CITY OF LIVERMORE
California
Comprehensive Annual Financial Report
( CAFR)
For the Year Ended June 30, 2005
City of Livermore, California
Comprehensive Annual Financial Report
For the Year Ended June 30, 2005
Prepared By:
Department of Finance
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
Page
i
INTRODUCTORY SECTION
Table of Contents ............................................................................................................................... .... i- iii
Letter of Transmittal ............................................................................................................................... 1- 8
Elected Officials and Administrative Personnel ........................................................................................ 9
City Organization Chart.......................................................................................................................... . 10
GFOA Certificate of Achievement........................................................................................................... 11
CSMFO Certificate of Award for Outstanding Financial Reporting ...................................................... 12
FINANCIAL SECTION
Independent Auditor’s Report on Basic Financial Statements................................................................ 13
Management’s Discussion and Analysis
Management’s Discussion and Analysis ( Unaudited) ........................................................................ 15- 33
Basic Financial Statements
Government- wide Financial Statements ( Page 35)
Statement of Net Assets......................................................................................................................... .. 36
Statement of Activities..................................................................................................................... ........ 37
Fund Financial Statements ( Page 39)
Major Governmental Funds
Balance Sheet- Governmental Funds ................................................................................................... 40- 41
Governmental Funds Balance Sheet- Continued ( Reconciliation of Fund Balances to Net
Assets of Governmental Activities........................................................................................................... 42
Statement of Revenues, Expenditures, and Changes in Fund Balance- Governmental Funds .......... 44- 45
Reconciliation of the Net Change in Fund Balances of Governmental Funds with the
Statement of Activities .................................................................................................................... 46
Statement of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
General Fund ............................................................................................................................... ... 47
Major Proprietary Funds
Statement of Net Assets- Proprietary Funds ........................................................................................ 50- 51
Statement of Revenues, Expenses and Changes in Fund Net Assets- Proprietary Funds .................. 52- 53
Statement of Cash Flows- Proprietary Funds....................................................................................... 54- 55
Fiduciary Funds
Statement of Fiduciary Net Assets ........................................................................................................... 56
Notes to Basic Financial Statements ( Page 57)
Note 1- Significant Accounting Policies................................................................................................... 57
A. Reporting Entity......................................................................................................................... 57
B. Basis of Presentation............................................................................................................. 57- 58
C. Major Funds .......................................................................................................................... 58- 59
D. Basis of Accounting.............................................................................................................. 59- 60
E. Supplies ............................................................................................................................... ...... 60
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
Page
ii
F. Compensated Absences ............................................................................................................. 61
G. Property Tax Levy, Collection and Maximum Rates ............................................................... 62
H. Revenue Recognition for Sewer and Operations ...................................................................... 62
I. Land Held for Redevelopment .................................................................................................. 62
Note 2- Budgets and Budgetary Accounting ............................................................................................ 63
Note 3- Cash and Investments.............................................................................................................. 64- 72
Note 4- Interfund Transactions............................................................................................................. 73- 75
Note 5- Notes Receivable .......................................................................................................................... 75
Note 6- Capital Assets .......................................................................................................................... 76- 79
Note 7- Long Term Debt ...................................................................................................................... 80- 83
Note 8- Special Assessment District Debt with No City Commitment ................................................... 84
Note 9- Net Assets and Fund Balances ................................................................................................ 84- 86
Note 10- PERS Pension Plan................................................................................................................ 86- 88
Note 11- Deferred Compensation Plan ..................................................................................................... 88
Note 12- Joint Ventures ........................................................................................................................ 89- 90
Note 13- Health, General Liability and Workers Compensation Coverage........................................ 90- 91
Note 14- Commitments and Contingencies ......................................................................................... 91- 94
Supplemental Information
Major Capital Project Funds ( Page 95- 96)
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and
Actual: Redevelopment Agency Capital Projects Fund .......................................................... 95
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and
Actual: Street Improvements Fund........................................................................................... 96
Non- major Governmental Funds ( Page 97- 98)
Combining Balance Sheets .................................................................................................... 100- 105
Combining Statement of Revenues, Expenditures and Changes in Fund Balance .............. 106- 111
Combining Schedule of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual............................................................................................................. 112- 119
Internal Service Funds ( Page 121)
Combining Statement of Net Assets............................................................................................. 122
Combining Statements of Revenues, Expenditures and Changes in Fund Net Assets ............... 123
Combining Statement of Cash Flows ........................................................................................... 124
Fiduciary Funds ( Page 125)
Statement of Changes in Assets and Liabilities – Agency Funds................................................ 126
STATISTICAL SECTION ( Unaudited)
Fund Information
General Governmental Revenues by Source - Last Ten Fiscal Years .................................................. 127
General Fund Tax Revenues by Source – Last Ten Fiscal Years ......................................................... 128
General Governmental Expenditures by Function - Last Ten Fiscal Years.......................................... 129
Property Tax Levies and Collections – Last Ten Fiscal Years.............................................................. 130
Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years........................... 131
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
Page
iii
Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years........................... 132
Schedule of Direct and Overlapping Bonded Debt................................................................................ 133
Schedule of Certificate of Participation Coverage – Water Reclamation Fund - Last Ten
Fiscal Years ............................................................................................................................... ........ 134
Schedule of Certificate of Participation Coverage - Las Positas Golf Course - Last Ten
Fiscal Years ............................................................................................................................... ....... 135
Schedule of Certificate of Participation Coverage - Airport - Last Ten Fiscal Years .......................... 136
Demographic Statistics - Last Ten Fiscal Years ................................................................................... 137
Construction and Bank Deposit Activity - Last Ten Fiscal Years ........................................................ 138
Principal Sales Taxpayers...................................................................................................................... 139
Principal Property Taxpayers ................................................................................................................. 140
Miscellaneous Statistical Information .................................................................................................... 141
Special Assessment and Community Facilities Districts Billings and Collections – Last Ten
Fiscal Years ............................................................................................................................... ........ 142
Statement of Legal Debt Margin ............................................................................................................ 143
Schedule of Insurance...................................................................................................................... ...... 144
Continuing Disclosure
1997 Certificates of Participation ( Refunding and Capital Projects) .................................................... 145
1998 Livermore Capital Projects Financing Authority – Authority Refunding Revenue
Bonds ............................................................................................................................... ........ 146
Special Tax Bonds Community Facilities District No. 99- 1 - ( Tri- Valley Technology Park),
Series 2000 147
2001 Tax Allocation Bonds, Series A.................................................................................................... 148
City of Livermore
November 22, 2005
Honorable Mayor and Members of the City Council
City of Livermore, California
I am pleased to transmit the City's Comprehensive Annual Financial Report for the fiscal year
ended June 30, 2005. Responsibility for accuracy of the data and the fairness of presentation
including all footnotes and disclosures rests with the City. To provide a reasonable basis for
making these representations, management of the City has established a comprehensive internal
control framework that is designed both to protect the City’s assets from loss and to compile
sufficient reliable information for the preparation of the City’s financial statements in
conformity with Generally Accepted Accounting Principles ( GAAP). The data in this report is
presented in a manner that is designed to fairly set forth the financial position and results of
operations of the City. It contains the disclosures necessary to promote in- depth understanding
of the City's financial affairs.
The City’s financial statements have been audited by Maze & Associates Accountancy
Corporation located in Walnut Creek, California. The independent auditors concluded, based on
the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of
Livermore’s financial statements for the fiscal year ended June 30, 2005, are fairly presented in
conformity with generally accepted accounting principles. The independent auditor’s report is
presented as the first component of the financial section of this report.
In addition to the financial audit, each year the City is required to undergo an audit in
conformity with the provisions of the Single Audit Act Amendments of 1996 and the U. S.
Office of Management and Budget Circular A- 133, Audits of States, Local Governments, and
Non- Profit Organizations. This report is issued as a separate document and is not included
herein. The report includes the schedule of expenditures of federal financial awards, findings
and recommendations, and the auditor's reports on the internal control structure and compliance
with applicable laws and regulations.
The City is in its fourth year of implementation of the provisions of Government Accounting
Standard Board Statement 34, “ Basic Financial Statements— and Management’s Discussion &
Analysis— for State and Local Governments”. GASB 34 requires that management provide a
narrative introduction, overview and analysis to accompany the basic financial statements in the
form of MD& A. This letter of transmittal is designed to complement MD& A and should be
read in conjunction with it. The MD& A is found immediately following the report of the
independent auditors in the financial section of the CAFR.
1
Honorable Mayor and Members of the City Council November 22, 2005
Overview of the Comprehensive Annual Financial Report
This Comprehensive Annual Financial Report is in five parts:
• Introductory section, which includes the Transmittal Letter and general
information;
• Management’s Discussion and Analysis;
• The Basic Financial Statements, which include the Government- wide and the Fund
financial statements, along with the Notes to these financial statements;
• Combining Statements for Non- major Governmental Funds and Fiduciary Funds;
• Statistical information.
Reporting Entity and Its Services
The financial statements presented in this report include the financial activity of the City of
Livermore as well as two separate legal entities which are controlled by and are dependent upon
the City. As of June 30, 2005 these entities are as follows:
• City of Livermore Redevelopment Agency; and
• Livermore Capital Projects Financing Authority.
Financial information for these entities is included as a blended component unit in the City's
financial statements in accordance with Statement 14, " The Financial Reporting Entity," issued
by the Governmental Accounting Standards Board.
The City Council serves as the governing board of the Livermore Redevelopment Agency, and
the Livermore Capital Projects Financing Authority ( LCPFA). The LCPFA is a joint powers
authority between the City and the Livermore Redevelopment Agency. The City provides
accounting services to these separate entities and performs all their administrative functions.
Activities of the Livermore Redevelopment Agency are shown as a capital projects fund
within the major Governmental Funds schedules. Resources to be used for the repayment of
long- term debt are reported as a debt service fund located within the non- major governmental
funds schedules. The low- moderate income set- aside funds are reported as a special revenue
fund also within the non- major governmental funds statements.
Construction and acquisition activities of the Livermore Capital Projects Financing
Authority ( LCPFA) are shown as capital projects funds within the non- major Governmental
Funds statements as to the 2000 Certificates of Participation and the 2002 Certificates of
Participation.
Livermore was incorporated as a General Law city on April 1, 1876. A General Law city has
the power to make and enforce ordinances and regulations with respect to municipal affairs to
the extent expressly permitted or implied by the California constitution or specific legislation.
The city government is organized under the Council- Manager form of local government. The
five- member City Council is elected at large for overlapping four- year terms. The City Council
includes an elected Mayor whose term of office is two years. The City Council appoints the
City Manager and City Attorney to carry out its adopted policies. In addition, the City Council
appoints members of advisory Commissions, Committees, and Boards.
