type Activities. Business-type activities accounted for 4.5% of the total increase in the
City’s net assets. The City’s business-type activities net assets increased by $10.0 million, or 1.8%,
from the prior year.
Revenue Sources: Business-type activities. As shown in the chart below, the top three sources of
revenue, charges for services, capital and operating grants and contributions, account for 96.0% of
total revenues. Key elements for growth in net assets and significant variances from prior year are as
follows:
1. Charges for services for the Water Fund increased by $2.4 million due to Council-approved
water rate increases.
2. Charges for services for the Wastewater Fund increased by $2.2 million due to Councilapproved
sewer rate increases.
3. Charges for services for the Pier Fund increased by $1.3 million due to increased rental and
parking lot fees.
4. Big Blue Bus realized an increase of $2.4 million in operating grants and contributions due
primarily to an increase in State sales tax allocation.
The below chart displays the key sources of revenue for business-type activities as a percentage of
total revenues:
Sources of Revenue for Fiscal Year 2011-2012
Business-type Activities
($ In Millions)
Capital grants and
contributions, $25.6
, 16%
Investment earnings,
$1.1 , 1%
Other general
revenues, $5.3 , 3%
Operating grants and
contributions, $38.4
, 23%
Charges for services,
$93.1 , 57%
12

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
Business-type Expenses: Business Activities. As displayed in the chart on the following page, the Big
Blue Bus, Resource Recovery and Recycling, Water and Wastewater enterprise funds accounted for
89% of total business-type activity expenses. Other business-type activities of the City include the
Airport, Pier, Civic Auditorium, Cemetery and Mausoleum, Storm Water management, and Parking
Authority funds.
Expenses for Fiscal Year 2011-2012
Business-type Activities
($ in Millions)
Resource recovery
and recycling,
$25.1, 16%
Pier,
$5.8 , 4%
Wastewater,
$18.2 , 11%
Civic auditorium,
$3.2 , 2%
Airport,
$5.3 , 3%
Storm water
management,
$0.4 ,

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
4. An increase of $1.7 million in expenses for the wastewater enterprise fund reflects increased
reimbursements to the City of Los Angeles for treatment of sewage and increased
Amalgamated Sewerage System Facilities Charge payments.
Program Expenses: Business-type Activities. The following chart compares program revenues and
expenses for business-type activities:
Expenses and Program Revenues - Business-type Activities
(In Thousands)
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
Expenses
10,000
Revenues
-
Water
Solid waste management
Pier
Wastewater
Civic auditorium
Airport
Storm water management
Cemetery
Big Blue Bus
Parking authority
FINANCIAL ANALYSIS OF THE CITY'S MAJOR FUNDS
As noted earlier, the City uses fund accounting to demonstrate compliance with finance-related legal
requirements.
Governmental funds. The focus of the City’s governmental funds is to provide information on nearterm
inflows, outflows, and balances of spendable resources. Such information is useful in assessing
the City’s financial requirements.
At the end of the current fiscal year, the City’s governmental funds reported total fund balances of
$596.5 million, an increase of $11.1 million, or 1.9% in comparison with the prior year.
14

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
General Fund
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the total
fund balance was $416.3 million.
The General Fund fund balance increased $121.0 million, or 41.0%, during the fiscal year ended June
30, 2012. Key factors in changes in revenues and expenditures from the prior year are as follows:
1. Revenues reflect a net increase of $168.5 million over the prior fiscal year primarily from
increases in sales tax of $14.1 million, property taxes of $4.2 million, settlement income of $29.2
million and other income of $110.8 million. The increase in other income is due to revenue
recognized under the City’s Master Cooperation Agreement with the Former Agency. Total
General Fund revenues were $434.8 million for the fiscal year 2012.
2. Expenditures were $63.2 million greater than the prior fiscal year primarily due to increases in
expenditures for general services of $35.6 million, or 126.1%, and housing and community
development of $15.4 million, or 62.0%. The increase of $35.6 in general services was due mainly
to an increase of capital expenditures related to various capital improvement projects such as the
Exposition Light Rail Extension project (City’s contribution to the Los Angeles County
Metropolitan Transportation Authority (MTA) project) and street and traffic signal repairs and
improvements. The increase of $15.4 million in housing and community development
expenditures was primarily due to increased capital expenditures for housing and economic
development projects such as the Palisades Garden Walk and Ken Genser Square as well as
various citywide housing acquisitions and rehabilitation projects. Total General Fund expenditures
were $334.1 million for the fiscal year 2012.
Special Revenue Source Fund
The Special Revenue Source Fund fund balance decreased by $1.1 million from the prior year. An
increase in general services expenditures of $4.6 million and housing and community development
expenditures of $2.5 million was offset by increases in settlement revenue and other revenue of $4.0
million and $0.6 million, respectively.
Earthquake Recovery Redevelopment Project Fund
The Earthquake Recovery Redevelopment Project Fund fund balance decreased by $95.7 million over
the previous year due to the dissolution of redevelopment. See Note 17.
Nonmajor Governmental Funds
All non-major governmental funds’ fund balance decreased $13.0 million, or 8.9%, from the previous
fiscal year. This decrease is primarily due to a decrease in incremental property taxes of $13.4 million
from the dissolution of the redevelopment agency and smaller decreases in intergovernmental
revenues, various taxes, and investment income earned during the fiscal year.
Proprietary funds. The City’s proprietary funds provide the same type of information found in the
government-wide financial statements, but in more detail.
15

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
The total net assets of the enterprise funds increased $12.9 million. This was due primarily to an
increase of $6.3 million, or 7.2%, in the total charges for services for all enterprise funds, and an
increase in net transfers to the Cemetery fund of $6.6 million, of which $6.2 million were from the
General Fund. Total net assets of internal service funds decreased $3.4 million, or 4.8%, mainly due to
an increase of $5.6 million in claims expense net of claims reserve adjustment. This increase in claims
expense was offset by decreases in personnel services and materials and supplies.
Resource Recovery and Recycling Fund
The Resource Recovery and Recycling Fund was not a major fund in FY 2010-11. It is a major fund
for the FY 2011-12. The total net assets of the Resource Recovery and Recycling Fund decreased $1.6
million, or 23.4%, due to increases of $1.7 million of materials and supplies expenses related to fees
paid to an outside contractor for various disposal services.
Wastewater Enterprise Fund
The total net assets of the Wastewater Fund increased $3.1 million, or 1.6%, mainly due to an increase
of $2.2 million in charges for services for greater than anticipated wastewater capital facility fees from
several large developments.
Airport Fund
The Airport Fund was not a major fund in FY 2010-11. It is a major fund for the FY 2011-12. The
total net deficit of the Airport Fund increased $1.1 million, or 36.8%, due to operating expenses
outpacing revenues by $1.1 million.
Big Blue Bus Enterprise Fund
The total net assets of the Big Blue Bus Fund increased $5.3 million due to the following: $4.5 million
increase in capital grants and $2.5 million increase in Prop 1B revenue. This was offset by operating
expenses exceeding operating grants and passenger revenue by $1.7 million.
General Fund Budgetary Highlights
Differences between the original budget versus the final amended budget and the final amended
budget versus the actual are briefly summarized as follows:
The final revenue budget exceeds the original budget by $142.3 million. This discrepancy is primarily
due to additional budget appropriated for anticipated revenues of $139.8 million from Former Agency
payments to the City. Actual total revenues were greater than final budget totals by $6.4 million. This
was partially due to settlement income, property tax, sales tax, and other tax revenues exceeding final
budgeted amounts by $29.2 million, $3.8 million, $3.9 million, and $0.7 million, respectively. Actual
other revenues fell short of budgeted other revenues, due mainly to transactions between the City and
Former Agency of $27.9 million that were budgeted and not realized.
The final expenditure budget is greater than the original budget by $ 303.3 million. The increase is
comprised primarily of $199.0 million of capital improvement projects included in the final
expenditure budget, which includes Civic Center Palisades Walk and Ken Genser Square, Civic
Auditorium renovation, and Parking Structure 6 construction budgets for $47.5 million, $51.9 million,
16

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
and $33.8 million, respectively. Final budgeted expenditures exceeded actual budgetary basis
expenditures by $53.0 million due to continuing capital improvement projects in general government,
public safety, general services, cultural and recreation services, and housing and community
development.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets. The City’s investment in capital assets as of June 30, 2012, amounted to $1.2 billion
(net of accumulated depreciation) an increase of $37.2 million from the prior year balance. This
investment in a broad range of capital assets, including land, infrastructure, structures and
improvements, equipment, and construction in progress, is detailed as follows:
CITY OF SANTA MONICA
Capital Assets (net of depreciation)
(in millions)
Governmental activities Business-type activities Total
2011-12 2010-11 2011-12 2010-11 2011-12 2010-11
Land $ 199.9 196.4 72.2 72.4 272.1 268.8
Land held under easement 72.2 72.2 — — 72.2 72.2
Buildings 217.8 217.0 111.1 111.7 328.9 328.7
Improvements other than buildings 30.6 32.7 6.4 6.6 37.0 39.3
Machinery and equipment 8.8 9.0 52.8 52.7 61.6 61.7
Infrastructure 160.7 171.2 140.1 145.3 300.8 316.5
Utility systems 1.4 1.4 — — 1.4 1.4
Intangibles 3.3 3.3 61.4 60.8 64.7 64.1
Construction in progress 76.6 34.9 25.6 16.1 102.2 51.0
Capital assets, net $ 771.3 738.1 469.6 465.6 1,240.9 1,203.7
Some of the City’s major capital asset events in the 2011-12 fiscal year were:
Governmental Activities:
1. $3.3 million increase in land for the property addition located at 10240-10248 Wilshire
Boulevard.
2. $1.2 million for the completion of the demolition and rebuild of seven beach restrooms.
3. $2.2 million increase in construction in progress related to the demolition and rebuild of
Parking Structure 6.
4. $7.2 million increase in construction in progress for the development of the Palisades Garden
Walk and Ken Genser Square, a new six-acre park and one-acre park, respectively, that are
oriented to civic and community activities.
17

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
5. $1.0 million increase in construction in progress for the Colorado Esplanade project. The
Colorado Esplanade will create a newly-designed promenade and plaza which will connect the
future Light Rail Station and the Pier, providing a seamless connection from the Expo Light
Rail station to Ocean Avenue and the Pier, the Main Street Bridge, Downtown and adjacent
circulation network.
6. $24.9 million increase in construction in progress of the Expo Light Rail project, which
consists of three stations, a maintenance facility, a bike path, and approximately three miles of
track way within Santa Monica. This project is a 15-mile light rail line extending from
Downtown Los Angeles to Downtown Santa Monica.
7. $0.5 million increase in construction in progress for the new Pico Branch Library.$1.3 million
increase in construction in progress of the Ocean Park Boulevard Green Street Project. This
project will provide wider sidewalks, wider and more visible bike lanes, new trees and
landscaping, new and enhanced crosswalks and pedestrian lighting, and water quality
improvements by reducing impervious street surface and installing landscaped bio filter
swales and infiltration areas.
8. $1.7 million in building improvements for the bike center parking facilities in parking
structures 7 and 8.
Business-Type Activities:
1. $3.6 million increase in construction in progress to replace water mains at various locations
throughout the City in the Water Fund. Water mains identified for replacement or upgrades
were based on factors such as age, condition, and capacity demands.
2. $2.7 million increase in intangibles for the capital payments made to the City of Los Angeles
for Santa Monica’s shared cost of the Hyperion Plant amalgamated water system in the
Wastewater Fund.
3. $9.7 million increase in machinery and equipment for the purchase of five new 60 foot
articulated clean natural gas buses and ten new 30 foot clean natural gas buses to replace
obsolete fleet in the Big Blue Bus Fund. In addition, there was $2.1 million spent for the
upgrade of the Big Blue Bus Fuel and Wash Facility.
4. $2.6 million increase in construction in progress related to the demolition and rebuild of
parking structure 6 in the Parking Authority Fund.
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
$121.9 million, a decrease from the prior year of $237.6 million or 66.1%. This amount was
comprised of $107.9 million of revenue bonds, which are secured by both governmental and businesstype
revenue sources, $11.3 million of general obligation bonds which are backed by the full faith and
credit of the City, and $2.7 million of various notes and loans payable. This is shown in the following
table:
18

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
CITY OF SANTA MONICA
Outstanding Debt
(in millions)
General obligation bonds
2011-12 2010-11 2011-12 2010-11 2011-12 2010-11
(backed by the City) $ 11.3 15.0 — — 11.3 15.0
Revenue bonds
(backed by specific tax, fee 87.6 167.8 20.3 22.6 107.9 190.4
and lease revenues)
Governmental activities Business-type activities Total
Term Loan, Redevelopment — 50.0 — — — 50.0
Agency (backed by specific
tax revenues)
Notes and loans 0.4 101.5 2.3 2.6 2.7 104.1
Total $ 99.3 334.3 22.6 25.2 121.9 359.5
On November 16, 2011, the Santa Monica Public Financing Authority issued $32,065,000 of Santa
Monica Public Financing Authority Lease Revenue Bonds Series 2011A bearing interest from 4.00%
to 5.00% with a maturity date of June 1, 2031 to fund construction of Parking Structure 6.
On that same date the Santa Monica Public Financing Authority refunded the Santa Monica Public
Financing Authority Lease Revenue Series 2002A by issuing Santa Monica Public Financing
Authority Lease Revenue Refunding Bonds Series 2011B for $8,625,000 bearing interest from 2.00%
to 4.00% with a maturity of December 1, 2020.
On May 30, 2012, the City issued $11,325,000 of General Obligation Refunding Bonds, Series 2012
(Library Improvement Project) bearing interest from 0.20% to 4.00% with a maturity of July 1, 2022
to refund the City of Santa Monica General Obligation Bonds Series 2002 (Library Improvement
Project). At June 30, 2012, $13,750,000 of the refunded bonds were still outstanding and have not
been included in the accompanying financial statements. The defeased 2002 Library Improvement
Bonds were called in full on July 1, 2012.
On that same date, the City issued $8,955,000 of Wastewater Refunding Revenue Bonds, Series
2012A bearing interest from 2.00% to 4.00% with a maturity of February 1, 2022. These bonds were
issued to refund the City of Santa Monica Wastewater Enterprise Revenue Bonds (Hyperion Project)
1993 Refunding Series.
On June 14, 2012, Moody’s downgraded all California Redevelopment Tax Allocation Bonds to Ba1,
which included the Redevelopment Agency of the City of Santa Monica Earthquake Project
Redevelopment Bonds Series 2011 and 2006 and the City of Santa Monica Ocean Park Project
Redevelopment Bonds Series 2002. This debt was transferred to the Successor Agency as of February
1, 2012.
19

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
On October 9, 2012, Moody’s Investor Services issued a statement that the debt ratings of 32
California cities would come under review. On December 17, 2012, Moody’s downgraded the City’s
Lease Revenue Bonds to Aa2 from Aa1 citing Moody’s opinion that a two notch rating distinction
between the City’s Aaa general obligation bond rating and the Aa2 lease-backed obligation generally
reflects the weaker security pledge for the lease-backed obligations. These bonds include the Public
Financing Authority Lease Revenue Refunding Bonds, Series 2011A and 2009 (Public Safety Facility
Project), and Series 2004 (Civic Center Parking Project).
Additional information on the City’s long-term debt can be found in note 9 to the basic financial
statements.
ECONOMIC FACTORS AND BIENNIAL BUDGET
The City’s adopted General Fund budget for FYs 2011-13 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.
In preparing the budget, many factors were taken into consideration.
• The decreased revenues resulting from the dissolution of redevelopment and the loss of
property tax increment revenue.
• Increase in payments to the Santa Monica Malibu United School District due to additional
revenues from Measure Y.
• Continued increases in sales and use tax, utility users’ tax, transient occupancy tax and
parking revenues due to an improving economy.
• Increase expenditures due primarily to water purchases and Big Blue Bus budget realignment
to reflect current operations.
• The additional payment to reduce the City’s pension liability and higher pension costs
resulting from the California Public Employees Retirement System discount rate change.
• Twenty percent funding reduction in Community Development Block Grants and other
Housing and Urban Development allocation reductions.
• Elimination and reduction of grant funding in various divisions.
• New operating and maintenance costs for new public spaces.
• The additional appropriations for the Airport Fund loan and Cemetery subsidies.
• The City warehouse closure.
• Corrections of historic under budgeting in certain areas.
• Continued support of education.
• Impact of the dissolution of redevelopment (see note 17).
20

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
For the fiscal year ended June 30, 2012
(Unaudited)
CONTACTING THE CITY'S FINANCE DEPARTMENT
This management’s discussion and analysis is designed to provide citizens, taxpayers, customers,
investors and creditors with a general overview of the City's finances and to demonstrate the City's
accountability for the money it receives. If you have questions or need additional financial
information, please contact the City of Santa Monica’s Finance Department at
www.smgov.net/finance or at (310) 458-8281.
21

THIS PAGE INTENTIONALLY LEFT BLANK
22

City of Santa Monica, California
Year Ended June 30, 2012
Basic Financial Statements

CITY OF SANTA MONICA, CALIFORNIA
Statement of Net Assets
June 30, 2012
Governmental
Activities
Business-Type
Activities
Total
ASSETS
Cash and investments (note 5) $ 338,165,244 110,817,216 448,982,460
Receivables (net of allowances for uncollectibles):
Accounts 88,077,377 22,472,530 110,549,907
Interest 1,080,456 298,503 1,378,959
Property taxes 1,503,357 — 1,503,357
Notes (note 6) 107,987,656 — 107,987,656
Other governments 4,256,380 — 4,256,380
Internal balances 15,457,366 (15,457,366) —
Inventory — 1,663,136 1,663,136
Due from Successor Agency (note 11) 59,216 — 59,216
Deposits 61,785 — 61,785
Prepaids 241,970 101,508 343,478
Restricted cash and investments (note 5) 228,312,550 26,481,929 254,794,479
Restricted cash and investments with fiscal agent (note 5) 50,820,984 — 50,820,984
Advances to Successor Agency (note 11) 30,405,503 — 30,405,503
Bond issuance costs, net 1,454,822 381,336 1,836,158
Capital assets (note 7):
Capital assets not being depreciated:
Land 199,875,024 72,231,413 272,106,437
Land held under easement 72,237,823 — 72,237,823
Construction in progress 76,620,830 25,566,686 102,187,516
Capital assets being depreciated:
Buildings 280,335,067 153,144,518 433,479,585
Improvements other than buildings 78,625,572 26,556,833 105,182,405
Utility systems 1,742,913 — 1,742,913
Machinery and equipment 35,324,722 166,477,802 201,802,524
Infrastructure 329,590,318 204,438,070 534,028,388
Intangibles 3,575,000 82,597,091 86,172,091
Less accumulated depreciation (306,648,890) (261,355,976) (568,004,866)
Total capital assets, net 771,278,379 469,656,437 1,240,934,816
TOTAL ASSETS 1,639,163,045 616,415,229 2,255,578,274
LIABILITIES
Accounts payable 16,334,238 4,493,132 20,827,370
Accrued liabilities 9,658,181 3,817,120 13,475,301
Accrued interest payable 1,191,785 245,331 1,437,116
Contracts payable (retained percentage) 2,248,933 535,634 2,784,567
Due to Successor Agency (note 11) 36,800,358 — 36,800,358
Unearned revenue (note 8) 32,522,979 1,051,201 33,574,180
Due to other governments 3,514 — 3,514
Deposits payable from restricted assets 1,095,500 10,017,699 11,113,199
Long-term liabilities:
Compensated absences due within one year (note 9) 6,182,307 2,172,739 8,355,046
Compensated absences due in more than one year (note 9) 5,149,218 1,100,172 6,249,390
Claims payable due within one year (notes 9 and 15) 6,551,766 1,524,563 8,076,329
Claims payable due in more than one year (notes 9 and 15) 22,473,475 1,188,493 23,661,968
Loans and bonds payable due within one year (note 9) 3,365,000 1,963,305 5,328,305
Loans and bonds payable due in more than one year (note 9) 100,260,630 19,664,932 119,925,562
Pollution remediation obligation due within one year (note 4) 5,357,291 — 5,357,291
Pollution remediation obligation due in more than one year (note 4) 123,396,332 — 123,396,332
Accrued OPEB liability (note 16) 6,740,000 — 6,740,000
TOTAL LIABILITIES 379,331,507 47,774,321 427,105,828
NET ASSETS
Invested in capital assets, net of related debt 708,564,360 448,028,200 1,156,592,560
Restricted for (note 12):
Housing and community development 87,511,217 — 87,511,217
Clean beaches and ocean parcel tax 10,265,875 — 10,265,875
Miscellaneous grants 14,864,749 — 14,864,749
Debt service 3,598,618 — 3,598,618
Development projects 37,342,114 — 37,342,114
Perpetual care - nonexpendable 9,146,899 — 9,146,899
Rail system, Prop 1B and ARRA — 16,024,235 16,024,235
Pollution remediation settlement 9,234,917 — 9,234,917
Unrestricted 379,302,789 104,588,473 483,891,262
TOTAL NET ASSETS $ 1,259,831,538 568,640,908 1,828,472,446
See accompanying notes to basic financial statements.
23

CITY OF SANTA MONICA, CALIFORNIA
Statement of Activities
For the fiscal year ended June 30, 2012
Program Revenues
Net (Expense) Revenue and Changes in Net Assets
Charges for
Services
Operating Grants
and Contributions
Capital Grants and
Contributions
Governmental
Activities
Business-type
Activities
Functions/Programs
Expenses
Total
Governmental Activities:
General government $ 65,640,271 48,239,920 2,503,652 170 (14,896,529) — (14,896,529)
Public safety 108,205,471 22,033,156 1,964,160 2,530 (84,205,625) — (84,205,625)
General services 55,341,929 2,429,537 2,771,514 1,917,538 (48,223,340) — (48,223,340)
Cultural and recreation services 62,145,219 16,083,451 2,621,270 — (43,440,498) — (43,440,498)
Library 11,899,948 465,891 155,638 — (11,278,419) — (11,278,419)
Housing and community development 181,970,013 16,712,921 16,722,953 1,448,983 (147,085,156) — (147,085,156)
Interest on long-term debt 6,585,618 — — — (6,585,618) — (6,585,618)
Total governmental activities 491,788,469 105,964,876 26,739,187 3,369,221 (355,715,185) — (355,715,185)
Business-Type Activities
Water 19,665,696 19,897,464 — — — 231,768 231,768
Resource recovery and recycling 25,065,338 22,253,758 — — — (2,811,580) (2,811,580)
Pier 5,803,944 6,004,005 — — — 200,061 200,061
Wastewater 18,186,844 20,007,219 — — — 1,820,375 1,820,375
Civic auditorium 3,239,999 1,667,172 — — — (1,572,827) (1,572,827)
Airport 5,270,688 3,891,716 — — — (1,378,972) (1,378,972)
Storm water management 411,985 1,419,980 — — — 1,007,995 1,007,995
Cemetery 1,812,098 1,133,990 — — — (678,108) (678,108)
Big Blue Bus 79,835,156 16,614,711 38,424,357 25,609,158 — 813,070 813,070
Parking authority 315,736 161,504 — — — (154,232) (154,232)
Total business-type activities 159,607,484 93,051,519 38,424,357 25,609,158 — (2,522,450) (2,522,450)
Total Primary Government $ 651,395,953 199,016,395 65,163,544 28,978,379 (355,715,185) (2,522,450) (358,237,635)
General revenues:
Taxes:
Business 27,382,495 — 27,382,495
Property 59,161,313 — 59,161,313
Transient occupancy 36,143,092 — 36,143,092
Utility users 31,295,584 — 31,295,584
Real property transfer 5,192,112 — 5,192,112
Parking facility tax 9,394,167 — 9,394,167
Other taxes 2,864,682 — 2,864,682
Settlement income 3,750,000 — 3,750,000
Motor vehicle in lieu, unrestricted 45,862 — 45,862
Sales and use taxes 45,831,961 — 45,831,961
Other income 120,208,757 5,310,643 125,519,400
Investment earnings 5,791,811 1,125,241 6,917,052
Extraordinary gain (note 17) 261,255,080 — 261,255,080
Transfers (6,141,048) 6,141,048 —
Total general revenues, extraordinary gain and transfers 602,175,868 12,576,932 614,752,800
Change in net assets 246,460,683 10,054,482 256,515,165
Net assets, beginning 1,013,370,855 558,586,426 1,571,957,281
Net assets, ending $ 1,259,831,538 568,640,908 1,828,472,446
See accompanying notes to basic financial statements.
24

CITY OF SANTA MONICA, CALIFORNIA
Major Governmental Fund Financial Statements
General Fund – To account for all financial resources necessary to carry out basic governmental
activities of the City that are not accounted for in another fund. The General Fund supports essential City
services such as police and fire protection, street maintenance, libraries, parks and open space
management.
Special Revenue Source Fund (Capital Projects Fund Type) – To account for receipt and expenditure
of monies restricted or committed for specific uses.
Earthquake Recovery Redevelopment Project Fund (Capital Projects Fund Type) – To account for
the revenues and expenditures of the earthquake recovery redevelopment project area of the
Redevelopment Agency of the City of Santa Monica. The redevelopment plan for this 2,307-acre project
was approved in June 1994. The project area included approximately 90 percent of all red-tagged and 80
percent of all yellow-tagged buildings damaged by the January 17, 1994 Northridge Earthquake. The
Redevelopment Agency was dissolved on February 1, 2012. See Note 17.
25

CITY OF SANTA MONICA, CALIFORNIA
Balance Sheet
Governmental Funds
June 30, 2012
General Fund
Capital Projects Funds
Special Revenue
Source Fund
Earthquake
Recovery
Redevelopment
Project Fund
Nonmajor
governmental
funds
Total
governmental
funds
Assets
Cash and investments (note 5) $ 386,177,304 70,087,428 — 58,487,175 514,751,907
Receivables (net, where applicable, of allowances for uncollectibles):
Accounts 14,103,727 95,838 — 506,622 14,706,187
Notes (note 6) 9,589,483 24,915,158 — 73,483,015 107,987,656
Property taxes 1,503,357 — — — 1,503,357
Interest 779,379 25,870 — 158,856 964,105
Other governments 1,751,267 — — 2,505,113 4,256,380
Due from other funds (note 11) 7,731,246 — — 543,072 8,274,318
Deposits 58,528 — — 3,257 61,785
Prepaids 205,066 — — 27,379 232,445
Restricted cash and investments with fiscal agent (note 5) 34,434,743 — — 16,386,241 50,820,984
Advances to other funds (note 11) 17,240,093 — — — 17,240,093
Advances to Successor Agency (note 11) 21,382,237 — — 9,023,266 30,405,503
Total assets $ 494,956,430 95,124,294 — 161,123,996 751,204,720
Liabilities and Fund Balances
Liabilities
Accounts payable $ 13,308,102 1,136,078 — 1,429,165 15,873,345
Accrued liabilities 9,178,046 — — 356,573 9,534,619
Contracts payable (retained percentage) 1,660,214 168,867 — 419,852 2,248,933
Due to other funds (note 11) 30,880,832 — — 13,061,814 43,942,646
Due to other governments 3,514 — — — 3,514
Deferred revenue 22,711,519 47,242,318 — 8,226,762 78,180,599
Deposits payable 956,922 — — 138,578 1,095,500
Advances from other funds (note 11) — — — 3,842,973 3,842,973
Total liabilities 78,699,149 48,547,263 — 27,475,717 154,722,129
Fund balances (deficit) (note 13)
Nonspendable 22,181,490 12,287,266 — 11,044,325 45,513,081
Restricted 43,056,449 15,362,478 — 108,295,784 166,714,711
Committed 640,000 820,854 — 51,976 1,512,830
Assigned 233,153,471 18,106,433 — 14,443,590 265,703,494
Unassigned 117,225,871 — — (187,396) 117,038,475
Total fund balances (deficit) 416,257,281 46,577,031 — 133,648,279 596,482,591
Total liabilities and fund balances $ 494,956,430 95,124,294 — 161,123,996 751,204,720
See accompanying notes to basic financial statements.
26

CITY OF SANTA MONICA, CALIFORNIA
Reconciliation of the Governmental Funds Balance Sheet to the
Government-Wide Statement of Net Assets
June 30, 2012
Fund balances - total governmental funds $ 596,482,591
Amounts reported for governmental activities in the statement of net assets are different because (Note 3):
(1) Capital assets used in governmental activities are not current financial resources and therefore are not reported in the balance sheet. 770,732,111
(2) Bond issue costs to be amortized over the life of the debt. 1,454,822
(3) Long-term liabilities are not due and payable in the current period and therefore are not reported in the balance sheet. (251,642,563)
(4) Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the
funds and recognized as revenue in the statement of activities. 119,028,095
(5) Internal service funds are used by management to charge the costs of vehicle management, information technology and
risk management to individual funds. The assets and liabilities of the information technology and risk
management (excluding bus) internal service funds are included in the governmental activities in the statement of net assets. 23,776,482
Net assets of governmental activities $ 1,259,831,538
See accompanying notes to basic financial statements.
27

CITY OF SANTA MONICA, CALIFORNIA
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the fiscal year ended June 30, 2012
Capital Projects Funds
Special Revenue
Source Fund
Earthquake
Recovery
Redevelopment
Project Fund
Nonmajor
governmental
funds
Total
governmental
funds
General Fund
Revenues:
Property taxes $ 40,226,124 — — — 40,226,124
Incremental property taxes — — 13,191,737 6,603,114 19,794,851
Sales taxes 45,831,961 — — — 45,831,961
Other taxes 108,433,055 — — 2,917,190 111,350,245
Licenses and permits 30,518,601 — — 89,991 30,608,592
Intergovernmental 404,210 308,952 — 27,563,887 28,277,049
Charges for services 36,752,956 560,202 — 15,300,173 52,613,331
Fines and forfeitures 15,651,820 — — — 15,651,820
Investment income 3,555,400 259,293 61,003 1,114,276 4,989,972
Rental income 8,351,319 — — 1,267,935 9,619,254
Settlement income 29,229,525 4,047,746 — — 33,277,271
Other 115,846,146 2,021,152 188,943 1,437,771 119,494,012
Total revenues 434,801,117 7,197,345 13,441,683 56,294,337 511,734,482
Expenditures:
Current:
General government 63,808,035 — — 10,986 63,819,021
Public safety 104,231,630 — — 1,983,923 106,215,553
General services 63,901,709 5,062,105 — 8,232,956 77,196,770
Cultural and recreation services 50,178,636 27,360 — 10,116,018 60,322,014
Library 11,303,654 — — 20,252 11,323,906
Housing and community development 40,248,095 2,492,090 85,624,640 68,892,971 197,257,796
Debt service expenditures:
Principal — — 4,285,714 8,895,000 13,180,714
Interest — — 2,301,857 10,010,768 12,312,625
Bond issue costs 416,993 — 25,000 — 441,993
Total expenditures 334,088,752 7,581,555 92,237,211 108,162,874 542,070,392
Excess (deficiency) of revenues over (under) expenditures 100,712,365 (384,210) (78,795,528) (51,868,537) (30,335,910)
Other financing sources (uses):
Transfers in (note 11) 11,276,113 — — 87,524,528 98,800,641
Transfers out (note 11) (25,549,932) (742,424) (6,497,232) (72,468,287) (105,257,875)
Proceeds from issuance of long-term debt 32,178,250 — — — 32,178,250
Proceeds from issuance of refunding bonds 19,950,000 — — — 19,950,000
Premium on debt issued 4,339,840 — — — 4,339,840
Payment to refunded bond escrow agent (21,925,071) — — (364,583) (22,289,654)
Total other financing sources (uses) 20,269,200 (742,424) (6,497,232) 14,691,658 27,721,202
Extraordinary items:
Extraordinary gain (note 17) — — — 28,201,616 28,201,616
Extraordinary loss (note 17) — — (10,438,948) (4,059,455) (14,498,403)
Total extraordinary items — — (10,438,948) 24,142,161 13,703,213
Net change in fund balances 120,981,565 (1,126,634) (95,731,708) (13,034,718) 11,088,505
Fund balances at the beginning of year 295,275,716 47,703,665 95,731,708 146,682,997 585,394,086
Fund balances at end of year $ 416,257,281 46,577,031 — 133,648,279 596,482,591
See accompanying notes to basic financial statements.
28

CITY OF SANTA MONICA, CALIFORNIA
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances
to the Government-Wide Statement of Activities
For the fiscal year ended June 30, 2012
Net change in fund balances – total governmental funds $ 11,088,505
Amounts reported for governmental activities in the statement of activities are different because:
Capital assets
1) The acquisition of capital assets requires the use of current financial resources
but has no effect on net assets. 54,754,258
2) The cost of capital assets is allocated over their estimated useful lives and reported
as depreciation expense in the statement of activities. (21,653,021)
3) The loss on disposal of capital assets is recorded as an expense in the statement of activities
but is not recorded in the fund statements. (12,414)
4) The transfer of capital assets from an enterprise fund to a governmental fund is recorded as a transfer in on the statement of activities
but is not recorded in the fund statements. 200,000
Measurement focus:
5) Change in accrued interest payable. 3,390,930
6) Principal payments on long-term bonded debt use current financial resources
but have no effect on net assets. 8,895,000
7) Principal payments on long-term loans payable use current financial resources
but have no effect on net assets. 4,285,714
8) The issuance of long-term debt provides current financial resources to the funds
but has no effect on net assets. (52,128,250)
The defeasance of long-term debt uses current financial resources of the funds
but has no effect on net assets. 22,289,654
The premium on issuance of long-term debt provides current financial resources to the funds
but has no effect on net assets. (4,339,840)
The issuance costs of long-term debt uses current financial resources of the funds
but has no effect on net assets. 441,993
The interest expense of long-term debt uses current financial resources of the funds
but has no effect on net assets. 27,011
9) Bond premiums are recorded as other financing source in the fund statements but are
amortized in the statement of activities. 193,596
10) Bond discounts are recorded as other financing uses in the fund statements but are
amortized in the statement of activities. (7,977)
11) Costs of issuance are recorded as an expenditure in the fund statements but are
amortized in the statement of activities. (161,709)
12) Deferred loss on refunding amortized in the statement of activities. (152,426)
13) The decrease in compensated absences liability does not provide current
financial resources but is recorded as a decrease in expense in the statement of activities. 577
14) Elimination of interest related to interfund loans that are recorded as an expenditure, with offsetting
interest revenue on the fund statements but eliminated on the government-wide statements. 2,796,021
15) Pollution remediation settlement income recognized on fund statements, had been previously recognized
in the statement of activities. (29,229,525)
16) Net pollution remediation expenses not recognized on fund statements recognized in the statement of activities (150,000)
17) The increase in OPEB liability does not require the use of current
financial resources but is recorded as an expense in the statement of activities. (1,646,000)
18) To record pollution remediation liability activity, which was recorded in a prior year and reduced
the liability in the statement of net assets. 541,059
19) Extraordinary items: transfers to the Santa Monica Redevelopment Successor Agency
Long-term debt 251,897,306
Issuance costs (1,657,813)
Bond premiums 430,603
Bond discounts (140,785)
Deferred loss on refunding (2,977,444)
247,551,867
Internal service funds:
20) Certain internal service funds are used by management to charge the costs of vehicle
management, information technology, and risk management to individual funds.
The net expense of certain internal service funds is reported with
governmental activities. (514,340)
Change in net assets (statement of activities, governmental activities)
$
246,460,683
29

CITY OF SANTA MONICA, CALIFORNIA
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual (Non-GAAP Basis)
General Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
Original Final encumbered 2011-2012 budgetary Variance with
budget budget Actual expenditures encumbrances basis final budget
Revenues:
Property taxes $ 35,852,491 36,418,647 40,226,124 — — 40,226,124 3,807,477
Sales tax 41,950,000 41,950,000 45,831,961 — — 45,831,961 3,881,961
Other taxes 105,703,122 107,744,000 108,433,055 — — 108,433,055 689,055
Licenses and permits 29,744,431 29,744,431 30,518,601 — — 30,518,601 774,170
Intergovernmental 409,758 234,758 404,210 — — 404,210 169,452
Charges for services 38,986,618 38,712,049 36,752,956 — — 36,752,956 (1,959,093)
Fines and forfeitures 17,679,000 16,354,000 15,651,820 — — 15,651,820 (702,180)
Investment income 5,118,000 5,318,000 3,555,400 — — 3,555,400 (1,762,600)
Rental income 8,402,964 8,230,798 8,351,319 — — 8,351,319 120,521
Settlement income — — 29,229,525 — — 29,229,525 29,229,525
Other 2,331,274 143,730,378 115,846,146 — — 115,846,146 (27,884,232)
Total revenues 286,177,658 428,437,061 434,801,117 — — 434,801,117 6,364,056
Expenditures:
General government:
City council 642,663 671,437 582,846 19,306 — 563,540 107,897
City manager 9,411,604 9,440,494 8,566,072 376,698 733,741 8,923,115 517,379
Record and election services 2,168,629 2,225,395 2,148,330 — 55,663 2,203,993 21,402
Finance 21,321,003 21,341,657 20,221,902 213,532 517,179 20,525,549 816,108
City attorney 8,672,331 8,640,256 8,931,187 — 16,508 8,947,695 (307,439)
Human resources 3,672,103 3,662,125 3,442,005 — 501 3,442,506 219,619
Information systems 6,385,547 6,364,325 5,683,714 16,000 21,327 5,689,041 675,284
Other 915,568 6,415,568 6,223,332 — — 6,223,332 192,236
Capital improvement 4,565,407 19,002,848 8,008,647 — 3,236,933 11,245,580 7,757,268
Total general government 57,754,855 77,764,105 63,808,035 625,536 4,581,852 67,764,351 9,999,754
Public safety:
Police 69,224,123 67,368,398 71,541,849 89,286 46,852 71,499,415 (4,131,017)
Fire 29,835,411 29,652,660 29,432,690 89,990 110,913 29,453,613 199,047
Other — 2,500,000 2,500,000 — — 2,500,000 —
Capital improvement 1,844,077 5,657,422 757,091 — 464,056 1,221,147 4,436,275
Total public safety 100,903,611 105,178,480 104,231,630 179,276 621,821 104,674,175 504,305
See accompanying notes to basic financial statements.
(Continued)
30

CITY OF SANTA MONICA, CALIFORNIA
Statement of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual (Non-GAAP Basis)
General Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
Original Final encumbered 2011-2012 budgetary Variance with
budget budget Actual expenditures encumbrances basis final budget
General services:
Public works $ 25,996,656 27,025,606 25,777,342 29,312 183,810 25,931,840 1,093,766
Capital improvement 6,375,892 76,140,810 38,124,367 — 11,757,988 49,882,355 26,258,455
Total general services 32,372,548 103,166,416 63,901,709 29,312 11,941,798 75,814,195 27,352,221
Cultural and recreation services:
Community and cultural services 34,294,093 34,678,221 33,482,999 440,894 555,266 33,597,371 1,080,850
Other 13,653,227 13,903,227 14,098,260 — 553,600 14,651,860 (748,633)
Capital improvement 2,031,640 7,467,280 2,597,377 — 660,687 3,258,064 4,209,216
Total cultural and recreation services 49,978,960 56,048,728 50,178,636 440,894 1,769,553 51,507,295 4,541,433
Library:
Library 10,968,118 10,938,871 10,664,329 257,422 160,996 10,567,903 370,968
Capital improvement — 1,944,748 639,325 — 1,264,493 1,903,818 40,930
Total library 10,968,118 12,883,619 11,303,654 257,422 1,425,489 12,471,721 411,898
Housing and community development:
Planning and community development 15,902,044 15,869,314 15,213,320 230,908 429,607 15,412,019 457,295
Housing and economic development 6,797,632 7,264,703 6,040,295 64,917 55,981 6,031,359 1,233,344
Other 2,500,238 2,500,238 2,500,238 — — 2,500,238 —
Capital improvement — 198,950,182 16,494,242 — 174,437,556 190,931,798 8,018,384
Total housing and community development 25,199,914 224,584,437 40,248,095 295,825 174,923,144 214,875,414 9,709,023
Bond issue costs — 855,225 416,993 — — 416,993 438,232
Total expenditures 277,178,006 580,481,010 334,088,752 1,828,265 195,263,657 527,524,144 52,956,866
Excess (deficiency) of revenues
over (under) expenditures 8,999,652 (152,043,949) 100,712,365 (1,828,265) (195,263,657) (92,723,027) 59,320,922
Other financing sources (uses):
Transfers in 11,427,816 11,427,816 11,276,113 — — 11,276,113 (151,703)
Transfers out (10,775,669) (32,948,345) (25,549,932) — — (25,549,932) 7,398,413
Proceeds from issuance of long-term debt — 32,178,250 32,178,250 — — 32,178,250 —
Proceeds from issuance of refunding bonds — 19,950,000 19,950,000 — — 19,950,000 —
Premium on debt issued — 5,627,900 4,339,840 — — 4,339,840 (1,288,060)
Payment to refunded bond escrow agent — (2,769,531) (21,925,071) — — (21,925,071) (19,155,540)
Total other financing sources (uses) 652,147 33,466,090 20,269,200 — — 20,269,200 (13,196,890)
Net change in fund balances 9,651,799 (118,577,859) 120,981,565 (1,828,265) (195,263,657) (72,453,827) 46,124,032
Fund balance at beginning of year 295,275,716 295,275,716 295,275,716 — — 295,275,716 —
Fund balance at end of year $ 304,927,515 176,697,857 416,257,281 (1,828,265) (195,263,657) 222,821,889 46,124,032
See accompanying notes to basic financial statements.
31

THIS PAGE INTENTIONALLY LEFT BLANK
32

CITY OF SANTA MONICA, CALIFORNIA
Proprietary Fund Financial Statements
Enterprise Funds are used to report any activity for which a fee is charged to external users for goods or
services.
Resource Recovery and Recycling Fund – To account for revenues and expenses of operating
the City's refuse collection, street sweeping and cleaning, and recycling programs.
Wastewater Fund – To account for revenues and expenses associated with maintaining the
sanitary sewer and storm drain systems within the City.
Airport Fund – To account for revenues and expenses connected with management of the Santa
Monica Municipal Airport.
Big Blue Bus Fund – To account for revenues and expenses related to operation of the City's
municipal bus lines.
Internal Service Funds – To account for the financing of goods or services provided by one department
or agency to other departments or agencies of the City or to other governments, on a cost-reimbursement
basis.
33

CITY OF SANTA MONICA, CALIFORNIA
Statement of Net Assets
Proprietary Funds
June 30, 2012
Resource
Recovery and
Recycling Wastewater Airport Big Blue Bus
Nonmajor
enterprise
funds
Total
enterprise
funds
Total
internal
service funds
ASSETS
Current assets:
Cash and investments (note 5) $ 2,440,342 27,312,934 3,436,499 14,199,397 31,993,520 79,382,692 83,160,411
Restricted cash and investments (note 5) — 239,921 379,945 — 989,572 1,609,438 —
Receivables (net, where applicable, of
allowances for uncollectibles):
Accounts 3,535,524 3,057,522 132,540 11,285,577 4,461,280 22,472,443 802
Interest 31,648 62,955 2,789 47,711 88,303 233,406 181,448
Inventory — — — 1,611,790 — 1,611,790 51,346
Prepaids — 7,324 — 86,859 7,325 101,508 9,525
Total current assets 6,007,514 30,680,656 3,951,773 27,231,334 37,540,000 105,411,277 83,403,532
Noncurrent assets:
Restricted cash and investments (note 5) 8,634,969 3,385,892 — 11,096,332 1,755,298 24,872,491 —
Capital assets (note 7):
Land — 3,189,132 8 61,085,563 7,956,710 72,231,413 —
Buildings 334,063 251,447 8,018,906 128,233,725 16,306,377 153,144,518 —
Improvements other than buildings 173,736 421,868 12,558,166 5,974,444 7,428,619 26,556,833 —
Machinery and equipment 473,269 1,193,713 478,617 118,973,045 5,955,994 127,074,638 41,776,081
Infrastructure — 149,150,701 — — 55,287,369 204,438,070 —
Intangibles — 82,597,091 — — — 82,597,091 —
Construction in progress 934,216 1,255,585 — 13,679,054 9,348,583 25,217,438 349,248
Less: accumulated depreciation (805,491) (59,026,460) (15,257,352) (114,793,711) (47,159,834) (237,042,848) (26,139,777)
Net capital assets 1,109,793 179,033,077 5,798,345 213,152,120 55,123,818 454,217,153 15,985,552
Bond issuance costs, net — 381,336 — — — 381,336 —
Total noncurrent assets 9,744,762 182,800,305 5,798,345 224,248,452 56,879,116 479,470,980 15,985,552
TOTAL ASSETS 15,752,276 213,480,961 9,750,118 251,479,786 94,419,116 584,882,257 99,389,084
LIABILITIES
Current liabilities:
Accounts payable 922,390 252,568 113,529 1,151,946 1,863,187 4,303,620 607,282
Accrued liabilities 560,892 154,924 99,595 4,126,200 875,163 5,816,774 296,647
Contracts payable (retained percentage) — 7,546 — 429,743 98,345 535,634 —
Claims payable (note 15) — — — — — — 8,076,329
Interest payable — 225,325 — — 20,006 245,331 —
Current portion of long-term obligations (note 9) — 1,700,000 — — 263,305 1,963,305 —
Due to other funds (note 11) — — — — 1,072,814 1,072,814 —
Liabilities payable from restricted assets - deposits 8,639,844 — 379,945 8,338 989,572 10,017,699 —
Total current liabilities 10,123,126 2,340,363 593,069 5,716,227 5,182,392 23,955,177 8,980,258
Noncurrent liabilities:
Accrued liabilities 309,564 49,753 50,614 251,565 327,214 988,710 154,585
Advances from other funds (note 11) — — 13,335,039 — 62,081 13,397,120 —
Claims payable (note 15) — — — — — — 23,661,968
Unearned revenue (note 8) — — — 1,051,201 — 1,051,201 —
Long-term obligations net of current portion (note 9) — 17,619,816 — — 2,045,116 19,664,932 —
Total noncurrent liabilities 309,564 17,669,569 13,385,653 1,302,766 2,434,411 35,101,963 23,816,553
TOTAL LIABILITIES 10,432,690 20,009,932 13,978,722 7,018,993 7,616,803 59,057,140 32,796,811
NET ASSETS
Invested in capital assets, net of related debt 1,109,793 159,713,261 5,798,345 213,152,120 52,815,397 432,588,916 15,985,552
Restricted for Rail Reserve, Prop 1B and ARRA (note
12) — — — 16,024,235 — 16,024,235 —
Unrestricted 4,209,793 33,757,768 (10,026,949) 15,284,438 33,986,916 77,211,966 50,606,721
TOTAL NET ASSETS $ 5,319,586 193,471,029 (4,228,604) 244,460,793 86,802,313 525,825,117 66,592,273
See accompanying notes to basic financial statements.
Net assets, business-type activities - internal service funds 43,803,223
Net adjustment to reflect the allocation of the internal service funds net loss (987,432)
Net assets of business-type activities $568,640,908
34

CITY OF SANTA MONICA, CALIFORNIA
Statement of Revenues, Expenses and Changes in Fund Net Assets
Proprietary Funds
For the fiscal year ended June 30, 2012
Resource
Recovery and
Recycling Wastewater Airport Big Blue Bus
Nonmajor
enterprise
funds
Total
enterprise
funds
Total
internal
service funds
Operating revenues
Charges for services $ 22,253,758 20,007,219 3,891,716 16,614,711 30,284,115 93,051,519 25,807,059
Total operating revenues 22,253,758 20,007,219 3,891,716 16,614,711 30,284,115 93,051,519 25,807,059
Operating expenses
Personnel services 9,104,328 2,098,939 1,304,703 41,461,009 10,083,167 64,052,146 4,224,761
Administrative indirect 932,411 560,658 894,503 4,474,494 1,872,979 8,735,045 648,935
Contractual services 4,329,188 4,562,294 447,208 3,240,558 2,078,567 14,657,815 299,009
Repairs and maintenance 2,994,468 825,860 294,022 880,623 622,452 5,617,425 1,188,554
Materials and supplies 4,834,293 695,389 514,944 13,381,261 3,967,338 23,393,225 3,692,203
Utilities 46,038 8,898 121,204 399,821 1,021,251 1,597,212 61,206
Water purchases — — — — 6,460,974 6,460,974 —
Casualty property and liability costs 193,302 375,973 122,227 1,029,914 661,972 2,383,388 48,361
Claims expense net of claims reserve adjustment — — — — — — 11,251,674
Insurance and bonds — — — — — — 3,814,558
Miscellaneous fees and costs — — — — — — 545,701
Depreciation 8,643 6,317,129 426,563 13,310,913 2,514,528 22,577,776 3,553,741
Other 1,330,154 1,865,457 594,256 552,787 1,525,792 5,868,446 428,693
Total operating expenses 23,772,825 17,310,597 4,719,630 78,731,380 30,809,020 155,343,452 29,757,396
Operating income (loss) (1,519,067) 2,696,622 (827,914) (62,116,669) (524,905) (62,291,933) (3,950,337)
Nonoperating revenues (expenses)
Operating grants — — — 26,667 — 26,667 —
Shared sales tax proceeds — — — 38,397,690 — 38,397,690 —
Investment income 119,485 252,807 3,446 181,808 306,996 864,542 682,858
Interest expense — (826,863) (486,954) — (71,359) (1,385,176) —
Gain (loss) on disposal of capital assets — — — 141,593 650 142,243 (88,707)
Other nonoperating 584,595 767,356 145,928 2,346,750 1,339,846 5,184,475 91,428
Total nonoperating revenues (expenses) net 704,080 193,300 (337,580) 41,094,508 1,576,133 43,230,441 685,579
Income (loss) before capital conributions and
transfers (814,987) 2,889,922 (1,165,494) (21,022,161) 1,051,228 (19,061,492) (3,264,758)
Capital contributions — — — 25,609,158 — 25,609,158 —
Transfers in (note 11) — 1,199,442 28,429 802,452 12,494,533 14,524,856 2,178,397
Transfers out (note 11) (807,636) (1,033,504) — (91,494) (6,207,351) (8,139,985) (2,306,034)
Change in net assets (1,622,623) 3,055,860 (1,137,065) 5,297,955 7,338,410 12,932,537 (3,392,395)
Net assets (deficit) at beginning of year 6,942,209 190,415,169 (3,091,539) 239,162,838 79,463,903 512,892,580 69,984,668
Net assets (deficit) at end of year $ 5,319,586 193,471,029 (4,228,604) 244,460,793 86,802,313 525,825,117 66,592,273
Change in net assets $ 12,932,537
Net adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (2,878,055)
Change in net assets of business-type activities $ 10,054,482
See accompanying notes to basic financial statements.
35

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Cash Flows
Proprietary Funds
For the fiscal year ended June 30, 2012
Resource
Recovery
and Recycling Wastewater Airport
Big Blue
Bus
Nonmajor
enterprise
funds
Total
enterprise
funds
Total internal
service funds
Cash flows from operating activities:
Cash received from customers $ 23,046,696 19,796,289 3,941,341 23,273,866 29,108,267 99,166,459 25,862,968
Cash payments for materials and services (14,244,511) (8,565,122) (3,100,298) (24,475,052) (16,668,430) (67,053,413) (10,648,346)
Cash paid for claims and related services — — — — — — (8,001,449)
Cash payments to employees for services (8,934,733) (2,063,304) (1,313,811) (41,034,098) (9,932,113) (63,278,059) (4,396,059)
Other revenue received 584,595 767,356 145,928 2,346,750 1,251,621 5,096,250 91,428
Net cash provided by (used in) operating activities 452,047 9,935,219 (326,840) (39,888,534) 3,759,345 (26,068,763) 2,908,542
Cash flows from noncapital financing activities:
Sales tax proceeds — — — 38,397,690 — 38,397,690 —
Advances from other funds — 88,875 3,508,174 — (886,940) 2,710,109 —
Other operating grants — — — 26,667 — 26,667 —
Transfers in — 1,199,442 28,429 802,452 8,013,373 10,043,696 2,178,397
Transfers out (807,636) (1,033,504) — (91,494) (6,007,351) (7,939,985) (2,306,034)
Net cash provided by (used in) noncapital
financing activities (807,636) 254,813 3,536,603 39,135,315 1,119,082 43,238,177 (127,637)
Cash flows from capital and related financing activities:
Capital contributions received — — — 25,609,158 — 25,609,158 —
Acquisition and construction of capital assets (96,475) (3,337,091) — (17,856,503) (6,815,818) (28,105,887) (2,258,903)
Proceeds from sale of capital assets — — — 154,683 — 154,683 29,914
Reduction in long-term obligations — (1,654,682) — — (256,632) (1,911,314) —
Interest paid on long-term obligations — (1,063,907) (486,954) — (73,582) (1,624,443) —
Net cash provided by (used in) capital
and related financing activities (96,475) (6,055,680) (486,954) 7,907,338 (7,146,032) (5,877,803) (2,228,989)
Cash flows from investing activities – interest received
on investments 127,238 264,450 7,633 207,473 347,368 954,162 745,242
Net cash provided by investing activities 127,238 264,450 7,633 207,473 347,368 954,162 745,242
Net increase (decrease) in cash and
cash equivalents (324,826) 4,398,802 2,730,442 7,361,592 (1,920,237) 12,245,773 1,297,158
Cash and cash equivalents at beginning of year 11,400,137 26,539,945 1,086,002 17,934,137 36,658,627 93,618,848 81,863,253
Cash and cash equivalents at end of year $ 11,075,311 30,938,747 3,816,444 25,295,729 34,738,390 105,864,621 83,160,411
Cash and investments $ 2,440,342 27,312,934 3,436,499 14,199,397 31,993,520 79,382,692 83,160,411
Restricted cash and investments 8,634,969 3,625,813 379,945 11,096,332 2,744,870 26,481,929 —
Total cash and cash equivalents $ 11,075,311 30,938,747 3,816,444 25,295,729 34,738,390 105,864,621 83,160,411
(Continued)
36

CITY OF SANTA MONICA, CALIFORNIA
Statement of Cash Flows
Proprietary Funds
For the fiscal year ended June 30, 2012
Resource
Recovery
and Recycling Wastewater Airport
Big Blue
Bus
Nonmajor
enterprise
funds
Total
enterprise
funds
Total internal
service funds
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities:
Operating income (loss) $ (1,519,067) 2,696,622 (827,914) (62,116,669) (524,905) (62,291,933) (3,950,337)
Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:
Add depreciation 8,643 6,317,129 426,563 13,310,913 2,514,528 22,577,776 3,553,741
Add amortization — 214,548 — — — 214,548 —
Change in assets and liabilities:
(Increase) decrease in accounts receivable (128,486) (210,930) 36,520 5,918,508 (1,259,953) 4,355,659 55,909
Decrease (increase) in prepaids 6,639 2,778 1,039 (28,696) 9,378 (8,862) 19,814
Decrease in inventory — — — 116,646 428,649 545,295 25,599
Increase (decrease) in accounts payable 408,704 115,415 (112,974) (778,836) 806,428 438,737 23,439
Increase in deposits 921,424 — 13,105 7,495 337,110 1,279,134 —
Increase (decrease) in contracts payable — (3,335) — 175,292 45,435 217,392 —
Increase in unearned revenue — — — 733,152 — 733,152 —
Increase (decrease) in accrued liabilities 161,655 28,578 37,872 663,993 254,522 1,146,620 (143,031)
Increase in claims payable — — — — — — 3,240,009
Increase (decrease) in noncurrent accrued liabilities 7,940 7,058 (46,979) (237,082) (103,468) (372,531) —
Other nonoperating revenue received 584,595 767,356 145,928 2,346,750 1,251,621 5,096,250 83,399
Total adjustments 1,971,114 7,238,597 501,074 22,228,135 4,284,250 36,223,170 6,858,879
Net cash provided by (used in)
operating activities $ 452,047 9,935,219 (326,840) (39,888,534) 3,759,345 (26,068,763) 2,908,542
1) The $4.5 million debt owed to the General fund by the Cemetery was forgiven.
2) The City issued Wastewater Refunding Revenue bonds to refund debt issued in 1993. The $9,904,006 proceeds were deposited
immediately into an irrevocable trust for the defeasance of $9,670,000 of outstanding revenue bond principal and $192,484 of interest.
37