2
Honorable Mayor and Members of the City Council November 22, 2005
The City provides full services to its citizens. Services include police safety; fire safety and
building inspection; street and park maintenance; street lighting; planning and public
improvements; public library; general administrative services; water reclamation and water
service; as well as a municipal airport and two golf courses. Recreation and leisure services are
not included; however, they are provided to citizens through the Livermore Area Recreation and
Park District ( LARPD), a special district formed in 1947, governed by a separately elected
board.
Basis of Accounting and Budgetary Control
The government- wide, proprietary and fiduciary fund financial statements are reported using the
economic resources measurement focus and the full accrual basis. Here revenues are recorded
when earned and expenses are recorded at the time liabilities are incurred, regardless of when
the related cash flows take place. This basis of accounting is contrasted with the modified
accrual basis that is used by all governmental funds. As explained in Note 1 to the Basic
Financial Statements, this means that with specified exceptions, revenues are recorded when
measurable and available, rather than received and expenditures are recorded when the liability
is incurred, rather than paid. The exceptions for revenue are fines, licenses and permits. The
exceptions for expenditures are certain employee leave amounts and principal and interest on
general long- term debt which is recognized when due.
The Livermore Municipal Code established the finance department and assigned specific duties
and responsibilities for the provision of all fiscal and budgetary functions. Internal accounting
controls have been developed to provide reasonable assurance regarding the safeguarding of
assets and the reliability of financial records for preparing financial statements and maintaining
asset accountability. Examples of accounting controls include separation of operational
responsibilities from financial recordkeeping in the areas of payroll, accounts payable, and
accounts receivable. In addition, physical custody of assets is separated from accounting or the
authorization of related transactions.
A two- year financial plan is adopted by the City Council on a basis consistent with generally
accepted accounting principles except for proprietary funds that have budgets for capital outlay
but not depreciation. Budgets for proprietary funds also differ from GAAP in that costs of
issuing debt are not amortized over the life of the issue but are expensed at issuance. Legal
budgetary control is maintained at the fund level. The City Council may amend the budget by
resolution or minute order during the year. The City Manager may transfer appropriations from
one activity to another within the same fund. Appropriations not expended during the first year
of the two- year budget cycle may be carried over to the second year, but thereafter they lapse.
3
Honorable Mayor and Members of the City Council November 22, 2005
Financial Highlights of Fiscal Year 2004- 2005
$ 19,000,000 Variable Rate Demand Multifamily Housing Revenue Bonds, 2005 Series A
On July 19, 2005 the Redevelopment Agency of the City of Livermore issued bonds to refund
the prior $ 15,000,000 bond originally dated March 22, 2004 and an additional bond amount of
$ 4,000,000 to fund a mortgage loan to Livermore Independent Living Associates for the
purpose of financing the Livermore Senior Housing Apartments, a 105- unit housing facility for
seniors.
Impact of State Budget on Local Finances
In November 2004, California overwhelmingly passed Proposition 1A which protected local
revenues in return for a two- year commitment of financial help to the State. In particular
Vehicle License Fee revenues would be protected and require backfill if dropped below the
current .65% rate. Local property tax revenues may no longer be shifted away from local
agencies although under special circumstances they may be borrowed. Before any loan can be
made, the Governor must declare a serious fiscal hardship and all previous loan must be repaid.
No more than two loans may be made in any ten- year period. The Bradley- Burns local sales and
use tax revenues may only be used for local purposes and the State cannot extend the “ triple-flip”
swap of sales tax revenues beyond the maturity of the $ 15 billion Economic Recovery
Bonds approved by the voters in March 2004.
The amount contributed by the City of Livermore for Fiscal Year 2004- 2005 was $ 1,338,000
with a like amount to be paid in 2005- 2006. The amount of previous State indebtedness to the
City for the VLF backfill gap loan was $ 1,323,000. This amount was unexpectedly repaid to
local agencies in early 2005- 2006 more than one year ahead of schedule, thus paving the way
for additional State borrowing in Fiscal Year 2005- 2006 and beyond.
Cash Management
The city pools cash from all operating sources in order to facilitate the control of cash and the
investment of idle funds. The Director of Finance manages the portfolio in accordance with the
Investment Policy of the City Council and Government Code § 53601 and § 56535. Permitted
investments include U. S. Treasury bills and notes, U. S. Government Agency securities, Bankers
Acceptances, Time Certificates of Deposit, Repurchase Agreements, Commercial Paper,
Medium Term Notes, Mutual Funds and State of California Local Agency Investment Fund.
Maturities may range from overnight to five years. The total amount of interest earned on all
funds was $ 3.3 million with an average yield of 2.07%. Other funds held by fiscal agents and
trustees are invested according to the restrictions of the bond documents and the city's
investment policy.
4
Honorable Mayor and Members of the City Council November 22, 2005
Risk Management
In 1986 the City became self- insured and joined a risk sharing pool for public liability, now
called the California Joint Powers Risk Management Authority ( CJPRMA). The pool provides
coverage up to $ 24.5 million per occurrence above the self- insured retention of $ 500,000,
effective July 1990. Claims are administered in the City Attorney’s office by the Risk Manager
with the assistance of a third- party claims adjustment firm. In FY 2004- 2005, the pool made its
fourteenth distribution of excess assets. The amount distributed to the City of Livermore was
$ 134,381, or about 39% of the amount of the deposit premium paid for FY 2004- 2005.
In March 1992 the City joined a risk sharing pool called the Local Agency Workers’
Compensation Excess Joint Powers Authority ( LAWCX) for workers’ compensation and
employer liability and provides coverage up to $ 24.75 million above the self- insured retention
of $ 250,000. In FY 2004- 2005, the pool made a distribution of excess assets. The amount
distributed to the City of Livermore was $ 48,105, or about 22% of the amount of the deposit
premium paid for FY 2004- 2005.
Community Development
The City of Livermore is located on the southeasterly boundary of Alameda County near the
intersection of I- 580 and I- 680. The City is situated approximately 50 miles east of San
Francisco in the growing Tri- Valley area which contains the cities of Pleasanton, Livermore,
Dublin, and San Ramon. The estimated population of Livermore is 80,723, as of January 1,
2005. Since the 1980 census, the population has increased by 32,741 or 42%.
The East Bay region of Alameda County that encompasses Livermore has experienced strong
job growth such that it accounted for more than 10% of all jobs added in California during the
last 4 quarters and 63% of the jobs added in the Bay Area. This has helped reduce the state’s
unemployment rate to 5.2% in October 2005 from 6% in the previous year.
As reported by the Bay East Association of Realtors ( BEAR), the median single family
Livermore home price for 2005 was $ 650,000, up from $ 539,900 in 2004, for an increase of
20%. In 1980 the median Livermore home price was $ 87,000, and the cumulative increase has
been 747% since that time.
The City of Livermore occupies approximately 24.52 square miles of the 413 square miles in
the valley. There were no annexations in FY 2004- 2005. The current General Plan approved in
February 2004 covers 55,000 acres and has the following use categories:
General Plan
Use Categories
Planned Acres
At June 30, 2005
Remaining to be
Developed
Total Developed
Industrial Acreage 2,174 398 1,776
Commercial Acreage 711 109 602
Business Commercial 835 495 340
Residential Acreage 5,492 340 5,152
Totals 9,212 1,342 7,870
An acreage amount of 426 has been removed from the “ Planned Acres” total above compared to
the table shown last year due to finalizing of acreage amounts in the newly adopted General
Plan.
5
Honorable Mayor and Members of the City Council November 22, 2005
Permit Center Activity
Inspection, Building Permit and Use & Variance Fees
$ 0
$ 500,000
$ 1,000,000
$ 1,500,000
$ 2,000,000
$ 2,500,000
Engineering Inspection Building Permits
Use & Variance Permits
Construction related
revenues of the Permit
Center were mixed in FY
2004- 2005. Engineering
inspection fees decreased
55.1% compared to the
prior year, building
permits were up 21.4%,
and use and variance fees
related to entitlements
were up strongly at
176.8%. The sharp
increase in the last
category created a
historically unusual
crossover of the use and
variance revenue line
above the building permit
revenue line. This is explained in light of two significant factors: ( 1) The adoption of a new fee
schedule in 2003- 2004 that embodied more detailed overhead allocations; and ( 2) Buildout of
the South Livermore Specific Plan residential area.
The buildout of the South Livermore area coincides with the transitioning of development focus
to the Downtown and other infill development. One of the adopted strategic priorities of the
Livermore City Council is to provide for the redevelopment and revitalization of the Downtown
into a community gathering place and a regional destination for fine dining, cultural arts,
entertainment, shopping and a desirable residential location. The Downtown plan provides for
approximately 2000 residential units with absorption at the pace of about 100 units per year.
Other residential uses have been approved in the vicinity of the junior college located north of
the freeway.
Hotel/ Motel Tax Revenues vs. Rooms History
$ 0
$ 200,000
$ 400,000
$ 600,000
$ 800,000
$ 1,000,000
$ 1,200,000
$ 1,400,000
$ 1,600,000
2005- 2006
2004- 2005- Actual
2003- 2004
2002- 2003
2001- 2002
2000- 2001
1999- 2000
1998- 99
1997- 98
1996- 97
1995- 96
1994- 95
1993- 94
1992- 93
1991- 92
1990- 91
1989- 90
1988- 89
1987- 88
1986- 87
0
200
400
600
800
1,000
1,200
1,400
Revenue Amount Number of Rooms
In 2005, Livermore
had 21 hotel
properties with over
1300 available
rooms. Hotel/ motel
occupancy tax
revenues increased
8.2% compared to
the prior year.
Occupancy tax
revenues have been
weak since the
downturn in travel and tourism in 2001. Livermore is currently working with its three
neighboring cities to establish a Tri- Valley Tourism business improvement district. The district
will be established for 5 years and will provide for tourism promotions and marketing of the
Tri- Valley area. The district is expected to be operational in 2005- 2006 and will raise
approximately $ 1 million per year in assessments.
6
Honorable Mayor and Members of the City Council November 22, 2005
Tax on Industrial Construction Revenue History
$ 0
$ 100,000
$ 200,000
$ 300,000
$ 400,000
$ 500,000
$ 600,000
$ 700,000
Commercial and
industrial
construction in
Livermore has
been mixed of late
as reflected by
variable revenues
of the Permit
Center. A more
direct measure of
activity is the Tax
on Industrial
Construction that
is levied as a percentage of the cost of construction. In 2004- 2005 tax revenues increased
382.3% compared to the prior year. Major projects currently under construction include:
Airport Executive Centre ( 147,000 square feet) on Airway Boulevard, Peninsula Floors
( 72,000 square feet) on National Drive, Hotan Corporation ( 152,000 square feet) on North
Canyons Parkway at Airport Boulevard as well as a number of other spec development projects
in the 10,000 to 50,000 square foot range.
Capital Improvement Program
During the last fiscal year, $ 33.8 million in capital improvements were accomplished, down
from $ 41.2 million in the prior year. Major projects are shown below:
FY 2004- 2005
Expenditures
Transportation Infrastructure
Isabel Avenue/ I- 580 Interchange and Improvements $ 6,970,722
Greenville Road Widening/ UPRR Bridge Replacement $ 2,963,687
Vasco Road ACE Station Parking Lot $ 1,327,920
Utility Projects
Wastewater System and Plant Improvements $ 2,937,008
Zone 1 and Zone 7 Potable Water System $ 817,970
Airport Taxiway Location and Direction Signs $ 223,646
Downtown Improvements
Depot Center Acquisition $ 8,000,000
First Street Streetscape and Improvements $ 4,324,129
Livermore Valley Center Land Acquisition $ 1,309,478
Recreation and Trails
Las Positas Channel Bike Trail/ Crossing $ 139,923
Leo Croce Playground Structure $ 200,000
Total $ 29,214,483
7
Honorable Mayor and Members of the City Council November 22, 2005
Independent Audit
Each year the Finance Department provides for an audit of the city's books of account, financial
records and transactions of all operations. The contract for the services of an independent
certified public accountant is approved by the City Council. The auditor's independent opinion
is included in the Financial Section of this report.
Achievement 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 of
Livermore for its comprehensive annual financial report for the fiscal year ended June 30, 2004.
This was the fifteenth consecutive year that the City of Livermore has achieved this prestigious
award. In order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized comprehensive annual financial report. 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. We believe that our current
comprehensive annual financial report continues to meet the Certificate of Achievement
Program’s requirements, and we are submitting it to GFOA to determine its eligibility for
another certificate.
The California Society of Municipal Finance Officers ( CSMFO) awarded a Certificate of
Award for Outstanding Financial Reporting to the City of Livermore for its CAFR for the fiscal
year ended June 30, 2004. The certificate is issued in recognition of meeting professional
standards and timely financial reporting standards which reflect a high level of quality in the
annual financial statements and in the underlying accounting system from which the reports
were prepared. This was the fifteenth consecutive year the City of Livermore has received this
award. We believe the current report continues to conform to program requirements, and we are
submitting it to CSMFO.
Acknowledgments
This report represents the culmination of the dedicated efforts by staff both inside and outside of
the Finance Department. Sincere thanks go to Assistant Director of Finance Kathy Rooney,
Financial Services Manager Evan Levy, Accountant Virginia Guider for her work on fixed
assets and the statistical section, Reprographics Technician Carlos Ramirez for printing, Senior
Administrative Accounting Technician Pam Dias; as well as the staff at Maze & Associates. I
wish to express my appreciation to the office of the City Manager and the City Council for their
support of excellence in financial reporting to the public.
Very truly yours,
Monica T. Potter
Director of Finance
8
City of Livermore
Comprehensive Annual Financial Report
ELECTED OFFICIALS AND ADMINISTRATIVE PERSONNEL
Elected Officials as of June 30, 2005
Dr. Marshall H. Kamena, Mayor
Tom Reitter, Vice Mayor
Mark Beeman, Councilmember
Lorraine Dietrich, Councilmember
Marj Leider, Councilmember
Administrative Personnel
Linda M. Barton, City Manager
James W. Piper, Assistant City Manager
John Pomidor, City Attorney
Alice Calvert, City Clerk
Marc Roberts, Director of Community Development
Kevin Roberts, Director of Economic Development
Monica T. Potter, Director of Finance
Susan Gallinger, Director of Library Services
Steve Harman, Director of Personnel
Dan McIntyre, Director of Public Services
Stewart Gary, Fire Chief
Steve Krull, Police Chief
9
Citizens of
Livermore
Mayor and
City Council
City Manager Advisory
City Clerk Dept.
Finance Dept.
Fire Dept.
Human Resources
Dept.
Library Dept.
Public Services
Dept.
Airport
Golf
Courses
Maintenance
Services
Parks &
Trees
Water Recl./
Storm Water
Water Service
Community
Development
Dept.
Engineering
Planning
Building
Housing
Economic
Development
Dept.
Redevelop-ment
Agency
Police Dept.
Horizons
Youth Svcs.
City Attorney
City of Livermore
Organization Chart
10
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 of Livermore for its
comprehensive annual financial report for the fiscal year ended June 30, 2004. 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 comprehensive annual financial report, 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 Livermore has received a
Certificate of Achievement for the last 15 consecutive years. We believe our current report continues to
conform to the Certificate of Achievement program requirements, and we are submitting it to GFOA to
determine its eligibility for another certificate.
11
The California Society of Municipal Finance Officers ( CSMFO) presented a
Certificate of Award for Outstanding Financial Reporting to the City of
Livermore for its comprehensive annual financial report for the fiscal year
ended June 30, 2004.
The Certificate is valid for one year only. We believe our current report
continues to conform to the program requirements and we are submitting it to
CSMFO.
1 2
AZE&
ASSOCIA TES
ACCOUNTANCY CORPORATION
1931 San Miguel Drive - Suite 100
Walnut Creek, California 94596
( 925) 930- 0902. FAX ( 925) 930- 0135
E- Mail: maze@ mazeassociates. com
Honorable Mayor and City Council
City ofLivennore, California
We have audited the basic financial statements of the governmental activities, the business- type activities, each major
fund, and the aggregate remaining fund information of the City of Livennore as of and for the year ended June 30,
2005, as listed in the Table of Contents. These financial statements are the responsibility of the City's management
Our responsibility is to express an opinion on these financial statements based on our audit
We conducted our audit in accordance with generally accepted auditing standards in the United States of America and
the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States. Those standards require that we plan and perfoI1l1 the audit to obtain reasonable assurance as to
whether the financial statements are free of material misstatement. An audit includes examining on a test basis
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and 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 opinion..
In our opinion the basic financial statementsre feITedt o above presentf airly in all material respectsth e respective
financial position of governmentaal ctivities, b usiness- typea ctivities, each major fund, and the aggregatere maining
fund informationo f the City of Livermorea t June 30, 2005 and the resultso f its operationsa nd the cashf lows of its
proprietary funds and the respective budgetary comparisons listed as part of the basic financial statements for
the year then ended, in conformity with generally accepted accounting principles in the United States of
America.
In accordancew ith . GovernmenAt uditing Standardsw, e have also issuedr eportsd atedN ovember8 , 2005 on our
considerationo f the City of Livermore'si nternalc ontrol structurea nd on its compliancew ith laws and regulations.
Management's Discussion and Analysis and Required Supplemental Infomlation are not a required part of the
basic fmancial statements but are supplementary information required by the Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of
managemenrt egardingt he methodso f measuremenat nd presentationo f the requireds upplementaryin formation.
However we did not audit the information and express no opinion on it.
Our audit was made for the purpose of fonning an opinion on the basic financial statements taken as a whole. The
supplemental infonnation listed in the Table of Contents are presented for purposes of additional analysis and are not a
required part of the basic financial statements of the City of Livermore. Such information has been subjected to the
auditing procedures applied in our audits of the basic financial statements, and in our opinion is fairly stated in all
material respects in relation to the basic financial statements taken as a whole.
The statistical section listed in the Table of Contents was not audited by us and we do not express an opinion on this
infonnation.
November 8, 2005
INDEPENDENT AUDITORS' OPINIoIJ'Vebsite: www. mazeassociates. com
o- m~ -(;' A~'~ Ci.; ,..,
A Professional
13
13
14
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
MANAGEMENT’S DISCUSSION AND ANALYSIS
The purpose of the Management’s Discussion and Analysis is to offer to the reader of the City’s financial
statements a narrative overview and analysis of the financial activities of the City of Livermore for the
fiscal year ended June 30, 2005. The reader is encouraged to consider the information presented here in
conjunction with the additional information furnished in the letter of transmittal, which can be found on
pages 1- 8 of this report.
( A) Financial Highlights
Government- wide:
• The City’s total assets were $ 652.9 million at June 30, 2005. Of this total, $ 416.4 million were
Governmental assets and $ 236.6 million were Business- type assets.
• Total liabilities were $ 153.1 million of which $ 131.6 million were governmental liabilities and
$ 21.5 million were business- type liabilities.
• City- wide revenues in fiscal 2005 were $ 170.4 million, of which $ 129.7 million was generated
by governmental activities and $ 40.7 million was generated by business- type activities.
• City- wide expenses were $ 119.8 million, of which $ 88.5 million was incurred by governmental
activities and $ 31.3 million was incurred by business- type activities.
Fund Level:
• Governmental Fund balances increased to $ 100.0 million in fiscal 2005 from $ 96.8 million in
fiscal 2004.
• Governmental Fund revenues declined to $ 100.6 million in fiscal 2005, down $ 1.4 million from
the prior year’s $ 102.0 million.
• Governmental Fund expenditures decreased to $ 99.9 million in fiscal 2005, down $ 17.9 million
from fiscal 2004’ s level of $ 117.8 million.
• Enterprise Fund total assets increased $ 81.3 million to $ 236.6 million in fiscal 2005. This
increase was largely due to the inclusion of infrastructure as directed by GASB Statement # 34.
• Enterprise Fund total liabilities increased $ 7.4 million to $ 21.5 million in fiscal 2005. This
increase was due to the recognition of the Water Fund’s portion of the 2002 Certificate of
Participation.
• Enterprise Fund revenues decreased $ 4.1 million to $ 37.3 million in fiscal 2005.
• Enterprise Fund expenses increased $ 4.6 million to $ 30.9 million in fiscal 2005.
( B) Overview of the Financial Statements
This discussion and analysis are intended to serve as an introduction to the City’s basic financial
statements. The City’s basic financial statements comprise three components: government- wide financial
statements, fund financial statements and notes to the basic financial statements. This report also contains
supplementary information in addition to the basic financial statements.
Government- wide Financial Statements
The government- wide financial statements are designed to provide the reader with a broad overview of
the City’s finances, in a manner similar to 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 declining.
1 5
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
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 only result in cash flows in future fiscal periods, e. g.,
uncollected property or sales taxes and earned but unused vacation leave. This is known as the full accrual
basis of accounting.
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 most of their costs through user fees and charges ( business- type activities). The
governmental activities of the City include city council, city manager, city attorney, city clerk, finance,
human resources, fire, police, public services, community development, economic development, library,
and redevelopment. The business- type activities of the City include airport, water, water reclamation, and
golf courses.
The government- wide financial statements include not only the City itself ( known as the primary
government) but also the activities of two legally separate component units: the City of Livermore
Redevelopment Agency and the Livermore Capital Projects Financing Authority ( LCPFA). Because the
City Council acts as the governing board for each of these component units and because they function as
part of the City government, their activities are blended with those of the primary government.
The government- wide financial statements can be found on pages 35- 37 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
designated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance- related legal requirements. All of 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 government- 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. This
information may be useful in evaluating the City’s near- term financial requirements. The basis of
accounting in governmental funds is known as the modified accrual basis.