THIS PAGE INTENTIONALLY LEFT BLANK
38

CITY OF SANTA MONICA, CALIFORNIA
Fiduciary Fund Financial Statements
Private-Purpose Trust Fund is custodial in nature and used to distribute the assets of the dissolved
Redevelopment Agency of the City of Santa Monica to the affected tax entities after the payment of
enforceable obligations. The Redevelopment Agency of the City of Santa Monica was dissolved on
February 1, 2012.
Agency Funds are custodial in nature and used to receive and disburse funds for an entity/individual,
which is not part of the City.
39

CITY OF SANTA MONICA, CALIFORNIA
Statement of Fiduciary Net Assets
Fiduciary Funds
June 30, 2012
Total
Private-Purpose
Trust Fund
Total
Agency
Funds
ASSETS
Cash and investments (note 5) $ 23,591,249
—
Restricted cash and investments (note 5) — 6,705,109
Restricted cash with fiscal agent (note 5) 10,424,107 —
Accounts receivable — 85,387
Due from City 36,800,358 —
Bond issuance costs, net 1,614,287 —
Total assets 72,430,001 6,790,496
LIABILITIES
Accounts payable and accrued liabilities 9,696 6,790,496
Interest payable 5,626,673 —
Due to the City 59,216 —
Due to other governments 36,710,259 —
Long-term liabilities
Promissory Notes payable to the City due within one year 2,700,743 —
Promissory Notes payable to the City due in more than one year 27,704,760 —
Due within one year 108,969,284 —
Due in more than one year 140,311,951 —
Total liabilities 322,092,582 6,790,496
NET ASSETS (DEFICIT)
Total net assets (deficit) held in trust for dissolution $ (249,662,581)
of Former Redevelopment Agency
See accompanying notes to basic financial statements.
40

CITY OF SANTA MONICA, CALIFORNIA
Statement of Revenues, Expenses and Changes in Fiduciary Net Assets
Fiduciary Fund
For the five months ended June 30, 2012
Additions:
Property tax distribution $ 25,504,443
Other revenue 15
Total additions 25,504,458
Deductions:
Private-Purpose
Trust Fund
Project expenses 265,451
Due diligence accrual 12,518,742
Loss on sale of investments 45,698
Interest expense 7,001,594
Total deductions 19,831,485
Extraordinary item:
Assumption of the net liabilities of the Redevelopment Agency of the City of Santa Monica (261,255,080)
Transfer from the City of Santa Monica 5,919,526
Change in net assets (249,662,581)
Net assets at beginning of year —
Net assets (deficit) at end of year $ (249,662,581)
See accompanying notes to basic financial statements.
41

THIS PAGE INTENTIONALLY LEFT BLANK
42

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements
For the fiscal year ended June 30, 2012
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. THE REPORTING ENTITY
The City of Santa Monica, California (City) was incorporated November 30, 1886. The City
operates under a Council-Manager form of government and provides traditional municipal
services as authorized by its charter as well as various enterprise services. As required by
accounting principles generally accepted in the United States of America (GAAP), the
accompanying basic financial statements present the activities of the City and its component units.
The component units discussed below are included in the City’s reporting entity because of the
significance of their operations or financial relationships with the City.
As required by GAAP, these basic financial statements present the City and its component units,
entities for which the City is considered to be financially accountable. The following entities are
reported as blended component units because they have substantively the same governing board as
the primary government.
Blended component units, although legally separate entities are, in substance, part of the City’s
operations and data from these units are combined with data of the City. Additional detailed
information and/or separately issued financial statements for these component units can be
obtained from the City’s Director of Finance.
The Redevelopment Agency of the City of Santa Monica was established by the City of Santa
Monica City Council in 1957 pursuant to the Community Redevelopment Law of California to
eliminate blight and to promote economic revitalization within designated project areas of the
City. The California Supreme Court upheld Assembly Bill 1X26 to dissolve all redevelopment
agencies in the State of California on February 1, 2012. City was designated the Successor
Agency to be responsible to make payments and perform existing obligations of the former
Redevelopment Agency. The financial statements include seven months’ activities of the
redevelopment agency. The Successor Agency is presented as a private-purpose trust fund
beginning on February 1, 2012.
The Parking Authority of the City of Santa Monica (Authority) was established by the City in
1950 and maintains and operates parking lots and parking structures.
The Housing Authority of the City of Santa Monica (Housing Authority) was established by the
City in 1975 to address unsanitary and unsafe inhabited dwelling accommodations and the
shortage of affordable safe and sanitary dwelling accommodations for persons with low incomes.
Since January 1, 1989, the Housing Authority has administered the Section 8 Housing Assistance
Payments Program funded by the United States Department of Housing and Urban Development
on behalf of the City.
Following are brief descriptions of organizations created in 1984 as nonprofit public benefit
corporations. These basic financial statements do not present these entities for which the City may
meet criteria for discrete presentation because the economic resources received or held by an
individual organization are not significant to the primary government. Each of the governing
bodies acts on behalf of the City through members appointed by the City of Santa Monica City
Council for the benefit of the citizens of Santa Monica. Separate financial statements for each can
be obtained from the City’s Director of Finance.
43

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
The Pier Restoration Corporation maintains and operates the public educational and recreational
facility in the City commonly known as the Santa Monica Pier.
The Downtown Santa Monica, formerly Bayside District Corporation and Third Street
Development Corporation, combats community deterioration by developing and improving the
aging areas in and around the City’s central business district and coordinating public and private
sector activities.
The Santa Monica Arts Foundation promotes the arts by raising funds to finance art programs. On
June 8, 1990, the City Council merged the City’s Arts Commission with the Santa Monica Arts
Foundation.
B. BASIC FINANCIAL STATEMENTS
Basic financial statements consist of the following:
• Government-wide financial statements,
• Fund financial statements, and
• Notes to the basic financial statements.
The government-wide financial statements consist of the statement of net assets and the statement
of activities and report information on all of the non-fiduciary activities of the primary government
and its component units. As a general rule, the effect of interfund activity has been eliminated
from the government-wide financial statements. All internal balances in the statement of net
assets have been eliminated, with the exception of those representing balances between the
governmental activities and the business-type activities, which are presented as internal balances
and eliminated in the total government column. In the statement of activities, internal service fund
transactions have been eliminated; however, those transactions between governmental and
business-type activities have not been eliminated. Exceptions to this general rule are charges
between the City’s Water Fund and various other functions of the government. Elimination of
these charges would distort the direct costs and program revenues reported for the various
functions concerned. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support.
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business-type activities). The governmental activities of the City include public
safety (police and fire), streets, public improvements, library, cultural, recreation and parks,
planning and zoning, housing and community development and general administrative support
services. The business-type activities of the City include water, wastewater, storm water, resource
recovery and recycling, pier, civic auditorium, airport, special aviation services, cemetery, bus
lines, and parking structures and lots.
The statement of activities demonstrates the degree to which the direct and indirect expenses of a
given function are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Indirect expenses are allocated based on the
annual cost allocation plan. Program revenues include: 1) charges to customers or applicants who
44

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
purchase, use, or directly benefit from goods, services, or privileges provided by a given function
or segment, and 2) grants and contributions, including special assessments that are restricted to
meeting the operational or capital requirements of a particular function. Taxes and other items not
properly included among program revenues are reported instead as general revenues.
Separate fund financial statements are provided for governmental funds, proprietary funds and
fiduciary funds, even though the latter are excluded from the government-wide financial
statements. Major individual governmental funds and major individual enterprise funds are
reported as separate columns in the fund financial statements.
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT
PRESENTATION
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary funds
financial statements. Agency funds do not have a measurement focus. Revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows.
Governmental funds financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. The City in general considers revenues available if they are collected within 60
days. Additionally, grants and similar items are recognized as revenue as soon as all eligibility
requirements have been met. Expenditures are recorded when the related fund liability is incurred,
except for unmatured interest on general long-term debt, which is recognized when due, and
certain compensated absences and claims and judgments, which are recognized when payment is
due.
Property taxes, sales taxes, franchise taxes, licenses, interest, special assessments, charges for
services and other miscellaneous revenue are all considered to be susceptible to accrual and have
been recognized as revenue in the current fiscal period. Entitlements and shared revenues are
recorded at the time of receipt or earlier if susceptible to accrual criteria are met. Expendituredriven
grants are recognized as revenue when the qualifying expenditures have been incurred, all
other eligibility requirements have been met and are recorded at the time of receipt or earlier, and
the susceptible to accrual criteria are met. All other revenue items are considered to be
measurable and available only when cash is received by the government.
The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and
accounting entity with a self-balancing set of accounts. Fund accounting segregates funds
according to their intended purpose and is used to aid management in demonstrating compliance
with finance-related legal and contractual provisions. The minimum number of funds is
maintained consistent with legal and managerial requirements.
45

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all the financial resources
and the legally authorized activities of the City, except those required to be accounted for in other
specialized funds.
The Special Revenue Source Fund (Capital Projects Fund type) accounts for receipt and
expenditure of monies restricted or committed for specific uses.
The Earthquake Redevelopment Project Fund (Capital Projects Fund type) accounts for
activities of the earthquake redevelopment project area of the Redevelopment Agency of the City
of Santa Monica. For the dissolution of the Redevelopment Agency, the City elected to serve as
the Successor Agency to the Redevelopment Agency. The assets and liabilities of the former
redevelopment agency as of February 1, 2012 were transferred from a governmental fund of the
City to a Fiduciary Fund.
The City reports the following major Enterprise funds:
The Resource Recovery and Recycling Fund accounts for the activities of the City’s refuse
collection, street sweeping and cleaning, and recycling programs.
The Wastewater Fund accounts for the activities of maintaining sanitary sewer and storm drain
systems within the City.
The Airport Fund accounts for the activities of the Santa Monica Municipal Airport.
The Big Blue Bus Fund accounts for the activities of the City’s municipal bus lines.
Additionally, the City reports the following fund types:
Capital Projects Funds account for and report financial resources that are restricted, committed,
or assigned to expenditure for capital outlays, including the acquisition or construction of capital
facilities and other capital assets.
Debt Service Funds account for and report financial resources that are restricted, committed, or
assigned to expenditure for principal and interest.
Permanent Funds account for resources that are legally restricted to the extent that only earnings,
not principal, may be used for purposes that support specific programs.
Internal Service Funds account for vehicle operations, risk management, and information
technology and communications operations that provide services to other departments of the City
on a cost reimbursement basis.
Fiduciary Funds consist of a Private-purpose Trust fund and Agency fund. The Private-purpose
Trust fund is established by the City to succeed the redevelopment agency. The City serves as a
custodian for the assets of the dissolved redevelopment agency pending distribution to the affected
tax entities after the payment of enforceable obligations. The Agency funds account for assets
held by the City as a trustee or as an agent for individuals or other government units. Agency
46

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
funds are custodial in nature and do not involve measurement of results of operations. Such funds
are unlike all other types of funds, reporting only assets and liabilities. These funds account for
assets held by the City in an agency capacity for individuals or other governmental units,
including development fees collected on behalf of the school district, various employee payroll
deductions that will be remitted to various agencies and other assets held by the City in an agency
capacity.
Business-type activities and enterprise funds have elected not to apply Financial Accounting
Standards Board (FASB) Statements and interpretations issued after November 30, 1989. The
governmental activities, business-type activities and proprietary funds apply all applicable GASB
pronouncements as well as statements and interpretations of FASB, the Accounting Principles
Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure
issued on or before November 30, 1989, unless those pronouncements conflict with or contradict
GASB pronouncements.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues of the proprietary funds are charges to customers for sales and
services. Operating expenses for proprietary funds include the cost of sales and services,
administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, and then unrestricted resources as they are needed. In circumstances when
an expenditure is made for a purpose for which amounts are available in multiple fund balance
classifications, fund balance is depleted in the order of restricted, committed, assigned, and
unassigned.
D. ASSETS, LIABILITIES, NET ASSETS OR EQUITY
Cash and Investments
In order to maximize the flexibility of its investment program and to aid in cash budgeting, the
City pools the cash of all funds, except for monies deposited with fiscal and escrow agents in
accordance with related bond indentures and agreements. The cash and investments balance in
each fund represents that fund's equity share of the City's cash and investment pool. As the City
places no restrictions on the deposit or withdrawal of its equity from the pool by a particular fund,
the pool operates like a demand deposit account for the participating funds.
Interest income earned on pooled cash and investments is allocated quarterly to the various funds
based on quarter-end balances and is adjusted at year-end. Interest income on restricted cash and
investments with fiscal agents is credited directly to the related fund.
The City's investments are carried at fair value, except for guaranteed investment contracts, which
are carried at cost because they are not transferable and they have terms that are not affected by
changes in market interest rates. The fair value of equity and debt securities is determined based
on sales prices or bid-and-asked quotations from Securities Exchange Commission (SEC)
registered securities exchanges or National Association of Securities Dealers Automated
47

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Quotations (NASDAQ) dealers. The fair value of the City's share of Local Agency Investment
Fund (LAIF) is reported to the City on a quarterly basis. LAIF operates in accordance with laws
and regulations of the State of California. The reported value of the pool is the same as the fair
value of pool shares. Changes in fair value are allocated to each participating fund on an annual
basis.
For purposes of the statement of cash flows, the City has defined cash and cash equivalents to be
change and petty cash funds, equity in the City's cash and investment pool, and restricted, nonpooled
investments with initial maturities of three months or less.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at
the end of the fiscal year are referred to as interfund receivables/interfund payables, i.e., due
to/due from other funds, the current portion of interfund loans or advances to/from other funds, the
non-current portion of interfund loans. Any residual balances outstanding between the
governmental activities and the business-type activities are reported in the government-wide
financial statements as internal balances.
Advances between funds, as reported in the fund financial statements, are offset by nonspendable
fund balance in the applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources.
All trade receivables are shown net of an allowance for uncollectible accounts and estimated
refunds due. As of June 30, 2012, the allowance for uncollectible accounts for governmental and
business-type activities is $396,563 and $225,382, respectively.
Unbilled service receivables are accrued for at year-end.
Property Taxes
Assessed property values are determined on an annual basis for the period July 1 to June 30 by the
Los Angeles County Assessor as of January 1. Article XIIIA of the State Constitution
(Proposition 13, approved by voters in June 1978) limits the real property tax rate to 1% of the full
market cash value plus rates imposed to fund indebtedness approved by the voters. Locally
assessed property is appraised at the 1975-76 full cash value, the base year value, and is adjusted
each year after 1975 by the change in the consumer price index, not to exceed an increase of 2%.
Property is reappraised to current full value upon either a change in ownership or new
construction. If property values decline below the base year value, the value is adjusted to reflect
the lower value. Taxes are levied annually in September and become a lien on real property at
January 1. Taxes are due November 1 and February 1 and are delinquent if not paid by December
10 and April 10, respectively, at which time applicable penalties and interest are assessed.
Inventory and Prepaid Items
All materials and supplies inventory is valued at cost using the average cost method. Inventory in
the General Fund is recorded as expenditures when consumed rather than when purchased.
48

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both government-wide and fund financial statements.
Restricted Assets
Certain proceeds of the City's bonds, as well as certain resources set aside for their repayment, are
classified as restricted assets on the statement of net assets because they are maintained in separate
bank accounts and their use is limited by applicable bond covenants.
In the absence of specific statutory provisions governing the issuance of bonds, certificates or
leases, these bond monies may be invested in accordance with the ordinance, resolutions or
indentures specifying the types of investments its trustees or fiscal agents may make. These
ordinances, resolutions and indentures are generally more restrictive than the City's general
investment policy. In no instance have additional types of investments been authorized that are
not permitted by the City's general investment policy.
Capital Assets
Capital assets, which include land, buildings and improvements, equipment, intangibles, utility
systems and infrastructure assets (e.g., roads, sidewalks, curbs and gutters and similar items), are
reported in the applicable governmental or business-type activities columns in the governmentwide
financial statements. Capital assets other than buildings, improvements, and infrastructure
are defined by the City as assets with an initial individual cost of $50,000 or more and an
estimated useful life of more than one year except for the Big Blue Bus fund, which follows transit
funding guidelines by capitalizing any expenditure, which is funded by capital grant subsidies not
related to bus repairs and maintenance. The City defines buildings, improvements other than
buildings, and infrastructure as assets with an individual cost of $100,000 or more and an
estimated useful life of more than one year. Such assets are recorded at historical cost. Donated
capital assets are recorded at estimated fair value at the date of donation. The cost of normal
maintenance and repairs that do not add to the value of the asset or materially extend assets lives
are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred, net of interest earned on unspent proceeds of tax-exempt borrowings, during the
construction phase of capital assets of business-type and enterprise funds activities is included as
part of the capitalized value of the assets constructed. No interest was capitalized during the year
ended June 30, 2012.
Capital assets of the City are depreciated using a straight-line method, with a mid-year convention
(only half a year’s depreciation is recorded in the first and last year of the asset) over the following
estimated useful lives:
Assets
Years
Buildings 5 to 85
Improvements other than buildings 2 to 50
Infrastructure 15 to 75
Utility systems
Intangibles
20
40 to 100
Machinery and equipment 2 to 30
49

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
The City has elected not to capitalize its collection of artwork. GASB 34 waives the requirement
for artwork capitalization if the collection meets all the following conditions:
• The collection is held for reasons other than financial gain.
• The collection is protected, kept unencumbered, cared for, and preserved.
• The collection is subject to an organizational policy requiring that the proceeds from sales of
collection items be used to acquire other items for collections.
The City’s artwork collection meets the above criteria and therefore qualifies for the exemption
from the capitalization requirement. The collection includes both permanent and portable
artworks, artworks integrated into overall projects, murals, and stand-alone permanently installed
paintings and sculptures, art integrated into the design of public works projects (not stand-alone),
and a contemporary collection of almost 100 portable artworks, which are on display in public
areas of City facilities.
Lease Obligations
The City leases various assets under operating lease agreements.
Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick
leave benefits up to a maximum determined by bargaining unit agreements. Employees are paid
100% of their accumulated vacation when they terminate employment for any reason. All
vacation is accrued when incurred in the government-wide and proprietary fund financial
statements. A liability is reported in the governmental funds only if they have matured, for
example, as a result of employee resignations or retirements. Additionally, employees of the
United Transportation Union are able to exchange unused sick days balances for equal dollars of
medical insurance premiums. In order to qualify the employee must have 10 years of service at
retirement and at least 50 days of unused sick leave.
Long-Term Liabilities
In the government-wide financial statements and proprietary funds financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net assets. Initial-issue
bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life
of the bonds using the straight-line method. The difference between the reacquisition price of
refunding bonds and the net carrying amount of refunded debt (deferred amount on refunding) is
amortized over the shorter of the lives of the refunding debt or remaining life of the refunded debt.
Bonds payable are reported net of the unamortized portion of applicable premium, discount or
deferred amount on refunding. Bond issuance costs, including underwriters' discount, are reported
as deferred bond issuance costs. Amortization of bond premiums or discounts, issuance costs and
deferred amounts on refunding are included in interest expense.
In the governmental funds financial statements, bond premiums, discounts and issuance costs are
recognized during the period issued. The face amount of debt issued is reported as other financing
sources. Premiums received are reported as other financing sources, while discounts are reported
as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds
50

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
received, are reported as debt service expenditures. Interest and principal payments are reported as
debt service expenditures.
Net Assets and Fund Equity
In the government-wide financial statements and proprietary funds financial statements, net assets
are reported in three categories: net assets invested in capital assets, net of related debt, restricted
net assets and unrestricted net assets. Net assets invested in capital assets, net of related debt
represents capital assets less accumulated depreciation less outstanding principal of related debt.
Net assets invested in capital assets, net of related debt does not include the unspent proceeds of
capital debt. Restricted net assets represent net assets restricted by parties outside of the City
(such as creditors, grantors, contributors, laws and regulations of other governments) and include
unspent proceeds of bonds issued to acquire or construct capital assets. The nonexpendable
portion of permanent funds is reported as a component of restricted net assets. The City's other
restricted net assets are temporarily restricted (ultimately expendable) assets. All other net assets
are considered unrestricted.
As prescribed by GASB Statement No. 54, governmental funds report fund balance in
classifications based primarily on the extent to which the City is bound to honor constraints on the
specific purposes for which amounts in the funds can be spent based on the adopted City Council
policy on June 21, 2011. As of June 30, 2012, fund balance for governmental funds are made up
of nonspendable, restricted, committed, assigned and unassigned.
In the fund financial statements, governmental funds report nonspendable fund balance for
amounts that cannot be spent because they are either not in spendable form or legally or
contractually required to be maintained intact. Restricted fund balance represents amounts that are
restricted for specific purposes when constraints placed on the use of resources are either
externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments; or imposed by law through constitutional provisions or enabling legislation.
Amounts that can only be used for specific purposes pursuant to constraints imposed by ordinance
of the government’s highest level of decision making authority, City Council, are reported as
committed fund balance. Assigned fund balance are amounts that are constrained by the
government’s intent by the governing body itself or a body or official to which the governing body
has delegated the authority to assign amounts to be used for specific purposes. The City Council on
June 21, 2011 adopted resolution number 10583, which included the fiscal policies contained in
the fund balance policies and has delegated this authority to the City Manager to assign fund
balances. Unassigned fund balance represents fund balance that has not been restricted, committed,
or assigned to specific purposes within the general fund. Unassigned fund balance can also be used
in other governmental funds where the fund balance is negative, because a negative amount should
not be reported for restricted, committed or assigned in any fund. When both restricted and
unrestricted resources are available for use, it is the City’s policy to use restricted resources first,
and then use unrestricted resources as needed. In circumstances when an expenditure is made for a
purpose for which amounts are available in multiple fund balance classifications, fund balance is
depleted in the order of restricted, committed, assigned, and unassigned.
51

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Self-Insurance Program
The City has self-insurance programs to provide for general liability, bus and automobile liability,
and workers' compensation claims. These activities are accounted for in self-insurance internal
service funds.
Premiums are charged to individual funds and are designed to cover future expenses. The City's
Risk Manager oversees the self-insurance programs. It is his or her duty to ensure that programs
are operated in accordance with City policies. The City’s Risk Manager also provides budget
guidance and case reserves and claims analysis. It is the City's intent to maintain cash reserves in
the self-insurance funds equal to or greater than estimated losses.
Use of Estimates
The preparation of basic financial statements in conformance with GAAP requires management to
make estimates and assumptions that affect the amounts reported in the basic financial statements
and accompanying notes. Actual results may differ from those estimates.
(2) BUDGETARY AND LEGAL COMPLIANCE
The City Council is required to adopt an annual budget resolution by June 30 each fiscal year for the
General Fund, each special revenue fund and each capital projects fund, except the Rent Control Fund
and the Asset Seizure Fund. The legal level of budgetary control is by department. The City Council
also approves annual operating budgets for the City’s proprietary and internal service funds to
facilitate management evaluation and control.
The budget is prepared on a non-GAAP budgetary basis, which considers encumbrances outstanding at
year end as an expenditure of that year. Encumbrances outstanding at the beginning of a fiscal year,
which were recognized as budgetary expenditures in the prior year, are recognized as GAAP-basis
expenditures but not as budgetary expenditures unless re-appropriated. It is the City’s policy to only
re-appropriate capital encumbrances and unencumbered balances of specific capital appropriations. In
addition, capital leases are budgeted on a cash basis, whereas GAAP requires the full amount of the
leased asset purchased to be shown as an expenditure of the current year. Appropriations in
governmental funds outstanding at year end lapse, except for encumbered amounts, for which fund
balances are restricted, committed or assigned at year-end for governmental funds.
A Comprehensive Annual Financial Report Budget Supplement is prepared to reconcile
expenditures/expenses at the legal level of control to the summarized amounts presented in the
Comprehensive Annual Financial Report and can be obtained from the Finance Department.
For the fiscal year ended June 30, 2012, expenditures exceeded appropriations in the Police
Department of the General Fund, City Attorney of the General Fund, Other Community & Cultural
Services of the General Fund, and Community & Cultural Services of the Special Revenue Source
Fund.
52

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
(3) RECONCILIATION OF FUND FINANCIAL STATEMENTS TO GOVERNMENT-WIDE
FINANCIAL STATEMENTS
Amounts reported for governmental activities in the government-wide statement of net assets are
different from those reported for governmental funds in the funds balance sheet. The following
provides a reconciliation of those differences:
Total
Assets
Total governmental
funds
Long-term assets
and liabilities (1)
governmental
activities internal
service funds (2)
Other
adjustments and
eliminations (3)
Statement of net assets
totals
Cash and investments $ 514,751,907
— 51,725,887 — 566,477,794
Receivables (net, where applicable,
of allowances for uncollectibles):
Accounts 14,706,187 — 715 73,370,475 88,077,377
Notes 107,987,656 — — — 107,987,656
Property taxes 1,503,357 — — — 1,503,357
Interest 964,105 — 116,351 — 1,080,456
Other governments 4,256,380 — — — 4,256,380
Internal balances — — 987,432 14,469,934 15,457,366
Due from other funds 8,215,102 — — (8,215,102) —
Due from Successor Agency 59,216 — — — 59,216
Deposits 61,785 — — — 61,785
Prepaids 232,445 — 9,525 — 241,970
Cash with fiscal agent 50,820,984 — — — 50,820,984
Advances to other funds 17,240,093 — — (17,240,093) —
Advances to Successor Agency 30,405,503 — — — 30,405,503
Bond issuance costs, net — 1,454,822 — — 1,454,822
Capital assets, net — 770,732,111 546,268 — 771,278,379
Total assets $ 751,204,720 772,186,933 53,386,178 62,385,214 1,639,163,045
Liabilities and Fund Balances/Net Assets
Liabilities:
Accounts payable $ 15,873,345
— 460,893 — 16,334,238
Accrued liabilities 9,534,619 — 123,562 — 9,658,181
Accrued interest payable — 1,191,785 — — 1,191,785
Contracts payable (retained percentage) 2,248,933 — — — 2,248,933
Due to other funds/Successor Agency 43,942,646 — — (7,142,288) 36,800,358
Due to other governments 3,514 — — — 3,514
Deferred revenue 78,180,599 — — (45,657,620) 32,522,979
Deposits payable from restricted assets 1,095,500 — — — 1,095,500
Pollution remediation obligation due within one year — 5,357,291 — — 5,357,291
Pollution remediation obligation due in more than one year — 123,396,332 — — 123,396,332
Compensated absences due within one year — 6,182,307 — — 6,182,307
Compensated absences due in more than
one year — 5,149,218 — — 5,149,218
Claims payable due within one year — — 6,551,766 — 6,551,766
Claims payable due in more than one year — — 22,473,475 — 22,473,475
Long-term debt due within one year — 3,365,000 — — 3,365,000
Long-term debt due in more than one year — 100,260,630 — — 100,260,630
Accrued OPEB liability — 6,740,000 — — 6,740,000
Advances from other funds 3,842,973 — — (3,842,973) —
Total liabilities 154,722,129 251,642,563 29,609,696 (56,642,881) 379,331,507
Total fund balances/net assets 596,482,591 520,544,370 23,776,482 119,028,095 1,259,831,538
Total liabilities and fund balance/net assets $ 751,204,720 772,186,933 53,386,178 62,385,214 1,639,163,045
53

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
1)
Capital assets used in governmental activities are not current financial resources
and, therefore, are not reported in the balance sheet. Capital assets of internal
service funds of $546,268, net of accumulated depreciation, are not included in
this amount.
$ 1,075,554,352
Less accumulated depreciation (304,822,241)
770,732,111
Bond issue costs to be amortized over the life of the debt 1,454,822
Accrued liabilities, OPEB costs, are not due and payable in the current period (6,740,000)
and therefore, are not reported in the balance sheet
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the balance sheet.
General obligation bonds (11,325,000)
Revenue bonds (87,630,000)
Loans payable (400,000)
Deferred loss on refunding 497,330
Accrued interest on long-term debt (1,191,785)
Unamortized premium on long-term debt (4,777,551)
Unamortized issue discount on long-term debt 9,591
Employee compensated absences (11,331,525)
Accrued pollution remediation costs (128,753,623)
Total long-term liabilities (244,902,563)
$ 520,544,370
2)
Internal service funds are used by management to charge the costs of
information technology and communications operations, self-insurance
comprehensive, auto and workers' compensation to individual funds. The assets
and liabilities of these internal service funds are included in the governmental
activities on the statement of net assets.
$
22,789,050
Adjustments for Internal Service Funds are necessary to "close" those funds by
recording charges to and payments from business-type activities to completely
cover the Internal Service Funds' costs for the year.
$
987,432
23,776,482
3) Other adjustments and eliminations:
Other long-term assets are not available to pay for current period expenditures
and, therefore, are deferred in the funds and recognized as revenue in the
statement of activities.
$
$
119,028,095
119,028,095
54

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Amounts reported for business-type activities in the government-wide statement of net assets are
different from those reported for enterprise funds in the fund statement of net assets. The following
provides a reconciliation of those differences:
Assets
Total business- Other
Total type internal adjustments Statement of
enterprise service and net assets
funds funds (1) eliminations totals
Cash and investments $ 79,382,692 31,434,524 — 110,817,216
Receivables (net, where applicable,
of allowances for uncollectibles):
Accounts 22,472,443 87 — 22,472,530
Interest 233,406 65,097 — 298,503
Internal balances — (987,432) (14,469,934) (15,457,366)
Taxes — — — —
Inventory 1,611,790 51,346 — 1,663,136
Prepaids 101,508 — — 101,508
Restricted cash and investments 26,481,929 — — 26,481,929
Bond issuance costs, net 381,336 — — 381,336
Capital assets, net 454,217,153 15,439,284 — 469,656,437
Total assets $ 584,882,257 46,002,906 (14,469,934) 616,415,229
Liabilities
Accounts payable $ 4,303,620 189,512 — 4,493,132
Accrued liabilities 6,805,484 284,547 (3,272,911) 3,817,120
Accrued interest payable 245,331 — — 245,331
Contracts payable (retained percentage) 535,634 — — 535,634
Due to other funds 1,072,814 — (1,072,814) —
Unearned revenue 1,051,201 — — 1,051,201
Liabilities payable from restricted assets 10,017,699 — — 10,017,699
Advances from other funds 13,397,120 — (13,397,120) —
Compensated absences due within one year — — 2,172,739 2,172,739
Compensated absences due in more than one year — — 1,100,172 1,100,172
Claims payable due within one year — 1,524,563 — 1,524,563
Claims payable due in more than one year — 1,188,493 — 1,188,493
Long-term debt due within one year 1,963,305 — — 1,963,305
Long-term debt due in more than one year 19,664,932 — — 19,664,932
Total liabilities 59,057,140 3,187,115 (14,469,934) 47,774,321
Net Assets
$ 525,825,117 42,815,791 — 568,640,908
1)
Internal service funds are used by management to charge the costs of vehicle
management, information technology and risk management to individual funds.
The assets and liabilities of the vehicle management and self-insurance bus internal
service funds are included in business-type activities in the statement of net assets.
$ 43,803,223
Adjustment for Internal Service Funds are necessary to "close" those funds for
charges to and payments from participating governmental-type activities to
completely cover the Internal Service Funds' costs for the year.
$
(987,432)
55

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
(4) POLLUTION REMEDIATION
The City follows the guidance of GASB Statement No. 49, Accounting and Financial Reporting for
Pollution Remediation Obligations, establishing accounting and financial reporting standards for
pollution (including contamination) remediation obligations, which are obligations to address the
current or potential detrimental effects of existing pollution by participating in pollution remediation
activities such as site assessments and cleanups.
On December 1, 2006, the City amended a settlement agreement that it had entered into in 2004 with a
consortium of oil companies in relation to methyl tertiary butyl ether (“MTBE”) contamination that
had occurred at the City’s Charnock Well Field. The Charnock Well Field is used to supply drinking
water to the City. The amended 2006 agreement called for the oil companies to pay the City $131.0
million in exchange for the City's agreement to treat to applicable drinking water standards any water
produced from the Charnock Well Field, which contains MTBE, tertiary butyl alcohol (“tBA”) and
related petroleum hydrocarbons. Prior to this amended 2006 agreement and under the terms of other
settlement agreements with other companies, the City received an additional $141.0 million also
related to MTBE contamination of the City's Charnock Well Field. The City has received all of the
proceeds from each of these agreements, including the amended 2006 agreement.
To meet its Charnock Well Field water treatment obligation, the City has constructed and is operating
a water treatment remediation plant using the proceeds of the 2006 and the other earlier settlements.
The City measured the liability by the actual cost of construction/remediation contracts, which
included a contingency of 10% for unforeseen costs and therefore, the City’s expected outlays were
determined to be $85,481,000, which is the present value of the cost of the contracts plus the cost of
the plant operations.
The pollution remediation expenditures have no future value once the remediation is complete;
therefore the City has recorded these amounts as remediation liability and expense.
Because the MTBE remediation is fully funded by settlement agreements whose proceeds have
already been received, $85,481,000 was previously recognized as income during the FY 2008-09.
On November 13, 2009, the City entered into a settlement and release agreement with The Gillette
Company (Gillette), guaranteed by The Procter & Gamble Company, in relation to ground water
contamination of the City’s Olympic Well Field. The Olympic Well Field is used to supply drinking
water to the City. The agreement calls for Gillette to make payments to the City ranging from
$150,000 to $11,183,175 annually, totaling $68,000,000 to be made over 30 years which included the
City receiving title to property valued at $3,250,000. To date the City has received cash payments of
$30,729,575 which has been recorded as revenue in the fund financial statements. Under the
agreement, the City has agreed to treat to applicable drinking water standards any water that it
produces from the Olympic Well Field.
The agreement also includes a provision that provides for Gillette to potentially share in the proceeds
of settlement agreements, if any, that the City may receive from other parties related to their
contamination of the Olympic Well Field. Under this sharing provision, in 2021 Gillette may recoup
up to a maximum of $8,704,750 of the funds it pays to the City from the proceeds of these other
settlement agreements.
56

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
On May 15, 2012, the City entered into a settlement and release agreement with The Boeing Company
(Boeing) also in relation to ground water contamination of the City’s Olympic Well Field. The
agreement calls for Boeing to make payments to the City ranging from $150,000 to $5,000,000
annually to be made over a ten year period, totaling $39,500,000. On December 12, 2012, the
agreement was modified with $21,000,000 being due from Boeing in January 2013 and payments of
$3,670,000 being due from Boeing annually beginning in 2017 through 2021. The City received
Boeing's payment of $21,000,000 on January 7, 2013. Under the agreement, the City has agreed to
treat to applicable drinking water standards any water that it produces from the Olympic Well Field.
To date, $150,000 has been recognized as income in the fund financial statements.
Using the expected cash flow technique, the City has measured the potential water treatment liability
under the Gillette and Boeing agreements by the anticipated cost of construction/remediation
contracts, which include a contingency of 10% for unforeseen costs and therefore, the City’s expected
outlays were determined to be up to $95,545,250, which is the anticipated value of the cost of the
contracts plus the cost of the plant operations for the duration of remediation and decommissioning
costs at the end of remediation.
A total of $98,645,250 has been recognized as revenue and a non-current accrued pollution
remediation liability of $104,250,000, which includes $8,704,750 due under the Gillette agreement,
has been reported in the citywide financial statements.
The pollution remediation expenditures related to the Olympic Well field have no future value once
the remediation is complete; therefore, the City has recorded these amounts as remediation liability
and expense.
Additionally, the City engages in an ongoing program of pollution remediation related to its various
properties. Two such sites are currently undergoing remediation in the form of either soil or vaporous
contaminant removal or containment. By State law these occurrences are required to be reported to
California Department of Health Services.
The balance of the pollution remediation liability is $128,753,623 of which $5,357,291 is due within
one year.
57

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
(5) CASH AND INVESTMENTS
Cash and investments as of June 30, 2012 are classified in the accompanying financial statements as
follows:
Statement of net assets:
Cash and investments $ 448,982,460
Restricted cash and investments 254,794,479
Restricted cash and investments with fiscal agent 50,820,984
Fiduciary funds:
Cash and investments 23,591,249
Restricted cash and investments 6,705,109
Restricted cash and investments with fiscal agent 10,424,107
Total cash and investments $ 795,318,388
Cash and investments as of June 30, 2012 consist of the following:
Cash on hand $ 54,422
Deposits with financial institutions 29,227,235
Investments 766,036,731
Total cash and investments $ 795,318,388
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California
Government Code and the City’s investment policy. The table also identifies certain provisions of the
California Government Code (or the City’s investment policy, if more restrictive) that address interest
rate risk and concentration of credit risk. This table does not address investments of debt proceeds held
by bond trustees that are governed by the provisions of debt agreements of the City, rather than the
general provisions of the California Government Code or the City’s investment policy.
Authorized *Maximum *Maximum
Investment types by investment *Maximum percentage Investment
authorized by state law policy maturity of portfolio in one issuer
Local agency bonds Yes 5 years None None
U.S. Treasury obligations Yes 5 years None None
U.S. agency securities Yes 5 years None 50%
State of California obligations Yes 5 years None None
CA Local Agency obligations Yes 5 Years None None
Banker's acceptances Yes 180 days 10% 10%
Commercial paper Yes 270 days 15% 10%
58

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Authorized *Maximum *Maximum
Investment types by investment *Maximum percentage Investment
authorized by state law policy maturity of portfolio in one issuer
Negotiable certificates of deposit Yes 5 years 30% 10%
Repurchase agreements Yes 1 year None None
Reverse repurchase agreements Yes 92 days
20% of
base value
None
Corporate medium-term notes Yes 5 years 30% None
Mutual funds Yes N/A 20% 10%
Money market mutual funds Yes N/A 20% 10%
Mortgage pass-through securities Yes 5 years 20% None
Time deposits Yes 5 years None None
Collateralized certificates of deposit Yes 5 years None None
County pooled investment funds Yes N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None None
JPA pools (other investment pools) Yes N/A None None
* Based on state law requirements or investment policy requirements, whichever is more restrictive.
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements,
rather than the general provisions of the California Government Code or the City’s investment policy.
The table below identifies the investment types that are generally authorized for investments held by
bond trustees. The table also identifies certain provisions of these debt agreements that address interest
rate risk and concentration of credit risk.
Maximum Maximum
Authorized Maximum percentage Investment
investment type maturity allowed in one issuer
U.S. Treasury obligations None None None
Federal Housing Administration debentures None None None
U.S. agency securities None None None
Time deposits None None None
Unsecured certificates of deposit 180 days None None
Banker's acceptances 180 days None None
State obligations None None None
Repurchase agreements 1 year None None
Pre-refunded municipal obligations None None None
Commercial paper 270 days None None
59

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Maximum Maximum
Authorized Maximum percentage Investment
investment type maturity allowed in one issuer
Money market mutual funds None None None
Investment contracts 30 years None None
Investments Authorized by Actions of the City Council
Cemetery and Mausoleum Perpetual Care funds are received from cemetery users for the perpetual
care of cemetery grounds and of the mausoleum. The funds are legally restricted to the extent that
only earnings, and not principal, can be used for restricted perpetual care purposes. These funds
represent the accumulation of unspent monies from non-government sources and are not considered by
the City to constitute “surplus funds” of a local government. Accordingly, these funds are not
considered by the City to be subject to the provisions of the California Government Code Section
53601 or the City’s investment policy. These funds have been invested per instructions of the City
Council. The table below identifies the investment types generally authorized for these investments.
Current City Council instructions limit amount invested in equities (common stock) to 60% of the total
portfolio with the balance to be invested in fixed income securities. The table also identifies certain
provisions of these instructions that address interest rate risk and concentration of credit risk.
Maximum Maximum
Authorized Maximum percentage Investment
investment type maturity allowed in one issuer
U.S. Treasury obligations None None None
U.S. agency securities None None None
Common stock None 60% None
Corporate bonds None None None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates. The fair value of callable securities is also sensitive to market
changes in that if interest rates decrease between the time of purchase and the call date, the likelihood
that a bond will be called and reinvested at a lower interest rate increases. The City’s portfolio also
includes certain callable structured investments for which the coupon interest rate increases if the
investments are not called on or before certain pre-determined dates. The fair value of these
investments is also sensitive to market changes. One of the ways that the City manages its exposure to
interest rate risk is by purchasing a combination of shorter term and longer term investments and by
timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments
held by bond trustee, Wells Fargo loan proceeds held in a custodial account with another party, and
60

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Charnock funds held jointly with another party in escrow account) to market interest rate fluctuations
is provided by the following table that shows the distribution of the City’s investments by maturity.
For purposes of the schedule shown below, any callable securities are assumed to be held to maturity.
Investment type
Amount
12 Months
or Less
Remaining maturity (in months)
13 to 24 25 to 60
Months Months
More than
60 Months
Held by City:
Federal agency securities $ 515,630,881 194,906,816 106,397,457 214,326,608 —
Corporate medium term notes 19,078,623 10,061,520 1,264,347 7,752,756 —
State investment pool 47,221,150 47,221,150 — — —
Money market funds 33,117,313 33,117,313 — — —
Held by others:
Treasury notes/ bonds 1,365,146 172,396 — 648,011 544,739
Federal agency securities 26,318,265 22,064,679 4,253,586 — —
Corporate medium term notes 2,003,145 239,353 281,548 905,195 577,049
Municipal bonds 890,000 — — 890,000 —
Money market funds 115,286,637 115,286,637 — — —
Total $ 760,911,160 423,069,864 112,196,938 224,522,570 1,121,788
Common stock of $5,125,571 not included.
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations
The City’s investments as of June 30, 2012 (including investments held by bond trustees) do not
include any investments that are highly sensitive to interest rate fluctuations to a greater degree than
already indicated in the information provided above.
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the minimum rating required by (where applicable)
the California Government Code, the City’s investment policy, or debt agreements, and the actual
rating as of year end for each investment type.
61

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Investment type
Amount
Minimum
legal rating AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- Not rated
Federal agency securities $ 515,630,881 N / A — 515,630,881 — — — — — — — — —
Corporate medium term notes 19,078,623 A 7,752,756 11,325,867 — — — — — — — — —
State investment pool 47,221,150 N / A — — — — — — — — — — 47,221,150
Money market funds 33,117,313 AAA 33,117,313 — — — — — — — — — —
Held by others:
615,047,967
Treasury notes/bonds 1,365,146 N / A — 1,365,146 — — — — — — — — —
Federal agency securities 26,318,265 N / A — 26,318,265 — — — — — — — — —
Corporate medium term notes 2,003,145 N / A — — 196,344 184,563 — 274,861 825,298 272,373 156,995 92,711 —
Municipal bonds 890,000 N / A — — — — — 890,000 — — — — —
Money market funds 115,286,637 AAA 115,286,637 — — — — — — — — — —
$ 760,911,160
$ 156,156,706 554,640,159 196,344 184,563 — 1,164,861 825,298 272,373 156,995 92,711 47,221,150
Common stock of $5,125,571 not included.
62

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Concentration of Credit Risk
In regards to limitations on the amount that can be invested in any one issuer, the City’s investment
policy generally follows stipulations by the California Government Code. However, the City’s policy
adds an additional stipulation that no more than 50% of the portfolio may be invested in a single
issuer. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external
investment pools) that represent 5% or more of total City investments are as follows:
FNMA (Fannie Mae) Federal agency securities $ 139,365,863 22.7 %
Federal Farm Credit Bank Federal agency securities 62,234,908 10.1
FHLMC (Freddie Mac) Federal agency securities 140,367,032 22.8
Federal Home Loan Bank Federal agency securities 173,663,078 28.2
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The custodial credit risk for
investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a
transaction, a government will not be able to recover the value of its investment or collateral securities
that are in the possession of another party. The California Government Code and the City’s investment
policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk
for deposits or investments, other than the following provision for deposits: The California
Government Code requires that a financial institution secure deposits made by state or local
governmental units by pledging securities in an undivided collateral pool held by a depository
regulated under state law (unless so waived by the governmental unit). The market value of the
pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the
public agencies. California law also allows financial institutions to secure City deposits by pledging
first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30,
2012, City investments in the following investment types were held by the same broker-dealer
(counterparty) that was used by the City to buy the securities:
Investment type
Reported amount
Federal agencies $ 2,721,062
For investments identified herein as held by bond trustee, the bond trustee, under direction of the City
/Parking Authority selects the investment under the terms of the applicable trust agreement, acquires
the investment, and holds the investment on behalf of the applicable agency.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by
the California Government Code under the oversight of the Treasurer of the State of California. The
fair value of City investments in this pool is reported in the accompanying financial statements at
amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF
portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is
based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
63

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
(6) NOTES RECEIVABLE
Notes receivable related to governmental activities total $107,987,656 as follows:
Balance at
June 30, 2011 Increases Decreases
Balance at
June 30, 2012
General Fund
American Youth Hostel (a) $ 40,000 — 40,000 —
Mountain View Mobile Inn Residents Assoc. (b) 124,977 — — 124,977
Step Up on Second (c) 1,331,252 — 1,331,252 —
Employee housing (d) 994,424 — 6,275 988,149
Low- and moderate-income housing (e) — 2,521,176 — 2,521,176
Community Corporation of Santa Monica (f) — 448,280 — 448,280
Community Corporation of Santa Monica (g) — 4,164,622 — 4,164,622
Low income senior housing (h) — 1,178,003 — 1,178,003
Low income senior housing (i) — 164,276 — 164,276
Total General Fund 2,490,653 8,476,357 1,377,527 9,589,483
Special Revenue Source Fund
Community Corporation of Santa Monica (j) 6,774,763 — — 6,774,763
Community Corporation of Santa Monica (k) 3,350,000 — — 3,350,000
Community Corporation of Santa Monica (l) 2,503,129 — — 2,503,129
Santa Monica Housing Partners (m) — 12,287,266 — 12,287,266
Total Special Revenue Source Fund 12,627,892 12,287,266 — 24,915,158
Earthquake Recovery Redevelopment Fund
Community Corporation of Santa Monica (n) 318,307 — 318,307 —
Community Corporation of Santa Monica (o) 398,362 — 398,362 —
Total Earthquake Recovery Redevelopment 716,669 — 716,669 —
Nonmajor Governmental Funds
Community Corporation of Santa Monica (p) 681,080 — — 681,080
Community Corporation of Santa Monica (q) 2,900,000 — — 2,900,000
Community Corporation of Santa Monica (r) 6,781,693 318,307 — 7,100,000
Low- and moderate-income housing (DRPLP) (s) 200,000 — — 200,000
Low- and moderate-income housing (DRPLP) (s) 200,000 — — 200,000
Low- and moderate-income housing (t) 1,202,185 — 43,850 1,158,335
Low- and moderate-income housing (u) 1,200,000 — — 1,200,000
Low- and moderate-income housing (v) 6,345,807 — — 6,345,807
Low- and moderate-income housing (w) 956,395 — — 956,395
Low- and moderate-income housing (x) 7,170,000 — — 7,170,000
Community Corporation of Santa Monica (y) 3,836,144 398,362 — 4,234,506
Low- and moderate-income housing (z) 841,600 — — 841,600
Low- and moderate-income housing (aa) 5,684,455 — — 5,684,455
Low- and moderate-income housing (bb) 3,044,820 — — 3,044,820
Community Corporation of Santa Monica (cc) 8,958,823 — — 8,958,823
Community Corporation of Santa Monica (dd) 4,786,704 — — 4,786,704
Low income senior housing (ee) 3,916,837 141,815 — 4,058,652
MERL Program (ff) 11,711,336 — 157,358 11,553,978
Low income senior housing (gg) 46,250 — 46,250 —
Low income senior housing (hh) 2,407,860 — — 2,407,860
Total nonmajor governmental funds 72,871,989 858,484 247,458 73,483,015
Total notes receivable $ 88,707,203 21,622,107 2,341,654 107,987,656
64

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
General Fund
a. On April 12, 1990, the City loaned $500,000 from the General Fund, interest free, to American
Youth Hostel, Inc. to assist in financing construction of a 200-bed international youth hostel
facility. The seventeenth of seventeen installment loan payments was received in 2012; the
remaining principal balance as of June 30, 2012 is $0.
b. A promissory note dated April 3, 1996 in the amount of $272,000, interest free, was executed with
Mountain View Mobile Inn Residents Association for pre-development loan funds to assist in the
acquisition and subsequent conversion of the mobile home park located at 1930 Stewart Street to
tenant ownership. As of June 30, 2012, $124,977 had been disbursed to the borrower. Since the
goal of preserving Mountain View as affordable housing was achieved, Council will be asked to
forgive this loan in FY 2012-13.
c. A promissory note in the amount of $1,331,252 was executed with Step Up on Second, L.P., a
California limited partnership, for the construction of a thirty-six bed permanent housing project
for mentally disabled low-income persons. The project is located at 1328 Second Street in Santa
Monica. The original promissory note dated September 16, 1993 was amended, superseded and
replaced in full by promissory notes dated September 9, 1996 and November 30, 2010. Interest
and principal balance of $1,331,252 have been forgiven and the balance is $0 as of June 30, 2012.
d. On June 11, 2010, the City made a housing loan to Rodney S. Gould, City Manager, in the amount
of $1,000,000 for the purchase of a home within the City limits. The loan is secured by a deed of
trust and has a term of 30 years with an interest rate of 3.27%. The outstanding principal, together
with any outstanding interest, is due and payable in full on or before the 30-year anniversary date
of the loan. Monthly interest payments are due on the first calendar day of each month. The City
Manager must repay any outstanding balance of the loan within two years of ending employment
with the City. As of June 30, 2012, the total outstanding balance of the loan was $988,149.
e. A promissory note dated January 12, 2009 in the amount of $6,223,333 was executed with
Community Corporation of Santa Monica for an affordable housing project located at 430-508
Pico Boulevard. This was a 0% loan with the principal amount due and payable after a two-year
deferral period. It was superseded by a new loan dated January 26, 2012, which increased the note
to $10,947,475, changed the interest rate to 3% and the term to 55 years. As of June 30, 2012,
$2,521,176 had been disbursed to the borrower.
f. A promissory note dated February 1, 2011 in the amount of $9,407,103 was executed with
Community Corporation of Santa Monica for an affordable housing project located at 2602
Broadway. This is a 55-year loan with an interest rate of 3% per annum. As of June 30, 2012,
$448,280 had been disbursed to the borrower.
g. A promissory note dated February 2, 2009 in the amount of $5,595,897 was executed with
Community Corporation of Santa Monica for an affordable housing project located at 2802 Pico
Boulevard. This was a 0% loan with the principal amount due and payable after a two-year
deferral period. It was superseded by a new loan dated November 29, 2011, which increased the
note to $9,207,402, changed the interest rate to 3% and the term to 55 years. As of June 30, 2012,
$4,164,622 had been disbursed to the borrower.
65

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
h. A promissory note dated June 16, 2009 in the amount of $4,424,711 was executed with FAME
Santa Monica Senior Apartments, L.P. for an affordable housing project located at 1754 19 th
Street. This loan was superseded by a loan in the amount of $11,475,000 dated November 17,
2011 and it is 0% interest for 55 years. As of June 30, 2012, $1,178,003 had been disbursed to the
borrower.
i. A promissory note dated December 15, 2010 in the amount of $3,645,422 was executed with Step
Up on Second Street, Inc. for an affordable housing project at 520 Colorado Avenue. The loan is
for the acquisition and predevelopment of the site. This loan was superseded by a loan in the
amount of $5,041,255 dated January 25, 2012. It is 3% interest for 55 years after the project is
built. As of June 30, 2012, $164,276 had been disbursed to the borrower.
Special Revenue Source Capital Projects Fund
j. A revised promissory note dated March 9, 2005 in the amount of $6,774,763 was executed with
Pacific Court Limited Partnership, c/o Community Corporation of Santa Monica, for an affordable
housing project located at 2209 Main Street. Forty-three low- and moderate-income housing units
were constructed on the site. This is a 55-year loan with 1% interest rate per annum. Payments
are to be made from residual receipts. As of June 30, 2012, $6,774,763 had been disbursed to the
borrower.
k. A revised promissory note dated October 26, 2004 in the amount of $3,350,000 was executed with
1424 Broadway Apartments Limited Partnership, c/o Community Corporation of Santa Monica,
for an affordable housing project located at 1424 Broadway/1512 15th Street. This is a 55-year
loan with 3% interest rate per annum. Payments are to be made from residual receipts. As of June
30, 2012, $3,350,000 had been disbursed to the borrower.
l. A promissory note dated January 12, 2009 in the amount of $6,223,333 was executed with
Community Corporation of Santa Monica for the acquisition and predevelopment expenses for an
affordable housing project located at 430-508 Pico Boulevard This was a 0% loan with the
principal amount due and payable after a two-year deferral period. It was superseded by a new
loan dated January 26, 2012, which increased the note to $10,947,475, changed the interest rate to
3% and the term to 55 years. As of June 30, 2012, $2,503,129 had been disbursed to the borrower.
m. A promissory note dated December 8, 2011 in the amount of $19,400,000, interest free, was
executed with Santa Monica Housing Partners for the acquisition and predevelopment expenses
for an affordable housing project located at 1725 Ocean Ave. This is a 0% loan with the principal
amount due and payable after 55-year anniversary of conversion to permanent financing. As of
June 30, 2012, $12,287,266 had been disbursed to the borrower.
Earthquake Recovery Redevelopment Fund
n. Promissory notes dated October 26, 2004, October 26, 2004 and June 12, 2007 in the amount of
$4,458,033, $1,691,967 and $950,000 respectively for a total of $7,100,000 were executed with
26 th and Santa Monica Family Housing Limited Partnership, c/o Community Corporation of Santa
Monica, for an affordable housing project located at 1349 26 th Street. Forty-four low- and
moderate-income housing units are to be constructed on the site. They are 55-year loans with 3%
interest rate per annum. Payments are to be made from residual receipts. The promissory notes
66

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
balance of $318,307 was transferred from the Earthquake Recovery Redevelopment Fund to the
Housing Project Fund on February 1, 2012. See (r.) below.
o. A promissory note dated July 24, 2006 in the amount of $4,234,507 was executed with The Tahiti,
L.P. c/o Community Corporation of Santa Monica for an affordable housing project located at
2411-2423 Centinela Avenue. The loan is for the construction of 36 affordable rental housing
units. This is a 55-year loan with a simple interest rate of 3% per annum. Payments are to be
made from residual receipts. The promissory notes balance of $398,362 was transferred from the
Earthquake Recovery Redevelopment Fund to the Housing Project Fund on February 1, 2012. See
(y.) below.
Nonmajor Governmental Funds
p. On March 1, 1997, the City executed a promissory note with Community Corporation of Santa
Monica for the construction of a twenty unit, large family, affordable housing complex located at
708 Pico Boulevard $579,000 is funded from the City’s Pico Neighborhood Trust Fund, while
$221,000 is funded from the Community Development Block Grant (CDBG) Fund. This note is a
0% loan to be repaid from residual receipts of the project and is due on October 22, 2053. As of
June 30, 2012, the outstanding balance is $681,080.
q. A revised promissory note dated October 26, 2004 in the amount of $2,900,000 was executed with
1424 Broadway Apartments Limited Partnership, c/o Community Corporation of Santa Monica,
for an affordable housing project located at 1424 Broadway/1512 15th Street. This is a 55-year
loan with 3% interest rate per annum. Payments are to be made from residual receipts. As of June
30, 2012, $2,900,000 had been disbursed to the borrower.
r. Promissory notes dated October 26, 2004, October 26, 2004 and June 12, 2007 in the amount of
$4,458,033, $1,691,967 and $950,000 respectively for a total of $7,100,000 were executed with
26 th and Santa Monica Family Housing Limited Partnership, c/o Community Corporation of Santa
Monica, for an affordable housing project located at 1349 26 th Street. Forty-four low- and
moderate-income housing units are to be constructed on the site. They are 55-year loans with 3%
interest rate per annum. Payments are to be made from residual receipts. Due to Assembly Bill
26, the former Earthquake Recovery Redevelopment Fund transferred its balance of $318,307 to
the Housing Project Fund on February 1, 2012. As of June 30, 2012, $7,100,000 had been
disbursed to the borrower.
s. Two promissory notes dated December 22, 1988 and December 29, 1989, for $200,000 each, one
for 3 Vicente Terrace and one for 2020/30 Cloverfield Boulevard, were executed with the owners
of certain rental properties. The first note was for five years at 3% interest per year, and could be
renewed for five additional five-year terms as long as the rental properties are maintained for lowand
moderate-income households. The first note was due December 22, 1993, and has been
extended for the fourth time to December 22, 2013; the second note was due December 29, 1994,
and has been extended to December 29, 2019 under the same interest rate and similar terms and
conditions. The promissory notes are payable in full upon sale or transfer of the property
(whichever occurs first) or upon expiration of the term of the promissory notes. Upon payment to
the City, proceeds must be paid to the State of California as repayment for two $200,000 State
Department of Housing and Urban Development Deferred Payment Rehabilitation Loan Program
(DPRLP) loans. There were no changes in the loan balances during the year ended June 30, 2012.
67

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
t. These represent non-interest bearing, limited appreciation and shared appreciation loans made
between 1991 and 2001 pursuant to Tenant Ownership Rights Charter Amendment (TORCA)
Program guidelines to assist low- and moderate-income households purchase their rental units.
The loans are due the earlier of 20 years or 30 years as applicable or upon resale, transfer or
default. As of June 30, 2012, the outstanding balances of such loans total $1,158,335.
u. A promissory note dated September 30, 2003 in the amount of $1,200,000 was executed with
Ocean Park Community Center for congregate housing and emergency shelter for very lowincome
use, located at 1751 Cloverfield Boulevard This loan is for the acquisition and
rehabilitation of the site. This is a 55-year loan with 5.98% interest rate per annum with a twoyear
deferral period. Payments are to be made from residual receipts. As of June 30, 2012,
$1,200,000 had been disbursed to the borrower.
v. A revised promissory note dated February 8, 2006 in the amount of $6,745,807 was executed with
Community Corporation of Santa Monica for an affordable housing project located at 3021-3031
Santa Monica Boulevard. This loan is for the acquisition, predevelopment expenses and
construction of future low- and moderate-income housing. This is a 0% loan with the principal
amount due and payable February 8, 2061, 55-years from February 8, 2006. As of June 30, 2012,
$6,345,807 had been disbursed to the borrower.
w. A promissory note dated February 10, 2004, in the amount of $1,161,185 was executed with
Community Corporation of Santa Monica for the purchase of land for an affordable housing
project located at 1342 Berkeley Street. As of June 30, 2012, $956,395 had been disbursed to the
borrower. This 0% loan was due and payable August 6, 2008, and is secured by the land at 1342
Berkeley. Council extended the loan until December 2014.
x. Two promissory notes dated February 13, 2007, one in the amount of $5,870,000 and one for
$1,300,000 were, executed with Step up on Fifth, L.P. for an affordable housing project located at
1548 Fifth Street. These loans are for the acquisition and construction of the site. This is a 55-
year loan with a simple interest rate of 5% per annum. Payments are to be made from residual
receipts. As of June 30, 2012, $7,170,000 had been disbursed to the borrower.
y. A promissory note dated July 24, 2006 in the amount of $4,234,507 was executed with The Tahiti,
L.P. c/o Community Corporation of Santa Monica for an affordable housing project located at
2411-2423 Centinela Avenue. The loan is for the construction of 36 affordable rental housing
units. This is a 55-year loan with a simple interest rate of 3% per annum. Payments are to be
made from residual receipts. Due to Assembly Bill 26, the former Earthquake Recovery
Redevelopment Fund transferred its balance of $398,362 to the Housing Project Fund on February
1, 2012. As of June 30, 2012, $4,234,506 had been disbursed to the borrower.
z. A promissory note dated December 22, 1988 in the amount of $841,600 was executed with
Community Corporation of Santa Monica for low- and moderate-income housing at 2020-2030
Cloverfield Boulevard. This is a 35-year loan with 10.44% interest rate per annum. As of June 30,
2012, $841,600 had been disbursed to the borrower.
aa. An amended promissory note dated February 22, 2008, in the amount of $5,207,314 and a
promissory note dated March 15, 2011 for $477,142 were executed with the Santa Monica
Housing Partners, L.P. for the development of twenty units of affordable senior housing at 1458
14 th Street. The loans represents land acquisition financing that achieves site control. These are 55-
68

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
year loans with an interest rate of 3% per annum on the $5,207,314 loan and 4.36% on the
$477,142 loan. As of June 30, 2012, the outstanding balance is $5,684,455.
bb. A promissory note dated January 12, 2009 in the amount of $6,223,333 was executed with
Community Corporation of Santa Monica for an affordable housing project located at 430-508
Pico Boulevard. This was a 0% loan with the principal amount due and payable after a two-year
deferral period. It was superseded by a new loan dated January 26, 2012, which increased the note
to $10,947,475, changed the interest rate to 3% and the term to 55 years. As of June 30, 2012,
$3,044,820 had been disbursed to the borrower.
cc. A promissory note dated February 1, 2011 in the amount of $9,407,103 was executed with
Community Corporation of Santa Monica for an affordable housing project located at 2602
Broadway. This is a 55-year loan with an interest rate of 3% per annum. As of June 30, 2012,
$8,958,823 had been disbursed to the borrower.
dd. A promissory note dated February 2, 2009 in the amount of $5,595,897 was executed with
Community Corporation of Santa Monica for an affordable housing project located at 2802 Pico
Boulevard. This was a 0% loan with the principal amount due and payable after a two-year
deferral period. It was superseded by a new loan dated November 29, 2011, which increased the
note to $9,207,402, changed the interest rate to 3% and the term to 55 years. As of June 30, 2012,
$4,786,704 had been disbursed to the borrower.
ee. A promissory note dated June 16, 2009 in the amount of $4,424,711 was executed with FAME
Santa Monica Senior Apartments, L.P. for an affordable housing project located at 1754 19 th
Street. This loan was superseded by a loan in the amount of $11,475,000 dated November 17,
2011. It is 0% interest for 55 years. As of June 30, 2012, $4,058,652 had been disbursed to the
borrower.
ff. The January 17, 1994 Northridge Earthquake resulted in damaged multifamily residences in the
City of Santa Monica. To facilitate repair of damaged multifamily residences, the U.S.
Department of Housing and Urban Development awarded the City of Santa Monica a total of
$33,388,000 in emergency funds to finance the City's Multifamily Earthquake Repair Loan
(MERL) Program.
The funds were allocated as follows: $2,027,000 – HOME Program Emergency Supplemental
Fund, $6,361,000 – HOME Program Presidential Contingency Fund, and $25,000,000 – CDBG
Program Emergency Supplemental Fund.
Loans were made between 1995 and 2001. As of June 30, 2012, the following summarizes the
total loan amount authorized, amount disbursed since inception of the loan program, the amounts
repaid by the borrowers, and the loan balances:
Loan amount Loan amount Amounts Loan balance at
Fund authorized disbursed repaid/forgiven June 30, 2012
Miscellaneous Grants $ 7,790,695 7,790,695 3,226,220 4,564,475
CDBG 21,739,088 21,727,929 14,738,426 6,989,503
Total $ 29,529,783 29,518,624 17,964,646 11,553,978
69

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
gg. The Redevelopment Housing Trust Fund, formerly known as “CHARP” provides funds to eligible
borrowers in the form of deferred payment loans to make up the financial gap between available
non-program resources, including the borrower’s equity and private financing, and the limited
equity cooperatives. Interest and principal balance of $46,250 of a loan dated December 29, 1998
for property at 1011 11 th Street have been forgiven and the balance is $0 as of June 30, 2012.
hh. A promissory note dated December 15, 2010 in the amount of $3,645,422 was executed with Step
Up on Second Street, Inc. for an affordable housing project at 520 Colorado Avenue. The loan is
for the acquisition and predevelopment of the site. This loan was superseded by a loan in the
amount of $5,041,255 dated January 25, 2012. It is 3% interest for 55 years after the project is
built. As of June 30, 2012, the outstanding balance is $2,407,860.
Due to the length of the repayment plan and uncertainty of collection of housing loans, the City’s
policy is not to record interest until received.
70

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
(7) CAPITAL ASSETS
Capital assets activity for the primary government for fiscal year ended June 30, 2012 is as follows:
Balance at
July 1, 2011 Increases Decreases Transfers
Balance at
June 30, 2012
Governmental activities:
Capital assets, not being depreciated:
Land $ 196,425,024 3,250,000 — 200,000 199,875,024
Land held under easement 72,237,823 — — — 72,237,823
Construction in progress 34,933,556 50,046,803 — (8,359,529) 76,620,830
Total capital assets, not being depreciated 303,596,403 53,296,803 — (8,159,529) 348,733,677
Capital assets, being depreciated:
Buildings 271,879,770 95,768 — 8,359,529 280,335,067
Improvements other than buildings 78,625,572 — — — 78,625,572
Intangibles 3,575,000 — — — 3,575,000
Utility systems 1,742,913 — — — 1,742,913
Machinery and equipment 34,418,733 1,454,859 (548,870) — 35,324,722
Infrastructure 329,590,318 — — — 329,590,318
Total capital assets being depreciated 719,832,306 1,550,627 (548,870) 8,359,529 729,193,592
Less accumulated depreciation for:
Buildings (54,889,978) (7,670,466) — — (62,560,444)
Improvements other than buildings (45,977,811) (2,056,318) — — (48,034,129)
Intangibles (271,104) (35,750) — — (306,854)
Utility systems (300,900) (87,146) — — (388,046)
Machinery and equipment (25,438,348) (1,600,436) 536,457 — (26,502,327)
Infrastructure (158,404,029) (10,453,061) — — (168,857,090)
Total accumulated depreciation (285,282,170) (21,903,177) 536,457 — (306,648,890)
Total capital assets, being depreciated, net 434,550,136 (20,352,550) (12,413) 8,359,529 422,544,702
Subtotal governmental activities 738,146,539 32,944,253 (12,413) 200,000 771,278,379
Business-type activities:
Capital assets, not being depreciated:
Land 72,431,413 — — (200,000) 72,231,413
Construction in progress 16,064,599 10,566,438 — (1,064,351) 25,566,686
Total capital assets, not being depreciated 88,496,012 10,566,438 — (1,264,351) 97,798,099
Capital assets, being depreciated:
Buildings 149,576,343 3,344,022 — 224,153 153,144,518
Improvements other than buildings 25,979,610 1 — 577,222 26,556,833
Intangibles 79,884,325 2,712,766 — — 82,597,091
Machinery and equipment 160,678,015 13,648,392 (8,111,581) 262,976 166,477,802
Infrastructure 204,438,070 — — — 204,438,070
Total capital assets being depreciated 620,556,363 19,705,181 (8,111,581) 1,064,351 633,214,314
Less accumulated depreciation for:
Buildings (37,864,615) (4,184,330) — — (42,048,945)
Improvements other than buildings (19,387,111) (741,883) — — (20,128,994)
Intangibles (19,107,968) (2,081,776) — — (21,189,744)
Machinery and equipment (108,002,251) (13,594,134) 7,979,867 — (113,616,518)
Infrastructure (59,092,537) (5,279,238) — — (64,371,775)
Total accumulated depreciation (243,454,482) (25,881,361) 7,979,867 — (261,355,976)
Total capital assets, being depreciated, net 377,101,881 (6,176,180) (131,714) 1,064,351 371,858,338
Subtotal business-type activities 465,597,893 4,390,258 (131,714) (200,000) 469,656,437
Total $ 1,203,744,432 37,334,511 (144,127) — 1,240,934,816
71

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Depreciation and amortization expense was charged to functions/programs of the primary
government as follows:
Governmental activities:
General government $ 992,747
Public safety 2,238,327
General services 12,907,227
Cultural and recreation services 3,377,689
Library 1,301,842
Housing and community development 835,189
Capital assets held by the government's internal service funds are
charged to the various functions based on their assets usage 250,156
Total depreciation and amortization expense - governmental activities $ 21,903,177
Business-type activities:
Water $ 1,001,793
Resource Recovery and Recycling 8,643
Pier 509,436
Wastewater 6,317,129
Civic auditorium 283,210
Airport 426,563
Stormwater management 301,816
Cemetery 154,066
Big Blue Bus 13,310,913
Parking authority 264,207
Capital assets held by the government's internal service funds are
charged to the various programs based on their assets usage 3,303,585
Total depreciation and amortization expense - business-type activities $ 25,881,361
Note that depreciation and amortization expense does not equal amounts shown on enterprise
fund statements because internal service fund amounts relating to business-type activities are
included in functions/programs.
The City’s infrastructure assets are recorded at historical cost and estimated historical cost in the
government-wide statements as required by GASB 34.
(8) DEFERRED/UNEARNED REVENUE
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental and enterprise
funds also defer revenue recognition in connection with resources that have been received as of yearend,
but not yet earned (unearned revenue).
72

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
The interest on advances reported in the General Fund and the nonmajor governmental funds represent
interfund activity eliminated in the government-wide financial statements. This interest is earned and
included in promissory note balances at year-end. GASB 34 requires the City to recognize and present
interfund activity between governmental and business-type funds on the government-wide financial
statements. Interest on advances of $486,954 is deferred on the fund financial statements but is
recognized on the government-wide financial statements because it relates to General Fund
(governmental-type fund) loans to the Airport Fund (business-type fund).
The components of unearned revenue are as follows:
Fund financial
statements
Eliminate
interfund
activity
Recognized in
governmentwide
financials
Governmentwide
financial
statements
Governmental funds:
General Fund:
Interest on advances $ 17,759,028 (17,272,074) (486,954) —
Settlement proceeds 1,500,000 (1,500,000) —
Unearned user fees 3,452,491 — — 3,452,491
Total General Fund 22,711,519 (17,272,074) (1,986,954) 3,452,491
Special Revenue Source Fund:
Civic Center advanced lease payments 19,285,690 — — 19,285,690
Settlement proceeds 27,956,628 — (19,245,981) 8,710,647
Total Special Revenue Source Fund 47,242,318 — (19,245,981) 27,996,337
Nonmajor governmental funds:
Grant advances (1) 1,064,063 — — 1,064,063
Interest on advances 7,152,611 (6,242,383) (910,228) —
Unearned user fees 10,088 — — 10,088
Total nonmajor governmental funds: 8,226,762 (6,242,383) (910,228) 1,074,151
Total governmental funds 78,180,599 (23,514,457) (22,143,163) 32,522,979
Enterprise funds:
Big Blue Bus Fund:
Unredeemed fare media 60,296 — — 60,296
Unearned contract revenue 122,097 — — 122,097
LACMTA funds received prior to
meeting all eligibility requirements 868,808 — — 868,808
Total Big Blue Bus Fund 1,051,201 — — 1,051,201
Total enterprise funds 1,051,201 — — 1,051,201
Total unearned revenue $ 79,231,800 (23,514,457) (22,143,163) 33,574,180
(1) Represents grant advances for which all of the eligibility requirements have not been met.
73

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
(9) LONG-TERM LIABILITIES
Changes in long-term liabilities:
Long-term liability activity for the fiscal year ended June 30, 2012, was as follows:
Balance at
July 1, 2011 Additions Reductions
Balance at
June 30, 2012
Due within
one year
Due beyond one
year
Governmental Activities:
Loans and notes payable $ 101,468,020
— 101,068,020 400,000 — 400,000
Term loan 50,000,000 — 50,000,000 — — —
Revenue bonds 61,505,000 40,690,000 14,565,000 87,630,000 3,365,000 84,265,000
Tax allocation bonds 106,310,000 — 106,310,000 — — —
General obligation bonds 15,000,000 11,325,000 15,000,000 11,325,000 — 11,325,000
Less deferred amounts:
For issuance discounts (177,030) — (167,439) (9,591) — (9,591)
For issuance premiums 1,102,872 4,339,840 665,161 4,777,551 — 4,777,551
Deferred loss on refunding (3,267,366) (360,093) (3,130,129) (497,330) — (497,330)
Total loans and bonds
payable 331,941,496 55,994,747 284,310,613 103,625,630 3,365,000 100,260,630
Compensated absences (1) 11,332,102 6,396,299 6,396,876 11,331,525 6,182,307 5,149,218
Claims payable 25,855,115 10,234,017 7,063,891 29,025,241 6,551,766 22,473,475
Subtotal governmental
activities 369,128,713 72,625,063 297,771,380 143,982,396 16,099,073 127,883,323
Business-type activities:
Loans payable 2,565,054 — 256,632 2,308,422 263,305 2,045,117
Revenue bonds 22,615,000 8,955,000 11,320,000 20,250,000 1,700,000 18,550,000
Less deferred amounts:
For issuance discounts (84,791) — (84,791) — — —
For issuance premiums 152,621 949,006 19,278 1,082,349 — 1,082,349
Loss on refunding (1,955,313) (724,535) (667,314) (2,012,534) — (2,012,534)
Total loans and bonds
payable 23,292,571 9,179,471 10,843,805 21,628,237 1,963,305 19,664,932
Compensated absences 3,488,479 2,058,211 2,273,779 3,272,911 2,172,739 1,100,172
Claims payable 2,643,173 1,017,658 947,775 2,713,056 1,524,563 1,188,493
Subtotal business-type
activities 29,424,223 12,255,340 14,065,359 27,614,204 5,660,607 21,953,597
Total $ 398,552,936 84,880,403 311,836,739 171,596,600 21,759,680 149,836,920
(1) Compensated absences are predominately liquidated by General Fund resources.
74

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
A summary of long-term bonds and loans outstanding at year-end is as follows:
Date of issue Original issue
Governmental activities:
Revenue bonds (1):
Parking Authority Refunding 2002 May 1, 2002 10,480,000
Final
maturity
date
Interest
rate
Balance at
June 30, 2012
$ July 1, 2016 3.50-4.50% $ 4,985,000
Public Finance Authority 2011 Nov 16, 2011 32,065,000 June 1, 2031 4.00-5.00% 32,065,000
Public Finance Authority Refunding 2009 Dec 16, 2009 9,155,000 July 1, 2021 2.00-5.00% 7,940,000
Public Finance Authority Refunding 2011 Nov 16, 2011 8,625,000 Dec 1, 2020 2.00-4.00% 8,100,000
Public Finance Authority 2004 Dec 1, 2004 38,930,000 July 1, 2034 3.35-5.00% 34,540,000
Subtotal revenue bonds -
governmental activities 87,630,000
General obligation bonds (1):
Main Library Improvements 2012 May 30, 2012 11,325,000 July 1, 2022 0.20-4.00% 11,325,000
Subtotal general obligation
bonds - governmental
activities 11,325,000
Loans and notes:
State Dept. of Housing and
Community Development loan (2) Dec 22, 1988 200,000 Dec 22, 2013 0.00% 200,000
State Dept. of Housing and
Community Development loan (2) Dec 29, 1989 200,000 Dec 29, 2019 0.00% 200,000
Subtotal loans payable 400,000
Subtotal governmental activities 99,355,000
Business-type activities (3):
Revenue bonds:
Hyperion Project Revenue Refunding 2012 May 30, 2012 8,955,000 Feb 1, 2022 2.00-4.00% 8,955,000
Hyperion Project Revenue Refunding 2005 Oct 1, 2005 20,305,000 Jan 1, 2018 3.00-5.00% 11,295,000
Subtotal revenue bonds -
business-type activities 20,250,000
Loans:
State Water Resources Control
Board loan Jan 29, 1999 5,000,000 July 1, 2019 2.60% 2,308,422
Subtotal business-type activities 22,558,422
Total $ 121,913,422
(1) For construction of City facilities.
(2) To fund promissory note receivable from the owner of certain rental property.
(3) To fund capital contribution towards wastewater treatment facility.
Management believes it is in compliance with all debt covenants. See Note 17.
75

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Annual debt service requirements to maturity are as follows:
Fiscal year
ending
Revenue bonds
Governmental Activities
General obligation bonds
Loans payable
June 30, Principal Interest Principal Interest Principal Interest Principal Interest
2013 $ 3,365,000 3,751,017 — 191,910 — — 3,365,000 3,942,927
2014 4,695,000 3,640,291 1,225,000 326,205 200,000 — 6,120,000 3,966,496
2015 4,865,000 3,462,426 1,210,000 323,165 — — 6,075,000 3,785,591
2016 5,070,000 3,264,051 1,165,000 309,700 — — 6,235,000 3,573,751
2017 5,270,000 3,056,623 1,135,000 275,350 — — 6,405,000 3,331,973
2018-2022 22,455,000 12,522,638 5,530,000 721,275 200,000 — 28,185,000 13,243,913
2023-2027 17,670,000 8,240,066 1,060,000 21,200 — — 18,730,000 8,261,266
2028-2032 19,495,000 3,690,439 — — — — 19,495,000 3,690,439
2033-2037 4,745,000 240,125 — — — — 4,745,000 240,125
$ 87,630,000 41,867,676 11,325,000 2,168,805 400,000 — 99,355,000 44,036,481
Total
Fiscal year
ending
Revenue bonds
Business-type activities
Loans payable
June 30, Principal Interest Principal Interest Principal Interest
2013 $ 1,700,000 674,700 263,305 60,019 1,963,305 734,719
2014 1,785,000 600,963 270,151 53,173 2,055,151 654,136
2015 1,845,000 537,438 277,174 46,149 2,122,174 583,587
2016 1,910,000 466,950 284,381 38,943 2,194,381 505,893
2017 1,990,000 388,950 291,775 31,549 2,281,775 420,499
2018-2022 11,020,000 784,325 921,636 48,335 11,941,636 832,660
Total
$ 20,250,000 3,453,326 2,308,422 278,168 22,558,422 3,731,494
76

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
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 summary of long-term bonds and loans and notes 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.
Description of pledged revenue/debt:
Base rental payments
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
Future amount
of pledged
revenue
Parking Authority Refunding 2002 $ 1,156,102 1,113,836 96% 5,553,138
Public Finance Authority 2011, Refunding 2009 2,446,715 2,297,278 94% 19,117,150
Public Finance Authority 2004 2,549,838 2,531,638 99% 55,346,171
Parking Structure 6 725,466 725,466 100% 49,481,217
Library bond tax revenue
Main Library Improvements Refunding 2012 1,735,540 1,860,937 107% 13,493,805
Wastewater charges for services
Hyperion Project Revenue Refunding 2012, 20 10,240,845 2,574,738 25% 23,703,326
Bonds
On November 16, 2011 the Santa Monica Public Financing Authority issued $32,065,000 of Santa
Monica Public Financing Authority Lease Revenue Bonds Series 2011A bearing interest from 4.00%
to 5.00% with a maturity date of June 1, 2031 to fund demolition and construction of Parking
Structure 6.
Additionally at that same date the Santa Monica Public Financing Authority issued $8,625,000 of
Santa Monica Public Financing Authority Lease Revenue Refunding Bonds Series 2011B bearing
interest from 2.00% to 4.00% with a maturity of December 1, 2020. The bonds were issued to refund
the Santa Monica Public Financing Authority Lease Revenue Series 2002A (Public Safety Facility
Project). The aggregate difference in debt service between the refunding debt and the refunded debt is
$3,065,323 and resulted in an economic gain of $614,011. The reacquisition price exceeded the net
carrying value of the old debt by $302,320. This amount is being netted against the new debt and
amortized over the remaining life of the new debt, which is equal to the life of the refunded debt.
On May 30, 2012 the City issued $11,325,000 of General Obligation Refunding Bonds, Series 2012
(Library Improvement Project) bearing interest from 0.20% to 4.00% with a maturity of July 1, 2022
77

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
to refund the City of Santa Monica General Obligation Bonds Series 2002 (Library Improvement
Project). The aggregate difference in debt service between the refunding debt and the refunded debt is
$3,604,153 and resulted in an economic gain of $1,936,574. The reacquisition price exceeded the net
carrying value of the old debt by $57,773. This amount is being netted against the new debt and
amortized over the life of the new debt which is equal to the life of the refunded debt. At June 30,
2012 $13,750,000 of the refunded bonds were still outstanding and have not been included in the
accompanying financial statements. The defeased 2002 Library Improvement Bonds were called in
full on July 1, 2012.
Also on May 30, 2012, the City issued $8,955,000 of Wastewater Refunding Revenue Bonds, Series
2012A bearing interest from 2.00% to 4.00%. These bonds were issued to refund the City of Santa
Monica Wastewater Enterprise Revenue Bonds (Hyperion Project) 1993 Refunding Series. The
aggregate difference in debt service between the refunding debt and the refunded debt is $2,197,059
and resulted in an economic gain of $1,883,576. The reacquisition price exceeded the carrying amount
of the old debt by $724,535. This amount is being netted against the new debt and amortized over the
remaining life of the new debt, which is equal to the old debt.
Dissolution of Redevelopment
The Redevelopment Agency of the City of Santa Monica (Former Agency) was dissolved February 1,
2012. The City of Santa Monica agreed to become the Santa Monica Successor Agency (Successor
Agency) and become responsible for the wind down of the Former Agency. The assets and liabilities
of the Former Agency were transferred to the Successor Agency including any debt that existed at the
date of the transfer. See note 17.
Bond Rating Review
On October 9, 2012 Moody’s Investors Service issued a statement that the debt ratings of 32
California cities would come under review. On December 17, 2012, Moody’s downgraded the City’s
Lease Revenue Bonds to Aa2 from Aa1 citing that Moody’s opinion that a two notch rating distinction
between the City’s Aaa general obligation bond rating and the Aa2 lease-backed obligation reflects the
weaker security pledge for the lease-backed obligations. These bonds include the Public Financing
Authority Lease Revenue Refunding Bonds, Series 2011 and 2009 (Public Safety Facility Project),
Series 2011A and Series 2004 (Civic Center Parking Project).
(10) FUND DEFICITS
Capital Projects Funds. A deficit fund balance in the amount of $187,396 exists in the Disaster
Relief Fund. This fund balance deficit is primarily due to timing of revenue and expenditure
recognition.
Proprietary Funds. A net deficit in the amount of $4,228,604 exists in the Airport Fund due to
reductions in revenue and increased expenses compared to previous years. The deficit is expected to
be funded by increased future fees.
78

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
(11) INTERFUND TRANSACTIONS
The following tables summarize the due to/from other funds, interfund advances to/from, and transfers
in/out as of and for the fiscal year ended June 30, 2012.
Advances to/from
Advances to/from other funds at June 30, 2012 are as follows:
Advances to
Advances from
(receivable fund) (payable fund) Amount
General Fund Nonmajor governmental funds $ 3,842,973
Private-purpose trust fund 21,382,237 (1)
Airport fund 13,335,039
Nonmajor enterprise funds 62,081
Total General Fund 38,622,330
Nonmajor governmental funds Private-purpose trust fund 9,023,266 (1)
Total advances to/from $ 47,645,596
(1) Represents promissory notes payable due from the Successor Agency to the City.
Management believes, in consultation with legal counsel, that the obligations of the former
redevelopment agency due the City are enforceable obligations payable by the Successor
Agency trust under the requirements of Assembly Bill (AB) 1X26 and AB 1484. The City’s
position on this issue is not a position of settled law and there is considerable legal uncertainty
regarding this issue. It is reasonably possible that a legal determination may be made at a later
date by an appropriate judicial authority that would resolve this issue unfavorably to the City.
Advances represent loans made to provide financing resources for capital projects. These amounts are
expected to be repaid in future years, subject to the various loan terms. None of the above balances
are expected to be repaid within one year.
79

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Due from/to
Balances due to/from other funds at June 30, 2012 are as follows:
Due from
(receivable fund)
Due to
(payable fund)
Amount
General Fund Private-purpose trust fund $ 59,216 (1)
Nonmajor governmental funds 6,599,216
Nonmajor enterprise funds 1,072,814
Total General Fund 7,731,246
Nonmajor governmental funds Nonmajor governmental funds 543,072
Private-purpose trust fund General Fund 30,880,832 (1)
Nonmajor governmental funds 5,919,526 (1)
Total private-purpose trust fund 36,800,358
Total due to/from $ 45,074,676
(1) Represents interfund receivables/payables due to/from the Successor Agency based on the
California State Department of Finance Due Diligence Reviews and outstanding passthrough
payments due taxing entities per the Recognized Obligation Payment Schedule as
of June 30, 2012.
Due to/from other funds are primarily short term loans made to eliminate negative cash balances at
year end. Due to/from private purpose trust fund are payments due to/from the Successor Agency
determined by California State Department of Finance Due Diligence Reviews conducted after June
30, 2012 (See Note 18). These balances are expected to be repaid within one year.
80

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Transfers
Transfers to/from other funds for the fiscal year ended June 30, 2012 are as follows:
Transfer in
(receivable fund)
Transfer out
(payable fund)
Amount
General Fund Special Revenue Source Fund $ 583,985 (1)
Nonmajor governmental funds 3,982,746 (2)
Resource Recovery and Recycling Fund 807,636 (3)
Big Blue Bus Fund 91,494 (4)
Wastewater Fund 960,345 (5)
Nonmajor enterprise funds 4,722,270 (6)
Internal service funds 127,637 (7)
Total General Fund 11,276,113
Nonmajor governmental funds General Fund 17,273,205 (8)
Earthquake Redevelopment Fund 2,826,794 (9)
Wastewater Fund 73,159 (10)
Nonmajor governmental funds 67,278,211 (8)
Nonmajor enterprise funds 73,159 (10)
Total nonmajor governmental funds 87,524,528
Wastewater Fund Nonmajor enterprise funds 1,199,442 (11)
Total Wastewater Fund 1,199,442
Airport Fund General Fund 28,429 (12)
Total Airport Fund 28,429
Big Blue Bus Fund Nonmajor governmental funds 802,452 (13)
Total Big Blue Bus Fund 802,452
Nonmajor enterprise funds General Fund 8,248,298 (14)
Earthquake Redevelopment Fund 3,670,438 (15)
Special Revenue Source Fund 158,439 (16)
Nonmajor enterprise funds 12,480 (17)
Nonmajor governmental funds 404,878 (18)
Total nonmajor enterprise funds 12,494,533
Internal service funds Internal service funds 2,178,397 (19)
Total internal service funds 2,178,397
Total transfers $ 115,503,894
(1) Transfer of monies to subsidize housing, homeless programs and transportation management project
expenditures.
(2) Transfer to subsidize current and future housing, streets and roads, senior nutrition, library, transportation
management, redevelopment area projects, and various operating expenditures.
(3) Transfer to subsidize recycling and resource recovery expenses.
(4) Transfer to subsidize transit officers' salaries and transit mall maintenance.
(5) Transfer to subsidize environmental programs expenditures.
(6) Transfer to subsidize environmental programs, parking and traffic expenditures.
(7) Transfer to subsidize Workers’ Compensation Self-Insurance Fund staff time.
(8) Transfer for the payment of debt service and to subsidize housing program expenditures.
81

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
(9) Transfer for the payment of debt service.
(10) Transfer to subsidize environmental programs, stormwater and treatment facility expenses.
(11) Transfer to subsidize operating expenses associated with the Santa Monica Urban Runoff Recycling
Facility and stormwater-related work performed by Public Works Management Department’s Wastewater
Division.
(12) Transfer to subsidize airport related expenses.
(13) Transfer to subsidize transportation related expenses.
(14) Transfer to subsidize cemetery management and civic auditorium expenses.
(15) Transfer to subsidize parking and traffic expenses.
(16) Transfer to subsidize water and environmental remediation expenses.
(17) Transfer to subsidize stormwater management expenses.
(18) Transfer to subsidize cemetery management expenses.
(19) Transfer to subsidize General Liability/Auto Self-Insurance Fund staff time.
82

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
(12) RESTRICTED NET ASSETS
Restricted net assets are subject to external legal constraints. The following categories of net assets
are restricted as to use by agreements with creditors, developers, grantors, or laws or regulations of
other governments: debt service, Clean Beaches and Ocean Parcel Tax, Housing Authority,
Community Development Block Grant, Citizens Option for Public Safety, Air Quality Management
District, development projects, Asset Seizure, streets projects, low- and moderate-income housing,
MTBE settlement, perpetual care, miscellaneous medical coverage and construction of rail system.
The remaining categories of funds, Tenant Ownership Rights Charter Amendment and Rent Control,
are restricted as to use by law.
Net assets for governmental activities at June 30, 2012, are restricted as follows:
Housing Authority $ 1,862,609
Tenant Ownership Rights Charter Amendment * 13,770,118
Community Development Block Grant 12,286,355
Citizens Option for Public Safety 190,893
Rent control * 1,434,684
Air Quality Management District 710,582
Asset seizure 526,756
Streets projects 773,493
Housing Projects Fund 55,955,727
Total housing and community development 87,511,217
Clean Beaches and Ocean Parcel Tax * 10,265,875
Miscellaneous grants 14,864,749
Debt service 3,598,618
Development projects 37,342,114
Perpetual care - nonexpendable * 9,146,899
Pollution remediation MTBE settlement 9,234,917
Total restricted net assets $ 171,964,389
Of the net assets for business-type activities at June 30, 2012 totaling $568,640,908, $1,730,988 is
restricted for construction of a rail system and $14,293,247 is restricted for Prop 1B and ARRA.
* Net assets restricted by enabling legislation.
(13) FUND BALANCES
In the fund financial statements, nonspendable, restricted for, committed to, assigned to, and
unassigned segregate portions of fund balances that are either not available or have been earmarked for
specific purposes. These fund balance categories are in accordance with GASB 54 and were
implemented during the prior fiscal year.
83

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
In governmental funds, nonspendable fund balances are presented as a component of fund balances as
follows:
General Fund
Capital projects
fund
Special Revenue
Source Fund
Prepaids
Since these assets are goods or services already purchased, they do not represent available expendable
resources.
Advances to other funds
Reflects the balances due, net of deferred interest revenues, from other funds that are long-term in
nature and do not represent available expendable resources of the City.
Perpetual care
Represents balance of funds held by the City restricted for use for expenditures associated with
perpetual care of the City's cemetery and mausoleum.
Notes receivable
Reflects the balances due on loans that are long-term in nature and do not represent available
expendable resources of the City.
In governmental funds, restricted fund balances are presented as a component of fund balances as
follows:
Capital projects
fund
Special Revenue
Source Fund
Nonmajor
governmental
funds
Nonmajor
governmental
funds
Total
governmental
funds
Nonspendable
Prepaids $ 205,066
— 26,770 231,836
Advances 20,863,297 — 1,870,656 22,733,953
Perpetual care — — 9,146,899 9,146,899
Notes receivable 1,113,127 12,287,266 — 13,400,393
Total nonspendable $ 22,181,490 12,287,266 11,044,325 45,513,081
Total
governmental
funds
General Fund
Restricted for
Notes receivable $ 8,476,356 12,627,892 81,246,984 102,351,232
Special purposes 34,580,093 87,843 16,922,448 51,590,384
Low-and moderate-income housing — 994,407 2,975,520 3,969,927
Childcare center — 969,009 — 969,009
Parks — 481,871 — 481,871
Arts — 180,000 — 180,000
Animal shelter — 21,456 — 21,456
Debt service — — 7,150,832 7,150,832
Total restricted $ 43,056,449 15,362,478 108,295,784 166,714,711
84

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Notes receivable
Reflects the balances due on loans that are long-term in nature. Amounts, when collected, will be
restricted as to use.
Special purposes
Represents amounts restricted externally by creditors, grantors, contributors, or laws or regulations of
other governments or imposed by law through constitutional provisions or enabling legislation.
Low- and moderate-income housing
Represents funds restricted for low- and moderate-income housing.
Childcare center
Represents unspent balance of developer fees restricted for future childcare center.
Parks
Represents unspent balance of developer fees restricted for park projects.
Arts
Represents balance of funds received from various sources to be used for arts projects.
Animal shelter
Represents unspent balance of contributions from citizens that are restricted for use for the City’s
Animal Shelter.
Debt service
Represents balance of funds held by trustees for future debt service and associated payments in the
Debt Service Fund.
In governmental funds, committed fund balances are presented as a component of fund balances as
follows:
General Fund
Capital projects
fund
Special Revenue
Source Fund
Nonmajor
governmental
funds
Total
governmental
funds
Committed to
Overnight accommodations $ 490,000 820,854 — 1,310,854
Early childhood development 150,000 — — 150,000
Lifeguard headquarters — — 10,000 10,000
Legal costs — — 41,976 41,976
Total committed $ 640,000 820,854 51,976 1,512,830
Overnight accommodations
Represents funds committed to overnight accommodations per the 1990 Low Cost Lodging Mitigation
Fee Ordinance.
Early childhood development
Represents funds committed to early childhood development.
85

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Lifeguard headquarters
Represents funds committed to the lifeguard headquarters.
Legal costs
Represents funds committed to legal expenses.
In governmental funds, assigned fund balances are presented as a component of fund balances as
follows:
Capital projects
fund
Special Revenue
Source Fund
Nonmajor
governmental
funds
Total
governmental
funds
General Fund
Assigned to
Continuing capital projects $ 19,051,593 14,391,625 4,653,211 38,096,429
Future capital projects 31,290,622 — — 31,290,622
Expenditure control budget 1,619,753 — — 1,619,753
Encumbrances 3,847,650 3,714,808 81,521 7,643,979
Other purposes 177,343,853 — 9,708,858 187,052,711
Total assigned $ 233,153,471 18,106,433 14,443,590 265,703,494
Continuing capital projects
Reflects the amount needed to fund the full cost of uncompleted capital projects at June 30, 2012.
Future capital projects
Represents funds for future capital project expenditures.
Expenditure control budget accounts
Represents expenditure control budget amounts for department use.
Encumbrances
Encumbrances outstanding at year-end are reported as a component of restricted, committed, or
assigned fund balances since they do not constitute expenditures or liabilities.
Other purposes
Represents funds assigned for other purposes including amounts set aside for future payments to
PERS, compensated absences, City Hall renovations, Gillette and Boeing remediation payments, and
other purposes.
86

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
In governmental funds, unassigned fund balances are presented as a component of fund balances as
follows:
General Fund
Capital projects
fund
Special Revenue
Source Fund
Nonmajor
governmental
funds
Total
governmental
funds
Unassigned
Operating and
capital contingency $ 46,269,728
— — 46,269,728
Unrealized gain 266,788 — — 266,788
Future expenditures 56,878,499 — — 56,878,499
Economic uncertainty 9,700,000 — — 9,700,000
Other unassigned 4,110,856 — (187,396) 3,923,460
Total unassigned $ 117,225,871
— (187,396) 117,038,475
Operating and capital contingency
Represents funds for operating and capital contingency.
Unrealized gain
Represents management’s intent not to liquidate investments to realize the reported gains in the
following year.
Future expenditures
Represents funds for future expenditures.
Economic uncertainty
Represents funds to mitigate potential revenue losses due to economic uncertainty.
Other unassigned
Represents residual classification for the General Fund. In other governmental funds, expenditures
incurred for specific purposes exceeded the amounts restricted, committed or assigned, therefore it was
necessary to report a negative unassigned fund balance.
(14) LITIGATION AND CONTINGENCIES
Litigation
The City is regularly subject to certain legal proceedings and claims that arise in the normal course of
City operations. Many of these have not yet been fully adjudicated. In the opinion of the City
Attorney, there are adequate legal defenses to these actions and it is not anticipated that there will be
any adverse material effect on the financial position of the City.
Grants
The City recognizes as revenue, grant monies received as reimbursement for costs incurred in certain
Federal and State programs it administers. Although the City’s Federal grant programs have been
audited through June 30, 2011 in accordance with the requirements of the Federal Single Audit Act of
87

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
1997 and the related U.S. Office of Management and Budget Circular A-133, these programs may be
subject to financial and compliance audits by the reimbursing agencies. The amount, if any, of
expenditures which may be disallowed by the granting agencies cannot be determined at this time,
although the City expects such amounts, if any, to be immaterial.
Construction Commitments
The City has a number of construction projects currently underway. Purchase orders, contracts and
other commitments for these projects are recorded in order to reserve the portion of the applicable
appropriation and are recorded at year-end as assignments of fund balances. Approximately $69.4
million will be payable upon future performance under these contracts.
Operating Lease Revenue/Expenses
The City has entered into operating lease arrangements as lessor for property. The following schedule
is an analysis of the City’s investment in property under operating leases by major classes as of June
30, 2012:
Land $ 144,038,074
Buildings 38,720,266
Improvements other than buildings 10,302,396
Machinery and equipment 1,782,774
Infrastructure 8,213,438
203,056,948
Less: Accumulated depreciation (34,236,695)
Total $ 168,820,253
88

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
The following is a schedule of both future minimum lease rental revenue to be received by the City as
lessor and lease payments to be made by the City as lessee under operating leases that have initial or
remaining noncancelable lease terms in excess of one year as of June 30, 2012:
Fiscal year ending June 30 Rental revenue Lease payments
2013 $ 8,968,397
2,257,352
2014 8,721,884 2,257,352
2015 7,791,598 2,257,352
2016 4,774,896 2,257,352
2017 4,453,027 2,108,990
2018 - 2022 14,460,276 5,683,842
2023 - 2027 12,393,887 964,018
2028 - 2032 10,487,510 —
2033- 2037 6,336,010 —
2038 - 2042 5,888,804 —
2043 - 2047 5,449,812 —
2048 - 2052 3,862,684 —
2053 - 2057 3,245,250 —
2058 - 2062 2,986,684 —
2063 - 2067 1,941,344 —
Total $ 101,762,063
17,786,258
The total long-term lease rental revenues and expenditures/expenses for the year ended June 30, 2012,
were $9,012,465 and $2,342,062, respectively.
(15) SELF-INSURANCE
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees and others; and natural disasters. The City has
chosen to establish risk financing internal service funds where assets are set aside for claim
settlements associated with such risks of loss up to certain limits and has obtained excess liability
coverage through the Authority for California Cities Excess Liability (ACCEL), a joint powers
authority of twelve medium-size California municipalities. ACCEL is a member of the California
State Association of Counties Excess Insurance Authority for the purpose of providing access to
excess workers’ compensation coverage for major employee injury risks through a program of pooled
self-insurance/re-insurance and insurance on a risk sharing basis.
The City retains self-insurance up to $1,000,000 for general liability, automobile liability, and bus
operations liability. The ACCEL pool covers all general liability losses between $1,000,000 and
$5,000,000, and purchases excess liability insurance to cover losses over $5,000,000 and up to
$100,000,000. The City shares limits with another southern California city to cover losses over
$100,000,000 and up to $150,000,000. The City retains self-insurance up to $750,000 for workers’
compensation. California State Association of Counties Excess Insurance Authority covers up to an
additional $4,000,000 for workers’ compensation and arranges for excess of workers’ compensation
89

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
over $5,000,000 and up to statutory limits. No claim settlements have exceeded insurance coverage in
any of the past three years.
In order to provide funds to pay claims, ACCEL collects premiums from each member. The
premiums paid are credited with investment income at the rate earning on the Authority’s investments.
Based on ACCEL’s June 30, 2012 audited financial statements, the net reserves and incurred but not
reported (IBNR) amounts related to the City were $4,960,239 (11.6% of ACCEL’s total net reserves
and IBNR) net of unpaid claims with ACCEL. Total assets of ACCEL at June 30, 2012 were
$42,607,556. ACCEL has no capital contributions.
The City’s unpaid claims liabilities are based on the results of actuarial studies. The unpaid claims
liabilities are compiled by the Risk Manager of the City and include amounts for claims incurred but
not reported as of year-end. Claims liabilities are calculated considering the effects of inflation, recent
claim settlement trends including frequency and amount of payouts and other economic and social
factors. Net present values of the unpaid claims liabilities are estimated for the year ended June 30,
2012, based on interest rates of 2.0% for General Liability and Automobile and 5.0% for Workers’
Compensation. Revenues of the risk management funds, together with funds to be provided in the
future, are expected to provide adequate resources to meet liabilities as they come due.
Nonincremental claims expenses have not been included as part of the liability for claims.
Changes in the liability for claims during the past two fiscal years for the self-insurance funds follow:
Current-year
claims and
Fund (by fiscal year)
Beginning of
year
changes in
estimates
Claims
payments End of year
Due within
one year
June 30, 2011:
General Liability and Automobile $ 4,470,061 (532,668) (983,459) 2,953,934 994,520
Bus 2,479,527 576,551 (412,905) 2,643,173 1,509,769
Workers' Compensation 24,349,238 5,451,428 (6,899,485) 22,901,181 4,612,023
$ 31,298,826 5,495,311 (8,295,849) 28,498,288 7,116,312
June 30, 2012:
General Liability and Automobile 2,953,934 1,783,915 (888,496) 3,849,353 1,426,274
Bus 2,643,173 1,017,658 (947,775) 2,713,056 1,524,563
Workers' Compensation 22,901,181 8,450,102 (6,175,395) 25,175,888 5,125,492
$ 28,498,288 11,251,675 (8,011,666) 31,738,297 8,076,329
(16) EMPLOYEE BENEFIT PROGRAMS
Santa Monica Public Employees’ Retirement Plan
The City’s defined benefit pension plan, Santa Monica Public Employees’ Retirement Plan (Plan)
provides retirement and disability benefits, annual cost-of living adjustments, and death benefits to
plan members and beneficiaries. The Plan is part of the Public Agency portion of the California
Public Employees Retirement System (CalPERS), an agent multiple-employer plan administered by
CalPERS, which acts as a common investment and administrative agent for participating public
employers within the State of California. State statutes within the Public Employees’ Retirement Law
establish a menu of benefit provisions as well as other requirements. The City selects optional benefit
provisions from the benefit menu by contract with CalPERS and adopts those benefits through City
90

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
ordinance. CalPERS issues a separate comprehensive annual financial report available from the
CalPERS Executive Office, 400 Q Street, Sacramento, California 95811.
Plan Description
All full-time employees of the City and part-time employees who have worked over 1,000 hours
during a fiscal year are eligible to participate in the Plan. The City is authorized by statute to establish
and amend all plan provisions. Related benefits vest after five years of service. Upon five years of
service, employees who retire at or after age 50 are entitled to receive an annual retirement benefit.
The defined pension benefit is payable monthly for life, in an amount that varies, from 2.4% at age 50
to a maximum of 3% at age 55 for fire safety employees, 3% at age 50 for police safety employees and
2% at age 50 to a maximum of 2.7% at age 55 for miscellaneous employees, of the employee’s single
highest year’s salary for each year of credited service. The Plan also provides death and disability
benefits.
Funding Policy
Active full-time members in the Plan are required to contribute 8% for miscellaneous employees and
9% for safety employees of their annual covered salary. The City makes such employee contributions
on their behalf and for their account. The City is required to contribute the actuarially determined
remaining amounts necessary to fund the benefits for its members. The actuarial methods and
assumptions used are those adopted by the CalPERS Board of Administration. CalPERS prepares
separate actuarial valuations for miscellaneous, fire safety and police safety members. The required
employer contribution rate for the fiscal year ended June 30, 2012 was 17.691% for miscellaneous
members; 38.389% for police safety members and 25.813% for fire safety members. The contribution
requirements of the plan members are established by State statute and the employer contribution rate is
established and may be amended by CalPERS. The miscellaneous members do reimburse the City for
the cost of an enhanced benefit at a rate of 6.7%.
Annual Pension Cost
For the fiscal year ended June 30, 2012, the City’s annual required contribution was $35,294,427.
Additionally, the City paid $14,655,376 on behalf of employees. The City made an additional
$10,000,000 discretionary payment to reduce the unfunded liability. Total payments were
$59,949,803. Of this amount the City received reimbursements of $10,799,664 from the
miscellaneous members, $971,502 from police safety members and $461,292 from fire safety
members for total reimbursements of $12,232,458. The required contribution for the fiscal year ended
June 30, 2012 was determined as part of the June 30, 2009 actuarial valuation using the entry age
normal actuarial cost method with the contributions determined as a percentage of payroll. The
actuarial assumptions included (a) 7.50% investment rate of return (net of administrative expenses);
(b) projected salary increases that vary by duration of service ranging from 3.3% to 14.2% for
miscellaneous members, from 3.3% to 10.9% for safety members, and (c) 3.00% cost-of-living
adjustment. Both (a) and (b) include an inflation component of 2.75%. The actuarial value of the
Plan’s assets was determined using a technique that smoothes the effect of short-term volatility in the
market value of investments by computing an expected value of assets along with the actual market
value of assets. The Plan’s unfunded accrued liability (or excess assets) is being amortized as a level
percentage of projected payrolls on a closed basis over a period not to exceed twenty years.
91

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Three Year Trend Information for the Annual Pension Cost Funding for the Plan
Fiscal year ended
June 30
Annual pension cost
(APC)*
Percentage of APC
contributed
Net pension
obligation
2012
Miscellaneous $ 21,801,583
100% —
Police 9,838,662 100% —
Fire 3,654,182 100% —
Total $ 35,294,427
2011
Miscellaneous $ 17,383,610
100% —
Police 8,349,726 100% —
Fire 2,889,559 100% —
Total $ 28,622,895
2010
Miscellaneous $ 15,801,745
100% —
Police 7,898,149 100% —
Fire 2,646,812 100% —
Total $ 26,346,706
* Employer contribution only
Pension Funding Information
As of June 30, 2011, the date of the latest actuarial valuation, the City’s unfunded actuarial accrued
liability was $246,203,938 for all plans. This was determined with the same actuarial assumptions
used to calculate the contribution rates. This unfunded liability was primarily the result of a decline in
the value of the plan assets, less than anticipated investment returns by CalPERS and an increase in
benefits for public safety and miscellaneous employees. The City has addressed the unfunded liability
through additional contributions, as determined by CalPERS, in excess of the amount required to fund
the current normal cost liability in addition to cost sharing by all employee groups. Maintaining this
funding schedule CalPERS has estimated that the underfunded balance will be amortized over 15
years. The projection of benefits for financial reporting purposes does not explicitly incorporate the
potential effects of legal or contractual funding limitations.
92

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
PENSION FUNDING INFORMATION
The City’s Pension Plan includes separate valuations for Miscellaneous Members, Fire Safety Members and Police Safety Members. The funded status
of the Plan for each of these member groups for the actuarial valuations performed as of June 30, 2009 through 2011 are as follows (valuations for 2012
are not yet available):
re
Entry age
normal accrued
liability
Actuarial value
of assets
Unfunded actuarial
accrued liability
(UAAL)
Funded ratio
Annual covered
payroll
UAAL as a percentage
of payroll
2011 $ 700,594 $ 553,563 $ 147,031
79.0% $ 125,749
116.9%
2010* 649,678 505,032 144,646 77.7% 119,583 121.0%
2009* 608,461 470,981 137,480 77.4% 116,219 118.3%
Valuation Date
(June 30)
Entry age
normal accrued
liability
Actuarial value
of assets
Unfunded actuarial
accrued liability
(UAAL)
Funded ratio
Annual covered
payroll
UAAL as a percentage
of payroll
2011 $ 173,591 $ 140,675 $ 32,916
81.0% $ 14,057
234.2%
2010* 163,845 134,365 29,480 82.0% 13,752 214.4%
2009* 155,343 129,054 26,289 83.1% 13,350 196.9%
Valuation Date
(June 30)
Entry age
normal accrued
liability
Actuarial value
of assets
Miscellaneous Members
(dollars in thousands)
Fire Safety Members
(dollars in thousands)
Police Safety Members
(dollars in thousands)
Unfunded actuarial
accrued liability
(UAAL)
Funded ratio
Annual covered
payroll
UAAL as a percentage
of payroll
2011 $ 307,730 $ 241,473 $ 66,257
78.5% $ 25,800
256.8%
2010* 289,882 226,716 63,166 78.2% 25,907 243.8%
2009* 276,030 215,162 60,868 77.9% 24,169 251.8%
*Required supplementary information - unaudited
93

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Deferred Compensation Plans
The City offers to its employees an optional deferred compensation plan created in accordance with
Section 457 of the Internal Revenue Code. This plan is available to substantially all employees and
allows participants to defer a portion of their current income until future years to shelter such funds
and earnings from state and federal taxation until withdrawal. The deferred compensation is not
available to participants until termination, retirement, death or unforeseeable emergency.
The City offers an employer discretionary, defined contribution plan established and governed under
Internal Revenue Code Section 401(a). Employer-only contributions are calculated based upon a
percentage of employee compensation under agreements with employee bargaining groups and unions.
For the fiscal year ended June 30, 2012 the total employee contributions were $600,107.
The City offers to its as-needed employees a separate Section 457 deferred compensation plan under
the Omnibus Budget Reconciliation Act (OBRA). This plan is available to all as-needed employees
who are not eligible to participate in CalPERS. This plan requires equal employer and employee
contributions based on a percentage of earnings. For the fiscal year ended June 30, 2012 the combined
employee/employer contributions were $349,173.
These plans are administered through third-party administrators. The City does not perform the
investing function and has no fiduciary accountability for the plans. Thus, plan assets and any related
liabilities to plan participants have been excluded from the City’s basic financial statements.
Other Postemployment Benefits
In addition to providing pension benefits through CalPERS, the City, in accordance with agreements
with various bargaining units and groups, provides medical insurance benefits that are considered
other postemployment benefits (OPEB) to certain retired employees under a single employer benefit
plan. Employees of the Executive Pay Plan group and management employees of the Rent Control
Board are eligible for a City paid medical insurance benefit if their combined retirement age and years
of City service equals or exceeds 70. All retirees are allowed to continue participating in one of the
City’s health plans at the same rate as active employees. The City also maintains minimum benefits
for public safety employees provided by the City’s contract with its healthcare provider. Members of
the United Transportation Union upon retirement after ten or more years of service and having
accumulated fifty or more sick days are entitled to reimbursement for health insurance premiums up to
the cumulative dollar equivalent of those sick days. The City pays for OPEB on a pay-as-you-go basis.
Annual OPEB Cost and Net OPEB Obligation
The City’s OPEB cost is calculated based on the annual required contribution (ARC) of the employer,
an amount actuarially determined in accordance within the parameters of GASB 45, Accounting and
Financial Reporting for Employers for Postemployment Benefits Other than Pensions. The ARC
represents a level of funding that if paid on an ongoing basis is projected to cover the normal cost each
year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years utilizing the
level percentage of projected payroll method. The amortization period is open. The following table
shows the components of the City’s annual OPEB cost for the year, the amount contributed to the
plan, and changes in the City’s OPEB obligation to the plan.
94