The focus of fund financial statements is narrower than that of 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 so doing, the reader may
better understand the long- term impact of the City’s near- term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures
and changes in fund balances provide a reconciliation to facilitate the comparison between governmental
funds and governmental activities. This is required because the government- wide statements are prepared
on the full accrual basis of accounting while the fund statements are prepared on the modified accrual
basis of accounting.
1 6
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
Proprietary Funds
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. The City uses
enterprise funds to account for its airport, water, water reclamation, and golf course activities. Internal
service funds are used to accumulate and allocate costs internally among the City’s various functions
including public liability, workers compensation, fleet and equipment services, information technology
and facilities rehabilitation.
Proprietary funds provide the same type of information as the government- wide financial statements, only
in more detail. The proprietary fund financial statements provide separate information for all six of the
City’s enterprise funds, each of which is considered a major fund of the City. These funds are Airport,
Water, Water Reclamation, LAVWMA, Los Positas Golf Course, and Springtown Golf Course. The
City’s six internal service funds are combined into a single, aggregated presentation in the propriety fund
financial statements. Individual fund data for the internal service funds is provided in the form of
combining statements in the Supplemental Information section of this report.
Fiduciary Statements
The City is the agent for certain Assessment Districts in the City, holding amounts collected and
disbursing these amounts as directed or required. The City’s fiduciary activities are reported in the
separate Statements of Fiduciary Net Assets and the Agency Funds Statement of Changes in Assets and
Liabilities. These activities are excluded from the City’s other financial statements because the City
cannot use these assets to finance its own operations.
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 government- wide and fund financial statements. The notes to
the basic financial Statements are found on pages 57- 94.
Supplemental Information
The combining statements for non- major governmental funds are found on pages 100- 119. Combining
and individual fund statements and schedules for the internal service funds and fiduciary funds can be
found on pages 121- 126 of this report.
( C) Government- wide Financial Analysis
This analysis focuses on the net assets and changes in net assets of the City as a whole. Tables 1, 2 and 3
focus on the City’s Governmental Statement of Net Assets and Statement of Activities, while Tables 4
and 5 focus on the City’s Business- type Statement of Net Assets and Statement of Activities that follow.
1 7
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
Governmental Activities
Table 1
Governmental Net Assets at June 30
( in Millions)
2005 2004
Cash and investments $ 120.0 $ 120.0
Other assets 61.4 54.8
Capital assets 235.0 150.0
Total assets 416.4 324.8
Long- term debt outstanding 103.1 114.7
Other liabilities 28.5 26.1
Total liabilities 131.6 140.8
Net assets:
Invested in capital assets, net of debt 165.2 72.9
Restricted 37.9 41.9
Unrestricted 81.7 69.2
Total net assets $ 284.8 $ 184.0
The City’s governmental net assets amounted to $ 284.8 million at June 30, 2005, an increase of $ 100.8
million over 2004. This increase is the Change in Net Assets reflected in the Governmental Activities
column of the Statement of Activities shown in Table 2. The City’s net assets at June 30, 2005 comprised
the following:
• Cash and investments comprised $ 18.9 million of unspent projects funds from new debt issues, $ 4.6
million of debt service reserves and $ 96.6 million of pooled cash and investments available for
operations. Substantially all of these amounts were held in short term investments in government
securities, as detailed in Note 3 to the financial statements.
• Accounts and interest receivable of $ 9.6 million, all current, along with notes receivable of $ 13.8
million that are due over longer periods of time, as explained in Note 5 to the financial statements.
• Land held by the Redevelopment Agency for redevelopment purposes, valued at cost of $ 2.1 million,
which is less than estimated market value.
• Capital assets of $ 235.0 million, net of depreciation charges, which includes the City’s infrastructure
as well as its other capital assets used in governmental activities.
1 8
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
The Functional Expenses Chart above includes only current year expenses; it does not include capital
outlays, which are now added to the City’s capital assets. As the Chart shows, community development
• Current liabilities, including accounts payable, claims and other amounts due currently, totaling
$ 11.8 million.
• Deposit payable of $ 16.7 million primarily represent developer performance deposits, which are
refundable if the developer performs City required improvements.
• Long- term debt of $ 103.1 million, of which $ 100.0 million is due in future years and $ 3.1 million is
due currently.
• Net assets invested in capital assets net of related debt of $ 165.2 million, representing the City’s
investment in infrastructure and other capital assets used in Governmental activities, net of amounts
borrowed to finance that investment.
• Restricted net assets totaling $ 37.9 million, which may be used only to construct specified capital
projects, for debt service, for redevelopment, special revenue programs or special assessment
districts. The restrictions on these funds were placed there by outside agencies and are not subject to
change by the City.
• Unrestricted net assets, the part of net assets that can be used to finance day- to- day operations without
constraints established by debt covenants or other legal requirements or restrictions. The City had
$ 81.7 million of unrestricted net assets at June 30, 2005.
Fiscal Year 2005 Government Activities
Sources of Revenues Functional Expenses
As the Sources of Revenue Chart above shows, $ 19.4 million, or 14.9% of the City’s fiscal 2005
governmental activities revenue, came from sales taxes, while $ 18.1 million or 13.9% came from property
tax, $ 10.5 million, or 8.1%, came from other taxes, $ 13.5 million, or 10.4%, came from charges for
services, and $ 43.1 million, or 33.2%, came from grants and contributions. The remaining 19.5% came
from a variety of sources, as shown above.
ant s
Int e re st
3%
P ropert y
t axes
15%
Increment al
prope rt y t axe s
2%
Int e rgovernment
0%
Misc . &
t ransfe rs
1%
Sales t axes
15%
Ot he r t a xe s
8%
Charges for
se rvic es
10%
Gain on
sa le of land
1%
Capit a l grant s
28%
Community
Development
19%
Economic Development
0%
City
Manager
1%
City
Council
0%
Redevelopment
4%
Public Services
19%
Lib rary
6%
Po lice
27%
Fire
15%
Personnel
1%
Finance
6%
City Attorney
1%
City Clerk
1%
r
1 9
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
revenues and expenses and general revenues in detail. All
ese are elements in the Changes in Governmental Net Assets summarized below.
Changes in Governmental Net Assets
( in )
accounted for $ 16.6 million, or 18.6%, of total governmental expenses, police accounted for $ 22.0
million, or 24.7%, fire accounted for $ 12.4 million, or 13.9% and other governmental programs and
functions accounted for the remaining 42.8%.
The Statement of Activities presents program
th
Table 2
Millions
rnmental Activities
2
Gove
005 2004
Expenses
General Government $ 9.2 0.5
12.4 11.3
c Services
ty Development
opment
n long term debt
es 8 8
$ 1
Fire
Police 22.0 21.2
Publi 15.9 8.9
Communi 16.6 19.2
Economic Devel 0.4 0.4
Library 5.1 4.0
Redevelopment 3.2 2.3
Interest o 3.6 3.5
Total expens 8.4 1.3
Revenues
Program revenues:
Charges for services 13.5 9.0
tions and grants 8.0 4.8
and grants 2
5 4
Operating contribu
Capital contributions 35.1 6.2
Total program revenues 6.6 0.0
General revenues:
Property taxes 18.1 17.2
Incremental property taxes 3.0 2.3
1 1
ental
of property
revenues 6 6
Sales taxes 19.4 17.8
Other taxes 0.5 0.6
Intergovernm 0.6 3.6
Interest 4.1 5.6
Miscellaneous 5.4 4.9
Gain on sale 3.3 0.0
Total general 4.4 2.0
Surplus before transfers 32.6 20.7
Transfers, net 8.7 0.3
Changes in net assets $ 41.3 $ 21.0
2 0
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
s Table million or 46.8% of the City’s fiscal 2005 Governmental rev
om program revenues and $ 64.4 million or 53.2% came from general revenues such as taxes and
charges used to fund expenses incurred in providing services; $ 8.0 million of operating grants
t. Net expense is defined as total program cost less the revenues generated by
Table 3
Net Revenue ( Expense) of Governmental Activities
( in )
2005 2004
A 2 above show, $ 56.6 enue, came
fr
interest.
Program revenues were composed of charges for services of $ 13.5 million which include permit revenues,
fees and
and contributions which include gas tax revenues and housing and police grants and capital grants and
contributions of $ 35.1 million which consist mainly of street project grants and developer impact fees
restricted to capital outlay.
General revenues are not allocable to programs. General revenues are used to pay for the net cost of
governmental programs.
Table 3 presents the net ( expense) or revenue of each of the City’s governmental activities, including
interest on long- term deb
those specific activities. Revenues generated by certain activities, such as Public Services and
Community Development, exceed the cost of that program. Revenues exceeded expenses for the Public
Services and Community Development activities because those programs were responsible for producing
capital grants and contributions amounting to $ 17.3 million and $ 17.3 million, respectively.
Millions
City Council 0.1) 0.2)
ity Manager ( 0.9 ( 0.8)
ources
( (
c Services
ty Development
opment (
n long term debt (
($ ($
C )
City Attorney ( 0.9) ( 0.9)
City Clerk ( 0.7) ( 1.2)
Finance ( 5.0) ( 6.0)
Human Res ( 1.2) ( 1.2)
Fire ( 7.1) ( 9.8)
Police 19.6) 19.1)
Publi 2.2 ( 8.3)
Communi 13.0 6.3
Economic Devel 0.3) ( 0.4)
Library ( 4.4) 6.4
Redevelopment ( 3.2) ( 2.3)
Interest o ( 3.6) 3.5)
Totals ($ 31.8) ($ 41.0)
2 1
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
e Activities
he Statements of Net Assets and Statement of Activities present a summary of the City’s Business- type
( i s)
Business- Type Activities
2005 2004
Business- typ
T activities which are composed of the City’s enterprise funds.
Table 4
Business- Type Net Assets at June 30
n Million
Cash and investments $ 74.4 $ 68.0
Other assets 1.8 2.2
23 15
Capital assets 160.4 85.0
Total assets 6.6 5.2
Long- term debt outstanding
ther liabilities 2.6 2.1
18.9 12.0
O
Total liabilities 21.5 14.1
Net assets:
Invested in capital assets, net of debt 141.5 73.0
d 73.6 68.1
$ $ 1
Unrestricte
Total net assets 215.1 41.1
The net asset $ 215.1 million in fiscal 2005, an increase of $ 74.0
million. Capital asset additions, discussed in the Capital Assets section and long- term debt retirements,
s of business- type activities increased to
discussed in the Debt Administration section, account for the increase.
2 2
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
Table 5
Changes in Business- Type Net Assets
( in )
siness- type Activities
2005 2004
Millions
Bu
Expenses
Airport $ 4.5 $ 3.8
7.1 6.9
MA
Golf Course
olf Curse
3 26
Water
Sewer 14.5 10.8
LAVW 2.4 2.6
Las Postas 2.6 2.5
Springtown G .2 .2
Total expenses 1.3 .80
Revenues
Program Revenues:
r Services 33.1 33.7
nd Contributions .4 0.0
ntributions
40 4
Charges fo
Operating Grants a
Capital Grants and Co 7.2 9.7
Total Program Revenues .7 3.4
Changes in net assets $ 9.4 $ 16.6
Total Business- type Activitie were $ 37.3 millio iscal 2005, down f 41.4
million in the prior year due primarily to a reduction of “ Capital Grants and Contributions”. Operating
sfers increased expenses by $ 6.0 million.
operating revenues of s n in f rom $
expenses increased $ 4.6 million to a total of $ 30.9 million.