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Net OPEB Obligation and Annual OPEB Cost (in thousands)
Annual required contribution $ 2,286
Interest on OPEB obligation 254
Adjustment to annual required contribution (219)
Annual OPEB expense 2,321
Contributions made (675)
Increase in net OPEB obligation 1,646
Net OPEB obligation - beginning of the year 5,094
Net OPEB obligation - end of the year $ 6,740
Schedule of Employer Contributions (in thousands)
Fiscal Year
Ended
June 30
Annual
OPEB Costs
Annual
Contribution
Percentage
Contribution
Net OPEB
Obligation
2012 $ 2,321 $ 675
29.1 % $ 6,740
2011 1,962 586 29.9 5,094
2010 1,861 558 30.0 3,718
Actuarial methods and assumptions
Projections of benefits for financial reporting purposes are based on the plan as understood by the City
and its employees and include the types of benefits provided at the time of each valuation. The
actuarial methods and assumptions used techniques that are designed to reduce short-term volatility in
actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective
of the calculations. Actuarial valuations involve estimates of the value of reported amounts and
assumptions about the probability of events far into the future, and that actuarially determined
amounts are subject to continual revision as results are compared to past expectations and new
estimates are made about the future. Calculations are based on the types of benefits provided under the
terms of the substantive plan at the time of each valuation and on the pattern of sharing costs between
the employer and plan member at that point. The ARC represents a level of funding that if paid on an
ongoing basis is projected to cover the normal cost each year and amortize any unfunded actuarial
liabilities over a period not to exceed 30 years utilizing the level percentage of projected payroll
method. The amortization period is open.
In the July 1, 2011 actuarial valuation, the entry age normal actuarial cost method was used. The
actuarial assumptions included a 5.0% rate of return, which is a blended rate of expected long-term
return on plan assets on the City’s own investments calculated based on the funded level of the plan at
the valuation date, and an annual health care cost trend of 9.5% initially, reduced by decrements to an
ultimate rate of 5.0% after 11 years. Both rates include a 3.25% inflation assumption. The remaining
amortization period at July 1, 2011 was thirty years. The projection of benefits for financial reporting
purposes does not explicitly incorporate the potential effects of legal or contractual funding
limitations.
95

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
OPEB FUNDING INFORMATION (dollars in thousands):
Type of
Valuation
Valuation date
(July 1)
Actuarial
value of
assets
Actuarial
accrued
liability
Unfunded actuarial
accrued liability
(UAAL)
Funded ratio
Annual
covered
payroll
UAAL as a
percentage of
payroll
Interest
rate
Actual 2011 $ — 23,841 23,841 0% 167,724 14.21% 5.00%
Update 2010* — 20,173 20,173 0% 161,290 12.51% 5.00%
Actual 2009* — 18,747 18,747 0% 156,214 12.00% 5.00%
*Rquired supplementary information - unaudited
The schedule of funding progress, presented presents multi-year trend information, which shows whether the actuarial value of plan assets is increasing
or decreasing over time relative to the actuarial accrued liability for benefits.
96

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Medical Trusts
The City contributes, consistent with bargaining unit agreements, monies to medical trusts that provide
postemployment medical benefits to employees. The amount of benefits provided to employees under
these plans is limited solely to the amount contributed, related investment earnings, and forfeitures.
During FY 2011-12 the City contributed $3,033,059 towards the retiree medical trusts. These are
administered through third-party administrators and the City does not perform the investing function
or have other significant responsibility relating to the management of plan assets. Thus, plan assets
and any related liabilities have been excluded from the City’s basic financial statements.
Pension Plan Amendment
On November 1, 2011, the City and the miscellaneous employees agreed to create a second tier to the
retirement plan. The second tier employees are those hired after July 1, 2012 through December 31,
2012 and will be covered by the 2.0% at 55 benefit formula. The Tier 2 employees benefits are
calculated using the 36 highest paid consecutive months (as opposed to 12 for Tier 1 employees) and
the 7% employee required contribution must be paid by the employee. On September 12, 2012, AB
197 was passed, which changed pension benefits. See Note 18.
(17) SUCCESSOR AGENCY TRUST FUND FOR ASSETS OF FORMER REDEVELOPMENT
AGENCY
On December 29, 2011, the California Supreme Court upheld AB 1X26 (“the Bill”) that provides for
the dissolution of all redevelopment agencies in the State of California. This action impacted the
reporting entity of the City of Santa Monica that previously reported a redevelopment agency within
the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the City or another unit of
local government will agree to serve as the “successor agency” to hold the assets until they are
distributed to other units of state and local government. On January 10, 2012, the City Council elected
to become the Successor Agency for the Redevelopment Agency of the City of Santa Monica in
accordance with the Bill as part of City resolution number 10647.
After enactment of the law, which occurred on June 28, 2011, the redevelopment agencies in the State
of California cannot enter into new projects, obligations or commitments. Subject to the approval of a
newly established oversight board, remaining assets can only be used to pay enforceable obligations in
existence at the date of the dissolution (including the completion of any unfinished projects that were
subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary
to pay the estimated annual installment payments on enforceable obligations of the former
redevelopment agency until all enforceable obligations of the former redevelopment agency have been
paid in full and all assets have been liquidated.
The Bill directs the State Controller of the State of California to review the propriety of any transfer of
assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If
the public body that received such transfers is not contractually committed to a third party for the
expenditure or encumbrance of those assets, the State Controller is required to order the available
assets to be transferred to the public body designated as successor agency by the Bill.
97

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Management believes, in consultation with legal counsel, that the obligations of the former
redevelopment agency due to the City are enforceable obligations payable by the Successor Agency
trust under the requirement of the Bill. The City’s position on this issue is not a position of settled law
and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal
determination may be made at a later date by an appropriate judicial authority that would resolve this
issue unfavorably to the City.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on
December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased
to operate as a legal entity as of February 1, 2012. Prior to that date, the final seven months of the
activity of the redevelopment agency continued to be reported in the governmental funds of the City.
After the date of dissolution, the assets and activities of the dissolved redevelopment agency are
reported in a private-purpose trust fund in the financial statements of the City.
The transfer of assets and liabilities of the former redevelopment agency as of February 1, 2012 from
governmental funds of the City to fiduciary funds was reported in the governmental funds as a net
extraordinary loss in the governmental fund financial statements and a net extraordinary gain for
governmental activities in the government-wide financial statements, which is equal to the
extraordinary loss for the private-purpose trust fund.
On June 27, 2012, AB 1484 was passed. The bill purports to clarify implementation procedures of AB
1X26.
Among other requirements, AB 1484 clarified the allowable uses of bond proceeds derived from
indebtedness obligations that were issued for the purposes of affordable housing prior to January 1,
2011, and were backed by the Low and Moderate Income Housing Fund. The proceeds are allowed to
be used for purposes that are consistent with the indebtedness obligation covenants.
Because of the different measurement focus of the governmental funds (current financial resources
management focus) and the measurement focus of the trust funds (economic resources measurement
focus), the net extraordinary gain recognized in the governmental funds was not the same as the loss
that was recognized in the private-purpose trust fund financial statements.
The difference between the extraordinary gain recognized in the governmental fund financial
statements and the loss recognized in the fiduciary fund financial statements is reconciled as follows:
Total net extraordinary gain reported in governmental funds - decrease to net assets
of the Successor Agency Trust Fund $ (13,703,213)
Deferred bond issuance costs reported in the government-wide financial statements -
increase to net assets of the Successor Agency Trust Fund 1,657,811
Long term debt reported in the government-wide financial statements -
decrease to net assets of the Successor Agency Trust Fund (249,209,678)
Net decrease to net assets of the Successor Agency Trust Fund as a result of
initial transfers $ (261,255,080)
98

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Cash and Investments
Cash and investments as of June 30, 2012 are classified in the accompanying financial statements as
follows:
Statement of Fiduciary Net Assets:
Cash and investments $ 23,591,249
Cash and investments with fiscal agent 10,424,107
Total cash and investments $ 34,015,356
Investments of the Successor Agency are governed by Government Code Section 53601, which
restricts the term and types of investments that can be made. See Note 5.
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreements,
rather than the general provisions of the California Government Code or the Successor Agency’s
investment policy. The table below identifies the investment types that are authorized for investments
held by the bond trustee. The table also identifies certain provisions of these debt agreements that
address interest rate risk and concentration of credit risk.
Authorized
Investment Type
Maximum Maximum
Maximum Percentage Investment
Maturity Allowed in One Issuer
U.S Treasury Obligations None None None
Federal Housing Administration Debentures None None None
U.S. Agency Securities None None None
Time Deposits None None None
Unsecured Certificates of Deposit 180 days None None
Banker's Acceptances 180 days None None
State Obligations None None None
Repurchase Agreements 1 year None None
Pre-refunded Municipal Obligations None None None
Commercial Paper 270 days None None
Money Market Mutual Funds None None None
Investment Contracts 30 years None None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates. One of the ways that the Successor Agency manages its
exposure to interest rate risk is by timing cash flows from maturities so that a portion of the portfolio
is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and
liquidity needed for operations.
99

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Information about the sensitivity of the fair values of the Successor Agency’s investments held by
bond trustee to market interest rate fluctuations is provided by the following table that shows the
distribution of these investments by maturity.
Maturity
12 Months
Investment Type
or less
Held by Successor Agency
Money market funds $ 4,009,815
Held by bond trustee:
Money market funds 8,675,755
U.S. agency securities 1,748,352
Total $ 14,433,922
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the minimum rating required by (where applicable)
the California Government Code, the City’s investment policy, or debt agreements, and the actual
rating as of yearend for each investment type.
Minimum
Legal
Investment Type
Total Rating AAA
Held by Successor Agency $ 4,009,815 AA 4,009,815
Held by bond trustee:
Money market funds 8,675,755 AA 8,675,755
U.S. agency securities 1,748,352 N/A 1,748,352
Total $ 14,433,922 14,433,922
Concentration of Credit Risk
No investments in any one issuer (other than U.S. Treasury securities, mutual funds, and investment
pools) represents 5% or more of total investments.
Custodial Credit Risk
The Successor Agency does not have significant separate certificates of deposit or demand accounts
held by bond trustee that have disclosable custodial credit risk (as defined by GASB Statement No.
40).
For the investments held by bond trustee, the bond trustee selects the investment under the terms of the
applicable trust agreement, acquires the investment, and holds the investment on behalf of the
reporting government.
100

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
SUCCESSOR AGENCY LONG-TERM LIABILITIES
Changes in long-term liabilities:
Long-term liability activity for the five months ended June 30, 2012, was as follows:
Balance at
July 1, 2011 Additions Reductions
Balance at
June 30, 2012
Due within
one year
Due beyond one
year
Loans and notes payable $ — 96,782,306 — 96,782,306 55,714,283 41,068,023
Term loan — 50,000,000 — 50,000,000 50,000,000 —
Tax allocation bonds — 105,115,000 — 105,115,000 3,255,000 101,860,000
Promissory notes payable
to the City of Santa Monica — 30,405,503 30,405,503 2,700,743 27,704,760
Less deferred amounts:
For issuance discounts — (140,784) (3,368) (137,416) — (137,416)
For issuance premiums — 430,600 10,116 420,484 — 420,484
Deferred loss on refunding — (2,977,444) (78,305) (2,899,139) — (2,899,139)
Total loans, notes and
bonds
payable $ — 279,615,181 (71,557) 279,686,738 111,670,026 168,016,712
A summary of long-term bonds and loans outstanding at year end is as follows:
Final
maturity
date
Interest
rate
Balance at
June 30, 2012
Date of issue Original issue
Tax allocation bonds:
Ocean Park Redevelopment Refunding 2002 May 1, 2002 $ 19,315,000 July 1, 2018 3.75-5.00% $ 10,115,000
Earthquake Recovery Project 2011 June 7, 2011 41,050,000 July 1, 2042 5.00-5.875% 41,050,000
Earthquake Recovery Project Refunding 2006 April 1, 2006 64,720,000 July 1, 2030 4.00-5.50% 53,950,000
Subtotal tax allocation bonds 105,115,000
Loans and notes:
Wells Fargo Bank (1) Mar 11, 2011 60,000,000 Jan 1, 2018 70% LIBOR plus 1.5% 55,714,283
Bank of America Term Loan (2) May 1, 2008 50,000,000 July 15, 2028 LIBOR plus 1.25% 50,000,000
Promissory note to the City of Santa Monica (3) June 30, 1981 871,840 June 29, 2028 7% 1,675,711
Promissory note to the City of Santa Monica (3) Oct 24, 1978 4,400,000 June 29, 2028 7% 19,706,524
Promissory note to the City of Santa Monica (3) June 30, 1981 1,243,266 June 29, 2021 12% 7,506,195
Promissory note to the City of Santa Monica (3) Sept 14, 1983 280,837 June 29, 2021 12% 942,554
Promissory note to the City of Santa Monica (3) July 1, 1996 346,552 Demand LAIF 574,518
Promissory notes (4) Nov 1, 2010 42,500,000 Jan 1, 2042 6.82% 41,068,023
Subtotal loans and notes 177,187,808
Total $ 282,302,808
(1) To fund various capital projects
(2) To fund low moderate income housing projects
(3) For project area costs including the purchase of land and other capital assets
(4) For purchase of real estate
101

Annual debt service requirements to maturity are as follows:
CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
Fiscal year
ending Tax allocation bonds
Loans payable Promissory notes payable
Total
June 30, Principal Interest Principal Interest Principal* Interest Principal Interest
2013 $ 3,255,000 5,123,479 11,601,732 ** 5,220,979 2,700,743 1,376,776 17,557,475 11,721,234
2014 3,425,000 4,950,227 11,601,730 5,046,943 460,079 1,347,921 15,486,809 11,345,091
2015 3,595,000 4,783,421 11,862,579 4,572,471 440,284 2,587,490 15,897,863 11,943,382
2016 3,755,000 4,620,181 12,119,528 4,101,895 983,239 2,568,761 16,857,767 11,290,837
2017 3,920,000 4,446,063 12,154,831 3,855,109 1,177,023 2,485,977 17,251,854 10,787,149
2018-2022 16,950,000 19,725,436 31,393,926 16,235,267 15,614,979 8,211,510 63,958,905 44,172,213
2023-2027 16,995,000 16,176,463 19,859,270 13,121,641 9,128,787 2,788,213 45,983,057 32,086,317
2028-2032 19,275,000 11,674,854 11,413,257 10,025,855 2,150,503 150,269 32,838,760 21,850,978
2033-2037 14,665,000 7,486,031 10,123,762 7,176,237 — — 24,788,762 14,662,268
2038-2042 19,280,000 2,758,656 14,651,691 3,148,308 — — 33,931,691 5,906,964
$ 105,115,000 81,744,811 146,782,306 72,504,705 32,655,637 21,516,917 284,552,943 175,766,433
* Principal balance increases during some periods due to negative amortization.
** Amount does not include $105.7 million for which negotiations are underway to extend forbearance agreements.
102

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements
For the fiscal year ended June 30, 2012
Pledged Revenue
The Former Redevelopment Agency had a number of debt issues that were assumed by the Successor
Agency 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 summary of long-term bonds and loans and notes outstanding at year end presented in this note.
AB1X26 only allows sufficient tax revenues to be allocated to the Successor Agency in an amount
equal to pay debt service that is deemed to be an enforceable obligation and debt service payments as a
percentage of the pledged gross revenue (net of certain expenses where so specified in debt covenants)
will always be 100%. These percentages also approximate the relationship of debt service to pledged
revenue for the remainder of the term of the commitment.
Description of pledged revenue/debt:
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
Future amount of
pledged revenue
Tax increment
Ocean Park Redevelopment Refunding 2002 $ 1,720,495 $ 1,720,495
100% $ 11,971,645
Earthquake Recovery Project Refunding 2006 2,337,431 2,337,431 100% 78,866,603
Earthquake Recovery Project 2011 2,262,413 2,262,413 100% 96,021,563
Loan Payable 4,788,214 4,788,214 100% 59,151,161
Notes Payable 1,697,440 1,697,440 100% 101,399,989
Term Loan 438,305 438,305 100% 58,735,862
Bond Downgrade
On June 14, 2012, Moody’s downgraded all California Redevelopment Tax Allocation Bonds which
included the Redevelopment Agency of the City of Santa Monica Earthquake Project Redevelopment
Bonds Series 2006. This downgrade triggered a default in the $60,000,000 Wells Fargo loan. Under
the terms of the agreement, the remedies for default include declaring the unpaid principal and interest
accrued immediately due and payable or increasing the interest rate of the loan by an additional 5%.
On August 7, 2012, Wells Fargo issued a forbearance letter, agreeing to not take action under any of
the remedies available to them under the agreement for 90 days. Another letter was issued on
November 5, 2012, which extended the forbearance to April 30, 2013, at which time the status of this
loan will be evaluated for continuing forbearance as long as the default exists. The City cannot predict
the outcome of any future evaluations.
A covenant in the $50,000,000 loan from Bank of America provides for a default on that loan if any
default occurs under any agreement in connection with any other credit the Former Agency entered
into and any cure period with respect to the default has expired. The bank recognized the Wells Fargo
forbearance letter and elected not to take any action.
Because the default provisions in the Wells Fargo and Bank of America loan agreements make the
loans subject to call, the entire principal amount of the loans has been reported as a current liability on
the Statement of Fiduciary Net Assets.
(18) DUE DILIGENCE REVIEW LIABILITY
AB 1484 requires that two “Due Diligence Reviews” (DDR) be performed, one each for the housing
assets and the non-housing assets of the Successor Agency. The purpose of these reviews is to
103

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2012
determine the amount of unencumbered funds available for distribution to the affected tax entities.
Both DDRs have been completed and filed with the California Department of Finance (DOF).
On December 15, 2012, the DOF notified the Successor Agency of its determination regarding the
housing DDR review and disallowed $54,515,252 of cash transfers. The DOF directed the Successor
Agency to remit $54,515,252 to the County Auditor-Controller (County) by December 21, 2012, for
distribution to the taxing entities, including the City. The DOF also disallowed $17,896,159 of capital
asset transfers to the City; however, because these assets are non-liquid and subject to further review
by the State Controller, the DOF did not consider them to be available for distribution to the taxing
entities as part of the DDR process.
The Successor Agency does not agree with the DOF’s determination, however the Successor Agency
has made a payment of $12,518,741 to the County, subsequent to June 30, 2012. This amount
represents $54,515,252 less $19,361,188 of Bank of America term loan proceeds that are restricted as
to use by loan covenants and $22,635,323 of low- and moderate-income housing loans that were
disbursed or encumbered under loan commitments entered into before AB 1X26 became effective.
The $12,518,741 has been accrued in the Successor Agency’s financial statements as of June 30, 2012.
On January 31, 2013, the Successor Agency filed suit in Sacramento Superior Court contending that
the DOF, by issuing its determination, failed to follow the statutory formulas in AB1484 in respects to
the Bank of America loan proceeds and the low- and moderate-income housing loans disbursed had
been committed prior to the effective date of AB1X26. Due to the inherent uncertainties involved in
the application of AB1X26 and AB1484, the ultimate outcome of this issue cannot presently be
determined. Accordingly, no provision for any liability that may result has been recorded in the
financial statements.
Current law allows the DOF to authorize the withholding of the City’s future sales and property tax
allocations up to the amount that is not remitted to the County by the Successor Agency. As the
Successor Agency has insufficient funds to make this payment, subsequent to year end, the City
transferred cash to the Successor Agency to make the payment. As such, a Due to Successor Agency
and a Due from City in the amount of $12,518,741 has been recorded between the City and the
Successor Agency as of June 30, 2012.
The City, as a taxing entity of the County, receives a share of the payments made by Successor
Agencies to the County; $1,751,267 was accrued at June 30, 2012, in the City’s General Fund and
received subsequent to June 30, 2012.
(19) SUBSEQUENT EVENT
On September 12, 2012, AB 340 and AB 197, pension reform bills, were signed into law changing
pension benefits for public employees and will become effective on January 1, 2013. Collectively
known as the California Public Employees Pension Reform Act of 2013 (PEPRA), PEPRA creates
new statewide uniformity in pension benefits and impacts the City’s participation in CalPERS. The
financial impact of these changes cannot be determined at this time.
104

City of Santa Monica, California
Year Ended June 30, 2012
Supplementary Information

CITY OF SANTA MONICA, CALIFORNIA
Nonmajor Governmental Fund Financial Statements
Capital Projects Funds are used to account for the accumulation of resources to be used for the
acquisition or construction of major capital facilities of the City and former Redevelopment Agency. The
nonmajor capital projects funds used in this report are listed below:
Clean Beaches and Ocean Parcel Tax Fund – To account for activity related to implementation
of Watershed Management Plan and the passage of Measure V in November 2006.
Beach Recreation Fund – To account for beach parking and concession revenues restricted or
committed for expenditures related to beach maintenance and recreation activities.
Housing Authority Fund – To account for the receipt and expenditure of Federal and State
funds related to housing programs.
Disaster Relief Fund – To account for Federal and State disaster relief revenues and
expenditures associated with recovery from the January 17, 1994 Northridge Earthquake.
Tenant Ownership Rights Charter Amendment (TORCA) Fund – To account for filing fee
and conversion tax revenues and expenditures related to various housing programs authorized by
Chapter XX of the City Charter.
Housing Projects Fund – To account for low- and moderate-income housing activities. The
funds are used for the preservation of the City's existing stock of low- and moderate-income
housing through acquisition and rehabilitation and to increase the supply of low- and moderateincome
housing through new construction. Under Assembly Bill 1x 26, the City accepted
responsibility of housing successor to the low- and moderate-income housing redevelopment fund
upon the dissolution of the Redevelopment Agency of the City of Santa Monica on February 1,
2012.
Low-and Moderate-Income Housing (Downtown, Earthquake Recovery and Ocean Park
Projects) – Under requirements of the State of California Health and Safety Code, the
Redevelopment Agency of the City of Santa Monica is required to set aside 20% of tax increment
revenues for housing projects benefiting low-and moderate-income households. The assets and
liabilities of the Low-and Moderate-Income Housing fund were transferred to the Housing
Projects fund upon dissolution of the Redevelopment Agency on February1, 2012.
Downtown Redevelopment Project Fund – To account for the revenues and expenditures of the
downtown redevelopment project area of the Redevelopment Agency of the City of Santa
Monica. The redevelopment plan for this 9.9-acre project was approved in January 1976 and
work was completed in 1980. The project area is located at the southern end of the City’s Third
Street Promenade in the downtown core of Santa Monica. It consists of Santa Monica Place
which just completed a substantial remodel in 2010 and two adjoining parking structures with
1,843 parking spaces. The Redevelopment Agency was dissolved on February 1, 2012.
Ocean Park Redevelopment Project Fund – To account for the revenues and expenditures of
the Ocean Park Project area of the Redevelopment Agency of the City of Santa Monica. This
thirty-three acre project consists of two areas: 1A and 1B. The redevelopment plan for the
twenty-five acres of Area 1A was approved in June 1960 and work was completed in May 1987.
The project contains two 17-story high-rise apartment buildings of 500 units and a park. The
redevelopment plan for the eight acres of Area 1B was approved in January 1961 and work was
completed in 1983. The project contains two senior citizen residential apartment complexes and
105

CITY OF SANTA MONICA, CALIFORNIA
a former utility building now used for other purposes. The Redevelopment Agency was dissolved
on February 1, 2012.
Community Development Block Grant (CDBG) Fund – To account for Federal entitlements
under the Housing and Community Development Act of 1974, as amended. The City Council
annually allocates CDBG funds to various programs.
Miscellaneous Grants Fund – To account for the receipt and expenditure of Federal, State and
County awarded grants and special allocations provided to the City.
Asset Seizure Fund – To account for the receipt and expenditure of equitable sharing program
funds.
Citizens Option for Public Safety Fund – To account for the receipt and expenditure of the
Citizens Option for Public Safety program established by AB3229 of 1996.
Rent Control Fund – To account for revenues and expenditures that are restricted or committed
for rent control activities.
Air Quality Management District (AQMD) Fund – To account for the receipt and expenditure
of Air Quality Management District funds.
Parks and Recreation Fund – To account for funds collected under the City's Unit Dwelling
Tax. These funds are to be used for the acquisition, improvement and expansion of public parks,
playgrounds and recreational facilities.
Gas Tax Fund – To account for State and County gasoline tax allocations and any Federal funds
provided to the City for street-related purposes.
Debt Service Funds are used to accumulate resources for, and the payment of, general long-term debt
principal, interest and related costs. The debt service funds used by the City in this report are listed below:
City Fund – To account for accumulation of resources for, and the payment of, general long-term
debt principal, interest and related costs for library, public safety facility and parking authority
bonds.
Redevelopment Agency Fund – To account for accumulation of resources for, and the payment
of, general long-term debt principal, interest and related costs for the Ocean Park, downtown and
earthquake recovery bonds. The Redevelopment Agency was dissolved on February 1, 2012.
Permanent Funds are used to report resources that are legally restricted to the extent that only earnings,
and not principal, may be used for restricted purposes. The specific permanent funds used by the City in
this report are listed below:
Cemetery Perpetual Care Fund – To account for all funds received by the City from cemetery
users for the perpetual care of the cemetery grounds.
Mausoleum Perpetual Care Fund – To account for all funds designated for perpetual care of
the mausoleum located at the City cemetery.
106

CITY OF SANTA MONICA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2012
Capital Projects
Clean Beaches and
Ocean Parcel Tax Beach Recreation Housing Authority Disaster Relief TORCA
Housing Projects
Fund
Assets
Cash and investments $ 10,097,920 9,198,115 1,963,949 255,677 4,898,049 20,457,925
Receivables (net, where applicable, of allowances for uncollectibles):
Accounts 170,829 334,371 — — — —
Notes — — — — 8,860,538 47,353,855
Interest 19,002 21,302 5,151 32 12,517 17,534
Other governments — — 554,371 903,634 — —
Due from other funds — — — — — 543,072
Deposits — — — — — —
Prepaids — — 12,509 609 — —
Restricted cash and investments with fiscal agent — — — — — 114,014
Advances to Successor Agency — — — — — —
Total assets $ 10,287,751 9,553,788 2,535,980 1,159,952 13,771,104 68,486,400
Liabilities and Fund Balances
Liabilities
Accounts payable $ 21,876 665,932 101,345 100,815 986 11,931
Accrued liabilities — 151,131 28,954 — — —
Contracts payable (retained percentage) — 30,329 — 203,223 — —
Due to other funds — — 543,072 — — 12,518,742
Deferred revenue — 30,841 — 1,043,310 — —
Deposits payable — 138,578 — — — —
Advances from other funds — 3,842,973 — — — —
Total liabilities 21,876 4,859,784 673,371 1,347,348 986 12,530,673
Fund balances (deficit)
Nonspendable — — 12,509 — — —
Restricted 2,265,891 3,837,525 1,785,776 — 9,788,024 55,117,824
Committed — 10,001 — — — —
Assigned 7,999,984 846,478 64,324 — 3,982,094 837,903
Unassigned — — — (187,396) — —
Total fund balances (deficit) 10,265,875 4,694,004 1,862,609 (187,396) 13,770,118 55,955,727
Total liabilities and fund balances $ 10,287,751 9,553,788 2,535,980 1,159,952 13,771,104 68,486,400
107

CITY OF SANTA MONICA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2012
Low / mod
Housing
Redevelopment
Fund
Downtown
Redevelopment
Fund
Ocean Park
Redevelopment
Fund
Capital Projects
Community
Development
Block Grant
Miscellaneous
Grants
Asset Seizure
Assets
Cash and investments $ — — — 309,256 7,427,456 501,469
Receivables (net, where applicable, of allowances for uncollectibles):
Accounts — — — — — —
Notes — — — 10,187,066 7,081,556 —
Interest — — — 376 26,713 1,367
Other governments — — — — 906,390 28,920
Due from other funds — — — — — —
Deposits — — — 3,257 — —
Prepaids — — — — — —
Restricted cash and investments with fiscal agent — — — — — —
Advances to Successor Agency — — — 9,023,266 — —
Total assets $ — — — 19,523,221 15,442,115 531,756
Liabilities and Fund Balances
Liabilities
Accounts payable $ — — — 8,655 451,746 5,000
Accrued liabilities — — — — 15,857 —
Contracts payable (retained percentage) — — — 75,600 109,763 —
Due to other funds — — — — — —
Deferred revenue — — — 7,152,611 — —
Deposits payable — — — — — —
Advances from other funds — — — — — —
Total liabilities — — — 7,236,866 577,366 5,000
Fund balances (deficit)
Nonspendable — — — 1,870,656 — —
Restricted — — — 10,415,699 14,511,321 487,469
Committed — — — — — —
Assigned — — — — 353,428 39,287
Unassigned — — — — — —
Total fund balances (deficit) — — — 12,286,355 14,864,749 526,756
Total liabilities and fund balances $ — — — 19,523,221 15,442,115 531,756
108

CITY OF SANTA MONICA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2012
Capital Projects
Citizens Option for
Public Safety Rent Control AQMD
Debt Service
Parks and
Recreation Gas Tax City
Assets
Cash and investments $ 105,793 1,596,573 691,005 201,908 771,760 —
Receivables (net, where applicable, of allowances for uncollectibles):
Accounts 983 239 — 200 — —
Notes — — — — — —
Interest 519 6,557 1,377 404 2,760 —
Other governments 83,598 — 28,200 — — —
Due from other funds — — — — — —
Deposits — — — — — —
Prepaids — 14,261 — — — —
Restricted cash and investments with fiscal agent — — — — — 7,150,832
Advances to Successor Agency — — — — — —
Total assets $ 190,893 1,617,630 720,582 202,512 774,520 7,150,832
Liabilities and Fund Balances
Liabilities
Accounts payable $ — 22,315 10,000 413 90 —
Accrued liabilities — 160,631 — — — —
Contracts payable (retained percentage) — — — — 937 —
Due to other funds — — — — — —
Deferred revenue — — — — — —
Deposits payable — — — — — —
Advances from other funds — — — — — —
Total liabilities — 182,946 10,000 413 1,027 —
Fund balances (deficit)
Nonspendable — 14,261 — — — —
Restricted 190,893 1,059,211 710,582 201,244 773,493 7,150,832
Committed — 41,975 — — — —
Assigned — 319,237 — 855 — —
Unassigned — — — — — —
Total fund balances (deficit) 190,893 1,434,684 710,582 202,099 773,493 7,150,832
Total liabilities and fund balances $ 190,893 1,617,630 720,582 202,512 774,520 7,150,832
109

CITY OF SANTA MONICA, CALIFORNIA
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2012
Debt Service
Redevelopment
Agency
Cemetery
Perpetual Care
Permanent
Mausoleum
Perpetual Care
Total nonmajor
governmental
funds
Assets
Cash and investments $ — 4,479 5,841 58,487,175
Receivables (net, where applicable, of allowances for uncollectibles):
Accounts — — — 506,622
Notes — — — 73,483,015
Interest — 39,014 4,231 158,856
Other governments — — — 2,505,113
Due from other funds — — — 543,072
Deposits — — — 3,257
Prepaids — — — 27,379
Restricted cash and investments with fiscal agent — 8,198,085 923,310 16,386,241
Advances to Successor Agency — - - 9,023,266
Total assets $ — 8,241,578 933,382 161,123,996
Liabilities and Fund Balances
Liabilities
Accounts payable $ — 25,250 2,811 1,429,165
Accrued liabilities — — — 356,573
Contracts payable (retained percentage) — — — 419,852
Due to other funds — — — 13,061,814
Deferred revenue — — — 8,226,762
Deposits payable — — — 138,578
Advances from other funds — — — 3,842,973
Total liabilities — 25,250 2,811 27,475,717
Fund balances (deficit)
Nonspendable — 8,216,328 930,571 11,044,325
Restricted — — — 108,295,784
Committed — — — 51,976
Assigned — — — 14,443,590
Unassigned — — — (187,396)
Total fund balances (deficit) — 8,216,328 930,571 133,648,279
Total liabilities and fund balances $ — 8,241,578 933,382 161,123,996
110

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
Nonmajor Governmental Funds
For the fiscal year ended June 30, 2012
Capital Projects
Clean Beaches and
Ocean Parcel Tax Beach Recreation Housing Authority Disaster Relief TORCA
Housing Projects
Fund
Revenues:
Incremental property taxes $ — — — — — —
Other taxes 2,783,722 — — — 89,508 —
Licenses and permits — 89,991 — — — —
Intergovernmental — — 16,266,746 944,310 — —
Charges for services — 10,595,950 — — — —
Investment income 79,772 76,773 19,026 7,768 89,938 41,060
Rental income — 1,267,935 — — — —
Other — 547,971 — — 85,200 7,468
Total revenues 2,863,494 12,578,620 16,285,772 952,078 264,646 48,528
Expenditures:
Current:
General government — — — 10,596 — —
Public safety — — — — — —
General services 385,958 1,981,030 — 981,047 — —
Cultural and recreation services — 9,118,941 — — — —
Library — — — — — —
Housing and community development — — 17,754,274 — 279,581 6,322,897
Debt service expenditures:
Principal — — — — — —
Interest — — — — — 2,279
Total expenditures 385,958 11,099,971 17,754,274 991,643 279,581 6,325,176
Excess (deficiency) of revenues over (under) expenditures 2,477,536 1,478,649 (1,468,502) (39,565) (14,935) (6,276,648)
Other financing sources (uses)
Transfers in — 200,000 141,000 — — 62,373,375
Transfers out — — — — (47,936) (141,000)
Payment to refunded bond escrow agent — — — — — —
Total other financing sources (uses) — 200,000 141,000 — (47,936) 62,232,375
Extraordinary items:
Extraordinary gain — — — — — —
Extraordinary loss — — — — — —
Total extraordinary items — — — — — —
Net change in fund balances 2,477,536 1,678,649 (1,327,502) (39,565) (62,871) 55,955,727
Fund balances (deficit) at the beginning of year 7,788,339 3,015,355 3,190,111 (147,831) 13,832,989 —
Fund balances (deficit) at end of year $ 10,265,875 4,694,004 1,862,609 (187,396) 13,770,118 55,955,727
111

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
Nonmajor Governmental Funds
For the fiscal year ended June 30, 2012
Low / mod
Housing
Redevelopment
Fund
Downtown
Redevelopment
Fund
Ocean Park
Redevelopment
Fund
Capital Projects
Community
Development
Block Grant
Miscellaneous
Grants
Asset Seizure
Revenues:
Incremental property taxes $ 6,493,923 116,575 (7,384) — — —
Other taxes — — — — — —
Licenses and permits — — — — — —
Intergovernmental — — — 670,612 6,483,885 303,607
Charges for services — — — — — —
Investment income (57,682) (3,083) (14,943) 22,665 125,406 5,770
Rental income — — — — — —
Other 626,950 16,157 36,581 — 94,167 —
Total revenues 7,063,191 129,649 14,254 693,277 6,703,458 309,377
Expenditures:
Current:
General government — — — — — —
Public safety — — — — 1,137,832 469,121
General services — — — — 4,858,207 —
Cultural and recreation services — — — 89,768 899,329 —
Library — — — — 20,252 —
Housing and community development 32,916,325 1,345,669 4,456,293 437,417 610,071 —
Debt service expenditures:
Principal — — — — — —
Interest 281,650 815,989 528,047 — — —
Total expenditures 33,197,975 2,161,658 4,984,340 527,185 7,525,691 469,121
Excess (deficiency) of revenues over (under) expenditures (26,134,784) (2,032,009) (4,970,086) 166,092 (822,233) (159,744)
Other financing sources (uses)
Transfers in 14,021,375 — — — 146,318 —
Transfers out (62,819,703) (1,923,000) (2,556,012) (233,356) (1,768,223) —
Payment to refunded bond escrow agent — — — — — —
Total other financing sources (uses) (48,798,328) (1,923,000) (2,556,012) (233,356) (1,621,905) —
Extraordinary items:
Extraordinary gain — 20,370,239 7,831,377 — — —
Extraordinary loss — — — — — —
Total extraordinary items — 20,370,239 7,831,377 — — —
Net change in fund balances (74,933,112) 16,415,230 305,279 (67,264) (2,444,138) (159,744)
Fund balances (deficit) at the beginning of year 74,933,112 (16,415,230) (305,279) 12,353,619 17,308,887 686,500
Fund balances (deficit) at end of year $ — — — 12,286,355 14,864,749 526,756
112

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
Nonmajor Governmental Funds
For the fiscal year ended June 30, 2012
Capital Projects
Citizens Option for
Public Safety Rent Control AQMD
Debt Service
Parks and
Recreation Gas Tax City
Revenues:
Incremental property taxes $ — — — — — —
Other taxes — — — 43,960 — —
Licenses and permits — — — — — —
Intergovernmental 211,178 — 109,370 — 2,574,179 —
Charges for services — 4,552,695 — — — —
Investment income 2,736 33,744 5,803 1,525 9,062 50,727
Rental income — — — — — —
Other — 23,277 — — — —
Total revenues 213,914 4,609,716 115,173 45,485 2,583,241 50,727
Expenditures:
Current:
General government — — 390 — — —
Public safety 376,970 — — — — —
General services — — 20,044 — 6,670 —
Cultural and recreation services — — — 7,980 — —
Library — — — — — —
Housing and community development — 4,770,444 — — — —
Debt service expenditures:
Principal — — — — — 7,700,000
Interest — — — — — 4,237,843
Total expenditures 376,970 4,770,444 20,434 7,980 6,670 11,937,843
Excess (deficiency) of revenues over (under) expenditures (163,056) (160,728) 94,739 37,505 2,576,571 (11,887,116)
Other financing sources (uses)
Transfers in — — — — — 8,087,225
Transfers out — — — — (2,574,179) —
Payment to refunded bond escrow agent — — — — — (364,583)
Total other financing sources (uses) — — — — (2,574,179) 7,722,642
Extraordinary items:
Extraordinary gain — — — — — —
Extraordinary loss — — — — — —
Total extraordinary items — — — — — —
Net change in fund balances (163,056) (160,728) 94,739 37,505 2,392 (4,164,474)
Fund balances (deficit) at the beginning of year 353,949 1,595,412 615,843 164,594 771,101 11,315,306
Fund balances (deficit) at end of year $ 190,893 1,434,684 710,582 202,099 773,493 7,150,832
113

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits)
Nonmajor Governmental Funds
For the fiscal year ended June 30, 2012
Debt Service
Redevelopment
Agency
Cemetery
Perpetual Care
Permanent
Mausoleum
Perpetual Care
Total nonmajor
governmental
funds
Revenues:
Incremental property taxes $ — — — 6,603,114
Other taxes — — — 2,917,190
Licenses and permits — — — 89,991
Intergovernmental — — — 27,563,887
Charges for services — 101,662 49,866 15,300,173
Investment income 97,450 470,658 50,101 1,114,276
Rental income — — — 1,267,935
Other — — — 1,437,771
Total revenues 97,450 572,320 99,967 56,294,337
Expenditures:
Current:
General government — — — 10,986
Public safety — — — 1,983,923
General services — — — 8,232,956
Cultural and recreation services — — — 10,116,018
Library — — — 20,252
Housing and community development — — — 68,892,971
Debt service expenditures:
Principal 1,195,000 — — 8,895,000
Interest 4,144,960 — — 10,010,768
Total expenditures 5,339,960 — — 108,162,874
Excess (deficiency) of revenues over (under) expenditures (5,242,510) 572,320 99,967 (51,868,537)
Other financing sources (uses)
Transfers in 2,555,235 — — 87,524,528
Transfers out — (365,187) (39,691) (72,468,287)
Payment to refunded bond escrow agent — — — (364,583)
Total other financing sources (uses) 2,555,235 (365,187) (39,691) 14,691,658
Extraordinary items:
Extraordinary gain — — — 28,201,616
Extraordinary loss (4,059,455) — — (4,059,455)
Total extraordinary items (4,059,455) — — 24,142,161
Net change in fund balances (6,746,730) 207,133 60,276 (13,034,718)
Fund balances (deficit) at the beginning of year 6,746,730 8,009,195 870,295 146,682,997
Fund balances (deficit) at end of year $ — 8,216,328 930,571 133,648,279
114

CITY OF SANTA MONICA, CALIFORNIA
Statement of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Basis)
Special Revenue Source Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
Original Final encumbered 2011-2012 budgetary Variance with
budget budget Actual expenditures encumbrances basis final budget
Revenues:
Intergovernmental — — 308,952 — — 308,952 308,952
Charges for services 390,000 390,000 560,202 — — 560,202 170,202
Investment income 135,000 135,000 259,293 — — 259,293 124,293
Settlement income 4,564,155 5,985,572 4,047,746 — — 4,047,746 (1,937,826)
Other 1,105,000 1,105,000 2,021,152 — — 2,021,152 916,152
Total revenues 6,194,155 7,615,572 7,197,345 — — 7,197,345 (418,227)
Expenditures:
General services:
Public works 4,564,155 4,585,070 2,773,613 424,886 123,782 2,472,509 2,112,561
Capital improvement — 7,877,650 2,288,492 — 2,388,659 4,677,151 3,200,499
Total general services 4,564,155 12,462,720 5,062,105 424,886 2,512,441 7,149,660 5,313,060
Cultural and recreation services:
Community and cultural services 20,000 20,000 20,547 — — 20,547 (547)
Capital improvement — 7,598 6,813 — — 6,813 785
Total cultural and recreation services 20,000 27,598 27,360 — — 27,360 238
Housing and community development:
Capital improvement 26,916,818 31,421,553 2,492,090 — 8,616,440 11,108,530 20,313,023
Total housing and community development 26,916,818 31,421,553 2,492,090 — 8,616,440 11,108,530 20,313,023
Total expenditures 31,500,973 43,911,871 7,581,555 424,886 11,128,881 18,285,550 25,626,321
Deficiency of revenues
under expenditures (25,306,818) (36,296,299) (384,210) (424,886) (11,128,881) (11,088,205) 25,208,094
Other financing (uses):
Transfers out (582,073) (582,073) (742,424) — — (742,424) (160,351)
Net change in fund balance (25,888,891) (36,878,372) (1,126,634) (424,886) (11,128,881) (11,830,629) 25,047,743
Fund balance at beginning of year 47,703,665 47,703,665 47,703,665 — — 47,703,665 —
Fund balance at end of year $ 21,814,774 10,825,293 46,577,031 (424,886) (11,128,881) 35,873,036 25,047,743
See accompanying notes to basic financial statements.
115

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance (Deficit) – Budget and Actual (Non-GAAP Basis)
Earthquake Recovery Redevelopment Project Capital Projects Fund (Major Fund)**
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
Original Final encumbered 2011-2012 budgetary Variance with
budget budget Actual expenditures* encumbrances* basis final budget
Revenues:
Incremental property taxes $ 53,263,000 53,263,000 13,191,737 — — 13,191,737 (40,071,263)
Investment income 25,000 25,000 61,003 — — 61,003 36,003
Other 476 476,000 188,943 — — 188,943 (287,057)
Total project revenues 53,288,476 53,764,000 13,441,683 — — 13,441,683 (40,322,317)
Expenditures:
Housing and community development:
Payment of property tax increment 17,493,000 17,493,000 8,372,938 — — 8,372,938 9,120,062
Housing and economic development 12,680,064 15,149,525 5,633,828 — — 5,633,828 9,515,697
Capital improvements — 102,498,706 71,617,874 — — 71,617,874 30,880,832
Total housing and community development 30,173,064 135,141,231 85,624,640 — — 85,624,640 49,516,591
Debt service expenditures - principal 4,285,714 4,285,714 4,285,714 — — 4,285,714 —
Debt service expenditures - interest 2,301,857 2,301,857 2,301,857 — — 2,301,857 —
Bond issue costs 25,000 25,000 25,000 — — 25,000 —
Total debt service 6,612,571 6,612,571 6,612,571 — — 6,612,571 —
Total project expenditures 36,785,635 141,753,802 92,237,211 — — 92,237,211 49,516,591
Excess (deficiency) of revenues
over (under) expenditures 16,502,841 (87,989,802) (78,795,528) — — (78,795,528) 9,194,274
Other financing (uses):
Transfers out (6,497,232) (6,497,232) (6,497,232) — — (6,497,232) —
Extraordinary loss — — (10,438,948) — — (10,438,948) (10,438,948)
Net change in fund balance 10,005,609 (94,487,034) (95,731,708) — — (95,731,708) (1,244,674)
Fund balance at beginning of year 95,731,708 95,731,708 95,731,708 — — 95,731,708 —
Fund balance at end of year $ 105,737,317 1,244,674 — — — — (1,244,674)
* No encumbrances were outstanding at June 30, 2011 and 2012.
**Dissolved February 1, 2012
116

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance (Deficit) – Budget and Actual (Non-GAAP Basis)
Clean Beaches and Ocean Parcel Tax Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures encumbrances basis with budget
Revenues:
Other taxes $ 2,790,000 2,783,722 — — 2,783,722 (6,278)
Investment income 84,000 79,772 — — 79,772 (4,228)
Total revenues 2,874,000 2,863,494 — — 2,863,494 (10,506)
Expenditures:
General services:
Public works 361,497 55,263 349 4,900 59,814 301,683
Capital improvement 8,343,715 330,695 — 1,994,442 2,325,137 6,018,578
Total general services 8,705,212 385,958 349 1,999,342 2,384,951 6,320,261
Total expenditures 8,705,212 385,958 349 1,999,342 2,384,951 6,320,261
Net change in fund balance (5,831,212) 2,477,536 (349) (1,999,342) 478,543 6,309,755
Fund balance at beginning of year 7,788,339 7,788,339 — — 7,788,339 —
Fund balance at end of year $ 1,957,127 10,265,875 (349) (1,999,342) 8,266,882 6,309,755
117

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Basis)
Beach Recreation Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures encumbrances basis with budget
Revenues:
Licenses and permits $ 75,000
89,991 — — 89,991 14,991
Charges for services 8,435,384 10,595,950 — — 10,595,950 2,160,566
Investment income 140,000 76,773 — — 76,773 (63,227)
Rental income 770,239 1,267,935 — — 1,267,935 497,696
Other 492,872 547,971 — — 547,971 55,099
Total revenues 9,913,495 12,578,620 — — 12,578,620 2,665,125
Expenditures:
General services:
Public Works 1,616,841 1,357,349 — — 1,357,349 259,492
Other 38,342 60,697 — — 60,697 (22,355)
Capital improvement 702,614 562,984 — — 562,984 139,630
Total general services 2,357,797 1,981,030 — — 1,981,030 376,767
Cultural and recreation services:
Community and cultural services 9,281,972 9,049,340 12,356 31,128 9,068,112 213,860
Other 33,769 48,611 — — 48,611 (14,842)
Capital improvement 1,426,600 20,990 — 648,362 669,352 757,248
Total cultural and recreation services 10,742,341 9,118,941 12,356 679,490 9,786,075 956,266
Total expenditures 13,100,138 11,099,971 12,356 679,490 11,767,105 1,333,033
Excess (deficiency) of revenues over
(under) expenditures (3,186,643) 1,478,649 (12,356) (679,490) 811,515 3,998,158
Other financing sources:
Transfers in 200,000 200,000 — — 200,000 —
Net change in fund balance (2,986,643) 1,678,649 (12,356) (679,490) 1,011,515 3,998,158
Fund balance at beginning of year 3,015,355 3,015,355 — — 3,015,355 —
Fund balance at end of year $ 28,712 4,694,004 (12,356) (679,490) 4,026,870 3,998,158
118

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Basis)
Housing Authority Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures* encumbrances basis with budget
Revenues:
Intergovernmental $ 17,101,910 16,266,746 — — 16,266,746 (835,164)
Investment income 42,000 19,026 — — 19,026 (22,974)
Total revenues 17,143,910 16,285,772 — — 16,285,772 (858,138)
Expenditures:
Housing and community development:
Housing and economic development 17,886,643 17,742,004 — 10,296 17,752,300 134,343
Community and cultural services 39,357 — — — — 39,357
Capital improvement 12,270 12,270 — — 12,270 —
Total housing and community development 17,938,270 17,754,274 — 10,296 17,764,570 173,700
Total expenditures 17,938,270 17,754,274 — 10,296 17,764,570 173,700
Deficiency of revenues
under expenditures (794,360) (1,468,502) — (10,296) (1,478,798) (684,438)
Other financing sources:
Transfers in 141,000 141,000 — — 141,000 —
Net change in fund balance (653,360) (1,327,502) — (10,296) (1,337,798) (684,438)
Fund balance at beginning of year 3,190,111 3,190,111 — — 3,190,111 —
Fund balance at end of year $ 2,536,751 1,862,609 — (10,296) 1,852,313 (684,438)
* No encumbrances were outstanding at June 30, 2011.
119

CITY OF SANTA MONICA, CALIFORNIA
Statement of Revenues, Expenditures and Changes in
Fund (Deficit) – Budget and Actual (Non-GAAP Basis)
Disaster Relief Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures* encumbrances basis with budget
Revenues:
Intergovernmental $ — 944,310 — — 944,310 944,310
Investment income — 7,768 — — 7,768 7,768
Total revenues — 952,078 — — 952,078 952,078
Expenditures:
General government:
Finance 9,517 10,596 — — 10,596 (1,079)
Total general government 9,517 10,596 — — 10,596 (1,079)
General services:
Capital improvement 1,945,884 981,047 — 960,554 1,941,601 4,283
Total general services 1,945,884 981,047 — 960,554 1,941,601 4,283
Total expenditures 1,955,401 991,643 — 960,554 1,952,197 3,204
Net change in fund balance (1,955,401) (39,565) — (960,554) (1,000,119) 955,282
Fund (deficit) at beginning of year (147,831) (147,831) — — (147,831) —
Fund deficit at end of year $ ( 2,103,232) (187,396) — (960,554) (1,147,950) 955,282
* No encumbrances were outstanding at June 30, 2011.
120

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance (Deficit) – Budget and Actual (Non-GAAP Basis)
Tenant Ownership Rights Charter Amendment
(TORCA) Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures* encumbrances basis with budget
Revenues:
Other taxes $ 100,000
89,508 — — 89,508 (10,492)
Investment income 100,000 89,938 — — 89,938 (10,062)
Other — 85,200 — — 85,200 85,200
Total revenues 200,000 264,646 — — 264,646 64,646
Expenditures:
Housing and community development:
Housing and economic development 22,756 24,860 — — 24,860 (2,104)
Capital improvement 4,236,814 254,721 — 2,000,214 2,254,935 1,981,879
Total housing and community development 4,259,570 279,581 — 2,000,214 2,279,795 1,979,775
Deficiency of revenues
under expenditures (4,059,570) (14,935) — (2,000,214) (2,015,149) 2,044,421
Other financing (uses):
Transfers out (50,186) (47,936) — — (47,936) 2,250
Net change in fund balance (4,109,756) (62,871) — (2,000,214) (2,063,085) 2,046,671
Fund balance at beginning of year 13,832,989 13,832,989 — — 13,832,989 —
Fund balance at end of year $ 9,723,233 13,770,118 — (2,000,214) 11,769,904 2,046,671
* No encumbrances were outstanding at June 30, 2011.
121

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance (Deficit) – Budget and Actual (Non-GAAP Basis)
Housing Projects Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures* encumbrances basis with budget
Revenues:
Investment income $ 25,000
41,060 — — 41,060 16,060
Other income — 7,468 — — 7,468 7,468
Total project revenues 25,000 48,528 — — 48,528 23,528
Expenditures:
Housing and community development:
Housing and economic development 738,606 391,440 — — 391,440 347,166
Capital improvements 20,282,711 5,931,457 — 118,069 6,049,526 14,233,185
Total housing and community development 21,021,317 6,322,897 — 118,069 6,440,966 14,580,351
Debt service expenditures – interest 123,350 2,279 — — 2,279 121,071
Total project expenditures 21,144,667 6,325,176 — 118,069 6,443,245 14,701,422
Deficiency of revenues
under expenditures (21,119,667) (6,276,648) — (118,069) (6,394,717) 14,724,950
Other financing sources (uses):
Transfers in 1,563,821 62,373,375 — — 62,373,375 60,809,554
Transfers out (141,000) (141,000) — — (141,000) —
Total other financing sources (uses) 1,422,821 62,232,375 — — 62,232,375 60,809,554
Net change in fund balance (19,696,846) 55,955,727 — (118,069) 55,837,658 75,534,504
Fund balance at beginning of year — — — — — —
Fund balance (deficit) at end of year $ (19,696,846) 55,955,727 — (118,069) 55,837,658 75,534,504
* No encumbrances were outstanding at June 30, 2011.
122

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Basis)
Low/Moderate Housing Capital Projects Fund **
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures* encumbrances* basis with budget
Revenues:
Incremental property taxes $ 6,493,923 6,493,923 — — 6,493,923 —
Investment income (57,682) (57,682) — — (57,682) —
Other income 626,950 626,950 — — 626,950 —
Total project revenues 7,063,191 7,063,191 — — 7,063,191 —
Expenditures:
Housing and community development:
Housing and economic development 573,394 573,394 — — 573,394 —
Capital improvements 32,342,931 32,342,931 — — 32,342,931 —
Total housing and community development 32,916,325 32,916,325 — — 32,916,325 —
—
Debt service expenditures – interest 281,650 281,650 — — 281,650 —
Total project expenditures 33,197,975 33,197,975 — — 33,197,975 —
Deficiency of revenues
under expenditures (26,134,784) (26,134,784) — — (26,134,784) —
Other financing sources (uses):
Transfers in 14,021,375 14,021,375 — — 14,021,375 —
Transfers out (62,819,703) (62,819,703) — — (62,819,703) —
Total other financing sources (uses) (48,798,328) (48,798,328) — — (48,798,328) —
Net change in fund balance (74,933,112) (74,933,112) — — (74,933,112) —
Fund balance at beginning of year 74,933,112 74,933,112 — — 74,933,112 —
Fund balance at end of year $ —
— — — — —
* No encumbrances were outstanding at June 30, 2011 and 2012.
** Dissolved February 1, 2012.
123

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund (Deficit) – Budget and Actual (Non-GAAP Basis)
Downtown Redevelopment Project Capital Projects Fund**
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
Final encumbered 2011-2012 budgetary Variance with
budget Actual expenditures* encumbrances* basis final budget
Revenues:
Incremental property taxes $ 1,881,000 116,575 — — 116,575 (1,764,425)
Investment income 1,000 (3,083) — — (3,083) (4,083)
Other income — 16,157 — — 16,157 16,157
Total project revenues 1,882,000 129,649 — — 129,649 (1,752,351)
Expenditures:
Housing and community development: 149,870 149,870 — — 149,870 —
Payment of tax increment 394,496 394,496 — — 394,496 —
Capital improvements 801,303 801,303 — — 801,303 —
Total housing and community development 1,345,669 1,345,669 — — 1,345,669 —
Debt service expenditures – interest 815,989 815,989 — — 815,989 —
Total project expenditures 2,161,658 2,161,658 — — 2,161,658 —
Deficiency of revenues
under expenditures (279,658) (2,032,009) — — (2,032,009) (1,752,351)
Other financing (uses):
Transfers out (454,288) (1,923,000) — — (1,923,000) (1,468,712)
Extraordinary gain — 20,370,239 — — 20,370,239 20,370,239
Net change in fund balance (733,946) 16,415,230 — — 16,415,230 17,149,176
Fund (deficit) at beginning of year (16,415,230) (16,415,230) — — (16,415,230) —
Fund balance (deficit) at end of year $ (17,149,176)
— — — — 17,149,176
* No encumbrances were outstanding at June 30, 2011 and 2012.
** Dissolved February 1, 2012.
124

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance (Deficit) – Budget and Actual (Non-GAAP Basis)
Ocean Park Redevelopment Project Capital Projects Fund**
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures* encumbrances* basis with budget
Revenues:
Incremental property taxes $ 3,087,000
(7,384) — — (7,384) (3,094,384)
Investment income 5,000 (14,943) — — (14,943) (19,943)
Other — 36,581 — — 36,581 36,581
Total project revenues 3,092,000 14,254 — — 14,254 (3,077,746)
Expenditures:
Housing and community development:
Housing and economic development 267,770 267,770 — — 267,770 —
Capital improvements 4,188,523 4,188,523 — — 4,188,523 —
Total housing and community development 4,456,293 4,456,293 — — 4,456,293 —
Debt service expenditures – interest 528,047 528,047 — — 528,047 —
Total project expenditures 4,984,340 4,984,340 — — 4,984,340 —
Deficiency of revenues
under expenditures (1,892,340) (4,970,086) — — (4,970,086) (3,077,746)
Other financing (uses) :
Transfers out (1,896,925) (2,556,012) — — (2,556,012) (659,087)
Extraordinary gain — 7,831,377 — — 7,831,377 7,831,377
Net change in fund balance (3,789,265) 305,279 — — 305,279 4,094,544
Fund (deficit) at beginning of year (305,279) (305,279) — — (305,279) —
Fund balance (deficit) at end of year $ (4,094,544)
— — — — 4,094,544
* No encumbrances were outstanding at June 30, 2011 and 2012.
**Dissolved February 1, 2012
125

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Basis)
Community Development Block Grant
(CDBG) Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures encumbrances basis with budget
Revenues:
Intergovernmental $ 2,022,963 670,612 — — 670,612 (1,352,351)
Investment income 1,000 22,665 — — 22,665 21,665
Total revenues 2,023,963 693,277 — — 693,277 (1,330,686)
Expenditures:
Cultural and recreation services:
Capital improvement 620,485 89,768 — 40,327 130,095 490,390
Total cultural and recreation services 620,485 89,768 — 40,327 130,095 490,390
Housing and community development:
Community and cultural services 364,208 237,982 — — 237,982 126,226
Other 320,441 27,619 136 — 27,483 292,958
Capital improvement 171,816 171,816 — — 171,816 —
Total housing and community development 856,465 437,417 136 — 437,281 419,184
Total expenditures 1,476,950 527,185 136 40,327 567,376 909,574
Excess of revenues
over expenditures 547,013 166,092 (136) (40,327) 125,901 (421,112)
Other financing (uses):
Transfer out (236,441) (233,356) — — (233,356) 3,085
Net change in fund balance 310,572 (67,264) (136) (40,327) (107,455) (418,027)
Fund balance at beginning of year 12,353,619 12,353,619 — — 12,353,619 —
Fund balance at end of year $ 12,664,191 12,286,355 (136) (40,327) 12,246,164 (418,027)
126

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance (Deficit) – Budget and Actual (Non-GAAP Basis)
Miscellaneous Grants Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures encumbrances basis with budget
Revenues:
Intergovernmental 11,390,591 6,483,885 — — 6,483,885 (4,906,706)
Investment income 190,000 125,406 — — 125,406 (64,594)
Other 398,185 94,167 — — 94,167 (304,018)
Total revenues 11,978,776 6,703,458 — — 6,703,458 (5,275,318)
Expenditures:
Public safety:
Police 813,854 722,838 — 62,129 784,967 28,887
Fire 802,061 393,144 — 9,341 402,485 399,576
Capital improvement 60,166 21,850 — — 21,850 38,316
Total public safety 1,676,081 1,137,832 — 71,470 1,209,302 466,779
General services:
City manager 400,257 54,593 — 119,742 174,335 225,922
Community and cultural services 73,500 — — — — 73,500
Capital improvement 21,916,828 4,803,614 — 4,393,689 9,197,303 12,719,525
Total general services 22,390,585 4,858,207 — 4,513,431 9,371,638 13,018,947
Cultural and recreation services:
Community and cultural services 757,515 836,917 91,397 — 745,520 11,995
Capital improvement 6,166,236 62,412 — 120,068 182,480 5,983,756
Total cultural and recreation services 6,923,751 899,329 91,397 120,068 928,000 5,995,751
Library: 24,185 20,252 — 8,900 29,152 (4,967)
Housing and community development:
Planning and community development 95,500 — — 46,000 46,000 49,500
Housing and economic development — 25,887 — — 25,887 (25,887)
Capital improvement 3,297,172 584,184 — 1,038,961 1,623,145 1,674,027
Total housing and community development 3,392,672 610,071 — 1,084,961 1,695,032 1,697,640
Total expenditures 34,407,274 7,525,691 91,397 5,798,830 13,233,124 21,174,150
Deficiency of revenues
under expenditures (22,428,498) (822,233) (91,397) (5,798,830) (6,529,666) 15,898,832
Other financing sources (uses):
Transfers in 146,318 146,318 — — 146,318 —
Transfers out (1,748,114) (1,768,223) — — (1,768,223) (20,109)
Total other financing sources (uses) (1,601,796) (1,621,905) — — (1,621,905) (20,109)
Net change in fund balance (24,030,294) (2,444,138) (91,397) (5,798,830) (8,151,571) 15,878,723
Fund balance at beginning of year 17,308,887 17,308,887 — — 17,308,887 —
Fund balance (deficit) at end of year $ (6,721,407) 14,864,749 (91,397) (5,798,830) 9,157,316 15,878,723
127

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Basis)
Citizens Option for Public Safety Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures* encumbrances* basis with budget
Revenues:
Intergovernmental $ 120,543 211,178 — — 211,178 90,635
Investment income 1,000 2,736 — — 2,736 1,736
Total revenues 121,543 213,914 — — 213,914 92,371
Expenditures:
Public safety:
Police — 22,651 — — 22,651 (22,651)
Capital improvement 354,319 354,319 — — 354,319 —
Total public safety 354,319 376,970 — — 376,970 (22,651)
Total expenditures 354,319 376,970 — — 376,970 (22,651)
Net change in fund balance (232,776) (163,056) — — (163,056) 69,720
Fund balance at beginning of year 353,949 353,949 — — 353,949 —
Fund balance at end of year $ 121,173 190,893 — — 190,893 69,720
* No encumbrances were outstanding at June 30, 2011 and 2012.
128

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Basis)
Air Quality Management District (AQMD) Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures* encumbrances* basis with budget
Revenues:
Intergovernmental $ 110,000 109,370 — — 109,370 (630)
Investment income 6,000 5,803 — — 5,803 (197)
Total revenues 116,000 115,173 — — 115,173 (827)
Expenditures:
General government:
Other 2,400 390 — — 390 2,010
Total general government 2,400 390 — — 390 2,010
General services:
Capital improvement 572,675 20,044 — — 20,044 552,631
Total general services 572,675 20,044 — — 20,044 552,631
Total expenditures 575,075 20,434 — — 20,434 554,641
Net change in fund balance (459,075) 94,739 — — 94,739 553,814
Fund balance at beginning of year 615,843 615,843 — — 615,843 —
Fund balance at end of year $ 156,768 710,582 — — 710,582 553,814
* No encumbrances were outstanding at June 30, 2011 and 2012.
129

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Basis)
Parks and Recreation Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures* encumbrances basis with budget
Revenues:
Other taxes $ 16,000
43,960 — — 43,960 27,960
Investment income 2,000 1,525 — — 1,525 (475)
Total revenues 18,000 45,485 — — 45,485 27,485
Expenditures:
Cultural and recreation:
Capital improvement 8,836 7,980 — 856 8,836 —
Total cultural and recreation 8,836 7,980 — 856 8,836 —
Net change in fund balance 9,164 37,505 — (856) 36,649 27,485
Fund balance at beginning of year 164,594 164,594 — — 164,594 —
Fund balance at end of year $ 173,758 202,099 — (856) 201,243 27,485
* No encumbrances were outstanding at June 30, 2011.
130

CITY OF SANTA MONICA, CALIFORNIA
Schedule of Revenues, Expenditures and Changes in
Fund Balance – Budget and Actual (Non-GAAP Basis)
Gas Tax Capital Projects Fund
For the fiscal year ended June 30, 2012
Less
2010-2011 Plus Actual,
encumbered 2011-2012 budgetary Variance
Budget Actual expenditures* encumbrances * basis with budget
Revenues:
Intergovernmental $ 2,395,940 2,574,179 — — 2,574,179 178,239
Investment income 13,000 9,062 — — 9,062 (3,938)
Total revenues 2,408,940 2,583,241 — — 2,583,241 174,301
Expenditures:
General services:
Other 5,300 6,670 — — 6,670 (1,370)
Capital improvements 20,520 — — — — 20,520
Total general services 25,820 6,670 — — 6,670 19,150
Excess of revenues
over expenditures 2,383,120 2,576,571 — — 2,576,571 193,451
Other financing (uses):
Transfers out (2,395,940) (2,574,179) — — (2,574,179) (178,239)
Net change in fund balance (12,820) 2,392 — — 2,392 15,212
Fund balance at beginning of year 771,101 771,101 — — 771,101 —
Fund balance at end of year $ 758,281 773,493 — — 773,493 15,212
* No encumbrances were outstanding at June 30, 2011 and 2012.
131

THIS PAGE INTENTIONALLY LEFT BLANK
132

CITY OF SANTA MONICA, CALIFORNIA
Nonmajor Enterprise Fund Financial Statements
Enterprise Funds are used to report any activity for which a fee is charged to external users for goods or
services. Activities are required to be reported as enterprise funds if any one of the following criteria is
met. (a) The activity is financed with debt that is secured solely by a pledge of the net revenues from fees
and charges of the activity. Debt that is secured by a pledge of net revenues from fees and charges and the
full faith and credit of a related primary government or component unit – even if that government is not
expected to make any payments – is not payable solely from fees and charges of the activity. (Some debt
may be secured, in part, by a portion of its own proceeds but should be considered as payable “solely”
from the revenues of the activity.) (b) Laws or regulations require that the activity’s costs of providing
services, including capital costs (such as depreciation or debt service), be recovered with fees and
charges, rather than with taxes or similar revenues. (c) The pricing policies of the activity establish fees
and charges designed to recover its costs, including capital costs (such as depreciation or debt services).
Water Fund – To account for revenues and expenses of providing water service to the citizens of
the City.
Pier Fund – To account for revenues and expenses connected with management and
development of the Santa Monica Pier.
Civic Auditorium Fund – To account for revenues and expenses connected with management of
the Santa Monica Civic Auditorium.
Stormwater Management Fund – To account for revenues and expenses associated with storm
water management.
Cemetery Fund – To account for revenues and expenses associated with operation of Woodlawn
Cemetery.
Special Aviation Fund – To account for revenues and expenses associated with aviation-related
State funds provided to the City.
Parking Authority Fund – To account for revenues and expenses associated with operating the
various parking structures and parking lots owned by the City Parking Authority.
133

Water
CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Net Assets
Nonmajor Enterprise Funds
June 30, 2012
Pier
Civic
Auditorium
Stormwater
Management Cemetery Special Aviation
Parking
Authority
Total
nonmajor
enterprise
funds
Assets
Current assets:
Cash and investments $ 14,934,393 9,784,131 2,354,539 — — 257,602 4,662,855 31,993,520
Restricted cash and investments 333,694 513,931 141,947 — — — — 989,572
Receivables (net, where applicable, of
allowances for uncollectibles):
Accounts 2,970,466 1,303,127 4,818 70,177 112,692 — — 4,461,280
Interest 43,059 23,921 5,584 — — 578 15,161 88,303
Prepaids 7,325 — — — — — — 7,325
Total current assets 18,288,937 11,625,110 2,506,888 70,177 112,692 258,180 4,678,016 37,540,000
Noncurrent assets:
Restricted cash and investments 1,373,374 — — 81,924 — — 300,000 1,755,298
Capital assets:
Land 21,006 — — — 4 — 7,935,700 7,956,710
Buildings 1,532,511 5,916,024 6,187,997 — 1,723,603 — 946,242 16,306,377
Improvements other than buildings 932,149 4,456,986 430,780 147,299 782,159 509,940 169,306 7,428,619
Machinery and equipment 1,818,229 289,427 1,933,985 35,750 385,442 275,000 1,218,161 5,955,994
Infrastructure 36,111,962 8,435,604 — 10,739,803 — — — 55,287,369
Construction in progress 4,916,593 619,457 — — — — 3,812,533 9,348,583
Less: accumulated depreciation (24,324,906) (10,587,381) (6,111,926) (2,951,312) (1,633,274) (784,940) (766,095) (47,159,834)
Net capital assets 21,007,544 9,130,117 2,440,836 7,971,540 1,257,934 — 13,315,847 55,123,818
Total noncurrent assets 22,380,918 9,130,117 2,440,836 8,053,464 1,257,934 — 13,615,847 56,879,116
Total assets 40,669,855 20,755,227 4,947,724 8,123,641 1,370,626 258,180 18,293,863 94,419,116
Liabilities
Current liabilities:
Accounts payable 1,618,785 204,437 13,854 67 24,630 — 1,414 1,863,187
Accrued liabilities 492,091 168,087 163,447 — 51,538 — — 875,163
Contracts payable (retained percentage) 98,345 — — — — — — 98,345
Interest payable — — — 20,006 — — — 20,006
Current portion of long-term obligations — — — 263,305 — — — 263,305
Due to other funds — — — 1,072,814 — — — 1,072,814
Liabilities payable from restricted assets - deposits 333,694 513,931 141,947 — — — — 989,572
Total current liabilities 2,542,915 886,455 319,248 1,356,192 76,168 — 1,414 5,182,392
Noncurrent liabilities:
Accrued liabilities 219,744 29,423 64,716 — 13,331 — — 327,214
Advances from other funds — — 62,081 — — — — 62,081
Long-term obligations net of current portion — — — 2,045,116 — — — 2,045,116
Total noncurrent liabilities 219,744 29,423 126,797 2,045,116 13,331 — — 2,434,411
Total liabilities 2,762,659 915,878 446,045 3,401,308 89,499 — 1,414 7,616,803
Net assets
Invested in capital assets, net of related debt 21,007,544 9,130,117 2,440,836 5,663,119 1,257,934 — 13,315,847 52,815,397
Unrestricted (deficit) 16,899,652 10,709,232 2,060,843 (940,786) 23,193 258,180 4,976,602 33,986,916
Total net assets $ 37,907,196 19,839,349 4,501,679 4,722,333 1,281,127 258,180 18,292,449 86,802,313
134

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
Nonmajor Enterprise Funds
For the fiscal year ended June 30, 2012
Water
Pier
Civic
Auditorium
Stormwater
Management Cemetery Special Aviation
Parking
Authority
Total
nonmajor
enterprise funds
Operating revenues
Charges for services $ 19,897,464 6,004,005 1,667,172 1,419,980 1,133,990 — 161,504 30,284,115
Total operating revenues 19,897,464 6,004,005 1,667,172 1,419,980 1,133,990 — 161,504 30,284,115
Operating expenses
Personnel services 5,238,400 1,903,900 2,341,919 — 598,048 — 900 10,083,167
Administrative indirect 1,088,111 386,402 75,086 10,823 312,557 — — 1,872,979
Contractual services 486,458 1,289,006 52,006 — 251,097 — — 2,078,567
Repairs and maintenance 221,386 300,422 49,794 — 50,850 — — 622,452
Materials and supplies 3,242,253 241,700 181,349 — 251,407 — 50,629 3,967,338
Utilities 601,593 191,597 132,971 — 95,090 — — 1,021,251
Water purchases 6,460,974 — — — — — — 6,460,974
Casualty property and liability costs 314,023 230,153 66,891 — 50,905 — — 661,972
Depreciation 1,001,793 509,436 283,210 301,816 154,066 — 264,207 2,514,528
Other 858,017 605,966 19,597 34,879 7,333 — — 1,525,792
Total operating expenses 19,513,008 5,658,582 3,202,823 347,518 1,771,353 — 315,736 30,809,020
Operating income (loss) 384,456 345,423 (1,535,651) 1,072,462 (637,363) — (154,232) (524,905)
Nonoperating revenues (expenses)
Investment income 156,939 85,922 20,498 — (1,147) 2,157 42,627 306,996
Interest expense (6,892) — — (64,467) — — — (71,359)
Gain (loss) on disposal of capital assets — — — — 650 — — 650
Other nonoperating 400,333 318,745 11,309 495,283 114,176 — — 1,339,846
Total nonoperating revenues (expenses) 550,380 404,667 31,807 430,816 113,679 2,157 42,627 1,576,133
Income (loss) before transfers 934,836 750,090 (1,503,844) 1,503,278 (523,684) 2,157 (111,605) 1,051,228
Transfers in 158,439 — 2,084,912 12,480 6,568,264 — 3,670,438 12,494,533
Transfers out (1,430,039) (7,680) — (2,019,794) — — (2,749,838) (6,207,351)
Change in net assets (336,764) 742,410 581,068 (504,036) 6,044,580 2,157 808,995 7,338,410
Net assets (deficit) at beginning of year 38,243,960 19,096,939 3,920,611 5,226,369 (4,763,453) 256,023 17,483,454 79,463,903
Net assets at end of year $ 37,907,196 19,839,349 4,501,679 4,722,333 1,281,127 258,180 18,292,449 86,802,313
135

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the fiscal year ended June 30, 2012
Water
Pier
Civic
Auditorium
Stormwater
Management
Cemetery
Special
Aviation
Parking
Authority
Total nonmajor
enterprise
funds
Cash flows from operating activities:
Cash received from customers $ 19,776,220 4,990,757 1,693,758 1,392,437 1,093,591 — 161,504 29,108,267
Cash payments for materials and services (11,286,851) (2,899,885) (576,476) (45,733) (1,034,848) — (824,637) (16,668,430)
Cash payments to employees for services (5,155,674) (1,846,128) (2,342,786) — (586,625) — (900) (9,932,113)
Other revenue received 400,333 318,745 11,309 495,283 25,951 — — 1,251,621
Net cash provided by (used in)
operating activities 3,734,028 563,489 (1,214,195) 1,841,987 (501,931) — (664,033) 3,759,345
Cash flows from noncapital financing activities:
Advances from other funds — — — 488,649 (1,375,589) — — (886,940)
Transfers in 158,439 — 2,084,912 12,480 2,087,104 — 3,670,438 8,013,373
Transfers out (1,430,039) (7,680) — (2,019,794) — — (2,549,838) (6,007,351)
Net cash provided by (used in)
noncapital financing activities (1,271,600) (7,680) 2,084,912 (1,518,665) 711,515 — 1,120,600 1,119,082
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (3,851,986) (158,048) — — (209,332) — (2,596,452) (6,815,818)
Reduction in long-term obligations — — — (256,632) — — — (256,632)
Interest paid on long-term obligations (6,892) — — (66,690) — — — (73,582)
Net cash (used in)
capital and related financing activities (3,858,878) (158,048) — (323,322) (209,332) — (2,596,452) (7,146,032)
Cash flows from investing activities:
Interest on investments 175,977 91,727 21,265 — (252) 2,372 56,279 347,368
Net cash provided by investing activities 175,977 91,727 21,265 — (252) 2,372 56,279 347,368
Net increase (decrease) in cash
and cash equivalents (1,220,473) 489,488 891,982 — — 2,372 (2,083,606) (1,920,237)
Cash and cash equivalents at beginning of year 17,861,934 9,808,574 1,604,504 81,924 — 255,230 7,046,461 36,658,627
Cash and cash equivalents at end of year $ 16,641,461 10,298,062 2,496,486 81,924 — 257,602 4,962,855 34,738,390
Cash and investments $ 14,934,393 9,784,131 2,354,539 — — 257,602 4,662,855 31,993,520
Restricted cash and investments 1,707,068 513,931 141,947 81,924 — — 300,000 2,744,870
Total cash and cash equivalents $ 16,641,461 10,298,062 2,496,486 81,924 — 257,602 4,962,855 34,738,390
(Continued)
136

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the fiscal year ended June 30, 2012
Water
Pier
Civic
Auditorium
Stormwater
Management
Cemetery
Special
Aviation
Parking
Authority
Total nonmajor
enterprise
funds
Reconciliation of operating income (loss) to net
cash provided by (used in) operating activities:
Operating income (loss) $ 384,456 345,423 (1,535,651) 1,072,462 (637,363) — (154,232) (524,905)
Adjustments to reconcile operating income
(loss) to net cash provided by (used in)
operating activities:
Add depreciation 1,001,793 509,436 283,210 301,816 154,066 — 264,207 2,514,528
Change in assets and liabilities:
Increase in accounts receivable (177,202) (1,013,248) (1,561) (27,543) (40,399) — — (1,259,953)
Decrease in prepaids 1,969 1,109 — — — — 6,300 9,378
Decrease in inventory 428,649 — — — — — — 428,649
Increase (decrease) in accounts payable 1,480,913 91,247 1,218 (31) (3,903) — (763,016) 806,428
Increase in accrued liabilities 161,267 84,872 5,469 — 2,914 — — 254,522
Increase in deposits 55,958 253,005 28,147 — — — — 337,110
Increase (decrease) in accrued
noncurrent liabilities (78,541) (27,100) (6,336) — 8,509 — — (103,468)
Increase (decrease) in contracts payable 74,433 — — — (11,706) — (17,292) 45,435
Other nonoperating revenue received 400,333 318,745 11,309 495,283 25,951 — — 1,251,621
Total adjustments 3,349,572 218,066 321,456 769,525 135,432 — (509,801) 4,284,250
Net cash provided by (used in)
operating activities $ 3,734,028 563,489 (1,214,195) 1,841,987 (501,931) — (664,033) 3,759,345
1) The $4.5 million debt owed to the General fund by the Cemetery was forgiven.
137

THIS PAGE INTENTIONALLY LEFT BLANK
138

CITY OF SANTA MONICA, CALIFORNIA
Internal Service Fund Financial Statements
Internal Service Funds are used to account for the financing of goods or services provided by one
department or agency to other departments or agencies of the City or to other governments, on a costreimbursement
basis.
Vehicle Management Fund – To account for user charges from other funds and expenses related
to the replacement, maintenance and the fueling of various City vehicles, including specialized
mechanical equipment.
Information Technology Replacement and Services Fund – To account for user charges from
other funds and expenses related to replacement of computer equipment.
Self-Insurance, General Liability and Auto – To account for user charges from other funds and
expenses related to the administration and payment of general liability and auto claims.
Self-Insurance, Bus Fund – To account for user charges from the Big Blue Bus Fund and
expenses related to the administration and payment of municipal bus lines liability claims.
Self-Insurance, Risk Management Administration – To account for user charges from other
funds and expenses related to the administration of the risk management division.
Self-Insurance, Workers' Compensation Fund – To account for user charges from other funds
and expenses related to the administration and payment of workers' compensation claims.
139

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Net Assets
All Internal Service Funds
June 30, 2012
Vehicle
Management
Information
Technology
Replacement and
Services
Self - Insurance
General Liability /
Auto
Self - Insurance
Bus
Self - Insurance
Risk Management
Admin
Self - Insurance
Workers
Compensation
Assets
Current assets:
Cash and investments $ 26,275,118 6,724,446 15,855,776 5,159,406 580,658 28,565,007 83,160,411
Receivables:
Accounts 87 — 701 — — 14 802
Interest 52,594 11,887 32,141 12,503 3,782 68,541 181,448
Inventory 51,346 — — — — — 51,346
Prepaids — 1,000 — — 8,525 — 9,525
Total current assets 26,379,145 6,737,333 15,888,618 5,171,909 592,965 28,633,562 83,403,532
Noncurrent assets:
Capital assets:
Machinery and equipment 39,395,778 2,359,084 2,849 7,386 919 10,065 41,776,081
Construction in progress 349,248 — — — — — 349,248
Less: accumulated depreciation (24,305,742) (1,812,816) (2,849) (7,386) (919) (10,065) (26,139,777)
Net capital assets 15,439,284 546,268 — — — — 15,985,552
Total assets 41,818,429 7,283,601 15,888,618 5,171,909 592,965 28,633,562 99,389,084
Liabilities
Current liabilities:
Accounts payable 184,102 297,712 108,123 5,410 1,059 10,876 607,282
Accrued liabilities 173,085 — — — 123,562 — 296,647
Claims payable — — 1,426,274 1,524,563 — 5,125,492 8,076,329
Total current liabilities 357,187 297,712 1,534,397 1,529,973 124,621 5,136,368 8,980,258
Noncurrent liabilities:
Accrued liabilities 111,462 — — — 43,123 — 154,585
Claims payable — — 2,423,079 1,188,493 — 20,050,396 23,661,968
Total noncurrent liabilities 111,462 — 2,423,079 1,188,493 43,123 20,050,396 23,816,553
Total liabilities 468,649 297,712 3,957,476 2,718,466 167,744 25,186,764 32,796,811
Net assets
Invested in capital assets, net of related debt 15,439,284 546,268 — — — — 15,985,552
Unrestricted 25,910,496 6,439,621 11,931,142 2,453,443 425,221 3,446,798 50,606,721
Total net assets $ 41,349,780 6,985,889 11,931,142 2,453,443 425,221 3,446,798 66,592,273
Total
internal
service
funds
140

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets
All Internal Service Funds
For the fiscal year ended June 30, 2012
Vehicle
Management
Information
Technology
Replacement and
Services
Self - Insurance
General Liability /
Auto
Self - Insurance
Bus
Self - Insurance
Risk Management
Admin
Self - Insurance
Workers
Compensation
Total
internal
service funds
Operating revenues
Charges for services $ 8,916,773 2,156,488 3,230,298 860,000 1,909,321 8,734,179 25,807,059
Total operating revenues 8,916,773 2,156,488 3,230,298 860,000 1,909,321 8,734,179 25,807,059
Operating expenses
Personnel services 2,926,941 — — — 1,297,820 — 4,224,761
Administrative indirect 648,935 — — — — — 648,935
Contractual services 96,242 — 44,059 14,122 76,031 68,555 299,009
Repairs and maintenance 1,187,719 — — — 835 — 1,188,554
Materials and supplies 2,700,791 950,531 158 158 10,350 30,215 3,692,203
Utilities 59,980 — — — 654 572 61,206
Casualty property and liability costs 43,818 — — — 4,543 — 48,361
Claims expense net of claims reserve adjustment — — 1,783,914 1,017,658 — 8,450,102 11,251,674
Insurance and bonds — — 1,071,468 500,000 1,810,815 432,275 3,814,558
Miscellaneous fees and costs — — 100,108 81,760 — 363,833 545,701
Depreciation 3,303,585 250,156 — — — — 3,553,741
Other 316,275 — 4,641 489 103,180 4,108 428,693
Total operating expenses 11,284,286 1,200,687 3,004,348 1,614,187 3,304,228 9,349,660 29,757,396
Operating income (loss) (2,367,513) 955,801 225,950 (754,187) (1,394,907) (615,481) (3,950,337)
Nonoperating revenues (expenses)
Investment income 203,612 48,608 119,879 57,087 9,268 244,404 682,858
Loss on disposal of capital assets (88,707) — — — — — (88,707)
Other nonoperating 72,632 — — — 6,707 12,089 91,428
Total nonoperating revenues (expenses) 187,537 48,608 119,879 57,087 15,975 256,493 685,579
Income (loss) before transfers (2,179,976) 1,004,409 345,829 (697,100) (1,378,932) (358,988) (3,264,758)
Transfers in — — 2,178,397 — — — 2,178,397
Transfers out — — — (243,823) (841,522) (1,220,689) (2,306,034)
Change in net assets (2,179,976) 1,004,409 2,524,226 (940,923) (2,220,454) (1,579,677) (3,392,395)
Net assets at beginning of year 43,529,756 5,981,480 9,406,916 3,394,366 2,645,675 5,026,475 69,984,668
Net assets at end of year $ 41,349,780 6,985,889 11,931,142 2,453,443 425,221 3,446,798 66,592,273
141

Vehicle
Management
CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Cash Flows
All Internal Service Funds
For the fiscal year ended June 30, 2012
Information
Technology
Replacement
and Services
Self-Insurance
General Liability
/ Auto Self-Insurance Bus
Self-Insurance
Risk Management
Administration
Self-Insurance
Workers'
Compensation
Total Internal
Service Funds
Cash flows from operating activities:
Cash received from customers $ 8,974,373 2,156,488 3,229,597 859,024 1,909,321 8,734,165 25,862,968
Cash payments for materials and services (5,462,966) (702,424) (1,131,545) (604,558) (1,857,569) (889,284) (10,648,346)
Cash payments for claims and related expenses — — (726,583) (947,775) (151,696) (6,175,395) (8,001,449)
Cash payments to employees for services (2,926,941) — — — (1,297,820) (171,298) (4,396,059)
Other nonoperating revenue received 72,632 — — — 6,707 12,089 91,428
Net cash provided by (used in)
operating activities 657,098 1,454,064 1,371,469 (693,309) (1,391,057) 1,510,277 2,908,542
Cash flows from noncapital financing activities:
Transfers in — — 2,178,397 — — — 2,178,397
Transfers out — — — (243,823) (841,522) (1,220,689) (2,306,034)
Net cash provided by (used in)
noncapital financing activities — — 2,178,397 (243,823) (841,522) (1,220,689) (127,637)
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets (2,165,730) (93,173) — — — — (2,258,903)
Proceeds from sale of capital assets 29,914 — — — — — 29,914
Net cash used in capital and related financing activities (2,135,816) (93,173) — — — — (2,228,989)
Cash flows from investing activities – interest on investments 230,853 50,990 123,753 57,087 13,594 268,965 745,242
Net increase (decrease) in cash and
cash equivalents (1,247,865) 1,411,881 3,673,619 (880,045) (2,218,985) 558,553 1,297,158
Cash and cash equivalents at beginning of year 27,522,983 5,312,565 12,182,157 6,039,451 2,799,643 28,006,454 81,863,253
Cash and cash equivalents at end of year $ 26,275,118 6,724,446 15,855,776 5,159,406 580,658 28,565,007 83,160,411
Reconciliation of operating income to net cash
provided (used) by operating activities:
Operating income (loss) $ (2,367,513) 955,801 225,950 (754,187) (1,394,907) (615,481) (3,950,337)
Adjustments to reconcile operating income to
net cash provided (used) by operating activities:
Add depreciation 3,303,585 250,156 — — — — 3,553,741
Change in assets and liabilities:
(Increase) decrease in accounts receivable 57,600 — (701) (976) — (14) 55,909
(Increase) decrease in prepaids — 10,000 10,216 — (8,525) 8,123 19,814
Decrease in inventory 25,599 — — — — — 25,599
Increase (decrease) in accounts payable (463,072) 238,107 88,889 (8,029) 157,364 2,151 15,410
Increase (decrease) in accrued liabilities 28,267 — — — — (171,298) (143,031)
Increase (decrease) in claims payable — — 1,047,115 69,883 (151,696) 2,274,707 3,240,009
Other nonoperating revenue received 72,632 — — — 6,707 12,089 91,428
Total adjustments
Net cash provided (used) by operating
3,024,611 498,263 1,145,519 60,878 3,850 2,125,758 6,858,879
activities $ 657,098 1,454,064 1,371,469 (693,309) (1,391,057) 1,510,277 2,908,542
142

CITY OF SANTA MONICA, CALIFORNIA
Fiduciary Fund Financial Statements
Agency Funds are custodial in nature and used to receive and disburse funds for an entity/individual,
which is not part of the City.
General Trust Fund - To account for funds given to the City for restricted purposes whereby the
City is only acting as a pass-through agent.
Street Light Fund - To account for all receipts and disbursements associated with 1911 Act
Street Light Assessment Bonds.
143

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2012
Assets
General Street Total
Trust Light Agency Funds
Restricted cash and investments $ 6,700,553
4,556 6,705,109
Accounts receivable 85,387 — 85,387
Total assets $ 6,785,940
4,556 6,790,496
Liabilities
Accounts payable and accrued liabilities $ 6,785,940
4,556 6,790,496
Total liabilities $ 6,785,940
4,556 6,790,496
144

CITY OF SANTA MONICA, CALIFORNIA
Combining Statement of Changes in Fiduciary Assets and Liabilities
Agency Funds
For the fiscal year ended June 30, 2012
Fiduciary Funds
Agency Funds:
General Trust
Assets:
Year ended
Year ended
June 30, 2011 Additions Reductions June 30, 2012
Restricted cash and investments $ 3,797,825 61,704,962 58,802,234 6,700,553
Accounts receivable 71,020 175,176 160,809 85,387
Total assets $ 3,868,845 61,880,138 58,963,043 6,785,940
Liabilities:
Due to other agencies $ 3,868,845 61,880,138 58,963,043 6,785,940
Total liabilities $ 3,868,845 61,880,138 58,963,043 6,785,940
Street Light
Assets:
Restricted cash and investments $ 4,473
45,970 45,887 4,556
Total assets $ 4,473
45,970 45,887 4,556
Liabilities:
Due to other agencies $ 4,473
45,970 45,887 4,556
Total liabilities $ 4,473
45,970 45,887 4,556
Total Fiduciary Funds
Total Agency Funds
Assets:
Restricted cash and investments $ 3,802,298 61,750,932 58,848,121 6,705,109
Accounts Receivable 71,020 175,176 160,809 85,387
Total assets $ 3,873,318 61,926,108 59,008,930 6,790,496
Liabilities:
Due to other agencies $ 3,873,318 $ 61,926,108 $ 59,008,930 6,790,496
Total liabilities $ 3,873,318 $ 61,926,108 59,008,930 6,790,496
145

THIS PAGE INTENTIONALLY LEFT BLANK
146

City of Santa Monica, California
Year Ended June 30, 2012
STATISTICAL SECTION

CITY OF SANTA MONICA, CALIFORNIA
For the fiscal year ended June 30, 2012
STATISTICAL SECTION (unaudited)
Table
Financial Trends Information
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Page
1 Net Assets by Component - Last Ten Fiscal Years 149
2 Changes in Net Assets - Last Ten Fiscal Years 150
3 Fund Balance of Governmental Funds - Last Ten Fiscal Years 153
4 Changes in Fund Balance of Governmental Funds - Last Ten Fiscal Years 154
5 General Fund Tax Revenues by Source - Last Ten Fiscal Years 156
Revenue Capacity Information
These schedules contain information to help the reader assess the government's most
significant local revenue source, the property tax.
6 Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years 157
7 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 158
8 Principal Property Taxpayers - Current Fiscal Year and Nine Years Ago 159
9 Property Tax Levies and Collections - Last Ten Fiscal Years 160
10 Taxable Transactions by Type of Business - Last Ten Calendar Years 161
Debt Capacity Information
These schedules present information to help the reader assess the affordability of the
government's current levels of outstanding debt and government's ability to issue additional
debt in the future.
11 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 162
12 Ratios of General Bonded Debt - Last Ten Fiscal Years 163
13 Direct and Overlapping Governmental Activities Debt as of June 30, 2012 164
14 Computation of Legal Debt Margin - Last Ten Fiscal Years 165
15 Wastewater Enterprise Revenue Bonds Coverage 166
16 Redevelopment Agency Earthquake Recovery Project Tax Allocation Bonds Coverage 167
17 Redevelopment Agency Ocean Park Project Tax Allocation Refunding Bonds Coverage 168
147

CITY OF SANTA MONICA, CALIFORNIA
For the fiscal year ended June 30, 2012
STATISTICAL SECTION (unaudited), continued
Table
18 Parking Authority of the City of Santa Monica Lease Revenue Refunding Bonds, Schedule of
Debt Service Payments Made
19 Santa Monica Public Financing Authority Lease Revenue Bonds, Series 2011A Parking
Structure 6 Project Schedule of Debt Service Payments Made
20 Santa Monica Public Financing Authority Lease Revenue Bonds, Series 2011B Public Safety
Facility Project Schedule of Debt Service Payments Made
21 Public Financing Authority Lease Revenue Bonds, Series 2004 Civic Center Parking Project
Schedule of Debt Service Payments Made
22 Public Financing Authority Lease Revenue Bonds, Refunding Bonds, Series 2009 Public
Safety Facility Project Schedule of Debt Service Payments Made
23 City of Santa Monica General Obligation Bonds, Series 2012 Library Improvement Project
Schedule of Debt Service Payments Made
Page
169
170
171
172
173
174
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand
the environment within which the government's financial activities take place.
24 Demographic and Economic Statistics - Last Ten Calendar Years 175
25 Principal Employers - Current Year and Nine Years Ago 176
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the
information in the government's financial report relates to the services the government
provides and activities it performs.
26 Full-Time Equivalent City Government Employees by Function/Program -
Last Nine Fiscal Years
27 Operating Indicators by Function/Program - Last Seven Fiscal Years 178
28 Capital Assets Statistics by Function/Program - Last Seven Fiscal Years 179
177
148

CITY OF SANTA MONICA, CALIFORNIA
Net Assets by Component
Last Ten Fiscal Years
(Accrual Basis of Accounting)
TABLE 1
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 * 2005-06 * 2004-05 * 2003-04 * 2002-03
Governmental activities
Invested in capital assets, net of related debt $ 708,564,360 565,402,905 561,308,717 579,367,093 573,971,975 506,307,676 481,678,996 165,893,160 162,528,406 193,302,132
Restricted 171,964,389 198,990,741 190,302,568 187,103,831 232,281,102 273,104,503 196,818,353 200,744,882 185,632,392 123,983,319
Unrestricted 379,302,789 248,977,209 238,856,963 242,542,375 209,438,522 243,036,538 230,154,215 223,451,608 203,446,595 146,779,333
Total governmental activities net assets 1,259,831,538 1,013,370,855 990,468,248 1,009,013,299 1,015,691,599 1,022,448,717 908,651,564 590,089,650 551,607,393 464,064,784
Business-type activities
Invested in capital assets, net of related debt 448,028,200 442,305,322 426,367,876 418,157,537 389,409,515 374,598,609 324,108,646 266,212,630 255,607,992 217,142,128
Restricted 16,024,235 13,527,238 10,855,611 1,661,758 1,625,057 2,503,448 37,365,926 34,846,062 34,145,541 33,703,216
Unrestricted 104,588,473 102,753,866 107,670,491 112,067,386 104,955,422 114,601,165 129,288,372 100,528,572 109,303,814 107,105,633
Total business-type activities net assets 568,640,908 558,586,426 544,893,978 531,886,681 495,989,994 491,703,222 490,762,944 401,587,264 399,057,347 357,950,977
Primary government
Invested in capital assets, net of related debt 1,156,592,560 1,007,708,227 987,676,593 997,524,630 963,381,490 880,906,285 805,787,642 432,105,790 418,136,398 410,444,260
Restricted 187,988,624 212,517,979 201,158,179 188,765,589 233,906,159 275,607,951 234,184,279 235,590,944 219,777,933 157,686,535
Unrestricted 483,891,262 351,731,075 346,527,454 354,609,761 314,393,944 357,637,703 359,442,587 323,980,180 312,750,409 253,884,966
Total primary government net assets $ 1,828,472,446 1,571,957,281 1,535,362,226 1,540,899,980 1,511,681,593 1,514,151,939 1,399,414,508 991,676,914 950,664,740 822,015,761
* Before restatement
149

CITY OF SANTA MONICA, CALIFORNIA
Changes in Net Assets
Last Ten Fiscal Years
TABLE 2
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
Expenses
Governmental activities:
General government $ 65,640,271 61,586,151 61,396,079 46,670,826 38,849,626 45,323,227 31,288,910 33,648,946 12,218,726 22,203,518
Public safety 108,205,471 99,949,848 97,744,567 100,709,990 91,862,403 87,830,433 82,886,707 80,300,625 74,489,887 63,496,266
General services 55,341,929 43,762,251 74,233,708 161,224,085 111,168,586 41,404,237 64,777,602 32,961,058 30,659,648 37,843,832
Cultural and recreation services 62,145,219 57,163,928 40,891,483 44,031,895 33,776,210 43,646,843 40,022,151 35,163,220 36,958,290 33,896,585
Library 11,899,948 11,803,735 11,324,327 11,422,789 11,458,259 10,681,518 7,974,534 7,849,658 20,241,923 6,331,445
Housing and community development 181,970,013 89,321,590 110,251,868 115,827,555 91,966,369 74,988,387 56,708,298 52,223,052 64,079,218 40,512,087
Other (1) — — — — — 469,285 2,212,186 1,273,607 244,438 422,786
Interest on long term debt 6,585,618 10,461,700 7,075,187 7,252,197 7,628,437 7,934,428 7,514,924 9,507,522 8,430,126 7,719,369
Total governmental activities 491,788,469 374,049,203 402,917,219 487,139,337 386,709,890 312,278,358 293,385,312 252,927,688 247,322,256 212,425,888
Business-type activities:
Water 19,665,696 16,430,207 16,419,201 15,958,328 15,489,230 14,830,595 13,855,863 17,564,916 16,382,688 13,636,722
Solid waste management 25,065,338 21,338,133 20,293,510 19,219,079 16,277,710 18,630,141 17,459,310 16,550,895 15,933,665 15,022,708
Pier 5,803,944 5,299,875 5,122,011 5,200,065 4,867,415 9,485,709 7,544,001 6,922,305 8,079,003 6,108,337
Wastewater 18,186,844 16,546,844 16,844,271 19,603,411 20,063,420 19,579,035 19,008,944 14,755,836 14,013,170 15,652,716
Civic auditorium 3,239,999 3,638,257 3,663,427 3,933,159 3,718,652 3,535,624 2,898,853 3,129,521 2,741,857 2,839,311
Airport 5,270,688 5,970,916 4,640,782 5,737,927 5,199,701 5,325,190 3,882,639 3,845,108 3,845,116 3,675,501
Storm water management 411,985 422,048 424,122 721,728 474,683 502,183 648,374 966,897 403,294 374,866
Cemetery 1,812,098 2,431,791 2,633,893 1,956,609 1,715,605 1,481,238 989,274 1,243,343 1,137,698 1,066,434
Big Blue Bus 79,835,156 75,219,425 70,899,277 70,855,809 65,185,007 59,627,736 59,180,481 52,021,645 47,265,202 44,543,108
Cable communications (2) — — — — — — — 1,340,120 932,823 883,657
Special aviation — — — 28,904 18,333 69,374 52,329 52,329 52,329 52,329
Parking authority 315,736 474,629 554,117 1,598,765 349,576 709,982 16,189 202,794 337,552 558,058
Total business-type activities 159,607,484 147,772,125 141,494,611 144,813,784 133,359,332 133,776,807 125,536,257 118,595,709 111,124,397 104,413,747
Total primary governmental activities expenses 651,395,953 521,821,328 544,411,830 631,953,121 520,069,222 446,055,165 418,921,569 371,523,397 358,446,653 316,839,635
Program revenues
Governmental activities:
Charges for services:
General government 48,239,920 42,771,812 34,681,601 19,198,345 17,188,876 17,326,675 12,567,222 10,854,382 7,005,002 6,576,292
Public safety 22,033,156 21,456,284 22,759,704 17,064,322 17,298,741 17,202,256 15,754,085 15,840,756 15,671,730 12,463,506
General services 2,429,537 2,004,958 3,067,408 20,291,439 19,650,237 18,841,288 17,880,336 15,776,086 15,105,283 11,130,386
Cultural and recreation services 16,083,451 13,523,507 14,219,229 10,608,948 9,492,174 9,002,084 8,556,557 8,147,054 (3) 7,842,184 6,763,867
Library 465,891 488,279 468,385 410,908 363,987 349,139 232,025 173,864 178,555 276,812
Housing and community development 16,712,921 14,304,279 16,224,777 12,416,654 14,430,326 13,925,980 12,553,269 12,193,457 13,478,114 8,647,389
Operating grants and contributions 26,739,187 29,111,918 27,556,715 30,164,300 34,803,655 28,362,525 25,133,124 26,063,799 31,705,184 28,720,949
Capital grants and contributions 3,369,221 3,997,076 6,506,765 20,379,864 4,862,387 4,839,925 5,838,885 612,985 1,500,466 17,365,486
Total governmental activities program revenues 136,073,284 127,658,113 125,484,584 130,534,780 118,090,383 109,849,872 98,515,503 89,662,383 92,486,518 91,944,687
(continues next page)
150

CITY OF SANTA MONICA, CALIFORNIA
Changes in Net Assets
Last Ten Fiscal Years
TABLE 2
(continues from previous page)
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
Business-type activities:
Charges for services:
Water 19,897,464 17,507,315 15,771,081 15,774,047 16,130,044 15,323,653 13,868,390 13,113,058 13,110,498 13,636,278
Solid waste management 22,253,758 21,870,554 21,514,219 21,631,313 18,842,702 18,766,107 17,097,813 15,704,667 14,598,362 14,622,424
Pier 6,004,005 4,729,725 3,777,219 3,518,145 3,107,349 3,081,338 2,693,200 2,717,162 2,563,783 2,275,873
Wastewater 20,007,219 17,820,805 15,198,022 13,751,588 12,797,786 12,472,073 11,175,051 11,376,456 11,004,692 10,768,475
Civic auditorium 1,667,172 2,603,146 2,620,897 2,975,749 3,117,033 2,789,196 2,608,759 2,474,609 2,279,508 2,229,724
Airport 3,891,716 3,748,674 3,768,426 3,989,851 4,279,268 3,992,190 3,862,455 3,706,719 3,527,460 2,962,153
Storm water management 1,419,980 1,167,073 1,613,426 1,885,142 1,301,350 1,376,672 1,610,715 1,439,149 1,355,903 1,825,026
Cemetery 1,133,990 856,141 952,972 1,009,595 1,080,532 735,718 665,398 650,484 445,327 396,638
Big Blue Bus 16,614,711 16,370,290 14,160,133 14,391,300 13,898,980 13,078,630 13,333,584 11,298,250 12,190,925 11,903,989
Cable communications (2) — — — — — — — 798,984 747,063 664,318
Parking authority 161,504 152,200 152,200 149,200 145,600 141,600 138,100 1,612,705 1,457,952 1,370,445
Operating grants and contributions 38,424,357 36,001,870 38,843,722 34,203,607 32,188,569 31,723,528 32,297,732 29,638,114 24,671,943 22,455,902
Capital grants and contributions 25,609,158 32,046,978 29,299,894 53,209,039 20,030,403 12,185,518 19,061,484 17,318,761 7,943,966 26,497,439
Business-type activities program revenues 157,085,034 154,874,771 147,672,211 166,488,576 126,919,616 115,666,223 118,412,681 111,849,118 95,897,382 111,608,684
Total primary government program revenues 293,158,318 282,532,884 273,156,795 297,023,356 245,009,999 225,516,095 216,928,184 201,511,501 188,383,900 203,553,371
Net (expense):
Governmental activities (355,715,185) (246,391,090) (277,432,635) (356,604,557) (268,619,507) (202,428,486) (194,869,809) (163,265,305) (154,835,738) (120,481,201)
Business-type activities (2,522,450) 7,102,646 6,177,600 21,674,792 (6,439,716) (18,110,584) (7,123,576) (6,746,591) (15,227,015) 7,194,937
Total primary government net expense (358,237,635) (239,288,444) (271,255,035) (334,929,765) (275,059,223) (220,539,070) (201,993,385) (170,011,896) (170,062,753) (113,286,264)
General Revenues and Other changes
in Net Assets
Governmental activities:
Taxes:
Business 27,382,495 26,531,627 27,582,398 28,821,688 26,211,226 24,232,707 21,775,442 20,384,372 19,249,942 18,963,761
Property 59,161,313 108,995,358 110,188,615 107,255,345 101,323,706 89,845,591 79,951,933 64,667,456 58,267,374 50,562,134
Sales 45,831,961 31,689,531 26,636,653 28,296,696 32,356,941 33,267,253 31,871,593 27,579,776 27,825,098 25,235,982
Other 84,935,499 80,376,978 75,397,844 76,146,388 81,762,203 77,036,651 71,788,854 67,203,194 65,196,019 60,661,614
Settlement income 3,750,000 — — 89,910,872 1,012,863 69,153,512 6,453,804 4,545,498 73,978,421 —
Other income 120,208,757 12,173,094 9,043,114 9,128,899 8,428,266 6,213,329 9,638,813 4,838,074 4,713,695 6,284,767
Investment earnings 5,791,811 7,995,401 10,062,739 16,198,386 22,021,977 25,505,798 11,995,355 10,289,600 3,645,712 5,737,648
Extraordinary Gain 261,255,080 — — — — — — — — —
Transfers (6,141,048) 1,531,708 (23,779) (5,832,017) (2,815,040) (9,029,202) (8,394,702) (4,773,908) (9,257,834) (2,812,169)
Total governmental activities 602,175,868 269,293,697 258,887,584 349,926,257 270,302,142 316,225,639 225,081,092 194,734,062 243,618,427 164,633,737
(continues next page)
151

CITY OF SANTA MONICA, CALIFORNIA
Changes in Net Assets
Last Ten Fiscal Years
TABLE 2
(continues from previous page)
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
Business-type activities:
Other income 5,310,643 6,767,730 3,912,725 4,162,283 3,421,837 4,111,407 6,028,516 3,352,205 4,239,895 2,592,307
Investment earnings 1,125,241 1,353,780 2,893,193 4,227,595 4,489,611 7,439,759 2,673,080 4,007,045 2,090,273 2,224,559
Transfers 6,141,048 (1,531,708) 23,779 5,832,017 2,815,040 9,029,202 8,394,702 4,773,908 9,257,834 2,812,169
Total business-type activities 12,576,932 6,589,802 6,829,697 14,221,895 10,726,488 20,580,368 17,096,298 12,133,158 15,588,002 7,629,035
Total primary government 256,515,165 36,595,055 (5,537,754) 29,218,387 5,969,407 116,266,937 40,184,005 36,855,324 89,143,676 58,976,508
Changes in net assets
Governmental activities 246,460,683 22,902,607 (18,545,051) (6,678,300) 1,682,635 113,797,153 30,211,283 31,468,757 88,782,689 44,152,536
Business-type activities 10,054,482 13,692,448 13,007,297 35,896,687 4,286,772 2,469,784 9,972,722 5,386,567 360,987 14,823,972
Total primary government $ 256,515,165 36,595,055 (5,537,754) 29,218,387 5,969,407 116,266,937 40,184,005 36,855,324 89,143,676 58,976,508
(1) Other expenses allocated to programs in FY 07-08.
(2) Cable communications became a division of the City Manager's Office in FY 05-06.
(3) $3,562 previously presented as Other.
152

CITY OF SANTA MONICA, CALIFORNIA
Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
TABLE 3
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
General Fund
Reserved $ — — 36,257,776 41,432,273 81,056,800 91,843,183 97,044,588 116,386,390 112,721,556 138,058,223
Unreserved — — 179,212,920 155,521,957 67,745,079 63,826,421 55,923,644 52,350,429 62,244,592 44,338,729
* Nonspendable 22,181,490 26,249,121 — — — — — — — —
* Restricted 43,056,449 503,645 — — — — — — — —
* Committed 640,000 710,000 — — — — — — — —
* Assigned 233,153,471 159,430,759 — — — — — — — —
* Unassigned 117,225,871 108,382,191 — — — — — — — —
Total General Fund $ 416,257,281 295,275,716 215,470,696 196,954,230 148,801,879 155,669,604 152,968,232 168,736,819 174,966,148 182,396,952
All other governmental funds
Reserved $ — — 138,504,430 134,770,865 217,888,723 314,507,732 229,263,232 224,211,709 202,305,246 128,107,698
Unreserved, reported in:
Special revenue funds — — 37,657,180 42,902,430 67,387,055 11,027,475 5,569,484 7,883,995 5,119,597 19,763,099
Capital project funds — — 50,427,715 66,021,140 (7,937,337) (5,053,769) (10,434,018) (20,392,300) (21,413,949) (24,171,070)
* Nonspendable 23,331,591 10,788,188 — — — — — — — —
* Restricted 123,658,262 170,449,269 — — — — — — — —
* Committed 872,830 51,975 — — — — — — — —
* Assigned 32,550,023 125,697,278 — — — — — — — —
* Unassigned (187,396) (16,868,340) — — — — — — — —
Total all other government funds $ 180,225,310 290,118,370 226,589,325 243,694,435 277,338,441 320,481,438 224,398,698 211,703,404 186,010,894 123,699,727
* Fund Balance descriptions changed due to GASB 54 implementation effective July 1, 2010.
153

CITY OF SANTA MONICA, CALIFORNIA
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
TABLE 4
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
Revenues
Property taxes $ 40,226,124 36,048,260 37,419,658 36,763,026 36,067,632 32,586,134 28,031,618 25,650,975 24,389,651 20,205,578
Incremental property taxes 19,794,851 73,735,955 73,526,738 71,289,749 66,148,046 58,163,695 52,818,794 39,866,836 34,653,601 37,650,778
Sales taxes 45,831,961 31,689,531 26,636,653 28,296,696 32,356,941 33,267,253 31,871,593 27,579,776 27,825,098 25,235,982
Other taxes 111,350,245 107,289,588 104,012,543 105,639,635 109,556,310 102,870,450 97,203,255 71,083,492 68,077,435 63,369,941
License and permits 30,608,592 27,564,660 20,658,582 20,398,191 20,203,085 19,232,085 18,378,705 39,361,156 35,662,507 33,315,009
Intergovernmental 28,277,049 30,887,064 30,132,263 36,408,496 33,007,061 28,948,391 20,020,970 25,481,694 28,562,694 30,893,991
Charges for services 52,613,331 45,248,472 46,975,370 39,238,389 36,226,643 35,855,124 29,083,568 20,918,458 18,401,113 16,904,889
Fines and forfeitures 15,651,820 15,952,957 17,492,928 14,113,906 14,567,262 14,191,722 13,101,713 13,332,411 13,344,573 10,742,425
Investment earnings 4,989,972 9,376,656 9,218,863 15,455,332 21,450,071 24,225,164 11,649,849 10,699,979 4,471,698 6,181,428
Rental income 9,619,254 8,541,702 7,026,380 5,467,946 7,006,972 7,279,995 6,562,654 8,638,543 7,854,141 7,976,304
Settlement income 33,277,271 — 40,196,472 4,429,738 1,012,863 69,153,512 6,453,804 4,545,498 73,929,382 —
Other 119,494,012 10,306,512 10,833,352 28,651,201 16,691,497 8,446,372 9,794,587 4,497,162 5,817,295 7,150,655
Total revenue 511,734,482 396,641,357 424,129,802 406,152,305 394,294,383 434,219,897 324,971,110 291,655,980 342,989,188 259,626,980
Expenditures
Current
General government 63,819,021 61,134,533 58,843,432 45,242,680 38,595,140 37,006,125 33,564,080 29,629,861 23,558,535 21,872,722
Public safety 106,215,553 99,416,830 99,142,700 96,985,086 89,074,863 87,509,154 82,576,196 80,424,716 64,584,136 77,674,621
General services 77,196,770 34,401,503 97,766,993 70,963,814 116,628,339 46,537,282 51,793,265 31,005,774 42,228,092 46,117,908
Cultural and recreation services 60,322,014 58,557,389 38,707,842 53,045,810 46,035,625 49,549,413 44,991,537 59,290,534 38,287,458 35,179,915
Library 11,323,906 10,594,925 10,067,865 10,099,063 10,245,110 9,454,034 20,759,269 31,443,914 17,844,322 13,002,733
Retirement (1) — — — — — — — — 13,258,631 7,068,355
Housing and community development 197,257,796 139,291,179 108,277,261 113,730,249 118,452,727 77,871,025 61,094,984 58,081,802 63,175,791 36,280,489
Statutory pass throughs (2) — — — — — — — — — 6,577,635
Other — — — — 2,749,086 609,225 2,189,224 1,087,085 241,524 329,561
Capital outlay (3) — — — — — — — — — 13,045,843
Debt service
Principal 13,180,714 9,241,980 7,530,000 8,375,000 8,075,000 7,805,000 6,515,000 5,625,000 4,880,000 1,625,000
Interest 12,312,625 10,059,522 10,079,799 8,386,518 8,941,832 8,206,309 9,947,949 9,572,189 9,401,520 7,644,173
Bond issuance costs 441,993 440,308 219,405 — — — 1,324,281 — — —
Total expenditures 542,070,392 423,138,169 430,635,297 406,828,220 438,797,722 324,547,567 314,755,785 306,160,875 277,460,009 266,418,955
(continues next page)
154