Non- operating revenues contributed $ 0.2 million and net tran
2 3
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
The City’s Fund Financial Statements
Table 6 below summarizes Governmental Activity and balances at the fund level:
Table 6
Financial Highlights at Fund Level at June 30
( in Millions)
2005 2004
Governmental Funds
Total assets $ 142.8 $ 137.8
Total liabilities 42.8 41.0
Total fund balances 100.0 96.8
Total revenues 100.6 102.0
Total expenditures 99.9 117.8
Total other financing sources ( uses) and special items 2.5 ( 1.8)
At June 30, 2005, the City’s governmental funds reported combined fund balances of $ 100.0 million,
which is an increase of $ 3.2 million over the prior year.
Governmental fund revenues showed a decrease of $ 1.4 million to $ 100.6 million, while expenditures
decreased $ 17.4 million to a new total of $ 99.9 million. Expenditures included $ 6.6 million in debt
service and capital outlays of $ 20.2 million. The decrease in expenditures was due primarily to a
reduction in capital outlay expenditures.
Analyses of Major Governmental Funds
General Fund
Revenues showed an increase of $ 3.2 million to $ 69.4 million in fiscal 2005 compared to the actual for
fiscal 2004. Taxes and special assessments increased $ 0.7 million to $ 28.3 million in fiscal 2005 and
intergovernmental revenue increased $ 1.2 million in fiscal 2005.
Expenditures showed an increase of $ 3.2 million to $ 68.0 million for fiscal 2005 compared to the actual
for fiscal 2004. Of the total, Public Safety costs showed an increase of $ 1.2 million for the Fire
Department and an increase of $ 0.9 million for the Police Department for fiscal 2005 due to increased
cost of supplemental benefits.
The following table shows the budgetary variances between the original two- year budget approved in
2004 versus the final amended budget for fiscal 2004 that was approved on June 13, 2005 and reflects the
change in economic expectations between the two time periods.
2 4
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
Table 7
General Fund Budgetary Variance Analysis
Budget
Approved
May 24,
2004
Budget
Approved
June 13,
2005
Variance Final
Budget
Variance
Final
Budget
Original Final Positive/( Negative) %
Revenues:
Property taxes $ 18,200,000 $ 17,965,000 ($ 235,000) - 1.29%
Sales taxes $ 18,950,000 $ 18,950,000 $ 0 0.00%
Other taxes $ 9,687,000 $ 9,382,000 ($ 305,000) - 3.15%
Licenses and permits $ 3,094,000 $ 2,827,000 ($ 267,000) - 8.63%
Intergovernmental $ 5,835,000 $ 6,062,000 $ 227,000 3.89%
Fines and forfeitures $ 713,000 $ 759,000 $ 46,000 6.45%
Other in lieu taxes $ 429,000 $ 429,000 $ 0 0.00%
Charges for current services $ 10,741,000 $ 8,236,000 ($ 2,236,000) - 21.35%
Use of money and property $ 3,750,000 $ 3,760,000 $ 10,000 0.27%
Miscellaneous $ 580,000 $ 1,871,000 $ 1,291,000 222.59%
Totals $ 71,979,000 $ 70,241,000 ($ 1,469,000) - 2.05%
Expenditures:
City Council $ 249,490 $ 256,350 $ 6,860 2.75%
City Manager $ 845,170 $ 855,330 $ 10,160 1.20%
City Attorney $ 983,880 $ 928,760 ($ 55,120) - 5.60%
City Clerk $ 1,100,650 $ 975,130 ($ 125,520) - 11.40%
Finance $ 6,259,050 $ 5,900,540 ($ 358,510) - 5.73%
Human Resources $ 1,244,070 $ 1,192,000 ($ 52,070) - 4.19%
Fire $ 12,042,700 $ 12,157,010 $ 114,310 0.95%
Police $ 21,595,110 $ 21,631,290 $ 36,180 0.17%
Public Services $ 7,887,990 $ 7,812,840 ($ 75,150) - 0.95%
Community Development $ 13,628,410 $ 13,956,500 $ 328,090 2.41%
Economic Development $ 677,030 $ 584,150 ($ 92,880) - 13.72%
Library $ 4,460,170 $ 4,375,150 ($ 85,020) - 1.91%
Capital projects $ 1,477,000 $ 1,816,610 $ 339,610 22.99%
Totals $ 72,450,720 $ 72,441,660 ($ 9,060) - 0.01%
The following table shows the original budget approved in 2004 and the final amended budget approved
on June 13, 2005 and the actual results as of June 30, 2005. The variances computed are between the final
budget and actual results. In revenues, the largest contributor to the $ 0.7 million variance in the “ Charges
for Current Services” category was “ Inspection Fees” at a negative $ 0.8 million. Use of Money and
Property was also lower than expected with a $. 5 million negative variance. As to expenditures, the
largest negative variance was $ 1.2 million within the Community Development Department and
amounted to 8.9% of the approved budget. Overall both revenues and expenditures had net negative
variances.
2 5
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
Table 8
General Fund Budgetary and Actual Variance Analysis
Budget
Approved
May 24,
2004
Budget
Approved
June 13,
2005
As of June 30,
2005 Actual
Variance Final
Budget
Variance
Final
Budget
Original Final Budgetary Basis Positive/( Negative) %
Revenues:
Property taxes $ 18,200,000 $ 17,965,000 $ 17,855,632 ($ 109,368) - 0.61%
Sales taxes $ 18,950,000 $ 18,950,000 $ 18,953,516 $ 3,516 0.02%
Other taxes $ 9,687,000 $ 9,382,000 $ 10,053,655 $ 671,655 7.16%
Licenses and permits $ 3,094,000 $ 2,827,000 $ 2,566,277 ($ 260,723) - 9.22%
Intergovernmental $ 5,835,000 $ 6,062,000 $ 6,090,230 $ 28,230 0.47%
Fines and forfeitures $ 713,000 $ 759,000 $ 733,561 ($ 25,439) - 3.35%
Other in lieu taxes $ 429,000 $ 429,000 $ 411,220 ($ 17,780) - 4.14%
Charges for current services $ 10,741,000 $ 8,236,000 $ 7,488,719 ($ 747,281) - 9.07%
Use of money and property $ 3,750,000 $ 3,760,000 $ 3,214,906 ($ 545,094) - 14.50%
Miscellaneous $ 580,000 $ 1,871,000 $ 2,012,868 $ 141,868 7.58%
Totals $ 71,979,000 $ 70,241,000 $ 69,380,584 ($ 860,416) - 1.22%
Expenditures:
City Council $ 249,490 $ 256,350 $ 262,712 $ 6,362 2.5%
City Manager $ 845,170 $ 855,330 $ 898,532 $ 43,202 5.1%
City Attorney $ 983,880 $ 928,760 $ 896,776 ($ 31,984) - 3.4%
City Clerk $ 1,100,650 $ 975,130 $ 939,935 ($ 35,195) - 3.6%
Finance $ 6,259,050 $ 5,900,540 $ 4,994,524 ($ 906,016) - 15.4%
Human Resources $ 1,244,070 $ 1,192,000 $ 1,202,734 $ 10,734 0.9%
Fire $ 12,042,700 $ 12,157,010 $ 12,091,532 ($ 65,478) - 0.5%
Police $ 21,595,110 $ 21,631,290 $ 20,713,260 ($ 918,030) - 4.2%
Public Services $ 7,887,990 $ 7,812,840 $ 7,152,912 ($ 659,928) - 8.4%
Community Development $ 13,628,410 $ 13,956,500 $ 12,711,810 ($ 1,244,690) - 8.9%
Economic Development $ 677,030 $ 584,150 $ 367,093 ($ 217,057) - 37.2%
Library $ 4,460,170 $ 4,375,150 $ 4,358,134 ($ 17,016) - 0.4%
Capital projects $ 1,477,000 $ 1,816,610 $ 1,370,664 ($ 445,946) - 24.5%
Totals $ 72,450,720 $ 72,441,660 $ 67,960,618 ($ 4,481,042) - 6.2%
2 6
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
Redevelopment Agency Capital Projects Fund
The Fund is used to account for redevelopment activities and acts as the primary operating fund for the
Agency. Property tax increment revenues are recorded in this fund. Tax increment revenues used for debt
service and the 20% low- and- moderate- income housing set- aside required by State law are transferred to
other funds.
Cash and Investments held by Trustee amount to $ 17.2 million and represent unspent 2001 Tax
Allocation Bond proceeds to be used for redevelopment activities. Land held for redevelopment amounts
to $ 2.1 million at June 30, 2005.
The Agency has agreements with developers/ owners that are summarized below. Additional details may
be found in the Note 14 to the financial statements.
1. Livermore Senior Housing Continuum of Care Project Phase I
The City and Agency have an agreement with a Developer and an Owner under which a 250 unit
residential rental senior citizen housing Congregate Care/ Assisted Living Facility ( Phase I) was
constructed on a site sold by the Agency to the Developer in fiscal 2002- 2003. In addition, Agency
funds transferred to the City’s Housing and Community Assistance Fund in fiscal 2001- 2002 were
used to finance a Developer Loan amounting to $ 800,000, which has been recorded in that City Fund.
The loan bears interest at ten percent, is due in fifty- seven years and is secured by a subordinated deed
of trust. Provided the project is in compliance with affordability covenants, the interest rate will drop
to five percent beginning the seventeenth year of the note until maturity. If the project maintains
compliance with affordability covenants through maturity, interest accrued at the five percent rate will
be forgiven. In addition, the Agency agreed to an additional subsidy loan of approximately $ 550,000,
which is to bear interest at four percent, with annual repayments beginning in year eleven through
year twenty.
2. Livermore Independent Living Associates Project
Since Phase II was deemed unfeasible, the Agency and City have a new agreement under which a
Developer will construct and operate a 130 senior rental housing project on a site composed of a
parcel conveyed by the Agency to the Developer and a parcel the City has agreed to sell to Developer
for $ 1.1 million. To assist in financing the project, the Agency has agreed to loan $ 2 million to the
Developer. The loan bears interest at 3 percent per year and is due in forty years.
In addition, the Agency agreed to a Property Tax Loan and an Additional Property Tax Deferment up
to maximums specified in the agreement, which bear interest at 3 percent, with annual repayments
beginning in year eight from available cash flows of the project.
As required under the agreement, the Agency sponsored the issuance of $ 19 million principal amount
of Multifamily Housing Revenue Bonds proceeds, which were used by the Developer to acquire and
construct the project. The Bonds are repayable solely from mortgage payments received from the
Developer. The Agency is not obligated for repayment of the Bonds.
2 7
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
3. Maroon Bear Project
The Agency has an agreement under which a Developer constructed and operates a 20,000 square
foot 2- story building composed of 10,000 square feet of retail space and 10,000 square feet of office
space. The building is located on a site the Developer purchased from the Agency for $ 800,000. The
purchase price is evidenced by a note receivable due the Agency. As of June 30., 2005, the remaining
note receivable balance of $ 200,000 is due within 5 days following the completion of the park plaza.
4. Signature Properties Multi- Family Residential Project
The Agency has a Disposition and Development Agreement under which the Developer has agreed to
construct a project consisting of a minimum of 119 attached multi- family housing units along with
certain infrastructure improvements. The Project is to be located on an Agency owned site which was
sold to the Developer for $ 5 million in fiscal year 2004- 2005.
5. Cinema West Movie Theater Project
The Agency has an Agreement under which a ten screen, 34,500 square foot movie theater complex
will be constructed by a Developer. Pursuant to the Agreement, the Agency sold the site to the
Developer for $ 840,000. In March 2004, escrow closed and the Agency received sales proceeds, net
of certain closing costs, and a $ 170,000 note for the remaining sales proceeds which is due upon the
earlier of funding of a construction loan or within 15 days of Building Permit issuance.
6. Livermore Valley Center Retail Project East
The Agency has an Agreement with a Developer to construct a 40,000 square foot retail and office
complex. The complex will be built on a .35 acre site adjacent to a Park Plaza and the Movie Theater
Project. The Agency owned site will be sold to the Developer for $ 462,669, payable in non- interest
bearing installments as follows: $ 154,223 is due at the close of escrow less a good faith deposit the
Agency has and any interest earned, $ 154,223 is due immediately upon issuance of the Certificate of
Occupancy, $ 154,223 is due within the earlier of attainment of 90% occupancy of the site or one year
after the issuance of the Certificate of Occupancy. Prior to occupancy by the Developer, the
Developer shall pay the Agency $ 4,627 to acquire, construct and install a public art project within the
Livermore Valley Center. As of June 30, 2005, construction had not begun.
7. Livermore Valley Center Retail Project West
The Agency has an Agreement with a Developer to construct a 45,000 square foot retail and office
complex. The complex will be built on real property adjacent to the proposed Performing Arts Center
and a proposed Park Plaza. The site is owned by the Agency which will be sold to the Developer for
$ 973,815. The sales price is payable in non- interest bearing installments as follows: $ 324,605 is due
at the close of escrow, $ 324,605 is due immediately upon issuance of the Certificate of Occupancy,
$ 324,605 is due within the earlier of attainment of 90% occupancy of the site or one year after the
issuance of the Certificate of Occupancy. Prior to occupancy by the Developer, the Developer shall
pay the Agency $ 9,738 to acquire, construct and install a public art project within the Livermore
Valley Center. As of June 30, 2005, construction had not begun.
2 8
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
8. Performing Arts Centers
The Agency has an Agreement under which a Developer will construct two performing arts theaters.
The first theater will contain approximately 500 seats and will be designed and operated to support
local performing arts for smaller audiences. The second theater will contain approximately 1,500
seats to support regional and traveling presenting groups as well as larger local performances. The
theaters will be located on two sites that the Developer will lease from the Agency for one- dollar per
year. Each lease shall be for a period of 25 years with three 5- year extensions at the option of the
Developer. As of June 30, 2005, construction of the theaters has not begun.
The Fund owes the City $ 7.9 million in advances, which were used to fund prior year redevelopment
activities. The Agency plans to use $ 7.9 million of the 2001 Tax Allocation Bond proceeds to repay the
advance due the City and $ 1.1 million of tax increment revenues payable over seven years for the Traffic
Impact Fees due the City.
The Fund’s fiscal 2005 revenues amounted to $ 4.1 million, which is an increase of $ 0.7 million from the
prior year.
Expenditures decreased to $ 6.0 million, down $ 2.6 million from the prior year as a result of a reduction in
activity for the above projects.
Other financing sources were a net ($ 0.2) million in fiscal 2005.
Street Improvements Fund
This Fund is used to account for the construction of major streets and interchanges. During fiscal 2005,
capital outlay amounted to $ 4.8 million. Significant projects included the Greenville Road Widening and
Railroad Bridge Replacement with expenditures of $ 2.9 million and various Traffic Impact Fee projects
with expenditures of $ 2.0 million.
The primary revenue source for this fund is developer impact fees, which decreased $ 0.1 million in fiscal
2005, to a total of $ 4.5 million. This revenue source is dependant on development activity, which slowed
in fiscal 2005.
This Fund had interfund receivable balances amounting to $ 1.2 million at June 30, 2005. Of this amount,
$ 1.0 million was due from the Isabel/ Rte. 84/ I580 Interchange, $ 0.1 million was due from the Federal
Street Projects Fund and $ 0.1 million was due from other funds.
Developer Deposits
This fund accounts for performance deposits from developers, which are held on their behalf. Funds are
returned if developers perform required provisions under agreements with the City. Funds used by the
City to complete required provisions are recorded as revenues in other funds to the extent used. As of
June 30, 2005 the City held $ 15.9 million in performance deposits on behalf of developers
Other Governmental Funds
These funds are not presented separately in the Basic Financial statements, but are individually presented
as Supplemental Information.
2 9
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
Analysis of Major Business- type Activities – Enterprise Funds
Airport Fund
Airport Fund net income amounted to $ 0.5 million in fiscal year 2005, up from $ 0.4 million in fiscal year
2004.
Water Fund
Water Fund net income amounted to ($ 3.7) million in fiscal year 2005, down from $ 3.8 million in fiscal
year 2004. Operating revenues decreased by $ 1.0 million in fiscal 2005. The decrease in net income is
due to the transfer of $ 6.8 million for a reallocation of long- term debt.
Sewer Fund
Sewer Fund net income amounted to $ 6.1 million in fiscal 2005, down from $ 12.5 million in fiscal 2004.
Operating Revenues decreased $ 3.5 million to $ 21.2 million in fiscal 2005. The decrease is the result of
connection fee revenues dropping due to less development. Connection fees are used to fund additions to
and repairs of Sewer Fund capital assets. During fiscal 2005, repairs to capital assets amounted to $ 0.1
million.
Operating expenses increased $ 3.8 million to $ 14.3 million. The increase is the result of an adjustment to
assets in compliance with GASB 34 and the related depreciation expense.
Transfers out amount to $ 2.7 million in fiscal 2005 and are composed primarily of a $ 2.5 million transfer
to the LAVWMA Fund, which is discussed below.
LAVWMA Fund
This fund accounts for contributions to the Livermore/ Amador Valley Wastewater Authority
( LAVWMA), a joint powers authority responsible for implementing a water quality management program
involving wastewater treatment and disposal for the City and other municipal members of LAVWMA.
The City contributes its share of operating and capital funds to LAVWMA, which uses those funds along
with other members’ contributions to operate. The City is not entitled to assets nor responsible for
liabilities of LAVWMA. Contributions to LAVWMA amounted to $ 2.5 million for the year and were
funded by Sewer Fund transfers.
Las Positas Golf Course Fund
The Fund generated a net loss of $ 2.6 million down $ 2.4 million from fiscal 2004.
Operating revenues were slightly down by $ 0.3 million at $ 2.1 million in fiscal 2005. Operating expenses
remained had a slight increase of $ 0.1 million in fiscal 2005.
Springtown Golf Course Fund
This Fund generated a net loss for the year amounting to less than $ 0.1 million for fiscal 2005. In fiscal
2002, the City turned over operation of the Springtown Golf Course to a third party operator which
3 0
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
retains golf and other fee revenues and operates and maintains the Golf Course. The Operator then pays
the City a fee as set forth in the agreement.
( D) Capital Assets
GASB 34 requires the City to record all its capital assets including infrastructure. Infrastructure includes
roads, bridges, signals and similar assets used by the entire population. As allowed by GASB 34, the City
has until fiscal 2005- 2006 to record the cost and accumulated depreciation of infrastructure acquired in
prior years. An audit of these assets was done this fiscal year and City staff has implemented these
adjustments.
At the end of fiscal 2005 the cost of capital assets recorded on the City’s financial statements was as
shown in Table 9 below ( further detail may be found in Note 6 to the financial statements):
Table 9
Capital Assets at Year- end
( in Millions)
2005 2004
Governmental Activities
Land $ 16.7 $ 5.0
Construction in progress 16.7 29.2
Buildings 96.7 67.1
Equipment and vehicles 12.8 4.1
Land Improvements and infrastructure 202.2 93.7
Internal service fund equipment and vehicles 10.6 6.2
Less accumulated depreciation ( 87.4) ( 21.1)
Totals $ 268.3 $ 184.2
Business- type Activities
Land $ 13.9 $ 13.9
Construction in progress 4.1 1.2
Land Improvements and infrastructure 24.1 13.4
Golf Courses 10.2 10.7
Buildings 13.6 7.7
Sewer treatment plant, mains, pipes and other 179.9 56.0
Water mains, pipelines and other 19.0 5.1
Tarmacs, runways and other 9.0 16.2
Equipment and vehicles 3.9 1.0
Less accumulated depreciation ( 117.3) ( 40.1)
Totals $ 160.4 $ 85.1
3 1
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
The principal additions for governmental activities in fiscal 2005 were to streets, roads and parking
structures. Business- type activity additions were primarily composed of Sewer and Water infrastructure
improvements. Some projects in construction in progress in prior years were completed in fiscal 2005,
such as the parking structure.
The City depreciates all its capital assets over their estimated useful lives, as required by GASB 34. The
purpose of depreciation is to spread the cost of a capital asset over the years of its useful life so that an
allocable portion of the cost of the asset is borne by all users. Additional information on depreciable lives
may be found in Note 6.
( E) Debt Administration
Each of the City’s debt issues is discussed in detail in Note 7 to the financial statements. At June 30,
2003 and 2004 the City’s debt comprised:
Table 10
Outstanding Debt
( in Millions)
2005 2004
Governmental Activity Debt:
Certificates of Participation $ 65.7 $ 76.5
Tax Allocation Bonds 36.1 36.8
Notes payable 1.3 1.4
Totals $ 103.1 $ 114.7
Business- type Activity Debt:
Certificates of Participation $ 11.9 $ 4.7
State Water Reclamation Loans 6.5 7.2
Airport Loans Payable 0.1 0.1
Golf Equipment Lease .4 0.0
Totals $ 18.9 $ 12.0
In fiscal 2005, the City issued no new debt. Governmental activities debt was reduced $ 3.1 for scheduled
retirements. Business- type activity debt was reduced $ 2.1 million for scheduled retirements.