CITY OF SANTA MONICA, CALIFORNIA
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
TABLE 4
(continues from previous page)
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
Excess (deficiency) of revenues
over (under) expenditures (30,335,910) (26,496,812) (6,505,495) (675,915) (44,503,339) 109,672,330 10,215,325 (14,504,895) 65,529,179 (6,791,975)
Other financing sources (uses)
Transfers in 98,800,641 108,200,623 53,644,396 91,332,304 46,495,411 24,721,684 24,782,699 30,368,084 23,047,929 22,831,619
Transfers out (105,257,875) (106,957,815) (53,948,675) (91,633,368) (49,574,857) (33,998,086) (33,501,106) (35,493,072) (32,456,665) (25,790,988)
Line of credit proceeds — 26,528,395 7,986,281 15,485,324 — — — — — —
Long-term debt issued 32,178,250 — — — — — — — — —
Refunding bonds issued 19,950,000 41,050,000 9,155,000 — — — 64,720,000 — — —
Bonds issued — — — — — — — 38,930,000 — 25,000,000
Premium on bonds issued 4,339,840 409,674 558,699 — — — 55,653 163,064 — 80,000
Discount on bonds issued — — — — — — (187,264) — — —
Payments to refunded bond escrow agent (22,289,654) (1,900,000) (9,478,850) — — — (63,213,909) — — —
Proceeds from loans payable — 102,500,000 — — — — — — — —
Total other financing sources (uses) 27,721,202 169,830,877 7,916,851 15,184,260 (3,079,446) (9,276,402) (7,343,927) 33,968,076 (9,408,736) 22,120,631
Extraordinary gain 13,703,213 — — — — — — — — —
Net change in fund balance $ 11,088,505 143,334,065 1,411,356 14,508,345 (47,582,785) 100,395,928 2,871,398 19,463,181 56,120,443 15,328,656
Debt service as a percentage of noncapital
expenditures (4) 5.23% 5.34% 4.25% 4.54% 4.52% 5.51% 6.10% 6.50% 6.27% 4.37%
(1) Retirement costs allocated to program areas beginning in FY 2004-05.
(2) Statutory pass throughs included in housing and community development beginning FY 2003-04.
(3) Capital outlay included in expenditures beginning in FY 2003-04.
(4) Calculation includes only the principal and interest components of debt service expenditures when calculating this ratio for all years.
155

CITY OF SANTA MONICA, CALIFORNIA
General Fund Tax Revenues by Source (1)
Last Ten Fiscal Years
(In Thousands)
TABLE 5
Source
2011-2012 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
Sales taxes $ 45,832 31,690 26,637 28,297 32,357 33,267 31,872 27,580 27,825 25,236
Utility user's tax 31,296 31,625 31,620 31,579 31,622 31,243 30,044 29,315 28,967 27,549
Transient occupancy tax 36,143 32,747 29,804 31,265 34,969 31,892 29,209 23,419 19,850 17,059
Property taxes (2) 40,226 36,048 37,420 37,763 36,068 32,586 28,032 25,651 23,098 20,206
Business license taxes 26,325 25,480 26,553 27,216 24,654 22,637 20,274 18,970 17,894 17,745
Parking facility tax 9,394 8,786 7,848 7,980 7,826 7,400 6,832 6,241 6,098 5,898
Real property transfer tax 5,192 3,954 3,432 2,653 4,739 6,409 5,573 7,180 5,350 3,968
Vehicle license fees 46 492 273 263 390 608 2,062 975 4,034 5,170
Condominium taxes 37 21 19 35 50 39 24 24 46 46
Total $ 194,491 170,843 163,606 167,051 172,675 166,081 153,922 139,355 133,162 122,877
(1)
(2)
Does not include Highway Users Taxes, which are recorded in the Gas Tax Fund, Unit Dwelling Taxes, which are recorded in the Parks and Recreation Facilities Fund, or TORCA Conversion
Taxes, which are recorded in the TORCA Fund.
Includes ad valorem property taxes for purposes of paying debt service on general obligation bonds. Does not include tax increment received by redevelopment area.
Source: City of Santa Monica Finance Department
156

CITY OF SANTA MONICA, CALIFORNIA
TABLE 6
Assessed Value and Actual Value of Taxable Property
Last Ten Fiscal Years
Fiscal
Personal
Net assessed
Total Direct
year Land Improvements
property Public utilities Secured gross Exemptions (1) Secured net Net unsecured
valuations
Tax Rate (2)
2011-12 $ 14,235,295,327 $ 10,349,620,756 $ 228,783,669 $ 742,365 $ 24,814,442,117 $ 1,073,027,474 $ 23,741,414,643 $ 902,707,005 $ 24,644,121,648 1.00%
2010-11 13,795,190,847 10,070,985,576 230,386,558 742,365 24,097,305,346 1,095,460,532 23,001,844,814 880,330,859 23,882,175,673 1.00%
2009-10 13,972,767,145 9,978,674,920 234,194,136 742,365 24,186,378,566 1,134,966,580 23,051,411,986 969,009,242 24,020,421,228 1.00%
2008-09 13,460,086,702 9,640,424,526 228,270,851 742,365 23,329,524,444 904,660,628 22,424,863,816 987,848,754 23,412,712,570 1.00%
2007-08 12,279,875,463 8,581,600,449 230,361,744 742,365 21,092,580,021 847,012,250 20,245,567,771 877,156,158 21,122,723,929 1.00%
2006-07 11,307,028,243 8,100,538,705 231,255,829 742,865 19,639,565,642 810,600,441 18,828,965,201 876,645,078 19,705,610,279 1.00%
2005-06 10,226,948,142 7,591,414,476 37,240,768 742,865 17,856,346,251 535,704,727 17,320,641,524 777,908,774 18,098,550,298 1.00%
2004-05 9,187,366,819 7,004,200,099 25,810,792 3,266,758 16,220,644,468 445,214,530 15,775,429,938 771,454,105 16,546,884,043 1.00%
2003-04 8,398,483,440 6,720,989,375 110,879,795 3,076,425 15,233,429,035 458,910,480 14,774,518,555 936,652,394 15,711,170,949 1.00%
2002-03 7,743,067,190 6,378,861,320 77,861,370 577,895 14,200,367,775 432,908,920 13,767,458,855 830,892,607 14,598,351,462 1.00%
(1) Includes Homeowner Exemption. City is reimbursed by State for taxes lost because of these exemptions.
(2) Excludes Direct and Overlapping Rates. See Table 7 for Direct and Overlapping Rates.
Source: Los Angeles County Auditor-Controller
157

CITY OF SANTA MONICA, CALIFORNIA
Direct and Overlapping Property Tax Rates*
Last Ten Fiscal Years
TABLE 7
City of Santa Monica
School Districts
City Santa Monica-Malibu Santa Monica Metropolitan
Fiscal General Unified School Community Water
year Obligation Debt District College General District Total
2011-12 $ 0.01 $ 0.05 $ 0.08 $ 1.00 $ — $ 1.14
2010-11 0.01 0.05 0.08 1.00 — 1.14
2009-10 0.01 0.05 0.05 1.00 — 1.11
2008-09 0.01 0.04 0.05 1.00 0.01 1.11
2007-08 0.01 0.05 0.05 1.00 0.01 1.12
2006-07 0.01 0.03 0.05 1.00 0.01 1.10
2005-06 0.01 0.02 0.05 1.00 0.01 1.09
2004-05 0.01 0.03 0.03 1.00 0.01 1.08
2003-04 0.02 0.03 0.02 1.00 0.01 1.08
2002-03 0.02 0.03 0.03 1.00 0.01 1.09
* Property tax rate is per $100 of assessed value. Assessed value equals full market value as defined by law. Since 1978-79, the maximum allowable rate is
levied by the County, property taxes are collected by the County, and the County allocates the City's share in accordance with distribution formulas established
by law. Proposition 13 allows jurisdictions to impose rates over the $1.00 base rate only for bonded debt approved by the voters prior to 1978. However, in
1986, the State Constitution was amended to allow rates over the $1.00 base rate for voter approved general obligation bonds.
City General Fund is allocated approximately $.15 of each $1.00 of the County General Fund amount. Redevelopment areas receive approximately $.85 (net of
pass through payments of each $1.00 of the County General Fund portion.)
Source: Los Angeles County Auditor-Controller
158

CITY OF SANTA MONICA, CALIFORNIA
Principal Property Taxpayers
Current Fiscal Year and Nine Years Ago
TABLE 8
Taxable
2011-12
Percentage
of total City
taxable
Taxable
assessed
assessed
assessed
Taxpayer value Rank value
value Rank
2002-03
Percentage
of total City
taxable
assessed
value
California Colorado Center LLC $ 472,844,007 1 1.99 % $ —
— %
Water Garden Realty Holding LLC 458,264,878 2 1.93 397,669,519 1 2.72
Douglas Emmett 1998 LLC 303,472,566 3 1.28 337,530,385 3 2.31
Macerich Santa Monica Place 268,175,478 4 1.13 147,410,779 6 1.01
SC Enterprises SMBP LLC 265,000,000 5 1.12 205,999,000 5 1.41
CREP 2700 Holdings LLC 227,973,476 6 0.96 — —
Ocean Avenue LLC 146,369,459 7 0.62 108,604,788 8 0.74
LUI2 LA Lantana LP 140,909,172 8 0.59 — —
New Santa Monica Beach Hotel 137,172,110 9 0.58 — —
Rand Corporation 131,855,052 10 0.56 — —
TST Colorado LLC — — 359,978,400 2 2.47
Sisters of Charity Leavenworth Health — — 273,913,013 4 1.88
SHCI Santa Monica Beach Hotel — — 130,605,256 7 0.89
SPK Arboretum LLC — — 102,235,620 9 0.70
Comonwealth Atlantic-Arboretum — — 84,252,000 10 0.58
Total principal property taxpayers
assessed value $ 2,552,036,198
10.76 $ 2,148,198,760
14.71
Total City assessed value $ 23,741,414,643
100.00 % $ 14,598,351,462
100.00 %
Source: City of Santa Monica Finance Department; Hdl, Coren and Cone
159

CITY OF SANTA MONICA, CALIFORNIA
Property Tax Levies and Collections
Last Ten Fiscal Years
TABLE 9
Fiscal year
Total secured tax
levy
Current secured
tax collections
Percent of levy
collected
Delinquent secured
tax collections (1)
Total tax
collections
Total secured tax
collections as
percent of total tax
levy
Outstanding
delinquent taxes
(2)
Outstanding
delinquent taxes as
percent of total
secured tax levy
2011-12 $ 23,211,627 $ 22,641,826 97.5 % $ 645,927 $ 23,287,753 100.3 % $ 661,315
2.8 %
2010-11 22,293,648 21,759,685 97.6 937,340 22,697,025 101.8 669,232 3.0
2009-10 22,585,685 21,724,105 96.2 1,262,484 22,986,589 101.8 690,928 3.1
2008-09 22,439,401 21,195,066 94.5 1,237,357 22,432,423 100.0 662,983 3.0
2007-08 20,654,045 19,309,774 93.5 528,207 19,837,981 96.0 442,105 2.1
2006-07 19,352,421 18,418,938 95.2 376,559 18,795,497 97.1 271,740 1.4
2005-06 18,053,398 17,445,098 96.6 407,334 17,852,432 98.9 248,199 1.4
2004-05 16,834,761 16,407,407 97.5 416,502 16,823,909 99.9 292,723 1.7
2003-04 16,674,558 16,235,740 97.4 486,656 16,722,396 100.3 438,818 2.6
2002-03 15,315,149 14,891,114 97.2 422,693 15,313,807 100.0 420,562 2.7
(1) Exclusive of penalties and collections related to tax overrides for debt service on general obligation bonds..
(2)
Reflects City of Santa Monica proportionate share of county-wide outstanding delinquencies. City specific statistics are not available from the County of Los Angeles.
Source: County of Los Angeles
160

CITY OF SANTA MONICA, CALIFORNIA
Taxable Transactions by Type of Business (1)
Last Ten Calendar Years
(In Thousands)
TABLE 10
Calendar Year
Business 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002
Apparel stores $ 375,919 296,127 272,133 325,835 327,768 336,229 337,230 296,109 264,997 254,782
General merchandise 110,152 65,804 26,308 48,371 60,131 65,731 72,935 81,761 81,097 83,895
Food stores 83,956 80,927 85,034 87,818 85,551 81,546 76,460 67,069 68,184 65,248
Eating & drinking places 492,585 448,986 425,412 452,371 459,782 426,220 407,701 372,961 351,193 330,514
Building materials 92,326 87,510 90,123 119,383 132,959 125,567 109,936 103,979 95,144 90,183
Auto dealers & auto suppliers 632,558 605,107 607,195 678,604 724,018 714,543 706,009 669,196 668,174 565,634
Service stations 135,062 111,322 109,105 146,172 137,758 131,785 101,255 95,862 71,960 69,669
Other retail stores 648,810 577,164 527,997 640,299 682,816 656,917 648,473 605,594 537,350 468,745
Retail stores total 2,571,368 2,272,947 2,143,307 2,498,853 2,610,783 2,538,538 2,459,999 2,292,531 2,138,099 1,928,670
All other outlets 292,114 285,868 283,257 320,235 331,111 430,207 342,139 310,891 227,700 192,171
Total all outlets $ 2,863,482 2,558,815 2,426,564 2,819,088 2,941,894 2,968,745 2,802,138 2,603,422 2,365,799 2,120,841
Source: Hinderleiter, de Llamas and Associates
(1) Amounts have been revised to reflect prior year adjustments; Amounts do not include allocations from State or County Pools
161

CITY OF SANTA MONICA, CALIFORNIA
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
TABLE 11
Governmental activities
Business-type activities
Fiscal
year
General
obligation
bonds
Tax allocation
bonds*
Lease revenue
bonds
Term loans
payable*
Line of
Credit*
Wastewater
bonds
Certificates of
participation
Term loans
payable
Capital leases
Total primary
government
Percentage of
net assessed
valuation (1)
Per capita
2011-12 $ 11,325,000 $ — $ 87,630,000 $ 400,000 $ — $ 20,250,000 $ — $ 2,308,422 $ — $ 121,913,422
0.49% $ 1,351
2010-11 15,000,000 106,310,000 61,505,000 101,468,020 50,000,000 22,615,000 — 2,565,054 — 359,463,074 1.51% 3,986
2009-10 16,745,000 70,100,000 64,630,000 400,000 23,471,605 24,215,000 — 2,837,400 — 202,399,005 0.84% 2,183
2008-09 18,455,000 72,900,000 67,880,000 400,000 15,485,324 25,760,000 — 3,103,408 — 203,983,732 0.87% 2,205
2007-08 20,140,000 75,570,000 71,900,000 — — 27,260,000 — 3,363,238 — 198,233,238 0.94% 2,168
2006-07 21,800,000 78,115,000 75,770,000 — — 28,715,000 420,000 3,617,046 — 208,437,046 1.06% 2,287
2005-06 23,430,000 81,320,000 78,740,000 — — 29,975,000 820,000 3,864,987 — 218,149,987 1.21% 2,404
2004-05 25,035,000 78,025,000 81,610,000 — — 31,205,000 1,205,000 4,107,207 — 221,187,207 1.34% 2,439
2003-04 26,615,000 79,975,000 44,775,000 — — 32,335,000 1,570,000 4,343,865 — 189,613,865 1.21% 2,097
2002-03 28,170,000 81,840,000 46,235,000 — — 33,340,000 1,920,000 4,625,079 — 196,130,079 1.34% 2,195
Note:
(1) Net assessed property valuations have been used because personal income is not available. See Table 6 for net assessed valuations.
* Redevelopment debt was transferred to the Successor Agency on February 1, 2012.
162

CITY OF SANTA MONICA, CALIFORNIA
Ratios of General Bonded Debt
Last Ten Fiscal Years
TABLE 12
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
General bonded debt outstanding
General obligation bonds $ 11,325,000 15,000,000 16,745,000 18,455,000 20,140,000 21,800,000 23,430,000 25,035,000 26,615,000 28,170,000
Tax allocation bonds* — 106,310,000 70,100,000 72,900,000 75,570,000 78,115,000 81,320,000 78,025,000 79,975,000 81,840,000
Total $ 11,325,000 121,310,000 86,845,000 91,355,000 95,710,000 99,915,000 104,750,000 103,060,000 106,590,000 110,010,000
Assessed value (in thousands) (1) $ 24,644,122 23,882,176 24,096,850 23,488,853 21,122,724 19,705,610 18,098,550 16,546,884 15,711,170 14,598,351
Percentage of assessed
Property value 0.05% 0.51% 0.36% 0.39% 0.45% 0.51% 0.58% 0.62% 0.68% 0.75%
Population (2) 90,223 90,174 92,703 92,494 91,439 91,124 90,750 90,678 90,300 89,333
Per capita $ 126
1,345 937 988 1,047 1,096 1,154 1,137 1,180 1,231
(1) Table 6 for Assessed Value Data
(2) Table 24 for Population Data
* Redevelopment debt was transferred to the Successor Agency on February 1, 2012.
163

CITY OF SANTA MONICA, CALIFORNIA
Direct and Overlapping Governmental Activities Debt
As of June 30, 2012
TABLE 13
Estimated Estimated share
Debt Percentage of Overlapping
Outstanding Applicable (1) Debt
Overlapping debt:
Los Angeles County General Fund Obligations $ 1,474,122,758
1.833% $ 27,020,670
Los Angeles County Superintendent of Schools Certificates of Participation 11,269,678 1.833% 206,573
Los Angeles County Flood Control District 37,195,000 1.862% 692,571
Metropolitan Water District 196,545,000 0.943% 1,853,419
Santa Monica Community College District 313,377,886 56.724% 177,760,472
Los Angeles Unified School District 11,279,905,000 0.0002% 22,560
Santa Monica-Malibu Unified School District 221,815,034 56.803% 125,997,594
Los Angeles County Regional Park and Open Space Assessment District 170,725,000 1.833% 3,129,389
Santa Monica Community College District Certificates of Participation 21,115,000 56.724% 11,977,273
Los Angeles Unified School District Certificates of Participation 419,851,037 0.0002% 840
Los Angeles Community College District 3,504,910,000 0.011% 385,540
Santa Monica-Malibu Unified School District Certificates of Participation 14,546,501 56.803% 8,262,849
Subtotal, overlapping debt 357,309,750
City direct governmental debt
City of Santa Monica Parking Authority Lease Revenue Bonds (2002 Refunding) 4,985,000
City of Santa Monica General Obligation Bonds Main Library Improvements (2012) 11,325,000
City of Santa Monica Public Safety Lease Revenue Bonds (2009) 7,940,000
City of Santa Monica Public Safety Lease Revenue Bonds (2012) 8,100,000
City of Santa Monica Civic Parking Structure Lease Revenue Bonds (2004) 34,540,000
City of Santa Monica Parking Structure 6 Lease Revenue Bonds (2011) 32,065,000
State Dept of Housing and Community Development 400,000
Subtotal, direct debt 99,355,000
Total direct and overlapping governmental debt (2) $ 456,664,750
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax
allocation bond and non-bonded capital lease obligations.
Source: California Municipal Statistics, Inc.
164

CITY OF SANTA MONICA, CALIFORNIA
Computation of Legal Debt Margin
Last Ten Fiscal Years
TABLE 14
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03
Total net debt applicable to limit $ 91,804,168 151,252,964 133,493,200 141,302,416 148,656,800 156,937,600 165,988,287 165,375,304 138,094,965 143,524,025
Debt limit 2,594,319,674 2,531,305,352 2,545,129,908 2,449,428,970 2,214,502,370 2,068,018,972 1,877,324,663 1,713,217,857 1,627,881,798 1,513,649,468
Legal debt margin 2,502,515,506 2,380,052,388 2,411,636,708 2,308,126,554 2,065,845,570 1,911,081,372 1,711,336,376 1,547,842,553 1,489,786,833 1,370,125,443
Total net debt applicable to the limit
as a percentage of debt limit 3.54% 5.98% 5.25% 5.77% 6.71% 7.59% 8.84% 9.65% 8.48% 9.48%
Net assessed value 24,644,121,648
Add: exempt property 1,299,075,091
Total gross assessed value $ 25,943,196,739
Debt limit - 10% of total assessed value (1) 2,594,319,674
Amount of debt applicable to debt limit:
Total bonded debt 98,955,000
Less:
Assets in debt service funds
available for payment of bonds 7,150,832
Total amount of debt applicable to debt limit 91,804,168
Legal debt margin $ 2,502,515,506
(1) Per Section 607 of the City Charter, bonded indebtedness of the City may not exceed 10% of total assessed valuation
of property within the City, exclusive of any indebtedness incurred for the purpose of water supply or sewers or storm drains.
Source: City of Santa Monica Finance Department
165

CITY OF SANTA MONICA, CALIFORNIA
Wastewater Enterprise Revenue Bonds Coverage
TABLE 15
Fiscal
year
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
Direct Net revenue
Gross operating available for
Debt service requirement
revenues (1) expense (2) debt service Principal Interest Total Coverage (3)
$ 21,307,472 $ 10,993,468 $ 10,314,004 $ 1,650,000 $ 846,141 $ 2,496,141 4.13
19,117,006 9,547,632 9,569,374 1,600,000 972,738 2,572,738 3.72
17,036,277 9,449,739 7,586,538 1,545,000 1,026,812 2,571,812 2.95
15,978,030 8,305,013 7,673,017 1,500,000 1,071,812 2,571,812 2.98
17,359,852 12,711,059 4,648,793 1,455,000 1,115,463 2,570,463 1.81
16,401,212 12,613,626 3,787,586 1,260,000 1,311,589 2,571,589 1.47
14,437,130 10,463,034 3,974,096 1,190,000 1,419,825 2,609,825 1.52
14,233,699 9,818,457 4,415,242 1,130,000 1,470,675 2,600,675 1.70
14,191,264 9,349,681 4,841,583 1,005,000 1,591,275 2,596,275 1.86
14,593,471 10,818,410 3,775,061 890,000 1,698,075 2,588,075 1.46
CUSIP 802475
(1)
Gross revenues included operating revenues plus non-operating revenues and net interfund transfers through FY 2007-08. Starting in
FY 2008-09 gross revenues included operating revenues plus operating transfers specifically related to wastewater operations.
(2)
(3)
Excludes depreciation expense, write-off of disposed assets, and capital-related expenditures.
Bond covenant requires a coverage ratio of 1.20
The Hyperion Project, Wastewater Enterprise Revenue Bonds were issued November 26, 1991 at an interest rate of 6.25% with ratings of
A1 from Moody's Investors Service, Inc. and A+ from Standard and Poor's Corporation. Debt service began in FY 1992-93. These bonds
were refunded by the issuance of insured Wastewater Enterprise Revenue Bonds, 1993 Refunding Series on December 22, 1993 with an
interest rate of 5.3084% with ratings of Aaa and AAA by Moody's Investors Services, Inc. and Standard and Poor's Corporation,
respectively. The Refunding Bonds were insured by AMBAC Indemnity.
On October 13, 2005 the City issued $20,305,000 of Wastewater Enterprise Refunding Revenue Bonds bearing interest from 3.00% to
5.00% to defease $21,535,000 of the outstanding 1993 Wastewater Enterprise Revenue Bonds, 1993 Refunding Series with ratings from
Moody's Investor Services, Inc. of A1, Standard and Poor's Corporation of AA and Fitch Ratings of AAA. The Refunding Bonds are
insured by Financial Guaranty Insurance Company.
On April 16, 2010 Moody's upgraded the underlying rating on the Refunding bond to Aa2 and on November 17, 2008 Standard and Poor's
Corporation upgraded the underlying rating to AAA.
On May 30, 2012 the City issued $8,955,000 Wastewater Refunding Revenue Bonds Series 2012A at interest from 2.00% to 4.00% to
defease $9,670,000 of the outstanding 1993 Wastewater Enterprise Revenue Bonds. Standard and Poor's Corporation rated AAA on the
2012A Refunding bond.
Source: City of Santa Monica Finance Department
166

CITY OF SANTA MONICA, CALIFORNIA
Redevelopment Agency Earthquake Recovery Project
Tax Allocation Bonds Coverage
TABLE 16
Direct Net revenue
Fiscal Gross operating available for
Debt service requirement
year revenues expenses debt service Principal Interest Total Coverage*
2011-12 $ 60,971,563 $ 3,997,693 $ 56,973,870 $ 1,900,000 $ 3,619,465 $ 5,519,465 10.32
2010-11 67,672,237 4,909,242 62,762,995 1,795,000 2,601,431 4,396,431 14.28
2009-10 69,027,716 3,859,298 65,168,418 1,705,000 2,697,611 4,402,611 14.80
2008-09 69,431,409 3,756,953 65,674,456 1,615,000 2,788,981 4,403,981 14.91
2007-08 63,582,749 3,395,418 60,187,331 1,530,000 2,875,469 4,405,469 13.66
2006-07 58,267,909 2,670,168 55,597,741 2,225,000 1,998,213 4,223,213 13.16
2005-06 49,668,747 1,833,675 47,835,072 1,095,000 3,579,048 4,674,048 10.23
2004-05 36,763,429 1,109,270 35,654,159 1,045,000 3,627,198 4,672,198 7.63
2003-04 31,918,204 1,033,362 30,884,842 1,000,000 3,673,210 4,673,210 6.61
2002-03 33,522,316 756,744 32,765,572 960,000 3,717,310 4,677,310 7.01
CUSIP 802447
* Coverage ratio included as part of bond continuing disclosure requirement.
On December 1, 1999, the Redevelopment Agency of the City of Santa Monica issued Earthquake Recovery Redevelopment Project Area
Tax Allocation Bonds at various interest rates of 4.58% to 7.50% which were initially given underlying ratings of A by Fitch, Baa1 by
Moody's, and A- by Standard and Poor's, but all rated the issue AAA with insurance.
On April 27, 2006, the Redevelopment Agency of the City of Santa Monica issued $64,720,000 of Earthquake Redevelopment Project
refunding bonds, $49,945,000, Series A, and $14,775,000 Taxable Series B, bearing interest from 4.00% to 5.5% to defease the 1999
Earthquake Redevelopment Project Bonds which were initially given underlying ratings of A+ by Fitch, A3 by Moody's and A by Standard
and Poor's, but all rated AAA with insurance. The last ratings changes occurred on April 30, 2010 when the rating was changed to AA- by
Fitch, on April 16, 2010 when the rating was changed to A2 and on March 24, 2010 the rating was changed to AA by Standard and Poor's.
The bonds are insured by FGIC Insurance Co.
On June 7, 2011 the Redevelopment Agency of the City of Santa Monica issued $41,050,000 of Earthquake Redevelopment Project Tax
Allocation Bonds at various interest rates of 5.00% to 5.875% which were initially given underlying ratings of AA by Standard & Poor's
and AA- by Fitch.
On February 1, 2012 the Redevelopment Agency of the City of Santa Monica was dissolved and its assets and liabilities were transferred to
the Santa Monica Redevelopment Successor Agency (Successor). The Successor is allocated tax revenues sufficient to pay its enforceable
obligations. The total revenues are lower in 11-12 due to the allocation period only consisting of 10 months instead of 12.
On June 14, 2012, Moody’s downgraded all California Redevelopment Tax Allocation Bonds to Ba1 which included the Redevelopment
Agency of the City of Santa Monica Earthquake Project Redevelopment Bonds Series 2011 and 2006.
Source: City of Santa Monica Finance Department
167

CITY OF SANTA MONICA, CALIFORNIA
Redevelopment Agency Ocean Park Project
Tax Allocation Refunding Bonds Coverage
TABLE 17
Direct Net revenue
Fiscal Gross operating available for
Debt service requirement
year revenues expense debt service Principal Interest Total Coverage*
2011-12 $ 3,233,747 $ 267,769 $ 2,965,978 $ 1,195,000 $ 525,495 $ 1,720,495 1.72
2010-11 3,937,598 407,330 3,530,268 1,145,000 578,170 1,723,170 2.05
2009-10 4,165,372 336,970 3,828,402 1,095,000 626,629 1,721,629 2.22
2008-09 4,227,693 274,561 3,953,132 1,055,000 670,998 1,725,998 2.29
2007-08 4,086,779 269,907 3,816,872 1,015,000 711,129 1,726,129 2.21
2006-07 3,958,631 229,017 3,729,614 980,000 748,535 1,728,535 2.16
2005-06 3,332,493 256,927 3,075,566 945,000 784,628 1,729,628 1.78
2004-05 3,034,112 218,253 2,815,859 905,000 820,448 1,725,448 1.63
2003-04 2,896,936 182,117 2,714,819 865,000 859,091 1,724,091 1.57
2002-03 2,737,356 178,996 2,558,360 — 586,423 586,423 4.36
CUSIP 802447D
* Coverage ratio included as part of bond continuing disclosure requirement.
In October of 1984, the Redevelopment Agency issued Tax Allocation Bonds in the principal sum of $5,700,000 at an interest rate of
10.89%. Such obligations were serial in nature and matured annually with the final payment of $686,650 due in 2007. The bond
proceeds were used to acquire land, construction of a public park, and for low and moderate-income housing.
In April of 1988, the Redevelopment Agency issued Refunding and Refinancing Bonds in the principal sum of $8,775,000 at an interest
rate of 5.2 - 8.25%. Such obligations were serial in nature and matured annually with the final payment of $754,906 due in 2019. The
bond proceeds were used to defease the 1984 Ocean Park Bonds and to pay a portion of various Promissory Notes due to the City of Santa
Monica.
In November of 1992, the Redevelopment Agency issued Ocean Park Redevelopment Project Tax Allocation Refunding Bonds, Series
1992, in the principal sum of $11,325,000 at an interest rate of 6.89%. Such obligations are serial in nature and mature annually with the
final payment of $931,500 due in 2019. The bond proceeds were issued to defease the 1988 Refunding and Refinancing Bonds and to pay
a portion of various Promissory Notes due to the City of Santa Monica. Debt service payments began in fiscal year 1992-93.
On May 2, 2002, the Agency issued $19,315,000 of Ocean Park refunding and new money bonds bearing interest at 5.03% to defease the
outstanding 1992 Ocean Park Project Bonds and to provide funds for new low-moderate-income projects. The bonds were rated BBB+
by Fitch, Baa1 by Moody's and A by Standard and Poor's. Debt service payments on the 2002 bonds began in fiscal year 2002-03.
Coverage ratios before FY 2002-03 above reflect the 1992 bonds.
The last ratings changes occurred in March/April 2010 when the rating was changed to A by Fitch, to A3 by Moody's and to A+ by
Standard and Poor's.
On February 1, 2012 the Redevelopment Agency of the City of Santa Monica was dissolved and its assets and liabilities were transferred
to the Santa Monica Redevelopment Successor Agency (Successor). The Successor is allocated tax revenues sufficient to pay its
enforceable obligations. The total revenues are lower in 11-12 due to the allocation period only consisting of 10 months instead of 12.
On June 14, 2012, Moody’s downgraded all California Redevelopment Tax Allocation Bonds to Ba1 which included the Redevelopment
Agency of the City of Santa Monica Ocean Park Project Redevelopment Bonds Series 2002.
Source: City of Santa Monica Finance Department
168

CITY OF SANTA MONICA, CALIFORNIA
Parking Authority of the City of Santa Monica
Lease Revenue Refunding Bonds
Schedule of Debt Service Payments Made
TABLE 18
Fiscal
Debt service
year Principal Interest Total
2011-12 $ 880,000
233,836 1,113,836
2010-11 845,000 267,807 1,112,807
2009-10 810,000 299,366 1,109,366
2008-09 780,000 328,399 1,108,399
2007-08 755,000 355,456 1,110,456
2006-07 725,000 381,356 1,106,356
2005-06 700,000 406,294 1,106,294
2004-05 — 418,544 418,544
2003-04 — 418,544 418,544
2002-03 — 279,029 279,029
CUSIP 802419A
The Parking Authority of the City of Santa Monica Lease Revenue Refunding bonds
were issued on May 1, 2002 at interest rates ranging from 3.5% to 4.65% with ratings of
AAA from Fitch, Aaa by Moody's Investor Services, Inc. and AAA by Standard and
Poor's Corporation. The last ratings changes occurred on March 12, 2008 when the
rating changed to AA+ by Fitch, on June 19, 2008 when the rating was changed to Aa2
by Moody's and on June 5, 2008 when the rating was changed to AA+ by Standard and
Poor's. The refunding bonds are insured by Ambac Assurance Corp.
Source: City of Santa Monica Finance Department
169

CITY OF SANTA MONICA, CALIFORNIA
Santa Monica Public Financing Authority
Lease Revenue Bonds, Series 2011A
Parking Structure 6 Project
Schedule of Debt Service Payments Made
TABLE 19
Fiscal
Debt service
year Principal Interest Total
2011-12 $ —
785,921 785,921
2010-11 — — —
CUSIP 802437
The Santa Monica Public Financing Authority Lease Revenue Bonds Series 2011A
(Parking Structure 6 Project) were issued on November 16, 2011 at interest rates ranging
from 4.00% to 5.00% to provide funds for construction of a public parking garage or
other eligible public improvements. The bonds were rated AA+ from Fitch, Aa1 by
Moody's Investor Services, Inc. and AA+ by Standard and Poor's Corporation. Debt
service payments began in June 2012. On December 17, 2012, Moody's changed the
rating to Aa2.
Source: City of Santa Monica Finance Department
170

CITY OF SANTA MONICA, CALIFORNIA
Santa Monica Public Financing Authority
Lease Revenue Refunding Bonds, Series 2011B
Public Safety Facility Project
Schedule of Debt Service Payments Made
TABLE 20
Fiscal
Debt service
year Principal Interest Total
2011-12 $ 1,370,000
419,433 1,789,433
2010-11 810,000 526,978 1,336,978
2009-10 780,000 558,778 1,338,778
2008-09 755,000 588,534 1,343,534
2007-08 725,000 615,378 1,340,378
2006-07 705,000 638,641 1,343,641
2005-06 685,000 659,491 1,344,491
2004-05 665,000 679,741 1,344,741
2003-04 650,000 696,216 1,346,216
2002-03 — 702,716 702,716
CUSIP 802437
The Santa Monica Public Financing Authority Lease Revenue Bonds Series 2002A
(Public Safety Facility Project) were issued on January 1, 2002 at interest rates ranging
from 2.00% to 4.75% with ratings of AA+ from Fitch, Aa1 by Moody's Investor Services,
Inc. and AA+ by Standard and Poor's Corporation. The last ratings change occurred on
January 14, 2005 when the rating was reaffirmed at Aa1 by Moody's and on November
23, 2004 when the ratings was reaffirmed at AA+ by Standard and Poor's.
On November 16, 2011, the Santa Monica Public Financing Authority Lease Revenue
Refunding Bonds Series 2011B (Public Safety Facility Project) were issued $8,625,000
bearing interest ranging from 2.00% to 4.00% to defease the outstanding Santa Monica
Financing Authority Lease Revenue Bonds, series 2002A Public Safety Facility Project
for $11,535,000. The bonds were rated AA+ by Fitch, Aa1 by Moody's Investor Services,
Inc. and AA+ by Standard and Poor's Corporation. Debt service payments began in June
2012. On December 17, 2012, Moody's changed the rating to Aa2.
Source: City of Santa Monica Finance Department
171

CITY OF SANTA MONICA, CALIFORNIA
Santa Monica Public Financing Authority
Lease Revenue Bonds, Series 2004
Civic Center Parking Project
Schedule of Debt Service Payments Made
TABLE 21
Fiscal
Debt service
year Principal Interest Total
2011-12 $ 960,000
1,571,638 2,531,638
2010-11 920,000 1,609,138 2,529,138
2009-10 875,000 1,651,713 2,526,713
2008-09 835,000 1,694,463 2,529,463
2007-08 800,000 1,733,338 2,533,338
2006-07 — 1,751,338 1,751,338
2005-06 — 1,834,040 1,834,040
CUSIP 802437B
The Santa Monica Public Financing Authority Lease Revenue Bonds Series 2004 (Civic
Center Parking Project) were issued on December 1, 2004 at interest rates ranging from
3.35% to 5.00% with ratings of AAA from Fitch, Aaa by Moody's Investor Services, Inc.
and AAA by Standard and Poor's Corporation. The bonds are currently rated AA+ by
Fitch, Aa1 by Moody's and AA+ by Standard and Poor's. The bonds are insured by XL
Capital Assurance. On December 17, 2012, Moody's changed the rating to Aa2.
Source: City of Santa Monica Finance Department
172

CITY OF SANTA MONICA, CALIFORNIA
Santa Monica Public Financing Authority
Lease Revenue Bonds, Refunding Bonds, Series 2009
Public Safety Facility Project
Schedule of Debt Service Payments Made
TABLE 22
Fiscal
Debt service
year Principal Interest Total
2011-12 $ 665,000
293,400 958,400
2010-11 550,000 318,510 868,510
2009-10 — — —
2008-09 530,000 552,053 1,082,053
2007-08 510,000 575,004 1,085,004
2006-07 490,000 596,441 1,086,441
2005-06 470,000 616,416 1,086,416
2004-05 445,000 641,448 1,086,448
2003-04 420,000 665,073 1,085,073
2002-03 395,000 687,291 1,082,291
CUSIP 802437C
Santa Monica Public Financing Authority Lease Revenue Bonds, Series 1999, were
issued on September 15, 1999, at various interest rates of 4.25% to 5.625% and were
rated AA by Fitch, Aa2 by Moody's, and AA+ by Standard and Poor's.
The Santa Monica Public Financing Authority Lease Revenue Bonds Series 2009
(Public Safety Facility Project) were issued on December 16, 2009 at interest rates
ranging from 2.00% to 5.00% with ratings of AA+ from Fitch, Aa1 by Moody's Investor
Services, Inc. and AA+ by Standard and Poor's Corporation which is their current rating.
Debt service payments begin on July 1, 2010. On December 17, 2012, Moody's changed
the rating to Aa2.
Source: City of Santa Monica Finance Department
173

CITY OF SANTA MONICA, CALIFORNIA
City of Santa Monica
General Obligation Bonds, Series 2012
Library Improvement Project
Schedule of Debt Service Payments Made
TABLE 23
Fiscal
Debt service
year Principal Interest Total
2011-12 $ 1,250,000
905,469 2,155,469
2010-11 1,250,000 653,906 1,903,906
2009-10 1,250,000 706,250 1,956,250
2008-09 1,250,000 755,625 2,005,625
2007-08 1,250,000 792,500 2,042,500
2006-07 1,250,000 825,000 2,075,000
2005-06 1,250,000 851,250 2,101,250
2004-05 1,250,000 876,250 2,126,250
2003-04 1,250,000 903,250 2,153,250
2002-03 — 380,729 380,729
CUSIP 802377
The City of Santa Monica General Obligation Bonds Series 2002 (Library
Improvements Project) were issued on August 1, 2002 at interest rates ranging from
2.0% to 4.6% with ratings of AAA from Fitch, Aaa by Moody's Investor Services, Inc.
and AAA by Standard and Poor's Corporation which is also their current rating.
On May 30, 2012, the Agency issued $11,325,000 of General Obligation Refunding
Bonds, series 2012 (Library Improvement Project) bearing interest from 0.2% to 4.00%
to defease the outstanding 2002 Library Improvement Project Bonds and to construct,
improve and remodel the City's Main and branch libraries and related facilities. The
bonds were rated AAA by Fitch, Aaa by Moody's and AAA by Standard and Poor's.
Source: City of Santa Monica Finance Department
174

CITY OF SANTA MONICA, CALIFORNIA
Demographic and Economic Statistics
Last Ten Calendar Years
TABLE 24
Calendar
year Population (1)
Personal income (2)
Per capita
(millions) personal income (3)
Unemployment
rate (4)
2012 90,223 * * 8.4 %
2011 90,174 $ 561,142 $ 43,688 10.5
2010 92,703 565,365 42,784 10.3
2009 92,494 551,271 42,818 9.5
2008 91,439 552,450 42,916 5.5
2007 91,124 539,163 41,875 4.0
2006 90,750 505,197 39,011 4.2
2005 90,678 477,101 36,917 4.8
2004 90,410 453,902 35,188 5.9
2003 89,339 427,041 33,318 4.6
* No data is available for 2012 as of publication date of CAFR
Note:
Source:
Data shown is the Metropolitan Statistical Area of Los Angeles-Long Beach-Santa Ana, CA.
Data by City is not available.
(1) California Department of Finance
(2) and (3) Bureau of Economic Analysis
(4) State of California, Employment Development Department, Labor Market
Information Division
175

CITY OF SANTA MONICA, CALIFORNIA
Principal Employers
Current Year and Nine Years Ago
TABLE 25
Employers
Number of
employees
2011-12 2002-03
Percentage of
Percentage of
total City Number of total City
Rank employment employees Rank employment
City of Santa Monica 2,521 1 3.17 % 1,938 1 2.70 %
Santa Monica-UCLA Hospital 2,084 2 2.62 994 5 1.39
Santa Monica College 2,030 3 2.56 1,358 3 1.90
Saint John's Hospital Medical Center 1,601 4 2.02 1,650 2 2.30
Santa Monica-Malibu Unified School District 1,468 5 1.85 935 6 1.30
RAND Corporation 881 6 1.11 1,337 4 1.87
Universal Music Group 720 7 0.91 — —
Activision Blizzard, Inc. 692 8 0.87 — —
ET Whitehall Santa Monica Partners LP 589 9 0.74 400 7 0.56
MTV Networks 510 10 0.64 — —
Specialty Laboratories, Inc. — — 329 8 0.46
Sanford Papermate — — 316 9 0.44
Metro-Goldwyn Mayer, Inc. — — 315 10 0.44
Total jobs provided by principal employers 13,096 9,572
Average total jobs in Santa Monica 79,444 71,660
Principal employers as percent of total jobs 16.48% 13.36%
Source: City of Santa Monica Economic Development Division, Housing and Economic Development Department
176

CITY OF SANTA MONICA, CALIFORNIA
Full-Time Equivalent City Government Employees by Function/Program
Last Nine Fiscal Years
TABLE 26
Function/Program
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 2003-04
General government 238.6 221.7 222.7 217.0 191.6 186.1 179.7 164.9 159.4
Public safety
Police
Sworn 209.0 216.0 216.0 216.0 216.0 216.0 216.0 214.0 214.0
Non-sworn 225.4 221.4 227.4 223.4 246.9 243.0 242.0 283.6 239.7
Fire
Sworn 108.0 105.0 109.0 106.0 107.0 106.0 106.0 104.0 105.0
Non-sworn 21.0 22.0 19.0 11.0 27.3 29.6 26.9 27.3 26.3
General services 184.3 261.9 261.3 260.1 268.9 131.7 124.7 117.6 117.8
Cultural and recreation services 231.1 151.9 152.8 148.5 145.4 228.3 218.8 204.9 206.7
Library 106.1 107.1 107.3 107.3 107.1 107.1 105.4 83.9 84.5
Housing and community development 144.4 146.4 148.4 158.4 139.9 145.2 144.1 137.7 134.0
Beach recreation 46.6 46.6 47.6 46.5 24.8 24.3 23.3 23.3 23.3
Cable communications (1) — — — — — — — 10.8 10.5
Water 46.0 47.0 47.0 47.0 52.2 52.2 52.2 52.2 51.2
Resource Recovery & Recycling 84.2 84.2 84.0 84.0 83.1 106.8 106.8 104.0 102.0
Pier 15.8 16.2 16.2 16.2 16.5 25.8 26.8 26.4 27.2
Wastewater 22.2 22.2 22.2 22.2 39.6 39.6 39.7 36.4 36.4
Civic Auditorium 30.3 34.4 34.4 34.4 35.0 35.0 35.0 34.9 34.9
Airport 4.0 12.2 12.2 12.2 12.4 12.3 11.3 11.3 11.3
Cemetery 12.1 12.1 11.1 10.1 10.2 9.5 9.5 9.5 9.5
Big Blue Bus 419.0 413.7 418.7 417.7 441.9 441.9 441.9 437.9 439.0
Vehicle management 28.0 28.0 28.0 28.0 28.8 24.8 24.8 24.8 24.8
Self insurance - workers' compensation 14.0 12.0 12.0 12.0 12.1 12.1 12.1 12.1 11.7
Total all funds 2,190.1 2,182.0 2,197.3 2,178.0 2,206.7 2,177.3 2,147.0 2,121.5 2,069.2
Note: Includes permanent and temporary employees (2,080 hours = 1 full-time position).
(1) Cable communications was merged into the General Fund in fiscal year 2005-2006.
Source: City of Santa Monica Budget
177

CITY OF SANTA MONICA, CALIFORNIA
Operating Indicators by Function/Program
Last Seven Fiscal Years
TABLE 27
Function / program 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06
General government:
Electronic requests for government information 16,000,000 16,000,000 15,900,000 15,700,000 24,631,223 20,999,363 14,211,319
Hours of live public meeting coverage 300 300 300 216 444 332 310
Public safety:
Number of emergency response incidents 12,842 12,000 12,005 11,690 11,553 12,551 11,435
Number of inspections 9,549 8,549 7,235 8,918 7,053 6,562 7,125
Calls to Police Department for service 105,642 104,097 109,045 107,604 106,497 109,328 105,308
Police reports issued 13,086 13,377 13,995 14,373 14,346 15,334 14,618
Number of crimes recorded 8,579 8,581 8,793 9,561 9,604 9,902 9,761
General services:
Number of square feet of sidewalks repaired 40,000 40,000 33,670 190,000 140,000 127,170 97,522
Number of graffiti removals performed 20,000 20,000 19,500 18,481 25,251 22,865 11,780
Feet of sewer mains cleaned 2,316,757 1,751,717 1,768,024 1,532,184 783,932 1,179,759 647,841
Cultural and recreation services:
Number of cars parked in beach lots 1,500,000 1,500,000 1,798,000 1,450,000 1,640,733 1,635,707 1,572,374
Senior services meals served 56,232 52,440 49,786 42,459 30,917 30,721 28,609
Number of low income persons receiving primary health care 4,164 4,453 3,942 4,344 3,650 3,231 3,345
Number of youth regularly attending homework assistance programs 466 458 423 558 547 511 534
Library:
Library visitors 1,500,000 1,500,000 1,500,000 1,300,000 1,328,614 1,273,672 938,067
Materials used 2,100,000 2,100,000 2,100,000 1,900,000 1,795,844 1,607,534 1,202,754
Public access computer sessions 300,000 300,000 300,000 290,000 286,077 274,239 145,824
Housing and community development:
Building and Safety plan checks completed 1,500 1,500 1,712 1,798 1,786 1,601 1,975
Building inspections performed 16,000 16,000 13,608 18,103 17,671 17,120 17,765
Transportation Managements plan checks completed 500 500 444 750 531 573 572
Resident parking passes sold 73,000 70,000 60,000 39,000 45,657 42,645 37,028
Number of traffic signs installed, replaced, repaired, or removed 5,600 5,600 4,600 5,600 5,633 5,447 10,647
Number of parking meters installed, replaced, repaired, or removed 23,000 23,000 49,000 45,257 45,532 42,645 27,182
Water:
Number of direct customer accounts 17,902 17,823 17,709 17,356 17,272 17,175 17,171
Water sold to direct customers in whole acre feet 11,996 11,779 12,629 12,879 12,975 13,378 12,775
Airport:
Number of tenant aircraft 420 420 420 420 420 420 420
Noise ordinance violations issued 142 148 154 210 244 223 242
Big Blue Bus:
Revenue Miles 5,278,856 5,267,809 5,352,321 5,316,228 5,114,167 5,016,822 5,053,891
Farebox revenue (in millions) 11.86 11.74 11.63 11.51 10.91 9.72 9.80
Total passenger trips (in millions) 22.0 22.0 22.0 22.0 21.0 21.8 22.0
Number of customer relations phone calls 73,586 73,447 69,738 71,868 74,131 60,096 60,153
Total number of charters 90 349 202 224 554 1,121 1,918
Sources: Various City departments.
Note: Statistical Table implemented in FY05-06 per GASB Statement 44. Data from previous fiscal years not shown.
178

CITY OF SANTA MONICA, CALIFORNIA
Capital Asset Statistics by Function/Program
Last Seven Fiscal Years
TABLE 28
Function / program
2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06
Public safety:
Number of police vehicles 239 215 215 244 232 213 174
Number of fire vehicles 52 54 57 58 58 60 55
Number of fire stations 5 5 5 5 5 5 5
Number of police substations including Public Safety Facility 4 4 4 4 4 4 4
General services:
Square footage of asphalt paved streets 30,403,785 30,385,115 30,585,115 30,385,115 30,421,841 30,443,441 30,443,441
Square footage of concrete paved streets 1,106,834 1,125,504 1,125,504 1,125,504 1,088,778 1,067,178 1,067,178
Square footage of sidewalks 8,386,998 8,386,998 8,386,998 8,386,998 8,386,183 8,386,183 8,386,183
Square footage of curbs and gutters 1,917,714 1,883,714 1,834,166 1,776,089 1,702,071 1,663,271 1,663,271
Cultural and recreation services:
Number of beach parking lots 17 17 17 16 16 16 16
Number of parks 27 27 26 26 26 24 23
Number of swim centers 2 2 2 2 1 1 1
Library:
Number of facilities: main and branches 4 4 4 4 4 4 4
Housing and community development:
Downtown structure visitors 6,659,246 5,958,593 4,078,062 3,928,900 3,768,746 3,817,550 3,791,646
Water:
Number of feet of water main installed 12,384 0 0 0 22,660 22,660 22,660
Water main system (in miles) 205 205 205 205 205 205 205
Reclaimed water main system (in miles) 4 4 4 4 4 4 4
Wastewater:
City sewage flow in million gallons/day 11.4 11.3 10.6 13.3 10.4 12.3 12.8
Sewer main system (in miles) 151 152 152 152 152 152 152
Stormwater:
Daily gallons treated for recycling by SMURRF 122,890 330,000 275,000 275,000 330,000 330,000 330,000
Storm drain system (in miles) 59 58 58 58 58 58 58
Airport:
Aircraft operations (departures and arrivals) 105,026 106,521 112,212 117,250 136,485 136,270 135,765
Big Blue Bus:
Number of buses 200 214 199 197 202 202 211
Sources: Various City departments.
Note: Statistical Table implemented in FY05-06 per GASB Statement 44. Data from previous fiscal years not shown.
179

THIS PAGE INTENTIONALLY LEFT BLANK
180

City Council Report
To:
Mayor and City Council
City Council Meeting: April 23, 2013
Agenda Item: 7-A
From:
Subject:
Marsha Jones Moutrie, City Attorney
Ordinance Amending Section 6.36.095 of the Santa Monica Municipal
Code Related to Late Night Vending on Main Street
Recommended Action
Staff recommends that the City Council adopt the attached ordinance.
Executive Summary
At its meeting on April 9, 2013, the City Council introduced for first reading an ordinance
amending Section 6.36.095 of the Santa Monica Municipal Code Related to Late Night
Vending on Main Street. The ordinance is now presented to the City Council for
adoption.
Prepared by:
Approved:
Marsha Jones Moutrie, City Attorney
Forwarded to Council:
Marsha Jones Moutrie
City Attorney
Rod Gould
City Manager
1

Council Meeting: April 23, 2013
Santa Monica, California
ORDINANCE NUMBER ____ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AMENDING SECTION 6.36.095 OF THE SANTA MONICA MUNICIPAL CODE
RELATED TO LATE NIGHT VENDING ON MAIN STREET
WHEREAS, the City consists of just eight square miles of coastal land which is
home to 90,000 residents, the job site of 300,000 workers, and a destination for as
many as 500,000 visitors on weekends and holidays; and
WHEREAS, the City’s unusual density necessitates special efforts to preserve
the free and safe flow of pedestrian, bicycle, and vehicular traffic; and
WHEREAS, congestion is particularly problematic on Main Street, because it
contains very narrow sidewalks, on street parallel parking, and virtually no parkways;
and
WHEREAS, the narrow sidewalks on Main Street support numerous
improvements which enhance the pedestrian experience but also limit circulation, such
as street trees, bike racks, newsracks, bus stop benches, and other street furniture; and
WHEREAS, public sidewalks are created and maintained for the primary purpose
of enabling pedestrians to safely and efficiently move about from place to place; and
1

WHEREAS, ensuring the unobstructed flow of pedestrian traffic on sidewalks
promotes public safety by minimizing the risk that pedestrians will jostle one another,
collide, trip, or fall, and ensuring that persons may move safely away from dangerous
situations which may occur on or near public streets and sidewalks; and
WHEREAS, ensuring the free flow of pedestrian traffic is particularly important to
the safety of the elderly, the very young, the disabled, vision-impaired persons, and
others who are less able to navigate through crowds and around obstacles or hazards
and who are particularly jeopardized by having to navigate off and onto curbs when
sidewalks are blocked; and
WHEREAS, hindrances to the free flow of pedestrian traffic on sidewalks may
interfere with the work of public safety personnel seeking immediate access to
emergency situations and with other work vital to the public health and safety, such as
cleaning and maintenance; and
WHEREAS, in recent years, persons have begun conducting commercial
vending, mainly food sales, from vehicles while parked adjacent to alcohol serving
establishments (e.g., bars and nightclubs) on Main Street, well into the late night hours;
and
WHEREAS, these late night vending activities attract large stationary crowds,
including persons exiting from adjacent alcohol serving establishments who may be
experiencing varying degrees of alcohol intoxication; and
2

WHEREAS, persons intoxicated while in public are often unable to care for their
own safety, are particularly accident-prone, and can endanger others; and
WHEREAS, such large crowds have created extreme congestion on the narrow
sidewalks along Main Street; and
WHEREAS, such extreme sidewalk congestion coupled with the large size of the
vending vehicles have forced persons, both sober and intoxicated, to leave the
sidewalks and walk in the street, not only across, but also up and down Main Street,
and to hail public or private transportation from within the street; and
WHEREAS, these late night vending activities, coupled with a lack of seating
facilities for sidewalk food consumption, have caused persons to sit on sidewalks, street
curbs, and even parking spaces to consume foods; and
WHEREAS, late night vending on Main Street creates potential health concerns
as there is a lack of available public restrooms on or near Main Street during such
hours; and
WHEREAS, this proliferation of late night vending near alcohol serving
establishments has created significant threats to public safety, and damages the public
welfare; and
WHEREAS, blockage of public sidewalks on Main Street during the late night
hours poses serious safety hazards because pedestrians, especially intoxicated
3

pedestrians, who cannot pass freely along the sidewalks frequently step into the street
where they may be struck by vehicles or cause collisions between vehicles; and
WHEREAS, persons, especially intoxicated persons, crossing into the middle of
streets to hail public or private transportation at night time, are exposed to significant
danger of collision with vehicles; and
WHEREAS, disease may be transmitted to persons sitting on sidewalks while
eating because people or animals expectorate, urinate or defecate on sidewalks; and
WHEREAS, persons sitting on curbs or parking spaces while consuming food at
night time are not easily seen by drivers of vehicles attempting to enter or exit their
parking spaces and may be struck by such vehicles; and
WHEREAS, the City’s streets and sidewalks are not intended, designed or
maintained for dining without tables and chairs; and
WHEREAS, maintaining public safety on Main Street during the late night hours
presents special challenges to the City’s public safety personnel, particularly in times of
emergency, because of the very large crowds, narrow roadways, narrow sidewalks,
limited ingress and egress, and fixed impediments to circulation; and
WHEREAS, there are numerous other places within the City where vending from
vehicles may safely take place during late night hours without unduly interfering with the
flow of pedestrian or vehicular traffic, threatening public safety or harming the public
welfare; and
4