( F) Special Assessment and Mello- Roos District Debt
Special assessment and Mello- Roos districts in different parts of the City have issued tax- exempt debt to
finance the construction of public improvements entirely in those districts. At June 30, 2005, a total of
$ 48.1 million in special assessment district debt was outstanding, issued by four special assessment
districts. This debt is secured only by special assessments on the real property in the district issuing the
debt, and is not the City’s responsibility. The City does act as these Districts’ agent in the collection and
3 2
City of Livermore, California
Comprehensive Annual Financial Report
Year Ended June 30, 2005
remittance of assessments, and in the management of facilities construction. Further detail on these
districts may be found in Note 8 to the financial statements.
( G) Requests for Information
The Comprehensive Annual Financial Report is intended to provide a general overview of the City’s
finances for readers of the financial statements. Questions concerning any of the information in this
report or requests for additional financial information should be addressed to the Director of Finance,
1052 South Livermore Avenue, Livermore, CA 94550- 4899.
3 3
34
CITY OF LIVERMORE
GOVERNMENT – WIDE FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS AND ACTIVITIES
The Statement of Net Assets and the Statement of Activities summarize the entire City’s financial activities and
financial position. They are prepared on the same basis as is used by most businesses, which means they include
all the City’s assets and all its liabilities, as well as all its revenues and expenses. This is known as the full
accrual basis— the effect of all the City’s transactions is taken into account, regardless of whether or when cash
changes hands, but all material internal transactions between City funds have been eliminated.
The Statement of Net Assets reports the difference between the City’s total assets and the City’s total liabilities,
including all the City’s capital assets and all its long- term debt. The Statement of Net Assets presents similar
information to the old balance sheet format, but presents it in a way that focuses the reader on the composition of
the City’s net assets, by subtracting total liabilities from total assets.
The Statement of Net Assets summarizes the financial position of all the City’s Governmental Activities in a
single column, and the financial position of all the City’s Business- Type Activities in a single column; these
columns are followed by a Total column that presents the financial position of the entire City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue,
Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these Funds, their
activities are consolidated with Governmental Activities, after eliminating inter- fund transactions and balances.
The City’s Business Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net assets. It is also prepared on the full
accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of when cash
changes hands. This differs from the “ modified accrual” basis used in the Fund financial statements, which
reflect only current assets, current liabilities, available revenues and measurable expenditures.
The format of the Statement of Activities differs considerably from those used in the past. It presents the City’s
expenses first, listed by program, and follows these with the expenses of its business- type activities. Program
revenues— that is, revenues which are generated directly by these programs— are then deducted from program
expenses to arrive at the net expense of each governmental and business- type program. The City’s general
revenues are then listed in the Governmental Activities or Business- type Activities column, as appropriate, and
the Change in Net Assets is computed and reconciled with the Statement of Net Assets.
Both these Statements include the financial activities of the City, the Livermore Redevelopment Agency and the
Livermore Capital Projects Financing Authority, which are legally separate but are component units of the City
because they are controlled by the City, which is financially accountable for their activities.
These financial statements along with the fund financial statements and footnotes are called Basic Financial
Statements.
35
CITY OF LIVERMORE
STATEMENT OF NET ASSETS
JUNE 30, 2005
Governmental Business- Type
Activities Activities Total
ASSETS
Cash and investments in City Treasury ( Note 3) $ 96,585,248 $ 74,375,867 $ 170,961,115
Cash and investments with Trustees ( Note 3) 23,441,831 23,441,831
Accounts receivables ( net of applicable allowance for uncollectibles) 8,184,290 1,737,012 9,921,302
Interest receivable 1,448,751 1,448,751
Internal balances ( Note 4D) 51,208 ( 51,208)
Prepaids, deposits and supplies 2,409,075 65,256 2,474,331
Notes receivable ( Note 5) 13,754,005 13,754,005
Land held for redevelopment ( Note 1I) 2,144,664 2,144,664
Land & construction in progress ( Note 6) 33,397,609 17,919,898 51,317,507
Capital assets ( net of accumulated depreciation) ( Note 6) 234,958,630 142,512,746 377,471,376
Total assets 416,375,311 236,559,571 652,934,882
LIABILITIES
Accounts payable and other accruals 5,669,117 1,636,154 7,305,271
Accrued payroll and compensated absences 4,012,498 622,399 4,634,897
Claims payable ( Note 13B) 2,149,080 2,149,080
Deposit payable and unearned revenue 16,657,441 309,423 16,966,864
Long- term debt ( Note 7):
Due within one year 3,165,000 1,551,500 4,716,500
Due in more than one year 99,972,500 17,384,827 117,357,327
Total liabilities 131,625,636 21,504,303 153,129,939
NET ASSETS ( Note 9)
Invested in Capital Assets, net of related debt 165,218,739 141,496,317 306,715,056
Restricted:
Capital projects 10,165,448 10,165,448
Debt service 4,587,475 4,587,475
Special assessment administration 2,365,678 2,365,678
Redevelopment 16,407,343 16,407,343
Special revenue grant programs 7,099,029 7,099,029
Unrestricted 78,905,963 73,558,951 152,464,914
Total net assets $ 284,749,675 $ 215,055,268 $ 499,804,943
See accompanying notes to financial statements
36
CITY OF LIVERMORE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2005
Net ( Expense) Revenue and
Program Revenues Changes in Net Assets
Operating Capital
Charges for Grants and Grants and Governmental Business- type
Functions/ Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental Activities:
City Council $ 265,398 $ 144,975 ($ 120,423) ($ 120,423)
City Manager 911,600 ( 911,600) ( 911,600)
City Attorney 898,971 ( 898,971) ( 898,971)
City Clerk 942,167 $ 269,638 ( 672,529) ( 672,529)
Finance 5,032,359 ( 5,032,359) ( 5,032,359)
Personnel 1,199,286 ( 1,199,286) ( 1,199,286)
Fire 12,400,509 5,312,882 ( 7,087,627) ( 7,087,627)
Police 21,951,225 1,764,120 609,778 ( 19,577,327) ( 19,577,327)
Public Services 15,969,108 373,659 477,804 $ 17,285,107 2,167,462 2,167,462
Community Development 16,541,565 5,632,462 6,686,895 17,282,058 13,059,850 13,059,850
Economic Development 360,962 ( 360,962) ( 360,962)
Library 5,152,325 130,748 64,149 551,763 ( 4,405,665) ( 4,405,665)
Redevelopment 3,234,590 ( 3,234,590) ( 3,234,590)
Interest on long term debt 3,627,369 ( 3,627,369) ( 3,627,369)
Total Governmental Activities 88,487,434 13,483,509 7,983,601 35,118,928 ( 31,901,396) ( 31,901,396)
Business- type Activities:
Airport 4,537,129 4,679,460 $ 142,331 142,331
Water 7,091,055 8,972,523 1,213,200 3,094,668 3,094,668
Sewer 14,449,227 17,253,743 5,963,929 8,768,445 8,768,445
LAVWMA 2,432,617 401,286 ( 2,031,331) ( 2,031,331)
Las Positas 2,538,503 2,108,799 ( 429,704) ( 429,704)
Springtown 217,610 79,292 ( 138,318) ( 138,318)
Total Business- type Activities 31,266,141 33,093,817 401,286 7,177,129 9,406,091 9,406,091
Total $ 119,753,575 $ 46,577,326 $ 8,384,887 $ 42,296,057 ( 31,901,396) 9,406,091 ( 22,495,305)
General revenues:
Property taxes 18,073,340 18,073,340
Incremental property taxes 3,049,903 3,049,903
Sales taxes 19,353,516 19,353,516
Other taxes 10,464,875 10,464,875
Intergovernmental 645,230 645,230
Interest 4,110,883 4,110,883
Miscellaneous 5,449,705 5,449,705
Special Item: gain on sale of property 3,267,560 3,267,560
Transfers, net ( Note 4B) 8,754,015 ( 8,754,015)
Total general revenues and transfers 73,169,027 ( 8,754,015) 64,415,012
Change in Net Assets 41,267,631 652,076 41,919,707
Net Assets- Beginning 183,996,868 141,110,238 325,107,106
GASB Statement No. 34 Implementation
Adjustment ( Note 6B) 59,485,176 73,292,954 132,778,130
Net Assets- Ending $ 284,749,675 $ 215,055,268 $ 499,804,943
See accompanying notes to financial statements
37
38
CITY OF LIVERMORE
FUND FINANCIAL STATEMENTS
Only individual major funds are presented in the Fund Financial Statements, while non- major funds are
combined in a single column. Major funds are defined generally as having significant activities or balances in
the current year.
The funds described below were determined to be Major Funds by the City in fiscal 2005. Individual non-major
funds may be found in the Supplemental section.
GENERAL FUND
The General Fund is used for all the general revenues of the City not specifically levied or collected for other
City funds, and the related expenditures.
REDEVELOPMENT AGENCY CAPITAL PROJECTS
Established to account for the acquisition, demolition, relocation, and sales of land in the Livermore
redevelopment area. Financing is provided by bond proceeds, loans from the general fund, property tax
increments and transfers from the low- income housing fund and the community development fund.
STREET IMPROVEMENTS
Established to account for developer fees paid for construction of major streets and interchanges.
DEVELOPER DEPOSITS
Established to account for developer fees received pursuant to development agreements, performance
deposits, public park improvement fees and transportation development fees collected.