WHEREAS, in order to protect public safety, the City Council adopted Ordinance
2381 (CCS) which prohibits late night vending on Main Street between Ocean Park
Boulevard and Marine Street, during the hours of 1:00 a.m. to 3:00 a.m. on Saturdays
and Sundays; and
WHEREAS, since the adoption of Ordinance 2381, staff has continued vigorous
enforcement activities on Main Street, and experience has shown that the above safety
concerns remain significant on holidays popularly associated with alcohol consumption
that may fall on a week day, and thus are not currently covered by Ordinance 2381; and
WHEREAS, enforcement experience has also demonstrated that the same
safety risks described above, exist in the half block of Main Street (between Marine
Street and the City’s southern boundary) not currently covered by Ordinance 2381; and
WHEREAS, this half-block of Main Street contains four on-street parking spaces
that sit directly in front an alcohol serving establishment; and
WHEREAS, these parking spaces are very frequently jammed with food trucks
and their patrons during late night hours; and
WHEREAS, a limited expansion of Ordinance 2381’s vending prohibition to
include the half-block and the holidays popularly associated with alcohol consumption
that may fall on a week day is necessary to protect public safety; and
5

WHEREAS, California Vehicle Code Section 22455 specifically authorizes local
authorities to adopt laws, in the interest of public safety, which regulate the time, place,
and manner of vending from vehicles upon any street; and
WHEREAS, the City Council hereby determines that it is necessary to exercise
this authority as set forth in this ordinance in order to protect public safety.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
Section 1.
Section 6.36.095 of the Santa Monica Municipal Code is hereby
amended to read as follows:
6.36.095 Prohibition of late night vending on Main Street
No person shall vend from vehicles, including unhitched trailers, on Main Street,
between Ocean Park Boulevard and the City’s southern boundary, during the hours of
1:00 a.m. to 3:00 a.m. on Saturdays, Sundays, St. Patrick’s Day, Valentine’s Day, Cinco
De Mayo Day, Memorial Day, Independence Day, Labor Day, Halloween, and New
Year’s Day.
Section 2.
Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
Section 3. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any
6

court of competent jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby declares that it would
have passed this Ordinance and each and every section, subsection, sentence, clause,
or phrase not declared invalid or unconstitutional without regard to whether any portion
of the ordinance would be subsequently declared invalid or unconstitutional.
Section 4. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
_________________________
MARSHA JONES MOUTRIE
City Attorney
7

City Council Report
To:
Mayor and City Council
City Council Meeting: April 23, 2013
Agenda Item: 7-B
From:
Subject:
Marsha Jones Moutrie, City Attorney
Ordinance Amending Articles III and VI of the Santa Monica Municipal
Code Regarding Licensing and Regulation of Pedicabs
Recommended Action
Staff recommends that the City Council adopt the attached ordinance.
Executive Summary
At its meeting on April 9, 2013, the City Council introduced for first reading an ordinance
amending Articles III and VI of the Santa Monica Municipal Code regarding licensing
and regulation of pedicabs. The ordinance is now presented to the City Council for
adoption.
Prepared by:
Approved:
Marsha Jones Moutrie, City Attorney
Forwarded to Council:
Marsha Jones Moutrie
City Attorney
Rod Gould
City Manager
1

City Council Meeting April 23, 2013
Santa Monica, California
ORDINANCE NUMBER ____ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
AMENDING ARTICLES III AND VI OF THE SANTA MONICA MUNICIPAL CODE
REGARDING LICENSING AND REGULATION OF PEDICABS
WHEREAS, the City of Santa Monica (“City” or “Santa Monica”) is a small, extremely
dense, older coastal city consisting of just 8 square miles of land bordered on one side by
the Pacific Ocean and on three sides by the City of Los Angeles; and
WHEREAS, the City’s premier location and vigorous local economy continues to
attract large number of tourists from throughout the world; and
WHEREAS, the City’s bustling streets are heavily utilized by motor vehicle and
bicycle traffic; and
year; and
WHEREAS, the City’s beach bike path is narrow and congested at all times of the
WHEREAS, the beach bike path’s narrow design is particularly unsuitable for
pedicab operations as a single pedicab could substantially take up the entire path and
impede oncoming traffic; and
1

WHEREAS, pedicabs have grown in popularity as a form of non-motorized
transportation for hire, particularly amongst the tourist population; and
WHEREAS, pedicabs are a zero emissions transportation option; and
WHEREAS, pedicabs are a new mode of transportation in Santa Monica and once
introduced will have an impact on traffic circulation, particularly in the heavily congested
areas of the downtown; and
WHEREAS, experience in other jurisdictions have shown that unregulated pedicab
operations could create safety hazards and cause unnecessary consumer confusion
regarding fares; and
WHEREAS, some of the safety hazards reported by other jurisdictions, including
substandard equipment, have resulted in serious injury to pedicab passengers; and
WHEREAS, California Vehicle Code Section 21100(n) authorizes local agencies to
license and regulate the operation of pedicabs; and
WHEREAS, California Vehicle Code Section 21206 authorizes local agencies to
regulate operations of bicycles and pedicabs on pedestrian or bicycle facilities, including
facilities like the beach bike path; and
WHEREAS, licensing and regulation of pedicab operations is necessary to ensure
safe, quality pedicab services, mitigate negative impacts on traffic circulation, and promote
the general welfare.
2

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Section 3.12.550 of the Santa Monica Municipal Code is hereby
amended as follows:
3.12.550 Bike-path and beach promenade.
(a)
It shall be unlawful to ride a bicycle or to coast in any vehicle upon the Beach
Promenade; bicycle riding shall be permitted along the beach bike-path, within the City
limits and in those areas where the Promenade constitutes a portion of the bikeway and
are otherwise permitted by sign. All persons riding bicycles on the bike-path shall comply
with all lawful signs and directional markings, including, but not limited to, painted
directional arrows, bike-path route boundaries, and signs designating permissible travel
lanes.
(b)
It shall be unlawful to operate a pedicab upon the beach bike-path.
SECTION 2. Section 6.48.30 of the Santa Monica Municipal Code is hereby
amended as follows:
6.48.030 Business license required.
No person shall conduct any vehicle for hire business or pedicab business without
having first obtained a business license in compliance with this Chapter.
SECTION 3. Chapter 6.50 is hereby added to Article VI of the Santa Monica
Municipal Code as follows:
3

Chapter 6.50
PEDICABS
6.50.010 Definitions.
meanings.
The following words or phrases as used in this Chapter shall have the following
(a)
Pedicab. “Pedicab” has the same meaning as that term is defined by the
California Vehicle Code.
(b)
Pedicab Driver Permit. “Pedicab driver permit” means a non-transferable
authorization for a person to provide pedicab transportation services in the City;
(c)
Pedicab Operator. “Pedicab operator” means a person that has been issued
a pedicab operator permit and a business license to operate a pedicab business in the
City.
(d)
Pedicab Operator Permit. “Pedicab operator permit” means a nontransferable
authorization for operation of a pedicab business pursuant to the provisions of
this Chapter.
(e)
Pedicab Decal. “Pedicab decal” means a non-transferable authorization,
affixed to the pedicab by the City, for a pedicab to be operated in the City.
(f)
Seatbelt. “Seatbelt” means a safety strap or harness designed to hold a
person securely in a seat
4

6.50.020 Exemption.
The provisions of this Chapter shall not apply to any pedicab validly permitted and
operating in another jurisdiction that drops-off passengers within the City or passes through
the City without picking-up any passenger.
6.50.030 Rules and regulations.
The City Manager, or his or her designee, is authorized to adopt rules and
regulations consistent with this Code and necessary to implement this Chapter. Such rules
and regulations may include, but are not limited to, provisions governing: pedicab service
and safety; pedicab vehicle equipment standards; conditions and qualifications of
applicants for operator permits, driver permits, and pedicab decals; and the responsibilities
of pedicab operators and drivers.
Such rules and regulations shall be filed in the office of the City Clerk where they
shall be made available for inspection by the public.
Violations of rules and regulations issued pursuant to this Section shall constitute
violations of this Chapter, and shall subject the violator to the penalties set forth in this
Chapter.
6.50.040 Pedicab operator permit required.
(a)
No person shall operate, or cause to be operated, a pedicab business within
the City without having first obtained a pedicab operator permit and a business license
from the City.
5

(b)
To obtain a pedicab operator permit, each applicant shall file with the City a
complete and verified application, including a description of the applicant’s routes of
pedicab operations, proof of adequate insurance, and other information prescribed by the
rules and regulations adopted in accordance with this Chapter.
6.50.050 Pedicab driver permit required.
(a)
No person shall drive or operate a pedicab within the City without having first
obtained a valid pedicab driver permit.
(b)
To obtain a pedicab driver permit, each person shall file with the City, a
complete and verified application containing information prescribed by the rules and
regulations adopted in accordance with this Chapter.
6.50.060 Pedicab identification decal required.
(a)
No person shall lease, rent, or allow a pedicab to be operated within the City
without having first obtained a pedicab decal. The decal shall be affixed to the pedicab in a
manner clearly visible to the public.
(b)
A pedicab decal application shall be denied if the pedicab is unsafe for
operation or fails to comply with applicable safety and equipment rules and regulations
adopted in accordance with this Chapter.
(c)
No person shall operate a pedicab that does not have a valid pedicab decal
affixed to it.
6

6.50.070 Fees and permits.
(a)
A schedule of fees to recover the costs associated with the administration
and enforcement of this Chapter may be adopted by resolution of the City Council. No
applicant may be issued a pedicab permit or decal until that applicant has paid all
applicable fees.
(b)
Permits and decals that are expired, revoked, defaced, altered, forged, or
counterfeited are invalid.
(c)
Permits and decals are the property of the City and are non-transferable.
6.50.080 Denial, suspension or revocation of pedicab operator permit, pedicab
driver permit, or pedicab decal.
Pedicab operator permits, pedicab driver Permits, and pedicab decals may be
denied, suspended or revoked by the City Manager, or his/her designee, based upon any
one of the following grounds:
(1) The pedicab operator or driver has failed to comply with applicable laws or
rules and regulations relating to pedicab operations.
(2) The pedicab operator or driver has been convicted of assault, battery,
resisting arrest, any felony involving force and violence, any misdemeanor or felony
reckless driving or driving under the influence offense, or any crime reasonably related to
the qualifications, functions or duties of the passenger transport business, or the ability of
the operator or driver to safely transport passengers.
7

(3) The operator or driver has been convicted of a crime that requires registration
pursuant to California Penal Code Section 290.
(4) The pedicab operator or driver has knowingly made a false statement of
material fact, or knowingly failed to state a material fact in the application process for the
pedicab operator permit, pedicab driver permit or pedicab decal.
6.50.090 Pedicab Parking.
The City may designate pedicab parking stands to provide safe drop-off and pick-up
areas for pedicabs.
6.50.100 Fare schedule.
(a)
Prior to commencing any pedicab operations, the pedicab operator shall file
its fare schedule with the City.
(b)
The pedicab operator shall post the fare schedule filed with the City on every
pedicab in its fleet and that meets the size, format, and location requirements as set forth
by the rules and regulations adopted in accordance with this Chapter.
(c)
No pedicab operator or driver shall charge a passenger a fare greater than
the fare submitted to the City and posted on the pedicab.
6.50.110 Pedicab operations.
(a)
A Pedicab Operator shall:
(1) keep pedicabs within its fleet in clean and sanitary conditions, and be free
from mechanical or safety defects; and
8

(2) make pedicabs within its fleet available for inspections at reasonable times
by the City.
(b)
It is unlawful for any person to:
(1) operate a pedicab, if said person is under eighteen years of age.
(2) operate a pedicab without a valid California Driver’s license.
(3) operate a pedicab in any manner that impedes or blocks the normal or
reasonable movement of pedestrian or vehicular traffic unless such operation is necessary
for safe operation or in compliance with law or under the direction of law enforcement
personnel.
(4) Operate a pedicab over any route not designated in the pedicab operator
permit.
(5) Operate a pedicab in a manner that results in damage to property.
(6) Operate a pedicab while carrying a number of passengers that exceeds the
number of available seats.
(7) Operate a pedicab without having all passengers be restrained by seatbelts.
(8) Operate a pedicab without having a City-approved insurance policy in full
force and effect at all times during the operation of the pedicab.
(9) Advertise or otherwise hold itself out as providing pedicab services within the
City, unless such person is operating pursuant to City issued pedicab permits.
(10) Refuse to comply with a lawful order from a City official charged with
enforcement of this Chapter.
9

6.50.120 Enforcement.
(a)
Any person violating any provision of this Chapter shall be guilty of an
infraction, which shall be punishable by a fine not exceeding two hundred fifty dollars
($250) per violation; or a misdemeanor, which shall be punishable by a fine not exceeding
one thousand dollars ($1,000) per violation, or by imprisonment in the County Jail for a
period not exceeding six (6) months, or by both such fine and imprisonment. Where the
violation is of a continuing nature, each day that the violation continues constitutes a
separate and distinct violation.
(b)
Any person violating any provision of this Chapter shall be subject to
administrative fines and penalties pursuant to Chapter 1.09 of this Code.
(c)
The remedies specified in this Section are cumulative and their specification
shall not preclude the use of any other remedy provided by law.
SECTION 4. Any provision of the Santa Monica Municipal Code or appendices
thereto inconsistent with the provisions of this Ordinance, to the extent of such
inconsistencies and no further, is hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.
SECTION 5. If any section, subsection, sentence, clause, or phrase of this
Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court
of competent jurisdiction, such decision shall not affect the validity of the remaining
portions of this Ordinance. The City Council hereby declares that it would have passed this
Ordinance and each and every section, subsection, sentence, clause, or phrase not
10

declared invalid or unconstitutional without regard to whether any portion of the ordinance
would be subsequently declared invalid or unconstitutional.
SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage of
this Ordinance. The City Clerk shall cause the same to be published once in the official
newspaper within 15 days after its adoption. This Ordinance shall become effective 30
days from its adoption.
APPROVED AS TO FORM:
_________________________
MARSHA JONES MOUTRIE
City Attorney
11

City Council Report
To:
From:
Subject:
Mayor and City Council
City Council Meeting: April 23, 2013
Karen Ginsberg, Community and Cultural Services Director
Agenda Item: 8-A
Options for Addressing Use of City Parks and the Beach for Commercial
Fitness Instruction, Classes or Camps
Recommended Action
Staff recommends that the City Council:
1. Review and comment on a proposed regulatory system to address the use of
City parks and the beach for commercial fitness instruction, classes or camps,
and
2. Direct staff to prepare an amendment to Chapter 4.55 of the Municipal Code to
create a new regulatory structure, permit system and use charges for all
commercial fitness instruction, classes or camps in City parks and the beach.
Executive Summary
In response to Council direction, staff has developed a proposed regulatory system for
non-City sponsored commercial fitness instruction, classes or camps offered in parks
and the beach. The new regulatory structure would include a change to the Municipal
Code, new rules, and a permit system with permit and use charges.
After collecting feedback and suggestions from fitness trainers and residents, staff
developed a proposed regulatory structure that largely achieves consensus. The
changes include: the need for a permit system; insurance; indemnification; compliance
with existing business license and police permit rules; identification of parks appropriate
for commercial fitness activity; and new rules addressing protection of park amenities.
The areas where consensus was not achieved include: the amount of use charges to
be paid by trainers and instructors; and the extent of the restrictions in Palisades Park.
Background
For several years, community members have regularly complained to staff about the
proliferation of unregulated fitness training and boot camps in City parks and at the
beach. Most of the complaints about this activity refer to the intense use of the north
end of Palisades Park.
1

Staff has also received complaints from City sponsored class and camp instructors that
commercial youth class and camps are setting up operation in open areas of the parks
and at the beach without having to meet permit requirements and/or pay a use fee and
thus are unfairly competing with City sponsored classes and camps.
During its January 19, 2012 meeting, the Recreation and Parks Commission reviewed
this list of concerns. The Commission recommended that Council direct staff to develop
a regulatory system and suggested that staff research legal precedents, how other cities
handle the issue, consider a lottery system and time and site limits for various activities.
On April 10, 2012, staff brought these community concerns to the Council, and asked
for direction. Council directed staff to return with options for addressing community
concerns related to commercial fitness classes and large equipment in the parks and at
the beach.
Discussion
In preparation for developing options for a regulatory system, staff:
• reviewed existing City use charges, especially charges imposed on instruction for
compensation,
• reviewed relevant codes and official park and beach rules,
• developed an understanding of what private fitness instructors using City parks
and the beach currently pay the City,
• evaluated regulatory models and approaches used by other cities and the Los
Angeles County Department of Beaches and Harbors,
• surveyed existing classes and training activities in Palisades Park over a one
week period,
• conducted two public meetings; one focused on instructors and another for
residents, and
• at the request of the North of Montana Association (NOMA), made a presentation
at a monthly meeting, and attended a subsequent meeting where the issue was
discussed..
2

In addition, a staff presentation and public hearing was held at the November 15, 2012
meeting of the Recreation and Parks Commission.
Existing City Practices
The City currently has several regulatory processes in place that authorize instruction
for compensation in City parks, park facilities and the beach. For years, the City has
required tennis instructors to obtain permits and pay fees for court use. Surf instruction
permits have been awarded since 2008 to a select number of instructors, all of whom
have business licenses, pay permit fees, provide proof of insurance, and share a
percentage of their revenues. The City also contracts with instructors to conduct
classes inside park facilities, outdoors, and at the beach with shared revenue and other
requirements. A summary of existing City practices can be found in Attachment A.
Most instructors pay at least 15% of gross revenues or an equivalent hourly rate for use
of park facilities and specific park or beach areas (fields, courts, surf, etc.) and many
pay a larger percentage.
Business License and Police Permits
As is true for all businesses operating in the City, commercial fitness instructors must
obtain a City business license. In addition, police permits and finger printing are
required for certain classifications of businesses, such as fitness instructors. Below is a
chart that shows the fees that are required of fitness trainers:
Business License Tax (annual)* $75.00
Fingerprinting fee (1 time fee) $80.82
Police Permit Fee (annual) $91.94
Zoning Review Fee (1 time per location) $35.47
State Mandated Fee (annual) $01.00
TOTAL $284.03
*Fitness trainers are required to pay the minimum business license tax of $75.00 for
gross receipts of $0 to $60,000. Applicants that generate less than $40,000 annually
can claim the small business exemption which waives the minimum license tax of
3

$75.00. The gross receipts tax is based on $1000 of sales. The tax rate for gross
receipts over $60,000 is $3.00 per $1,000.
Information obtained from the Business License office showed that in FY 2012-2013 a
total of 87 trainers’ accounts were established. Of the 87 accounts, 52 were businesses
grossing $40,000 or less; 7 businesses grossing $40,000 - $60,000; 12 businesses
grossing $60,000 - $100,000; and 16 businesses grossing $100,000 or more. These
business licenses were issued to trainers that work outdoors in a park or at the beach
as well as those who work at an indoor fitness center or other facility.
The average total fee paid in FY 2012-2013 for a trainer with a business grossing
$40,000 or less was $255.18. This average included business license tax, the police
permit fee, a one-time finger printing fee, a one-time zoning review fee and a State
mandated fee.
Other Cities/County Practices
Many nearby municipalities, including a number of beach cities, heavily regulate or
prohibit commercial activity in parks and at the beach. Redondo Beach requires all
instructors/trainers to contract with the City through City-sponsored classes. Los
Angeles and Culver City, and Los Angeles County Department of Beaches and Harbors
charge hourly use charges ($36 - $200 per hour) and/or a percentage of gross receipts
for commercial fitness activity and camps. Manhattan Beach screens trainers and limits
permits by date, time and location (Attachment B).
Palisades Park Use Survey
To understand the intensity of commercial fitness activity in Palisades Park, staff
observed and recorded class locations, size and equipment for a one week period in
late October. Staff recorded 73 group classes and 74 private/semi-private classes (one
to two participants) with the highest concentration of instruction taking place from
7:00am to 1:00pm between the blocks of San Vicente Blvd. and Idaho Avenue. Over
90% of the classes used some type of equipment which at times was attached to park
4

amenities including light poles, benches, historical structures as well as trees.
(Attachment C)
Community Meetings
Two well-attended public meetings were held. In June, staff gathered 35 trainers
together to discuss neighbor concerns and develop initial options to address the
concerns. In early November, Palisades Park-adjacent residents were invited to join
trainers and their clients (25 total participants) and provide feedback on a draft outline of
a proposed regulatory system.
Recreation and Parks Commission Recommendation
At the November 15, 2012 Recreation and Parks Commission meeting, staff presented
options for a regulatory approach to commercial fitness instruction based on input from
the community meetings, listened to extensive public testimony and adopted the
following recommendations for Council consideration:
• establish a permit system for commercial fitness instruction, classes, or camps
held in a City park or at the beach with changes to municipal codes, as required;
• implement a $100 annual fee to cover the cost of issuing an Instructor Permit;
• implement a use charge of 15% of gross receipts;
• impose no restrictions for equipment, or time of day;
• impose no limit on the total number of permits issued; and
• implement permit locations – parks for group classes, semi-private classes only
(1-on-1 or -on-2), or no instruction.
For Palisades Park, the Commission recommended that:
• commercial fitness classes and/or training be limited to private and semi-private
classes only (1-on-1 or -on-2). No group classes would be allowed.
• staff develop a list of exercise equipment that would be prohibited in Palisades
Park.
Following the Commission meeting, staff continued to correspond and meet with
residents and trainers and their representatives to address the remaining areas of
disagreement related to limitations on group classes in Palisades Park, and the
5

appropriate percentage of gross receipts to be charged. Regrettably a resolution has
not been fully achieved as trainers continue to feel strongly that Palisades Park should
remain available to commercial group fitness instruction, classes and camps while
residents continue to communicate displeasure with the intensity of use in Palisades
Park, concerns about hours, equipment and damage to the park. Trainers also say that
the 15% of gross revenue use charge is too high.
PROPOSED PERMIT AND REGULATORY SYSTEM
Based on extensive research, analysis and public and Commission input, staff
developed the following proposed permit and regulatory system for Council
consideration:
Amend the Municipal Code to require City authorization of commercial fitness
instruction, classes, or camps in City parks and the beach, and clarify terms such as
“compensation” through definitions as needed.
Instructor Permit (Group/Camp and Private/Semi-Private):
• Annual permit fee of $100, ($150 for camps responding to an RFP).
• Use charge of 15% of gross receipts payable within 15 days of the end of each
quarter.
• Application form, City business license, police permit, release of liability, and
proof of insurance naming City as an additional insured.
• Private/Semi-Private Permits are for instruction of classes of no more than 2
participants.
• Group/Camp Permits are for instruction of more than 2 participants and include
commercial youth instruction, classes and camps in parks and on the beach.
• Class size, including instructors, cannot exceed 150 or an event permit would be
required.
New Rules:
Park amenities may not be used for exercise activity except on existing City installed
6

exercise equipment located on the par course at Clover Park. These include light poles,
pergolas, picnic tables, benches, railings, chain link fencing, freestanding signs, bike
racks, and barbeque grills (Attaching any wire, rope, swing or any object to any public
tree is already prohibited in the Municipal Code [Chapter 7.40]). Adults may not
exercise on playground equipment. Exercise equipment weighing over (25) pounds, is
prohibited in all parks as it is deemed unsafe for use in the public setting. Permit holders
may not request other park users or permittees to move to another location.
Permit Locations:
PARK
GROUP
(more than 2)
PRIVATE/SEMI-PRIVATE
(1-1 and 1-2)
Airport Park X X
Barnard Linear Way
X
Beach Green X X
Beach Park #1 X X
Clover Park X X
Crescent Bay Park
X
Douglas Park X X
Euclid Park
Goose Egg Park
X
Hotchkiss Park X X
Joslyn Park
Marine Park X X
Memorial Park
X
Muscle Beach Park
Ocean View Park X X
Ozone Park
Pacific Street Park
Palisades Park
X
Park Drive Park
Reed Park X X
Schader Park
South Beach Park X X
Stewart Street Park X X
Tongva Park
X
Virginia Avenue Park X X
NOFITNESS
INSTRUCTION
ALLOWED
X
X
X
X
X
X
X
Palisades Park
Palisades Park is the City’s only park that is a designated City Landmark. In addition to
7

having many historic structures and amenities in it, it has the heaviest concentration of
fitness classes, is heavily used by the public, is quite narrow, and very close to
residences. Due to the reasons listed above, staff recommends:
Class Size: allow private and semi-private (1-on-1 and 1-on-2) commercial
fitness instruction only
Equipment: prohibit all exercise equipment weighing over 25 lbs.
Alternatives
As an alternative to staff recommendations above, City Council could consider the
following:
Class Size:
• prohibit all commercial fitness instruction, classes or camps in Palisades
Park, or
• allow group commercial fitness instruction, classes or camps in Palisades
Park with limitations on frequency and locations available, or
• allow group commercial fitness instruction, classes or camps in Palisades
Park but limit group size to no more than 10 participants with limitations on
frequency and locations
Equipment:
• prohibit use of all exercise equipment in Palisades Park, or
• prohibit use of all exercise equipment in Palisades Park and other parks listed
above as only for private/semi-private training (i.e., Goose Egg, Barnard
Linear Way, Crescent Bay and Memorial Park),
• place no restrictions on use of exercise equipment in any park, including
Palisades Park.
Use Charge
• establish a fixed use charge to be paid quarterly
• adopt a use charge reflecting a lower percentage of gross receipts
8

Next Steps
Following direction from Council, staff will return to Council with an Ordinance in June
revising Chapter 4.55 of the Municipal Code and will under the Director of Community
and Cultural Services’ authority pursuant to section 4.55.420 of the Municipal Code add
the above new rules to the City’s official park and beach rules.
Financial Impacts & Budget Actions
Establishment of a regulatory system for fitness instruction, classes or camps with a
proposed permit fee and percentage of gross receipts will create a new General Fund
revenue source to the City which staff will estimate following Council direction. Should
Council approve the regulatory system and use charges, staff will include the
associated revenue in the FY 2013-15 proposed budget.
Prepared by: Wendy Pietrzak, Acting Community Use Administrator
Julie Silliman, Senior Administrative Analyst
Approved:
Forwarded to Council:
Karen Ginsberg
Director, Community & Cultural Services
Rod Gould
City Manager
Attachments:
A. Existing Santa Monica Practices
B. Other City/County Practices
C. Palisades Park Use Survey
9

Attachment A
Existing Santa Monica Practices
City-Contracted Classes:
Instructors or companies are contracted by the City though a Request for Proposal
(RFP) process for community classes and camps. Contractors offer a range of activities
and camps with registration and some marketing conducted by the City. The City retains
a percentage of gross revenue ranging from 14% - 40% of registration fees.
Surf Instruction Permits:
Permittees are selected through a RFP process, pay a $150 annual permit fee, plus a
percentage of gross receipts ranging from 15% to 20%. Other requirements include City
business license and police permit, signed release of liability, and proof of insurance.
Court Permits:
Permits are issued for instruction on tennis, basketball, and beach volleyball courts by
the hour on a first-come-first-serve basis. Permit fees vary depending on location,
hours, residency, activity type, number of participants, and are based on an hourly rate
ranging from $10.00 to $64.00.
Field Permits
Resident Camps, $25.00 - $35.00/hour depending on sport
Non-resident Camps, $31.00 - $37.50/hour depending on sport
Memorial Park Fitness Room and Gym (for non-exclusive use)
1 – 2 clients: $10.00/hour, $5.00/ ½ hour. Limited to 2 clients only
Permit Requirements
Application, application fee, use charge, business license, police permit, release of
liability, and proof of insurance naming City as additionally insured may be required.
10

Attachment B
Other City/County Practices
Culver City
Most trainers participate in City-sponsored classes. Some park “grassy” areas are
rented at $36/$52 (res/non res) per hour. Proof of insurance and business license
required. If activity conflicts with a City-sponsored class, they deny the permit.
Mechanical equipment, amplified sound, generators, and lights prohibited. No permits
issued for passive parks or parks where neighbors have objected to this type of activity.
Beverly Hills
Trainers allowed with 1 or 2 clients. Larger groups (more than 2), and equipment is
prohibited.
West Hollywood
The City currently prohibits private tennis and golf instruction and is considering
expanding this ordinance to address other types of instruction. If a commercial activity
conflicts with a City-sponsored class it is not allowed.
Los Angeles
Boot Camp and Private Workshop charge is $60.00 per hour. Proof of insurance is
required.
Newport Beach
Commercial use of a park area to conduct training is $200 per hour for residents and
$401 per hour for non-residents with a 2 hour minimum requirement. Beach areas
cannot be reserved. A business license and insurance is required. The citation for
operating w/out a permit is $100 first time, $200 2nd time, and $500 3rd time.
Manhattan Beach
Commercial personal training prohibited in all parks, fields and open space without
permit. Permits are issued on a very limited basis and only for specific parks. Permits
are date, time and site specific. Permit holders must comply with rules, pay a $25
application fee, a $200 Annual Permit Fee and contribute 1% of gross receipts.
Redondo Beach
Only allows City-sponsored classes.
Los Angeles County Beaches and Harbors
All commercial activity on the beach and in beach parking lots requires authorization.
Camps/Training - $200 application fee + minimum $100 location charge (summer only)
and 15% of gross receipts. Day Use – flat rate or % of registration fee charged.
11

Attachment C
Palisades Park Use Survey
Dates of Survey: October 24, 2012 through October 30, 2012
Hours of Survey: 6:00 a.m. to 7:00 p.m.
Number and Type of Classes
• 73 group classes (more than two participants) and
• 74 private/semi-private classes (one to two participants) with the
Location
Highest concentration of instruction took place between the blocks of San Vicente Blvd.
to Idaho Avenue.
Hours of Classes
• 75% of the groups classes occurred between 7:00 a.m. and 1:00 p.m.
• 82% of the private/semi-private classes occurred during these hours.
Use of Equipment
Staff observed that 90% - 95% of the classes whether group or private/semi-private
used some type of equipment such as yoga mats, hand weights, bench presses, kettle
balls, cones, large ropes, and miscellaneous items such as chalk/white boards, boom
boxes and signage promoting the class.
Some of the equipment used was attached to park amenities.
12

City Council Report
To:
From:
Subject:
Mayor and City Council
City Council Meeting: April 23, 2013
Agenda Item: 8-B
David Martin, Director of Planning and Community Development
Modification to Development Agreement Application Process to Require
Separate Architectural Review Board and Planning Commissions Float
Ups
Recommended Action
Staff recommends that the City Council modify the recently adopted Development
Agreement application review process to require separate Architectural Review Board
and Planning Commission float ups rather than one combined float up.
Executive Summary
A series of recommendations were recently approved by the City Council on January 8,
2013 and February 12, 2013 to address Development Agreement application
processing. One of the recommendations called for a combined float up by the
Planning Commission and four members of the Architectural Review Board (ARB). It
was agreed that obtaining preliminary and conceptual comments from ARB early in the
development review process adds value.
Although combining a meeting of the Planning Commission and ARB members was
conceptually a good idea to reduce the required number of meetings per application,
implementation of the combined meetings is proving to be a scheduling challenge and is
not practical. Staff now recommends that a float up first occur at an ARB meeting
followed by a float up at a Planning Commission meeting. Scheduling a visit to the ARB
is doable within the same time frame and should not create a delay in processing a
Development Agreement.
Background
In January Council considered a December 11, 2012 report and a January 8, 2013
supplemental report focusing on ways to address the large number of Development
Agreement applications. On February 12, 2013 City Council provided direction
concerning prioritizing projects and clarified the review process. Characteristics
identified for prioritization included: projects producing a high ratio of revenue for the
City, projects with a higher level of affordable housing units, residential projects
1

containing a prescribed range of unit types, including some two and three bedroom
units, educational institutions, and projects that combine adjacent sites into one
Development Agreement. Council also reviewed and revised several procedures for
processing Development Agreements, including shifting the responsibility to the project
applicant for hosting an initial community meeting. Additionally, Council approved the
recommendation to require an early conceptual review (float-up) by a combined body of
Planning Commission and ARB members for all Development Agreement projects.
Discussion
At its January 8, 2013 meeting Council adopted staff’s recommendations to provide
ARB review through a combined meeting of the Planning Commission and four ARB
members as a way to obtain input from ARB without adding another meeting. Staff
recommended including ARB in the float up process to provide the applicant with an
early indication of conceptual but significant design issues such as massing, scale,
form, and relationship to the surrounding context. Without an ARB float up, ARB would
not review the project until after the Development Agreement had been approved by
City Council, making it difficult to adjust major design issues prior to approval of the
project.
Although combining the ARB review with the Planning Commission was intended to
reduce the required number of meetings for the applicant, it is proving to be a challenge
in terms of scheduling demands on the part of the commissioners and board members.
Planning Commission and ARB each have regularly scheduled meetings occurring
twice per month. A combined meeting would require either an additional date for both
bodies or an additional date for ARB if the four members joined a Planning Commission
meeting. Given the constraints on commission and board members’ time, staff is now
recommending that an applicant first take the proposed project as a float up to ARB.
ARB will provide recommendations that can inform the Planning Commission float up
discussion at a subsequent meeting. Scheduling an item on an ARB agenda is
2

generally not a timing issue and should not create a delay in processing a Development
Agreement.
The revised Development Agreement process is shown in Attachment A-1 for projects
requiring an Environmental Impact Report (EIR) and in Attachment A-2 for projects that
are exempt from the California Environmental Quality Act (CEQA). Consistent with the
process changes authorized in January 2013, this recommended revision applies to all
Development Agreement projects that have not yet completed float ups, with the
exception of settlement agreements and Tier 1 or Tier 2 projects. Until tiers are defined
for the downtown district, ARB and Planning Commission float ups will be required for
projects over 60 feet within the area bounded by 2 nd Street, Wilshire Boulevard, 4 th
Street and the I-10 Freeway, and for projects over 45 feet in the remainder of the
downtown district.
Financial Impacts & Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared by: Ellen Gelbard, Assistant Director of PCD
Approved:
Forwarded to Council:
David Martin, Director
Planning and Community Development
Rod Gould
City Manager
Attachments:
A1 - REVISED processing chart for CEQA exempt projects
A2 - REVISED processing charts for projects completing an EIR
3

A-1: DA Process for Projects Subject to CEQA
Community Meeting – By Applicant
ARB Float-Up *
Planning Commission Float-Up *
City Council Float-Up
Planning Commission Hearing
City Council Hearing
ARB Hearing (Post-DA Approval)
* Tier 1 and Tier 2 Projects and specified Downtown District projects may
skip ARB and PC Float-Ups

A-2: DA Process for Projects Exempt from CEQA
Community Meeting – By Applicant
ARB Float-Up *
Planning Commission Float-Up*
Planning Commission Hearing
City Council Hearing
ARB Hearing (Post-DA Approval)
* Tier 1 and Tier 2 Projects and specified Downtown District
projects may skip ARB and PC Float-Ups

City Council Report
To:
From:
Subject:
Mayor and City Council
City Council Meeting: April 23, 2013
Karen Ginsberg, Director of Community and Cultural Services
Andy Agle, Director of Housing and Economic Development
Agenda Item: 9-A
Public Hearing and Approval of the Proposed FY2013-14 One-Year Action
Plan Allocating Federal Community Development Block Grant (CDBG)
and HOME Investment Partnership Act Program (HOME) Entitlement
Grant Funds
Recommended Action
Staff recommends that the City Council:
1. Hold a public hearing, receive public comment, and approve the Proposed
FY 2013-14 One-Year CDBG and HOME Action Plan (Attachment A).
2. Authorize the City Manager to submit all documents required to receive the City’s
annual Community Development Block Grant (CDBG) and Home Investment
Partnerships Act (HOME) entitlement grant funds to the U.S. Department of
Housing and Urban Development (HUD).
Executive Summary
To receive CDBG and HOME grant funds, the City must submit a Council-approved
One-Year Action Plan to HUD by May 15, 2013. The Action Plan outlines how the
funds will be expended and confirms that the funded activities are consistent with the
City’s Five-Year Consolidated Plan adopted by Council on May 11, 2010. The
FY 2013-14 One-Year Action Plan proposes goals, activities and specific allocations for
$3M in CDBG and HOME funds for capital projects, public service programs, tenantbased
rental assistance, operating activities and program administration. Additionally,
staff proposes the programming of $164,000 in anticipated FY 2013-14 CDBG and
HOME program income to support new and on-going projects. The FY 2013-14
entitlement allocations reflect a 5% decrease respectively to CDBG and HOME
allocation funding levels from FY 2012-13 due to sequestration. Specific appropriations
of these funds have been included in the proposed FY 2013-15 Budget and
FY 2013-14 CIP Exception Based Budget.
1

Discussion
The Proposed FY 2013-14 Action Plan details proposed program funding allocations for
CDBG and HOME funds to address the high-priority needs identified in the City’s Five-
Year Consolidated Plan. Santa Monica’s key objectives for the 2013-14 funding period
include:
• Expanding housing opportunities for low-income households through an
increase in the supply of decent, safe, and affordable housing and rental
assistance;
• Supporting efforts to help homeless or near-homeless Santa Monica residents
secure adequate temporary and permanent housing and receive necessary
supportive services;
• Improving accessibility for persons with disabilities and seniors; and completing
improvements to public facilities and/or infrastructure.
Both programs benefit residents with special needs and incomes at or below 80% of
area median income (low and moderate income). The City’s total CDBG and HOME
entitlement for FY 2012-13 was $1.5 million and the entitlement for FY 2013-14 is $1.4
million, reflecting a 5% reduction in program and administrative revenues. The FY
2013-14 funding allocations include:
• CDBG: $956,705 in new entitlement funds, $1,120,981 in prior year unallocated
entitlement funds and $87,000 in projected program income funds for capital
projects, public service and administration activities. The CDBG entitlement
award for FY 2013-14 reflects a 5% decrease of $50,353 from FY2012-13.
• HOME: $471,808 in new entitlement funds, $288,429 in prior year unallocated
entitlement funds and $77,000 in program income for tenant-based rental
assistance, mobile home improvement program and administration. The HOME
entitlement award for FY 2013-14 reflects a 5% decrease of $28,832 from
FY2012-13.
The reductions to the entitlement programs have resulted in decreased funding
available to support housing, public facility improvements, and administrative
reimbursement due to federal budget policies on sequestration. HUD has not issued
the final notice of funding. Further grant cuts could be forthcoming.
2

Due to federal spending limitations, a maximum of 15% of the entitlement amount may
be allocated to nonprofit organizations for public service support operating grants (from
$164,109 in FY2012-13 to $156,556 in FY2013-14). As a result of the FY2013-14
entitlement decrease, the City’s General Fund will absorb $7,553 in cuts to public
service activities that support permanent and supportive housing to low-income people
and families, including homeless, people with disabilities and the frail elderly. This
decrease has also reduced the City’s capacity to fund eligible capital improvement
projects moving forward. Any additional cuts to FY 2013-14 and future allocations will
limit housing, public services activities, commercial, and public facility funding.
Public Outreach
The Proposed One-Year Action Plan is available for a 30-day public review from
April 1, 2013 to April 30, 2013. Staff will incorporate changes based on the public
review process and Council discussion of the Action Plan scheduled on April 23 rd . The
Action Plan must be submitted to HUD no later than May 15, 2013.
Public Hearing
Pursuant to Municipal Code Section 2.68.050, the City has adopted a public comment
process which requires two public hearings prior to the adoption of a Consolidated Plan
and Action Plan. The Public Hearing held on January 22, 2013 and this Public Hearing,
on April 23, 2013, will satisfy the two meeting requirement to receive public input and
recommendations for the Proposed 2013-14 Action Plan.
3

Financial Impacts & Budget Actions
FY2013-14 HOME and CDBG entitlement award reductions have been included in the
City’s Proposed FY 2013-15 Biennial Budget. Due to this reduction, the City’s General
Fund will absorb $7,553 in public service activities. Staff projections for these awards
were included in various account numbers as part of the City’s Proposed FY2013-15
Budget and FY 2013-14 CIP Exception Based Budget. Projections are subject to City
Council approval.
Prepared by: Sergio Ramirez, Senior Administrative Analyst
Approved:
Forwarded to Council:
Karen Ginsberg, Director
Community and Cultural Services
Rod Gould
City Manager
Approved:
Andy Agle, Director
Housing and Economic Development
Attachments:
A. Proposed FY 2013-14 One-Year Action Plan
4

City of santa monica
2013-2014 Action Plan
March 2013

CITY OF SANTA MONICA
FY 2013-14
One-Year Action Plan
Submitted to the
U.S. Department of
Housing and Urban Development
HUMAN SERVICES DIVISION
Community and Cultural Services Department
HOUSING DIVISION
Housing and Economic Development Department
1685 Main Street, Room 212, Santa Monica, California 90401
Telephone (310) 458-8701 FAX (310) 458-3380 TDD (310) 458-8696
Website: www.smgov.net
March 26, 2013

2013-14 ACTION PLAN
Table of Contents
Executive Summary ......................................................................................................... 1
Objectives ........................................................................................................................... 1
Outcomes ........................................................................................................................... 1
Introduction .................................................................................................................... 2
Background ........................................................................................................................ 2
Resources ........................................................................................................................... 3
Goals .................................................................................................................................. 3
Public Participation ............................................................................................................. 3
2013-14 CDBG and HOME Activities ................................................................................ 4
Geographic Distribution ...................................................................................................... 6
Other Housing and Community Development Efforts ....................................................... 9
Affordable Housing Programs/Projects ................................................................................ 9
Addressing Needs of Homeless and Special Needs Populations ............................................. 9
Removal of Barriers to Affordable Housing ........................................................................... 9
Lead-Based Paint Hazard Reduction Strategy .................................................................... 10
Public Housing Initiatives ................................................................................................. 11
Fair Housing ..................................................................................................................... 11
Institutional Structure and Coordination ....................................................................... 12
Anti-Poverty Strategy .................................................................................................... 13
Obstacles to Meeting Underserved Needs ....................................................................... 14
Increase in Population Needing Assistance ........................................................................ 14
Lack of Resources ............................................................................................................. 14
Reduction in Services ........................................................................................................ 15
Accessibility ...................................................................................................................... 15
Awareness of Services ....................................................................................................... 15
CDBG and HOME Specific Requirements ........................................................................ 15
SF-424 and Certifications ................................................................................................. 15
CDBG Program ................................................................................................................. 15
HOME Program ................................................................................................................ 16
Monitoring ..................................................................................................................... 17
Project Selection ............................................................................................................... 17
Program/Project Monitoring .............................................................................................. 18
Ongoing Monitoring of Housing Projects ............................................................................ 18
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596

2013-14 ACTION PLAN
Appendices
Appendix A:
Appendix B:
Appendix C:
Appendix D:
Appendix E:
Public and Private Resources Available for Housing & Community Development
Activities
Public Participation
Proposed Projects (Table 3Cs)
HUD Tables
SF-424 and Certifications
List of Tables
Table 1 Proposed CDBG and HOME Activities and Projects, Fiscal Year 2013-14 ..................... 4
List of Figures
Figure 1 Minority Concentration Map ..................................................................................... 7
Figure 2 Low and Moderate Income Area Map ......................................................................... 8
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596

2013-14 ACTION PLAN
EXECUTIVE SUMMARY
The FY 2013-14 Action Plan is a one-year plan to address the community development and low-income
housing needs in the City of Santa Monica. Both the Consolidated Plan and the Action Plan are implemented
by the City’s Community and Cultural Services Department and the Housing and Economic Development
Department.
The City anticipates receiving $956,705 from the federal Community Development Block Grant (CDBG)
program and $471,808 in HOME Investment Partnerships Program (HOME) funds. The City will also
reprogram $1,120,981 in prior-year CDBG funds, $288,429 in prior-year HOME funds, $87,000 in CDBG
program income and $77,000 in HOME program income. HUD has not yet announced FY 2013-14
allocations for State and local jurisdictions. This Plan includes CDBG and HOME estimates based on an
anticipated 5% reduction to the FY12/13 level of funding. If the City’s actual FY 2013-14 allocations are
higher or lower than the estimates, CDBG and HOME funding for capital projects, public service and
administrative activities will be increased or decreased in order to comply with CDBG and HOME
regulations. Santa Monica has access to a variety of federal, state, and local resources to achieve its housing
and community development priorities. Specific funding resources will be utilized based on the opportunities
and constraints of each particular project or program.
City staff encouraged citizen participation throughout the Consolidated Plan and Action Plan process. This
included consulting local organizations, holding public meetings, and encouraging public comment during the
public review period. Using research and input from the public, City staff formulated the objectives and
outcomes that are briefly described below.
OBJECTIVES
The City’s key objectives for the 2013-14 funding period include the following:
• Expand housing opportunities for extremely low-income, very low-income, low-income, and
moderate-income households through an increase in the supply of decent, safe, and affordable
housing and rental assistance and services to sustain housing for special needs populations;
• Support efforts to help homeless or near-homeless Santa Monica residents secure adequate
temporary and permanent housing and receive necessary supportive services;
• Complete improvements to public facility serving priority needs populations; and
• Improve accessibility for persons with disabilities.
OUTCOMES
The City’s housing outcomes for this planning period are directed at improving housing affordability, quality,
and access; social service availability; and facility accessibility to persons with disabilities. The City anticipates
the following outcomes from its 2013-14 activities:
• About 25 households provided with rental subsidy;
• Approximately 20 homes repaired or rehabilitated;
• 240 homeless persons provided with supportive services;
• 30 households provided with adaptive home equipment modifications;
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
1

2013-14 ACTION PLAN
• 4 manufactured homes built and installed;
• Facility improvements to one community facility;
• 9 alley infrastructure improvements;
• 2 park restroom facility improvements; and
• One ADA and accessible beach walkway.
INTRODUCTION
The U.S. Department of Housing and Urban Development (HUD) requires all government entities receiving
federal Community Development Block Grant (CDBG) and HOME Investment Partnerships Program
(HOME) funds to prepare an annual Action Plan. The Action Plan outlines funding priorities and discusses
how activities will meet the community needs identified in the Consolidated Plan. The activities described in
this Action Plan are proposed to be undertaken during the period between July 1, 2013 and June 30, 2014.
The major objectives of activities undertaken during the FY 2013-14 funding year will be to:
• Expand housing opportunities for extremely low-income, very low-income, low-income, and
moderate-income households through an increase in the supply of decent, safe, and affordable
housing and rental assistance and services to sustain housing for special needs populations;
• Support efforts to help homeless or near-homeless Santa Monica residents secure adequate
temporary and permanent housing and receive necessary supportive services;
• Improve accessibility for persons with disabilities, seniors, pedestrians, and bicyclists; and
• Complete improvements to public facilities and/or infrastructure serving priority need populations.
BACKGROUND
Santa Monica comprises about 8.3 square miles of land and has more than 90,000 residents. The community’s
residents tend to be older, more educated, and higher income than the residents of Los Angeles County as a
whole. Nonetheless, Santa Monica does have a significant low-income population, in areas including the Pico
neighborhood. The community needs found within Santa Monica revolve heavily around housing
affordability, homelessness resources, and social service issues.
Over the last five years, Santa Monica has focused efforts on providing new affordable housing through new
construction, acquisition, and rehabilitation for family, senior, and special needs households, providing rental
assistance, and offering rehabilitation assistance for owners and renters. The City has also provided more than
$100 million in federal, state, and local funds to serve wide range of the service needs of lower-income
households. The City has prioritized assistance to the homeless, young children, youth, seniors, and people
with disabilities.
The City of Santa Monica Community and Cultural Services Department serves as the lead agency for the
administration of CDBG funds, while the Housing and Economic Development Department takes the lead
on HOME funds. The two departments coordinated on the development of the Consolidated Plan, which
serves as a five-year strategy to address the needs of low-income residents in Santa Monica. The plan
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
2

2013-14 ACTION PLAN
identifies community needs and provides a strategy to address those needs using CDBG and HOME funds,
as well as other federal, state, and local resources. In addition to the Consolidated Plan, the City prepares an
annual Action Plan. The Action Plan describes how funds will be spent each year to address the needs
identified in the Consolidated Plan. The Action Plan is submitted to HUD 45 days prior to the start of the
City’s fiscal year.
RESOURCES
In fiscal year 2013-14, the City anticipates receiving $956,705 in CDBG funding and $471,808 in HOME
funding. The City will also reprogram $1,120,981 in prior-year CDBG funds, $288,429 in prior-year HOME
funds, and $87,000 in CDBG program income and $77,000 in HOME program income. In order to address
community needs and the goals identified in the Consolidated Plan, the City will augment CDBG and
HOME funds using a variety of additional funding sources. These funding sources may include the City’s
General Fund, Proposition A (transit) funds, Supportive Housing Program funds, and other federal, state,
and local sources. A full listing of potential funding sources is available in Appendix A - Public and Private
Resources Available for Housing & Community Development Activities.
GOALS
Santa Monica receives CDBG and HOME funding and also uses a variety of other local, state, and federal
resources in support of housing and community development activities. The overall goal of these programs
is to serve low-income persons by developing viable urban communities through the following actions:
• Providing decent housing;
• Providing a suitable living environment; and
• Expanding economic opportunities.
The City has identified a range of goals in its 2010-2015 Consolidated Plan, and these include improving the
lives of low-income persons and special needs groups through capital improvements, social services, and
housing activities. In FY 2013-14, the City will continue to support housing rehabilitation and rental subsidy,
accessibility improvements for people with disabilities, and homeless service provision. Detailed descriptions
of the activities the City will fund or undertake during FY 2013-14 are detailed in a later section of this Action
Plan.
PUBLIC PARTICIPATION
The City of Santa Monica encourages citizen involvement in the planning, implementation and evaluation of
its housing and community development programs. The Action Plan includes activities intended to assist
residents of the City, particularly those with low incomes and those with special housing and supportive
needs. The following section details the opportunities for public involvement in the preparation of this
Action Plan.
Public Hearings
On January 22, 2013, the City Council held a public hearing to discuss budget priorities for the next fiscal
year, including the CDBG and HOME programs. Members of the public were provided with an opportunity
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
3

2013-14 ACTION PLAN
to share their perspective on needs and priorities. Additionally, on April 23, 2013, the City Council will hold
a public hearing to adopt the FY 2013-14 Action Plan.
Public Comment Period
A draft of the FY 2013-14 Action Plan is made available for public review for a 30-day period beginning
April 1, 2013 and ending April 30, 2013. The documents are posted on the City’s website and are available at
several city locations. Public comment is incorporated in Appendix B- Public Participation.
Commissions and Advisory Boards
The City has established various commissions and advisory boards comprised of interested citizens and
focused on specific topics. These bodies monitor the needs of the community and advise the City Council on
the best way to address those needs. Commission, advisory board, and task force meetings are open to the
public.
2013-14 CDBG AND HOME ACTIVITIES
Table 1 provides a description of the activities the City will fund or undertake during FY2013-14. The City
anticipates completion of all of the listed activities within the fiscal year. More detailed descriptions for each
of the activities are listed in Appendix C – Proposed Projects (Table 3Cs).
TABLE 1
PROPOSED CDBG AND HOME ACTIVITIES AND PROJECTS, FISCAL YEAR 2013-14
Project Name
Con Plan
Priority
Project Description
Annual
Goal
Funding
Tenant-Based Rental
Assistance (TBRA)
AH-1.2
The HOME TBRA program provides rental
subsidies for senior/disabled homeless persons,
victims of domestic violence, and persons at risk
of homelessness. Qualified applicants are referred
by local service agencies and qualified for the
HOME program by the Santa Monica Housing
Authority.
25 households
$310,000
HOME
Park Restroom
Accessibility
Improvements
Mobile Home
Improvement Program
CD-10.1
AH-2.2
Rehabilitation of two park restroom buildings to
bring restrooms into compliance with the
American with Disabilities Act (ADA).
Facilitate the purchase and installation of mobile
home units at Mountain View Mobile Home Park
for either rental or ownership opportunities.
2 public
facility
upgrades
4 households
$700,000
CDBG
($321,331
current year
entitlement
and $378,669
prior-year
allocations)
$472,429
HOME
($107,000 current
year entitlement;
$288,429 prioryear
allocations
and $77,000 in
program income)
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
4

2013-14 ACTION PLAN
Project Name
Con Plan
Priority
Project Description
Annual
Goal
Funding
Residential Repair
Program
Home Access Program
AH-2.3
SP-3.1
The City will offer a residential repair and
rehabilitation program for housing units owned or
occupied by low-income households.
This program provides minor home modifications
for low-income persons with disabilities.
20 households
30 persons
$510,000
CDBG
($423,000 prioryear
allocation
and $87,000 in
program
income)
$37,377
CDBG
Chronic Homeless
Program
H-1.2
Provide assertive outreach and intensive case
management to chronically homeless persons in
the CHP Assertive Case Management and
Homeless Community Court Programs.
50 persons
$72,469
CDBG
Family Self Sufficiency
Program
H-1.2
This program assists families participating in the
Housing Choice Voucher program in achieving
economic independence and securing a living
wage within five years.
$64,174
CDBG
Shelter Plus Care
Program
Sanctuary
H-1.2
H-1.2
This program assists homeless persons with
disabilities to obtain and maintain housing
through the provision of comprehensive case
management services and rental assistance.
This program provides case management,
vocational training, benefits assistance, permanent
housing retention, and other services to formerly
homeless persons with mental illness.
190 persons
$3,487
CDBG
$16,426
CDBG
Accessible Beach
Walkway
Alley Improvement
Project
Facility Improvements to
Community Facility
(Senior)
CD-10.1,
CD-12.2
CD-12.1
CD-12.1
Construction of an accessible walkway at South
Beach Park to go beyond ADA requirements to
maximize the inclusion of children with various
types of disabilities.
Improvements to infrastructure in low to
moderate income areas.
The facility improvements will upgrade and
improve existing community facilities to meet the
needs of the community, especially persons of low
and moderate income and those with special
needs.
1 public
facility project
5
infrastructure
improvements
1 public
facility project
$154,000
CDBG
$297,212
CDBG (prioryear
allocation)
$100,800
CDBG
($70,000
current year
entitlement and
$30,800 prioryear
allocation)
HOME Program
Administration
PA-1.1
Administer the HOME program in compliance
with federal regulations and local policies.
N/A
$54,808
HOME
CDBG Program
Administration
PA-1.1
Administer the CDBG program in compliance
with federal regulations and local policies.
N/A
$208,741
CDBG
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
5

2013-14 ACTION PLAN
GEOGRAPHIC DISTRIBUTION
Depending on the type of need being addressed, resources may or may not be geographically targeted. Most
of the City’s FY 2013-14 programs and projects will be available to residents citywide. The projects below will
be available in specific areas:
• An accessible beach walkway will be completed at South Beach Park, located at 3400 Barnard Way,
adjacent to Santa Monica State Beach.
• The Mobile Home Improvement Program will be offered at the Mountain View Mobile Home Park,
located at 1930 Stewart Street.
• Facility Improvements will be made to the Ken Edwards Center, located at 1527 4 th Sreet.
• Rehabilitation of two park restrooms to bring restrooms into compliance with ADA; located at
2351 3 rd Street (Hotchkiss Park) and 1406 Marine Street (Marine Park).
Figure 1 shows the map of areas with minority concentrations, and Figure 2 depicts a map of low-income
areas in the City of Santa Monica. Assistance to improve public facilities may be provided outside of lowincome
areas if the project primarily benefits low-income households or persons presumed to be low-income,
such as adults with disabilities.
Public services are not geographically targeted. Services will be provided in such a manner as to provide the
greatest level of availability to the widest area possible.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
6

2013-14 ACTION PLAN
Figure 1
Minority Concentration Map
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
7

2013-14 ACTION PLAN
Figure 2
Low and Moderate Income Area Map
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
8

2013-14 ACTION PLAN
OTHER HOUSING AND COMMUNITY DEVELOPMENT
EFFORTS
Santa Monica has access to a variety of federal, state, and local resources to achieve its housing and
community development priorities. These funding sources include CDBG, HOME, Housing Choice
Voucher, Family Self Sufficiency, and Shelter Plus Care, among others. The City also makes available local
funding in support of housing and community development priorities. Specific funding resources will be
utilized based on the opportunities and constraints of each particular project or program. The funding
resources table in Appendix A identifies the potential sources of funding available to carry out housing and
community development activities in Santa Monica.
The City will continue to support a wide range of housing and community development activities in FY 2013-
14. To the greatest extent possible, the City will seek to leverage funding from other public and private
entities to strengthen programs and activities established in the Consolidated Plan and this Action Plan. Local
funding sources, housing trust funds, and private conventional loans will be used as the local match for the
City’s HOME program funds.
AFFORDABLE HOUSING PROGRAMS/PROJECTS
The City works in partnership with affordable housing developers, primarily non-profits, to acquire, maintain,
rehabilitate, and develop new affordable housing units in Santa Monica. The City administers four affordable
housing trust funds, implements an Affordable Housing Production Program and a Rent Control Charter
Amendment, and administers a Section 8 housing assistance program to preserve affordable housing
opportunities throughout the City.
ADDRESSING NEEDS OF HOMELESS AND SPECIAL NEEDS POPULATIONS
The City plans to use its CDBG funds to promote the local provision of services for low-income Santa
Monica residents. Several of the City’s proposed FY 2013-14 programs will directly benefit special needs
groups, including people with disabilities (Home Access Program) and homeless (various supportive
assistance and housing programs). Homeless program priorities are based on the Action Plan to Address
Homelessness, which prioritizes housing and care for long term chronically homeless Santa Monica residents,
including chronically homeless veterans. The City also has a Human Services Grants Program, which
provides approximately $7.5 million annually to more than 50 programs, most of whom serve special needs
populations.
REMOVAL OF BARRIERS TO AFFORDABLE HOUSING
As defined by the Consolidated Plan regulations, a barrier to affordable housing is a public policy such as land
use controls, property taxes, zoning ordinances, building codes, fees and charges, growth limits, and other
policies that limits access to or the development of affordable units. The City will continue to monitor,
analyze, and address market conditions and governmental factors that may act as a barrier to affordable
housing.
The State of California requires each city and county to prepare a Housing Element every five years. The
Housing Element includes an analysis of constraints to housing , and programs as well as strategies to reduce
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
9

2013-14 ACTION PLAN
or remove those constraints. Constraints that must be addressed include public policies and regulations that
limit the availability of housing, particularly affordable housing.
Market factors that tend to restrict affordable housing production are high land costs, high construction
costs, and inadequate financing to subsidize the creation of affordable housing. The City has little influence
on land costs or construction costs. The City does, however, have an active program in place to make
financing available for affordable housing projects and assists with site acquisition, although this effort has
been significantly impacted by the dissolution of redevelopment agencies by the California legislature and the
associated loss of redevelopment tax increment funding. The City also continues to monitor, analyze, and
address governmental regulations, land use controls, and residential development standards that affect the
production and preservation of affordable housing.
In November 2008, the City adopted the 2008-2014 General Plan Housing Element which sets forth the
City’s strategies to preserve and enhance the community’s character, expand housing opportunities for all
economic segments, and provide guidance for local government decision making in all matters related to
housing. Additionally, the City is currently preparing a draft of the next Housing Element for the period
2014 – 2021.
In July 2010, the City adopted the Land Use and Circulation Element (LUCE) which encompasses the
community’s visions for Santa Monica’s future. The Plan is designed to maintain our City’s character, protect
our neighborhoods, manage our transportation systems, and encourage additional housing in a sustainable
manner that ensures a high quality of life for all Santa Monicans now and in the future.
LEAD-BASED PAINT HAZARD REDUCTION STRATEGY
An estimated 11,250 housing units occupied by low-income households in Santa Monica may contain leadbased
paint. To reduce lead-based paint hazards, the City takes the following actions:
• Report incidents of lead-poisoning to the United States Department of Housing and Urban
Development.
• Incorporate lead-based paint hazard reduction procedures into rehabilitation guidelines and include
abatement costs as part of the subsidy.
• Develop and distribute lead-based paint reduction and abatement information to all landlords,
managers, tenants, or owner-occupants of rehabilitation properties, as well as to community groups.
• Work cooperatively with its nonprofit housing providers and community health organizations to
provide educational material and identify potential sources of lead-poisoning in City-assisted
affordable housing projects.
• Provides housing quality standards to inspections of Section 8 units and assesses risks of exposure to leadbased
paint for households with children six years of age and under.
• Address blight in individual buildings by eliminating specific conditions that present health and safety
hazards to the public.
• Provide lead-based paint testing and remediation to existing single- and multi-family units, targeting
low and moderate income households.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
10

2013-14 ACTION PLAN
Lead-based paint testing and remediation is an eligible expense in the City’s Residential Repair Program,
funded at $510,000 in FY 2013-14, which also provides funds for general rehabilitation of existing single- and
multi-family units owned or rented by low-income households.
PUBLIC HOUSING INITIATIVES
The City of Santa Monica does not own or operate any public housing. The Housing Authority of the County
of Los Angeles (HACOLA) owns and operates five public housing projects in Santa Monica. These projects
contain a total of 81 units. HACOLA has resident managers at these projects and has in place a
modernization program to improve the living environment of each project. HACOLA encourages
participation of residents in the operation, management, and modernization of the public housing properties
they own and operate.
FAIR HOUSING
Affirmatively Furthering Fair Housing
Fair housing is crucial to ensuring that persons of all income levels have equal access to housing. HUD
requires that jurisdictions receiving federal funds commit to affirmatively further fair housing. According to
HUD, a fair housing impediment is considered to be “any actions, omissions, or decisions which have the
effect of restricting housing choices or the availability of housing choices because of race, color, religion, sex,
disability, familial status, or national origin.”
Analysis of Impediments to Fair Housing Choice
A key part to affirmatively further fair housing is the preparation of an Analysis of Impediments to Fair
Housing Choice (AI) which was completed in 2012. The City of Santa Monica’s 2012 AI analyzed possible
impediments to fair housing choice. The report is available at: http://www.smgov.net/departments/
council/agendas/2012/20121127/s2012112709-B-1.pdf
Actions Taken to Address Fair Housing Issues
The City of Santa Monica’s Consumer Protection Unit in the City Attorney’s Office takes an active role in
ensuring fair housing opportunities. The Consumer Protection Unit has two primary responsibilities:
• Enforcing local, state, and federal laws to assure that consumers are treated fairly and lawfully.
• Investigating complaints involving charges of discrimination based on race, age, children, marital
status, sex, sexual orientation, national origin, disability, religion, or infection with AIDS.
In addition to fair housing complaint investigation, the Consumer Protection Unit also educates landlords
and the real estate community on fair housing laws, provides mediation services, and conducts community
outreach throughout the year.
The City’s Rent Control Board also monitors evictions and advises Santa Monica tenants of their rights. Santa
Monica’s Just Cause Eviction and Tenant Harassment laws, among others, help to assure that tenants are not
discriminated against by building owners.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
11

2013-14 ACTION PLAN
Other agencies, such as the Santa Monica Housing Authority, Legal Aid Foundation of Los Angeles,
California Department of Fair and Equal Housing, and HUD also offer assistance to persons with fair
housing issues.
New housing development subsidized by federal funding must have an Affirmative Fair Housing Marketing
Plan, which sets the steps that developers or property managers must take to reach out to various populations
during the property rental or sale. The Marketing Plan specifically targets potential tenants, underrepresented
minorities, economically disadvantaged populations and low-income homebuyers to better integrate them
into the community.
INSTITUTIONAL STRUCTURE AND COORDINATION
Implementation of CDBG and HOME funds are shared by the Community and Cultural Services
Department (CCS) and the Housing and Economic Development Department (HED). The Human Services
Division of the CCS oversees CDBG funding, while the Housing Division of HED oversees HOME
funding. The two agencies work closely to ensure they meet shared project goals and take a consistent
approach to administering projects. In addition, these divisions work with public agencies, for-profit, and
non-profit organizations that play a part in the provision of affordable housing and community services.
Social service delivery and housing production and rehabilitation in Santa Monica by non-profit agencies is
coordinated through the City’s annual funding process. The City Council approves projects and programs
that meet the City’s goals. In addition, there is the Westside Shelter and Hunger Coalition (WSHC) with
representatives from agencies involved with emergency shelter, affordable housing, and supportive services
on the westside of Los Angeles. WSHC meets regularly to coordinate efforts, including lobbying the county,
state, and federal government. The City administers the Trades Intern Program to promote the active
creation of jobs targeting low-income youth and adults.
The City of Santa Monica has established a number of commissions staffed by interested citizens to monitor
the needs of specific groups and advise the City Council on the best way to address these needs. They are the
Housing Commission, Social Services Commission, Disabilities Commission, Planning Commission,
Recreation and Parks Commission, Commission for the Senior Community, and Commission on the Status
of Women.
The City works closely with a network of other private and public entities that constitute a comprehensive
network of resources. These include key public and quasi-public agencies, coalitions and groups, including the
California Department of Housing and Community Development, California Employment Development
Department, Federal Emergency Management Agency, Los Angeles County Department of Child and Family
Services, Los Angeles County Department of Health, Los Angeles County Department of Mental Health, Los
Angeles County Department of Public Social Services, Los Angeles Homeless Services Authority, Los
Angeles County Housing Authority, Santa Monica-Malibu Unified School District, United Way, and Westside
Council of Governments.
The City also partners with over 30 local non-profit organizations to ensure the adequate provision of
housing and community services in Santa Monica. More information on the City’s non-profit partners can be
found in the 2011-15 Human Services Grants Program plan.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
12

2013-14 ACTION PLAN
ANTI-POVERTY STRATEGY
The objectives and strategies of this Plan are generally focused on reducing the number of families in poverty,
improving the quality of life for the poorest of families, and lessening the impacts of poverty. Strategies
include those addressing affordable housing, special needs housing, homelessness, public facilities, public
improvements, and economic development.
The movement of people above the poverty line involves a variety of policies and programs that extend
beyond providing opportunities for employment at a living wage. Access to education, transportation,
childcare, and housing are key components that can assist persons to secure and retain economically selfsustaining
employment. The City will employ a variety of strategies to help alleviate poverty, including efforts
to stimulate economic growth and job opportunities, and to provide Santa Monica residents with the skills
and abilities required to take advantage of those opportunities.
On a macro scale, California attempts to fight poverty with the CalWORKS program, which is designed to
move welfare recipients from dependency to self-sufficiency through employment, and to divert potential
recipients from dependency. The program’s goal is to identify sufficient employment opportunities with
sustainable income levels for people transitioning off of welfare. Job-related education and training are
provided through the county, private industry and educational institutions.
The City will support programs that provide the following services that assist families and individuals living in
poverty:
• Job development and placement for internship, apprenticeship, and permanent employment
opportunities with a focus on career-track jobs;
• Educational enrichment, skill-building, and parental support to encourage children and youth to be
healthy, succeed in school, avoid gang activity, and prepare for productive adulthood;
• Legal services to include brief service and full representation in landlord/tenant matters, public
benefits assistance, immigration, discrimination, consumer affairs, and other critical legal aid;
• Independent living skills and assistance, and peer counseling to ensure full self-sufficiency and
independence among elderly and disabled individuals;
• Child care and after-school program subsidies, financial assistance, and assistance to working parents;
and
• Free health care, including mental health counseling, and supportive service assistance to extremely
low, very low, and low-income Santa Monica residents including vital assistance to those with
HIV/AIDS.
The City will seek to leverage other federal, state, and local funds to assist homeless and near-homeless
households with rental assistance, housing search and placement, and legal and credit repair services.
The City has sought to create jobs through the establishment of development agreements executed prior to
major commercial developments that give local preference to hiring Santa Monica residents. In addition to
City-supported employment programs, City staff works with local agencies focused on employment to
develop policies and programs that promote job placement and job creation targeting low-income youth and
adults.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
13

2013-14 ACTION PLAN
OBSTACLES TO MEETING UNDERSERVED NEEDS
Santa Monica, like the rest of California and the U.S., has faced significant challenges related to the economic
downturn. Unemployment rates are still above eight percent. City revenues are projected to be relatively flat
as major tax sources, including sales, transient occupancy, utility users, property, and business license taxes,
are impacted by the recession, and in some cases may take several years to recover. The City will continue to
monitor the sequestration order issued on March 1, 2013 that cancelled approximately $85 billion in
budgetary resources across the Federal Government and align resources to best serve priority populations.
The recession and federal, state, and county funding cutbacks, including changes to the welfare system, have
all impacted the City’s ability to address the social service and housing needs in Santa Monica.
On December 29, 2011, the California Supreme Court issued an opinion to uphold Assembly Bill 26, which
required the dissolution of redevelopment in California, effective February 1, 2012. This decision is
devastating for Santa Monica as redevelopment was the principal funding source for the community’s priority
projects including affordable housing. Over the past 10 years, the Santa Monica Redevelopment Agency
invested nearly $300 million in the community, with approximately half of those funds used to finance 1,700
units affordable to low income working families and individuals. The loss of redevelopment essentially
destroys the City’s ability to continue its affordable housing program. Prior to dissolution, redevelopment
funds of nearly $283 million were planned to be invested over the next five years to fund capital
improvement projects and affordable housing. In terms of economic development and jobs, using federal
ARRA stimulus standards, the new construction and rehabilitation projects associated with the $283 million
investment would have created over 5,000 full-time-equivalent construction-related jobs. Given the loss of
redevelopment funds, the City will need to explore opportunities to secure other sources to address the
community’s affordable housing needs.
Discussions with City staff, non-profit service providers, and City commissions and boards provided insight
into specific challenges to meeting underserved needs.
INCREASE IN POPULATION NEEDING ASSISTANCE
There are a greater number of people seeking assistance, including people who have not previously required
housing or social service assistance. These households are not familiar with navigating the social service
agency programs. In the past, these “first-time assistance” households needed only one-time or very shortterm
assistance to recover economic stability. However, the current average length of job search has
stretched to seven months, which means these households require longer-term assistance.
LACK OF RESOURCES
A common theme is that the resources available to address underserved needs are not sufficient and have
declined with the economic downturn while need has increased. Resources at non-profit agencies are
generally less than required to meet the level of need and include funding, staff, staff with the appropriate
skills and knowledge, facilities, and leadership.
Despite the very large amounts of funding put forth by the City and private sources in support of housing
and community development activities, more funding is needed. Many organizations have experienced a drop
in private donations as households impacted by the economic recession have less discretionary income to
donate to nonprofit groups.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
14

2013-14 ACTION PLAN
REDUCTION IN SERVICES
The City, State of California, and many non-profits face stagnating revenues or budget deficits. When other
funding sources cannot be found to supplant those lost, service cutbacks are often the only way to balance
budgets. The State of California has cut many social service programs, and is considering more and deeper
cuts that will negatively impact low-income households.
ACCESSIBILITY
Lack of accessibility to services can be the result of lack of transportation for those in need, services that are
not delivered in a culturally appropriate manner or in the appropriate language, burdensome prerequisites to
accessing services (“red tape”), and services that are not provided in proximity to those in need.
Lack of transportation is a particular challenge for those who do not drive, do not have a car, or are elderly
and for persons with disabilities. Transportation to services needs to be appropriate for the population in
need, such as “door-through-door” transit for the elderly and persons with disabilities. In 2012, the City was
awarded $469,971 for three-years to expand door-through-door escorted transportation services to seniors
and people with disabilities through the Federal Transit Administration’s New Freedom program.
AWARENESS OF SERVICES
The lack of awareness of the availability of services by those in need and a lack of knowledge about how to
access services are significant obstacles to the provision of services. Outreach to those in need should be
significant and culturally appropriate.
The City will continue to assess the increased demand for affordable housing, employment, childcare, and
other supportive services. To avoid duplication of efforts and improve the effectiveness of limited funding,
the City will continue to work in collaboration with surrounding jurisdictions, non-profit organizations, and
other community groups to coordinate and monitor the delivery of social services. This entails working with
groups including, but not limited to, the Westside Shelter and Hunger Coalition, the Child Care & Early
Education Task Force, the Domestic Violence Network, Cradle to Career, and others to identify and meet
critical gaps in services. Fund leveraging, resource development, and coordination of services are critical
activities that will be undertaken to address significant budget and programmatic constraints.
CDBG AND HOME SPECIFIC REQUIREMENTS
SF-424 AND CERTIFICATIONS
The SF-424 (Application for Federal Assistance) and HUD-required CDBG and HOME certifications are
included in Appendix E – SF-424 and Certifications.
CDBG PROGRAM
The Listing of Proposed Projects describes the activities with respect to all CDBG funds expected to be
available during FY 2013-14. The City anticipates receiving approximately $87,000 in program income in
FY 2013-14. This Plan includes CDBG estimates based on an anticipated 5% reduction to the FY 2012-13
level of funding. If the City’s actual FY 2013-14 allocations are higher or lower than the estimates, CDBG
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
15

2013-14 ACTION PLAN
funding for capital projects, public service and administrative activities will be increased or decreased in order
to comply with CDBG regulations.
It is anticipated that 100 percent of the CDBG entitlement amount for FY 2013-14 will be used specifically
for activities that benefit persons of low- and moderate-income. In addition, there are no "urgent need"
activities, as defined by HUD, requested in CDBG funds for FY 2013-14.
HOME PROGRAM
The Listing of Proposed Projects describes the activities with respect to all HOME funds expected to be
available during FY 2013-14. The City anticipates using approximately $77,000 in program income in
FY 2013-14. This Plan includes HOME estimates based on an anticipated 5% reduction to the FY12/13 level
of funding. If the City’s actual FY 2013-14 allocations are higher or lower than the estimates, HOME funding
for capital projects, public service and administrative activities will be increased or decreased in order to
comply with HOME regulations.
The following topics cover Santa Monica's specific regulations for HOME funded activities.
Affirmative Marketing
Santa Monica has adopted the following affirmative fair housing marketing guidelines for use of HOME
funds:
• No person shall on the grounds of race, color, national origin, religion, or sex be excluded from
participating in, be denied the benefits of, or be subjected to discrimination under any program or
activity funded in whole or in part with HOME funds.
• The funded agency must establish an affirmative marketing and tenant selection plan for each project
containing five or more units. The plan shall describe the marketing efforts and tenant selection
procedures to attract eligible persons from all racial, ethnic, and gender groups in the housing market
area to the available housing. The marketing and tenant selection plan shall be submitted with the
loan application.
Resale Provisions
The City is exploring the opportunity to use funds for homeownership in the Mountain View Mobilehome
Park and if funds are used to facilitate homeownership then resale provisions will apply. The City uses local
funding sources (TORCA, Inclusionary Housing Trust Fund) for ownership programs, and has adopted
resale provisions under these programs.
Set-aside for Community Housing Development Organizations (CHDOs)
The City has committed over 45% of its cumulative HOME allocation for investment in rental housing (new
construction, acquisition and rehabilitation) developed by its CHDOs, exceeding the HOME program’s
requirement to reserve at least 15 percent of each year’s HOME allocation for this purpose.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
16

2013-14 ACTION PLAN
Matching Contribution
The City has provided annual non-federal and state matching contributions well in excess of the required 25
percent of the HOME funds draw for affordable housing and maintain a credit balance. Match contributions
have traditionally been made from redevelopment housing funds, but since California State Legislature
dissolved redevelopment agencies and the associated funding source during FY13-14, matching funds will
come from other locally generated funds.
On-Site Inspection Requirements
The City of Santa Monica conducts on-site HOME property inspections regularly to ensure that HOME
funded properties continue to meet or exceed applicable property standards. HOME units are required to be
inspected by City staff according to the following schedule: 1-4 units every three years; 5-25 units every two
years and 26 or more units annually. City staff visits a randomly selected group of units, completes an On-site
HOME Property Inspection Report, and maintains the reports in the project files located in the Housing
Division.
Refinancing Policy
The City of Santa Monica, per the City Council adopted HOME Housing Trust Fund Guidelines, provides
long-term 55 year residual receipt loans to non-profit organizations to build new or acquire and rehabilitate
property for affordable housing. Financing costs are allowed per the trust fund guidelines provided the
“financing costs (are) as described in 24 CFR 92.206”. Requests for HOME financing and refinancing are
reviewed by Housing staff and presented to the Housing Loan Committee to ensure all HOME loans are in
conformance with 24 CFR Part 92.
MONITORING
The City currently uses various administrative mechanisms to track and monitor progress of HUD-funded
projects and activities that are under its control and jurisdiction. The goal is to ensure that Consolidated Planrelated
programs and activities are carried out in a timely manner in accordance with federal regulations and
other statutory or regulatory requirements. The primary monitoring goals of the City are:
• Provide technical assistance to grant administrators and staff.
• Ensure activities are carried out in compliance with federal, state, and local requirements.
• Identify deficiencies and promote corrections in order to improve the City’s ability to adhere to the
Consolidated Plan objectives and annual goals.
PROJECT SELECTION
All Requests for Proposal (RFPs), loans, and contracts are reviewed carefully to ensure compliance with
HUD and local requirements for program delivery, financial management, procurement, personnel matters,
and other such requirements. Subrecipients are also required to enter into agreements that specify objectives,
scope of work, applicable timelines and performance targets, budget, federal, state, and local regulatory
requirements, and monitoring and reporting requirements.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
17

2013-14 ACTION PLAN
PROGRAM/PROJECT MONITORING
To ensure the accomplishments of the goals and objectives, the City is involved with administration and
coordination of all City-funded programs and related activities. An inter-departmental team, which consists of
project managers and relevant City staff, meets quarterly to monitor the progress of CDBG- and HOMEfunded
projects. City staff in a number of departments and divisions, including Human Services, Housing and
Economic Development, Engineering, and other key offices, provides technical assistance as needed to
subrecipients.
During project implementation, subrecipients are required to submit periodic progress reports detailing
project progress toward objectives, problems and/or resolution to meeting goals, and quantitative
participation data by ethnicity, income, and household status. Periodic reports and payment requests are
reviewed for compliance with the project agreement, budget consistency, and documentation of expenditures.
Subrecipients are advised of any procedural errors and/or ineligible activities, and provided with technical
assistance as needed.
Upon project completion, project sponsors are required to submit completion reports identifying
program/project accomplishments, including number of persons or households served, ethnicity, and income
level.
Projects are subject to an on-site performance and financial audit review on a selective basis during project
implementation or upon completion of a project. Priority for on-site performance and/or audit review is
given to high-risk programs.
ONGOING MONITORING OF HOUSING PROJECTS
Affordable housing development projects must submit annual compliance reports throughout the period of
required affordability. These reports are designed to ensure continued compliance with federal regulations,
affordability and use restrictions, and other requirements as specified in project loan documents. In addition,
all HOME and CDBG-assisted projects will be subject to periodic on-site inspections to ensure continued
compliance with federal housing quality standards.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
18

APPENDIX A – FEDERAL, STATE AND
LOCAL RESOURCES

APPENDIX A
FEDERAL, STATE, AND LOCAL RESOURCES
Santa Monica has access to a variety of federal, state, and local resources to achieve its housing and
community development priorities. Specific funding resources will be utilized based on the opportunities and
constraints of each particular project or program. The table below identifies the potential sources of funding
available to carry out housing and community development activities in Santa Monica.
The City receives entitlement grants from the U.S. Department of Housing and Urban Development (HUD)
through the HOME Investment Partnerships Program (HOME) and the Community Development Block
Grant (CDBG) Program, and administers a variety of HUD-assisted programs including Housing Choice
(Section 8) Vouchers, Family Self-Sufficiency, and Shelter Plus Care programs. In addition, the City provides
funding to housing and community development activities through its own local resources. The table below
identifies the CDBG and HOME funds available to Santa Monica for FY 2013-14.
The City will continue to support a wide range of housing and community development activities in FY 2013-
14. To the extent possible, the City will seek to leverage funding from other public and private entities to
strengthen programs and activities established in the Consolidated Plan and this Action Plan. Local funding
sources, including redevelopment set-aside, housing trust funds, and private conventional loans will be used
as the local match for the City’s HOME program funds.
PUBLIC AND PRIVATE RESOURCES AVAILABLE FOR
HOUSING AND COMMUNITY DEVELOPMENT ACTIVITIES
Program Name Description Eligible Activities
Federal Programs
Community
Block Grant
HOME
Development
Section 8
Rental Assistance Program
Shelter Plus Care Program
Grants awarded to the City on a formula
basis for housing and community
development activities. The City estimates
receiving $956,705 from the federal
Community Development Block Grant
(CDBG) program
Flexible grant program awarded to the City
on a formula basis for housing activities.
The City estimates receiving $471,808 in
HOME Investment Partnerships Program
(HOME) funds.
Rental assistance payments to owners of
private market rate units on behalf of very
low-income tenants.
Vouchers for rental assistance that are
offered with support services to homeless
with disabilities. Rental assistance can be:
Section 8 Moderate Rehabilitation (SRO)–
project-based rental assistance
administered by the local PHA with state
or local government application.
• Acquisition
• Rehabilitation
• Home buyer assistance
• Economic development
• Homeless assistance
• Public services
• Acquisition
• Rehabilitation
• Home buyer assistance
• Rental assistance
• Rental assistance
• Rental assistance
• Homeless assistance
• Support services
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
A-1

APPENDIX A
Program Name Description Eligible Activities
Sponsor-Based Rental Assistance - provides
assistance through an applicant to a private
non-profit sponsor who wins or leases
dwelling units in which participating
residents reside.
Tenant-Based Rental Assistance (TBRA) -
vouchers for rental assistance.
Project-Based Rental Assistance - grants to
provide rental assistance through contracts
between grant recipients and owners of
buildings.
Section 108 Loan Provides loan guarantee to CDBG
entitlement jurisdictions for pursuing large
capital improvement or other projects. The
jurisdictions must pledge it to future CDBG
allocations for repayment of the loan.
Maximum loan amount can be up to five
times the entitlement jurisdiction’s most
recent approved annual allocation.
Maximum loan term is 20 years.
Supportive
Program (SHP)
Housing
Serial Inebriate Program
(SIP)
Federal Transit
Administration New
Freedom Program
Grants for development of supportive
housing and support services to assist
homeless persons in the transition from
homelessness.
Outreach and intervention program to
engage chronically homeless serial
inebriates into housing and services.
Provides permanent housing for residents
willing to participate in treatment, and
works to reduce the number of contacts
these individuals have with local emergency
services.
Funding in the amount of $469,971 over
three years was awarded to the City of
Santa Monica (through the Los Angeles
Metropolitan Transportation Authority) for a
door-through-door paratransit program for
persons with disabilities, including older
adults. The program will provide escorted
rides weekdays to and from locations within
the City of Santa Monica and to selected
healthcare providers outside of the City.
• Acquisition
• Rehabilitation
• Home buyer assistance
• Economic development
• Homeless assistance
• Public services
• Transitional housing
• Permanent housing for
persons with disabilities
• Supportive housing
• Support services
• Safe havens
• Housing
• Homeless assistance
• Ride attendants
• Vehicle operation and
maintenance
• Vehicle acquisition
2013-14 Action Plan City of Santa Monica
DUNS # 074152596 March 2013
A-2

APPENDIX A
Program Name Description Eligible Activities
State Programs
School Facilities Program
Multifamily
Programs (MHP)
Housing
California Housing Finance
Agency (CalHFA)
Low-Income Housing Tax
Credits (LIHTC)
Local Programs
Tenant Ownership Rights
Charter Amendment
(TORCA)
Shared
Appreciation Loan Program
Affordable
Production
(AHPP)
Housing
Program
A down payment assistance program using
school facility fees collected from developers.
Low-income buyers of affordable housing
are eligible to receive down payment
assistance from the State.
Tax-exempt bonds (Proposition 46) provide
below-market interest rate financing to
builders and developers of multiple-family
and elderly rental housing. For public
entities, for-profit, and non-profit agencies.
CalHFA sells tax-exempt bonds (Proposition
46) to make below market loans to first time
homebuyers. Program operates through
participating lenders who originate loans for
CalHFA purchase.
Federal and State tax credits enable
developers to raise equity through the sale
of tax benefits to large investors for the
construction of affordable rental housing.
TORCA tax revenues shall be used for
homeownership and for the development of
low/mod income rental housing.
Developers of market-rate housing may
satisfy their AHPP requirement by providing
on-site or off-site units at below market
rents to low-income households or deeding
land to City or payment of an affordable
housing fee.
Development Agreements City receives revenues for affordable
housing as part of negotiated development
agreements.
Office Mitigation Local program requiring developers of
commercial office space to either provide
low-income housing or pay an in-lieu fee.
• Down payment assistance
• New construction,
rehabilitation, and
preservation of permanent
and transitionalrental
housing for low-income
households
• First-time home buyer
assistance
• Multi-family new
construction and
preservation loans
• Mortgage insurance
• New construction
• Acquisition and
rehabilitation of eligible
projects
• Acquisition
• Rehabilitation
• New construction
• Home ownership loans
• New construction
• Acquisition
• Rehabilitation
• New construction
• Child care services
• Acquisition
• Rehabilitation
• New construction
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
A-3

APPENDIX A
Program Name Description Eligible Activities
General Fund
County Proposition A
Funds
Private Resources/Financing Programs
Federal National Mortgage
Association (Fannie Mae)
Federal Home Loan Bank
Affordable Housing
Program (AHP)
The City’s General Fund is funded by a
number of taxes, and can be used to
support activities that meet the City’s goals.
Approved by Los Angeles County voters in
1980. It increased the sales tax by 0.5 cents
for purchases within the County. The Prop
A monies are used to fund public transit
within the County.
Loan applicants apply to participating
lenders for the following programs:
Fixed rate mortgages issued by private
mortgage insurers.
Mortgages, which fund the purchase and
rehabilitation of a home.
Low down-payment mortgages for Single-
Family Homes in underserved low-income
and minority communities.
Direct subsidies to non-profit and for-profit
developers and public agencies for
affordable low income ownership and rental
projects.
• Social service delivery
• Emergency housing
assistance
• Public transit
• Home buyer assistance
• Rehabilitation
• New construction
Freddie Mac Home Works - Provides 1st and 2nd
mortgages that include rehabilitation loan.
City provides gap financing for
rehabilitation component.
Households earning up to 80% MFI qualify.
Lease Purchase
Program
The City could participate in a Joint Powers
Authority that issues tax-exempt bonds.
Bonds enable City to purchase homes for
households earning up to 140% MFI. JPA
pays 3% down and closing costs. Lease
purchasers make monthly payments
equivalent to mortgage payments with the
option to buy after three years.
• Home buyer assistance
combined with
rehabilitation
• Home buyer assistance
2013-14 Action Plan City of Santa Monica
DUNS # 074152596 March 2013
A-4

APPENDIX B – PUBLIC PARTICIPATION

APPENDIX B
PUBLIC PARTICIPATION
Copies of the public hearing notices are available at the City’s Community and Cultural Services Department,
Human Services Division. The City will incorporate any comments received during the public comment
period.
City of Santa Monica
March 2013
B-1
2013-14 Action Plan

APPENDIX C – PROPOSED PROJECTS

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
AH-1.2
Project Title
Tenant-Based Rental Assistance (TBRA)
Description
The HOME TBRA program provides rental subsidies for senior/disabled homeless persons, victims of domestic
violence, and persons at risk of homelessness. Qualified applicants are referred by local service agencies and
qualified for the HOME program by the Santa Monica Housing Authority.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Citywide
Objective Number
Project ID
AH-1.2 13-01
HUD Matrix Code
HOME Citation
05S 92.209
Type of Recipient
CDBG National Objective
City
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Households assisted 25
Local ID
Units Upon Completion
13-01 25
Funding Sources:
CDBG
ESG
HOME $310,000
HOPWA
Total Formula
Prior Year Funds
Assisted Housing
PHA
Other Funding
Total $310,000
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
AH-2.3
Project Title
Residential Repair Program
Description
The City provides financial assistance for a variety of repairs through two programs: (1) the Multi-Family Rental
Rehabilitation Program for owners of multi-family rental properties occupied by low-income tenants; and (2) the
Owner-Occupied Rehabilitation Program for low-income owners. Eligible repairs include such items as health
and safety code violations, testing and remediation of environmental hazards such as lead-based paint, unsafe or
inoperable electrical wiring or fixtures, unsanitary plumbing fixtures, leaking roofs, peeling interior/exterior paint,
accessibility improvements such as ramps, and other general repairs.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Citywide
Objective Number
Project ID
AH-2.3 13-02
HUD Matrix Code
CDBG Citation
14B 570.202
Type of Recipient
CDBG National Objective
City
LMH
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Units Rehabilitated 30
Local ID
Units Upon Completion
13-02 30
Funding Sources:
CDBG
ESG
HOME
HOPWA
Total Formula
Prior Year Funds $423,000
Assisted Housing
PHA
Other Funding-Program Income $87,000
Total $510,000
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
AH-2.1 and AH-2.2
Project Title
Mobile Home Improvement Program
Description
Facilitate the purchase and installation of manufactured homes (mobile homes) at Mountain View Mobile Home
Park for either rental or ownership opportunities.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Mountain View Mobile Home Park
Objective Number
Project ID
AH-2.2 13-03
HUD Matrix Code
HOME Citation
01 92.252 & 92.254
Type of Recipient
CDBG National Objective
City
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Housing unit provided 4
Local ID
Units Upon Completion
13-03 4
Funding Sources:
CDBG
ESG
HOME $107,000
HOPWA
Total Formula
Prior Year Funds $288,429
Assisted Housing
PHA
Program Income $77,000
Total $472,429
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
SP-3.1
Project Title
Home Access Program
Description
The Home Access Program is funded with CDBG funds. The program provides services (occupational therapy
evaluations, installation and minor structural modifications) and equipment (“assistive technology” like handrails,
ramps and doorbells that flash instead of ringing) to low-income renters in Santa Monica who have a disability
and need home modifications to allow them to stay in their rented homes. The program increases the stock of
accessible housing in Santa Monica through the provision of modifications for people with disabilities.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Citywide
Objective Number
Project ID
SP-3.1 13-04
HUD Matrix Code
CDBG Citation
14A 570.202
Type of Recipient
CDBG National Objective
City
LMC
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Persons assisted 30
Local ID
Units Upon Completion
13-04 30
Funding Sources:
CDBG $37,377
ESG
HOME
HOPWA
Total Formula
Prior Year Funds
Assisted Housing
PHA
Other Funding
Total $37,377
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
H-1.2
Project Title
Chronically Homeless Program
Description
The City will provide case management services to at-risk, very-low income Shelter Plus Care and Section 8 Self
Sufficiency clients. This program will improve the decent housing opportunities available to low income Santa
Monica residents by providing assistance to homeless persons and assisting them in obtaining affordable housing.
Provide assertive outreach and intensive case management to chronically homeless persons in the CHP Assertive
Case Management and Homeless Community Court Programs.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Citywide
Objective Number
Project ID
H-1.2 13-05
HUD Matrix Code
CDBG Citation
05 570.201(e)
Type of Recipient
CDBG National Objective
City
LMC
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Persons assisted 50
Local ID
Units Upon Completion
13-05 50
Funding Sources:
CDBG $72,469
ESG
HOME
HOPWA
Total Formula
Prior Year Funds
Assisted Housing
PHA
Other Funding
Total $72,469
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
H-1.2
Project Title
Family Self Sufficiency Program
Description
The City will provide case management services to at-risk, very-low income Shelter Plus Care and Section 8 Self
Sufficiency clients. This program will improve the decent housing opportunities available to low-income Santa
Monica residents by providing assistance to persons at risk of becoming homeless and assisting them in obtaining
affordable housing. This program assists families participating in the Housing Choice Voucher program in
achieving economic independence and securing a living wage within five years.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Citywide
Objective Number
Project ID
H-1.2 13-06
HUD Matrix Code
CDBG Citation
05 570.201(e)
Type of Recipient
CDBG National Objective
City
LMC
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Persons assisted 130
Local ID
Units Upon Completion
13-06 130
Funding Sources:
CDBG $64,174
ESG
HOME
HOPWA
Total Formula
Prior Year Funds
Assisted Housing
PHA
Other Funding
Total $64,174
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
H-1.2
Project Title
Shelter Plus Care Program
Description
The City will provide case management services to at-risk, very-low income Shelter Plus Care and Section 8 Self
Sufficiency clients. This program will improve the decent housing opportunities available to low income Santa
Monica residents by providing assistance to persons at risk of becoming homeless and assisting them in obtaining
affordable housing. This program assists homeless persons with disabilities to obtain and maintain housing
through the provision of comprehensive case management services and rental assistance.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Citywide
Objective Number
Project ID
H-1.2 13-07
HUD Matrix Code
CDBG Citation
05 570.201(e)
Type of Recipient
CDBG National Objective
City
LMC
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Persons assisted 10
Local ID
Units Upon Completion
13-07 10
Funding Sources:
CDBG $3,487
ESG
HOME
HOPWA
Total Formula
Prior Year Funds
Assisted Housing
PHA
Other Funding
Total $3,487
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
H-1.2
Project Title
Spectrum
Description
The City will provide case management services to at-risk, very-low income Shelter Plus Care and Section 8 Self
Sufficiency clients. This program will improve the decent housing opportunities available to low income Santa
Monica residents by providing assistance to persons at risk of becoming homeless and assisting them in obtaining
affordable housing. This program provides case management, vocational training, benefits assistance, permanent
housing placement, and other services to chronically homeless persons with mental illness.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Citywide
Objective Number
Project ID
H-1.2 13-08
HUD Matrix Code
CDBG Citation
05 570.201(e)
Type of Recipient
CDBG National Objective
City
LMC
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Persons assisted 50
Local ID
Units Upon Completion
13-08 50
Funding Sources:
CDBG $16,426
ESG
HOME
HOPWA
Total Formula
Prior Year Funds
Assisted Housing
PHA
Other Funding
Total $16,426
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
CD-10.1, CD-12.2
Project Title
Accessible Beach Walkway
Description
Construction of an accessible beach walkway at South Beach Park to go beyond ADA requirements to maximize
accessibility and inclusion of children with various types of disabilities.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
South Beach Park
Objective Number
Project ID
CD-10.1, CD-12.2 13-09
HUD Matrix Code
CDBG Citation
03 570.201(c)
Type of Recipient
CDBG National Objective
City
LMC
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Facility project completed 1
Local ID
Units Upon Completion
13-09 1
Funding Sources:
CDBG $154,000
ESG
HOME
HOPWA
Total Formula
Prior Year Funds
Assisted Housing
PHA
Other Funding
Total $154,000
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
PA-1.1
Project Title
CDBG Program Administration
Description
Administer the CDBG program in compliance with federal regulations and local policies
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Citywide
Objective Number
Project ID
PA-1.1 13-10
HUD Matrix Code
CDBG Citation
21A 570.206
Type of Recipient
CDBG National Objective
City
n/a
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
n/a
n/a
Local ID
Units Upon Completion
13-10 n/a
Funding Sources:
CDBG $208,741
ESG
HOME
HOPWA
Total Formula
Prior Year Funds
Assisted Housing
PHA
Other Funding
Total $208,741
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2008)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
CD-12.1
Project Title
Facility Improvements to Ken Edwards Center
Description
The City will fund electrical facility improvements to upgrade and improve existing community
facility to meet the needs of the community, especially persons of low and moderate income and
those with special needs.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Citywide
Objective Number
Project ID
CD-12.1 13-11
HUD Matrix Code
CDBG Citation
03 570.201(c)
Type of Recipient
CDBG National Objective
City
LMC
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Public facility upgraded 1
Local ID
Units Upon Completion
11-10 3
Funding Sources:
CDBG $70,000
ESG
HOME
HOPWA
Total Formula
Prior Year Funds (CDBG) $30,800
Assisted Housing
PHA
Other Funding
Total $100,800
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
PA-1.1
Project Title
HOME Program Administration
Description
Administer the HOME program in compliance with federal regulations and local policies.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Citywide
Objective Number
Project ID
PA-1.1 13-12
HUD Matrix Code
HOME Citation
21A 92.207
Type of Recipient
HOME National Objective
City
n/a
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
n/a
n/a
Local ID
Units Upon Completion
13-12 n/a
Funding Sources:
CDBG
ESG
HOME $54,808
HOPWA
Total Formula
Prior Year Funds
Assisted Housing
PHA
Other Funding
Total $54,808
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
CD-10.1
Project Title
Park Restroom Accessibility Improvements
Description
Rehabilitation of two park restroom buildings to bring restrooms into compliance with the American with
Disabilities Act (ADA).
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Hotchkiss and Marine Park Restrooms.
Objective Number
Project ID
CD-10.1 13-13
HUD Matrix Code
CDBG Citation
03 570.201(c)
Type of Recipient
CDBG National Objective
City
LMC
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Public Facilities Upgraded 2
Local ID
Units Upon Completion
13-13 2
Funding Sources:
CDBG $321,331
ESG
HOME
HOPWA
Total Formula
Prior Year Funds $378,669
Assisted Housing
PHA
Program Income
Total $700,000
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

U.S. Department of Housing OMB Approval No. 2506-0117
and Urban Development (Exp. 8/31/2014)
Table 3C
Consolidated Plan Listing of Projects
Jurisdiction’s Name
City of Santa Monica
Priority Need
CD-12.1
Project Title
Alley Improvement Project
Description
Improvements to alleys in identified low to moderate income areas.
Objective category: Suitable Living Environment Decent Housing Economic Opportunity
Outcome category: Availability/Accessibility Affordability Sustainability
Location/Target Area
Low/Mod Income Areas in the City of Santa Monica
Objective Number
Project ID
CD-12.1 13-14
HUD Matrix Code
CDBG Citation
03 570.201(c)
Type of Recipient
CDBG National Objective
City
LMC
Start Date (mm/dd/yyyy) Completion Date (mm/dd/yyyy)
07/01/2013 06/30/2014
Performance Indicator Annual Units
Infrastrucutre Upgraded 5
Local ID
Units Upon Completion
13-14 5
Funding Sources:
CDBG
ESG
HOME
HOPWA
Total Formula
Prior Year Funds $297,212
Assisted Housing
PHA
Program Income
Total $297,212
The primary purpose of the project is to help: The Homeless Persons with HIV/AIDS Persons with Disabilities Public Housing Needs

APPENDIX D – HUD TABLES

APPENDIX D
Homeless
Table H-1 (HUD Table 1A) reports data collected from the Los Angeles Homeless Services Authority
(LAHSA) 2008 Continuum of Care Report. The data reflects current inventories, populations, and unmet
needs for Los Angeles County as a whole. There were 14,172 beds available for individual homeless persons.
There were 7,420 family beds and 2,234 family units, which provide shelter for 9,624 homeless families. As
presented in
Data for Part 1 and Part 2 of Table H-1 comes from 2007 point-in-time homeless counts for all
communities in Los Angeles County. According to the Continuum of Care Report, there are 6,238 homeless
families (909 sheltered and 5,329 unsheltered) with children. Of the 68,608 homeless persons identified,
roughly 76 percent (51,965 persons) are single individuals without children and 24 percent (16,643 persons)
are in families with children.
The largest subgroup of homeless persons in the county are those with chronic substance abuse problems
(24,740). The second largest subgroup are those with serious mental illness (24,504), followed by chronically
homeless persons (22,376). As shown in Part 2 of Table H-1, the majority of subgroup populations are
unsheltered.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
D-1

APPENDIX D
TABLE H-1
HOMELESS POPULATIONS, LOS ANGELES COUNTY (HUD 1A)
Individuals
Beds
Persons in Families With Children
Beds
Part 1: Homeless Population
Continuum of Care: Housing Gap Analysis Chart
Current
Inventory
Under
Development
Unmet Need/
Gap
Emergency Shelter 3,436 n/a n/a
Transitional Housing 5,580 n/a n/a
Permanent Supportive Housing 5,156 n/a n/a
Total 14,172 n/a n/a
Emergency Shelter 1,359 n/a n/a
Transitional Housing 4,442 n/a n/a
Permanent Supportive Housing 3,853 n/a n/a
Total 9,654 n/a n/a
Continuum of Care: Homeless Population and Subpopulations
Sheltered
Emergency Transitional Total
Unsheltered
Total
Number of Families with Children
(Family Households): 297 612 909 5,329 6,238
1. Number of Persons in
Families with Children 1,033 1,992 3,025 13,618 16,643
2. Number of Single
Individuals and Persons in
Households without children
Total
(Add Lines 1 & 2)
Part 2: Homeless
Subpopulations
Persons
4,492 3,925 8,417 43,548 51,965
5,525 5,917 11,442 57,166 68,608
a. Chronically Homeless 1,604 20,772 22,376
b. Seriously Mentally Ill 4,382 20,122 24,504
c. Chronic Substance Abuse 2,567 22,173 24,740
d. Veterans 1,712 6,741 8,453
e. Persons with HIV/AIDS 263 972 1,235
f. Victims of Domestic
Violence
g. Unaccompanied Youth
(Under 18)
1,190 6,002 7,192
218 1,070 1,288
Source: 2008 Continuum of Care Report: Point-in-Time Homeless Population and Subpopulation; HUD’s 2008 Continuum of Care
HAP Homeless Inventory Chart Report
2013-14 Action Plan City of Santa Monica
DUNS # 074152596 March 2013
D-2

APPENDIX D
TABLE H-2
PRIORITIES FOR SPECIAL NEEDS POPULATION (HUD 1B)*
Special Need Subpopulation
Priority
Unmet
Need
Annual
Amount
Multi-Year
Goals
Annual
Goals
Elderly High 2,908 $10,000 50 10
Frail Elderly High 1,454 $5,000 25 5
Persons with Alcohol/Other Drug
Abuse
Medium 200 ***
Victims of Domestic Violence Medium 185 ***
Homeless/At Risk High 742 $1,090,000 3,200 640
Physically/Developmentally
Disabled**
High 1,270 $600,000 1,250 250
Severe Mental Illness High 1,843 ***
Female-Headed Households Low 598 - - -
Persons with HIV/AIDS Low 250 - - -
*The City provides over $7 million dollars in City funding (non-CDBG and HOME funds) for special needs programs.
** Includes Street and beach restroom improvements.
*** Activities serving these populations are funded by non-CDBG and HOME funds.
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
D-3

APPENDIX D
TABLE H-3
PRIORITY HOUSING NEEDS/INVESTMENT PLAN (HUD 2A/3B)
Priority
Need
5-Yr.
Goal
Planned
Yr. 1
Goal
Planned
Yr. 2
Goal
Planned
Yr. 3
Goal
Planned
Yr. 4
Goal
Planned
Yr. 5
Goal
Planned
Renters
0%–30% of MFI High 129 26 26 27 25 25
31%– 50% of MFI High 165 33 33 33 33 33
51%–80% of MFI Medium 56 11 11 11 11 12
Owners
0 %–30% of MFI Medium 10 2 2 2 2 2
31%–50% of MFI High 10 2 2 2 2 2
51%–80% of MFI Medium 40 8 8 8 8 8
Homeless
Individuals High 1,600 320 320 320 320 320
Families High 1,600 320 320 320 320 320
Non-Homeless Special
Needs
Elderly High 50 10 10 10 10 10
Frail Elderly High 25 5 5 5 5 5
Severe Mental Illness Low 0 0 0 0 0 0
Physical/Developmental
Disability
Alcohol or Drug
Addiction
High 125 25 25 25 25 25
Medium 0 0 0 0 0 0
HIV/AIDS Low 0 0 0 0 0 0
Victims of Domestic
Violence
Medium 0 0 0 0 0 0
Renter 350 70 70 70 70 70 70
Owner 60 12 12 12 12 12 12
2013-14 Action Plan City of Santa Monica
DUNS # 074152596 March 2013
D-4

APPENDIX D
TABLE H-4
PRIORITY COMMUNITY DEVELOPMENT NEEDS AND GOALS (HUD 2B)*
Activity
Public Facility Needs (projects)
Priority
Unmet
Priority
Need
Dollars to
Address
Unmet
Priority
Need
Annual
Goals
Multi-Year
Goals
Senior Center Medium 1 $20,000 1 1
Handicapped Center Medium 1 $10,000 1 1
Homeless Facilities Medium 1 0 0
Youth Centers Medium 1 $25,000 1 1
Child Care Center Medium 1 $15,000 1 1
Health Facilities Medium 2 $35,000 1 1
Parks and/or Recreation
Facilities
High 5 $700,00 6 6
Parking Facilities Low - - - -
Non-Residential Historic
Preservation
Medium 1 $20,000 1 1
Other Public Facility
Needs
High 1 $45,000 1 1
Public Improvements (projects)
Water/Sewer
Improvements
Medium 2 $41,500 1 2
Street Improvements High 5 $83,000 1 3
Sidewalks High 5 $83,000 1 5
Solid Waste Disposal
Improvements
Low - - - -
Flood Drain Improvements Low - - - -
Other Infrastructure
Needs
Medium 1 $41,500 1 2
Public Services (persons)
Senior Services High 3,000 $15,000 1 5
Handicapped Services High 2,000 $20,000 1 5
Youth Services High 2,700 * - -
Child Care Services High 1,500 * - -
Transportation Services Medium 3,000 $20,000 1 5
Substance Abuse Services Medium 200 $10,000 1 5
Employment Training Medium 150 $25,000 2 10
Health Services Medium 1,200 $25,000 2 10
Lead Hazard Screening High 500 $30,000 5 25
Crime Awareness Medium 1,000 $20,000 1 1
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
D-5

APPENDIX D
Activity
Priority
Unmet
Priority
Need
Dollars to
Address
Unmet
Priority
Need
Annual
Goals
Multi-Year
Goals
Other Public Service
Needs
Medium 2,000 $20,000 1 1
Fair Housing Services High 1 $10,000 1 5
Economic Development (projects)
ED Assistance to For-
Profits (businesses)
Low - - - -
ED Technical Assistance
(businesses)
Low - - - -
Micro-Enterprise
Assistance (businesses)
Low - - - -
Rehab; Publicly or
Privately Owned
Commercial/Industrial
Low - - - -
(projects)
Commercial/Industrial
Infrastructure
Low - - - -
Development (projects)
Other
Commercial/Industrial
Low - - - -
Improvements (projects)
Planning
Planning High 1 $1,500,000 1 5
Total Estimated Dollars
$2,789,000
Needed
*The City provides over $7 million dollars in City funding (non CDBG and HOME funds) for special needs programs. Activities noted as
high and medium priorities are likely to receive additional dollars from this funding source.
2013-14 Action Plan City of Santa Monica
DUNS # 074152596 March 2013
D-6

APPENDIX D
TABLE H-5
SUMMARY OF SPECIFIC OBJECTIVES (HUD 1C/ 2C/3A)
Specific Objective #
Specific Objective
Measurable
Units
Source of funds $ 2009
Program or activity
description
2010
2011
Performance indicators 2012
2013
Total
Availability/Accessibility of Decent Housing (DH-1)
DH-1.1
Construct new affordable rental units.
New Units to be Built
Construction and
Development of New
Affordable Housing
CDBG HOME 2010 10
2011 10
2012 10
50 new affordable rentals. 2013 10
2014 10
Total 50
Affordability of Decent Housing (DH-2)
DH-2.1
Use HOME funds for tenant based rental assistance.
LMI Households
Assisted
Tenant Based
Rental Assistance
Program
HOME 2010 25
2011 25
2012 25
Affordable monthly housing costs for rents. 2013 25
2014 25
Total 125
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
D-7

APPENDIX D
Sustainability of Decent Housing (DH-3)
DH-3.1
The City will purchase and install exceptionally designed
sustainable mobile home units at Mountain View Mobile
Home Park.
Housing units
Mobile
Improvement
Program
Home
CDBG HOME 2010 5
2011 25
2012 25
100 units rehabilitated. 2013 25
160 households assisted. 2014 20
Total 100
Sustainability of Decent Housing (DH-3)
DH-3.1
Acquisition and rehabilitation of existing housing for the
purposed of providing affordable housing.
Number of Unit.
Acquisition
Rehabilitation
and
CDBG HOME 2010 1
2011 2
2012 1
Maintain the quality of affordable housing for 55 years. 2013 2
2014 2
Total 8
Sustainability of Decent Housing (DH-4)
SL-3.2
Provide rehabilitation assistance to low- and moderateincome
households.
Households Assisted
Residential
Program
Repair
CDBG 2010 20
2011 20
2012 20
Significant improvements to their living conditions. 2013 20
2014 20
Total 100
2013-14 Action Plan City of Santa Monica
DUNS # 074152596 March 2013
D-8

APPENDIX D
Availability/Accessibility of Suitable Living Environment (SL-2)
SL-3.3
Support case management services for 190 at-risk
persons per year.
Persons Assisted
CDBG 2010 190
Emergency Services
to Persons At-Risk
of Homelessness
2011 190
2012 190
Obtain and remain in permanent housing. 2013 190
Increase skills and incomes. 2014 190
Total 950
Availability/Accessibility of Suitable Living Environment (SL-3)
SL-3.2
Provide home modification assistance to persons with
disabilities.
Households Assisted
Home
Program
Access
CDBG 2010 30
2011 30
2012 30
Accessibility improvements. 2013 30
2014 30
Total 150
Availability/Accessibility of Decent Housing (DH-1)
DH-1.2
Provide home modification assistance to persons with
disabilities.
Households Assisted
Supportive and
Special Needs
Housing Production
CDBG 2010 10
New unit affordable housing units for special needs
households.
2011 10
2012 10
2013 10
2014 10
Total 50
City of Santa Monica
2013-14 Action Plan
March 2013 DUNS # 074152596
D-9

APPENDIX D
Accessibility/Suitable Living Environment (SL-4)
DH-1.2
Provide accessibility improvements to public restrooms
near beach areas.
Projects Completed.
Beach Restroom
Accessibility
Improvements
CDBG 2010 8
2011 0
2012 0
Accessibility for persons with disabilities. 2013 0
2014 0
Total 8
Accessibility/Suitable Living Environment
DH-1.2
Accommodate light rail stations and the maintenance in
the neighborhoods.
Projects Completed.
Light
Integration
Rail
CDBG 2010 TBD
2011 TBD
2012 TBD
More transportation options for low-income households. 2013 TBD
2014 TBD
Total TBD
2013-14 Action Plan City of Santa Monica
DUNS # 074152596 March 2013
D-10

APPENDIX E – CERTIFICATIONS

APPENDIX E

APPENDIX E