39
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2005
Redevelopment
Agency Street
General Capital Projects Improvements
ASSETS
Cash and investments in City Treasury ( Note 3) $ 22,615,142 $ 7,349,374 $ 11,857,368
Cash and investments with Trustees ( Note 3) 17,171,400
Accounts receivables 5,591,232 4,580
Interest receivable 1,448,751
Due from other funds ( Note 4A) 160,315 1,172,559
Advances to other funds ( Note 4C) 8,707,950 1,080,549
Prepaids, deposits and supplies 15,560 1,400 540,000
Notes receivable ( Note 5) 1,327,656
Land held for redevelopment 2,144,664
Total Assets $ 38,538,950 $ 27,994,494 $ 14,655,056
LIABILITIES
Accounts payable and other accrued liabilities $ 1,598,272 $ 1,428,180 $ 329,531
Accrued payroll and compensated absences 2,672,473 25,733
Deposit payable 200,000 586,815
Due to other funds ( Note 4A)
Advance from other funds ( Note 4C) 9,788,499
Deferred rents and revenue 843,950 1,327,656 1,080,549
Total Liabilities 5,114,695 12,770,068 1,996,895
FUND BALANCES
Reserved for:
Capital outlay
Low income housing
Advance to other funds 8,707,950
Prepaids, deposits and supplies 15,560 1,400
Land held for redevelopment 2,144,664
Debt service
Special assessment administration 851,617
Unreserved:
Designated for special projects 8,771,000
Designated for operations 11,002,000
Undesignated, reported in:
General fund 4,076,128
Special revenue funds
Capital projects funds 13,078,362 12,658,161
TOTAL FUND BALANCES 33,424,255 15,224,426 12,658,161
Total Liabilities and Fund Balances $ 38,538,950 $ 27,994,494 $ 14,655,056
40
CITY OF LIVERMORE
Other Total
Developer Governmental Governmental
Deposits Funds Funds
$ 15,837,949 $ 24,994,645 $ 82,654,478
6,270,431 23,441,831
32,525 2,077,709 7,706,046
1,448,751
1,332,874
9,788,499
556,960
12,426,349 13,754,005
2,144,664
$ 15,870,474 $ 45,769,134 $ 142,828,108
$ 16 $ 1,177,545 $ 4,533,544
86,351 2,784,557
15,870,626 16,657,441
1,332,874 1,332,874
9,788,499
4,456,983 7,709,138
15,870,642 7,053,753 42,806,053
1,963,320 1,963,320
1,182,917 1,182,917
8,707,950
16,960
2,144,664
4,587,475 4,587,475
851,617
8,771,000
11,002,000
4,076,128
28,679,800 28,679,800
( 168) 2,301,869 28,038,224
( 168) 38,715,381 100,022,055
$ 15,870,474 $ 45,769,134 $ 142,828,108
41
CITY OF LIVERMORE
GOVERNMENTAL FUNDS
BALANCE SHEET - Continued
JUNE 30, 2005
Amounts reported for Governmental Activities in the Statement of Net Assets are differen
from those reported in the Governmental Funds above because of the following
Amount reported in the Governmental Balance Sheet as Fund Balance $ 100,022,055
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefor
are not reported in the Governmental Funds. 268,356,239
ALLOCATION OF INTERNAL SERVICE FUND NET ASSETS
Internal service funds are not governmental funds. However, they are used by management to charge th
costs of certain activities, such as insurance and central services and maintenance, to individua
governmental funds. The net current assets of the Internal Service Funds are therefore included
in Governmental Activities in the following line items in the Statement of Net Assets
Cash and investments 13,930,770
Accounts receivable 478,244
Internal balances 51,208
Prepaids, deposits and supplies 251,882
Accounts payable and other accruals ( 385,573)
Accrued payroll and compensated absences ( 89,895)
Claims payable ( 2,149,080)
ACCRUAL OF NON- CURRENT REVENUES AND EXPENSES
Revenues which are deferred on the Fund Balance Sheets because they are not available currently are taken
into revenue in the Statement of Activities 7,709,138
LONG- TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are no
reported in the Funds:
Unamortized bond issue costs 1,600,233
Non- current portion of compensated absences ( 1,138,046)
Long- term debt ( 103,137,500)
Interest payable ( 750,000)
NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 284,749,675
See accompanying notes to financial statements
42
43
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2005
Redevelopment
Agency Street Developer
General Capital Projects Improvement Deposits
REVENUES
Taxes and special assessments $ 28,320,507
Sales Taxes 18,953,516
Property tax increment $ 3,049,903
Licenses and permits 2,566,277
Intergovernmental 6,090,230
Contributions from outside sources 55,000 $ 338,343
Fines and forfeitures 733,561
Charges for current services 7,488,719 4,508,306
Use of money and property 3,214,906 882,155 281,211
Miscellaneous 2,012,868 110,938
Total Revenues 69,380,584 4,097,996 5,127,860
EXPENDITURES
Current:
City Council 262,712
City Manager 898,532
City Attorney 896,776
City Clerk 939,935
Finance 4,994,524
Personnel 1,202,734
Fire 12,091,532
Police 20,713,260
Public Services 7,152,912
Community Development 12,711,810
Economic Development 367,093
Library 4,358,134
Redevelopment 1,490,693
Capital Outlay
Capital projects 1,370,664 4,466,959 4,845,300 $ 168
Debt service
Principal -
Interest and fiscal charges 90,881
Total Expenditures 67,960,618 6,048,533 4,845,300 168
EXCESS ( DEFICIENCY) OF REVENUES
OVER EXPENDITURES 1,419,966 ( 1,950,537) 282,560 ( 168)
OTHER FINANCING SOURCES ( USES)
Transfers in ( Note 4B) 2,309,069 550,000 98,890
Transfers ( out) ( Note 4B) ( 4,331,044) ( 3,037,938) ( 333,015)
Total Other Financing Sources ( Uses) ( 2,021,975) ( 2,487,938) ( 234,125)
SPECIAL ITEMS ( Note 14):
Gain on sale of property 3,267,560
Loss on sale of property ( 958,789)
Total Special Items 2,308,771
NET CHANGE IN FUND BALANCES ( 602,009) ( 2,129,704) 48,435 ( 168)
Fund balances at beginning of period 34,026,264 17,354,130 12,609,726
FUND BALANCES AT END OF PERIOD $ 33,424,255 $ 15,224,426 $ 12,658,161 ($ 168)
See accompanying notes to financial statements
44
CITY OF LIVERMORE
Other Total
Governmenta Governmenta
Funds Funds
$ 327,178 $ 28,647,685
18,953,516
3,049,903
2,566,277
15,508,131 21,598,361
785,374 1,178,717
733,561
4,367,574 16,364,599
961,437 5,339,709
77,425 2,201,231
22,027,119 100,633,559
262,712
898,532
896,776
939,935
4,994,524
1,202,734
12,091,532
829,298 21,542,558
7,152,912
4,473,975 17,185,785
367,093
64,084 4,422,218
249,153 1,739,846
8,979,321 19,662,412
3,010,000 3,010,000
3,477,403 3,568,284
21,083,234 99,937,853
943,885 695,706
15,016,508 17,974,467
( 10,033,210) ( 17,735,207)
4,983,298 239,260
3,267,560
( 958,789)
2,308,771
5,927,183 3,243,737
32,788,198 96,778,318
$ 38,715,381 $ 100,022,055
45
CITY OF LIVERMORE
RECONCILIATION OF THE NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
WITH THE STATEMENT OF ACTIVITIES - FOR THE YEAR ENDED JUNE 30, 2005
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUND $ 3,243,737
Amounts reported for governmental activities in the Statement of Activities
are different because of the following:
CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However,
in the Statement of Activities the cost of those assets is capitalized and allocated over
their estimated useful lives and reported as depreciation expense.
The capital outlay asset addition expenditures are therefore added back to fund balance 16,433,358
Retirements are deducted from fund balance ( 1,093,575)
Depreciation expense is deducted from the fund balance
( Depreciation expense is net of internal service fund depreciation of
$ 916,571 which has already been allocated to serviced funds.) ( 7,412,754)
Contributions of infrastructure and improvements by developers are capitalized in the
Statement of Activities, but are not recorded in the Fund Statements because
no cash changed hands. 17,285,107
LONG TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long- term liabilities in the Statement of Net Assets.
Repayment of bond principal is an expenditure in the governmental funds, but
in the Statement of Net Assets the repayment reduces long- term liabilities.
Repayment of debt principal is added back to fund balance 3,052,500
Debt allocated to Business- Type Activities are added to fund balance 8,514,755
ACCRUAL OF NON- CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or ( require) the use of
current financial resources and therefore are not reported as revenue or expenditures in
governmental funds ( net change):
Bond issue costs ( 59,085)
Long- term compensated absences 47,089
Deferred revenue from loan receivable offset 1,406,141
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities,
such as equipment acquisition, maintenance, and insurance to individual funds.
The portion of the net revenue ( expense) of these Internal Service Funds arising out
of their transactions with governmental funds is reported with governmental activities,
because they service those activities.
Change in Net Assets - All Internal Service Funds ( 97,835)
Change in Net Assets of Internal Service Funds reported with Business- Type Activities ( 51,807)
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIE $ 41,267,631
See accompanying notes to financial statements
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified
accrual basis, with the Change in Net Assets of Governmental Activities reported in the Statement of Activities, which is prepared on
the full accrual basis.
46
CITY OF LIVERMORE
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - FOR THE YEAR ENDED JUNE 30, 2005
Variance
Budgeted Amounts Final Budget
Actual Amounts Positive
Original Final Budgetary Basis ( Negative)
Budgetary fund balance, July 1 $ 34,026,264 $ 34,026,264 $ 34,026,264
Resources ( inflows):
Property taxes 18,200,000 17,965,000 17,855,632 ($ 109,368)
Sales taxes 18,950,000 18,950,000 18,953,516 3,516
Other taxes 9,687,000 9,382,000 10,053,655 671,655
Licenses and permits 3,094,000 2,827,000 2,566,277 ( 260,723)
Intergovernmental 5,835,000 6,062,000 6,090,230 28,230
Fines and forfeitures 713,000 759,000 733,561 ( 25,439)
Other in lieu taxes 429,000 429,000 411,220 ( 17,780)
Charges for current services 10,741,000 8,236,000 7,488,719 ( 747,281)
Use of money and property 3,750,000 3,760,000 3,214,906 ( 545,094)
Miscellaneous 580,000 1,871,000 2,012,868 141,868
Amounts available for appropriation 71,979,000 70,241,000 69,380,584 ( 860,416)
Charges to appropriations ( outflows)
Current:
City Council 249,490 256,350 262,712 ( 6,362)
City Manager 845,170 855,330 898,532 ( 43,202)
City Attorney 983,880 928,760 896,776 31,984
City Clerk 1,100,650 975,130 939,935 35,195
Finance 6,259,050 5,900,540 4,994,524 906,016
Personnel 1,244,070 1,192,000 1,202,734 ( 10,734)
Fire 12,042,700 12,157,010 12,091,532 65,478
Police 21,595,110 21,631,290 20,713,260 918,030
Public Services 7,887,990 7,812,840 7,152,912 659,928
Community Development 13,628,410 13,956,500 12,711,810 1,244,690
Economic Development 677,030 584,150 367,093 217,057
Library 4,460,170 4,375,150 4,358,134 17,016
Capital Outlay
Capital projects 1,477,000 1,816,610 1,370,664 445,946
Total charges to appropriations 72,450,720 72,441,660 67,960,618 4,481,042
OTHER FINANCING SOURCES ( USES)
Transfers in 3,012,830 3,012,830 2,309,069 ( 703,761)
Transfers ( out) ( 5,470,290) ( 4,278,680) ( 4,331,044) ( 52,364)
Total Other Financing Sources ( Uses) ( 2,457,460) ( 1,265,850) ( 2,021,975) ( 756,125)
Budgetary fund balance, June 30 $ 31,097,084 $ 30,559,754 $ 33,424,255 $ 2,864,501
See accompanying notes to financial statements
47
48
CITY OF LIVERMORE
PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business
enterprise. The intent of the City is that the cost of providing goods and services be financed primarily
through user charges.
The City has identified the funds below as major proprietary funds in fiscal 2005.
AIRPORT FUND
Established to account for the operations of the Livermore Municipal Airport.
WATER FUND
Established to account for the operations of the self- supporting municipal water service. Services are
rendered on a user charge basis and impact fees are collected for future water storage needs.
WATER RECLAMATION FUNDS ( SEWER AND LAVWMA)
Established to account for operations of the self- supporting wastewater disposal plant, the export pipeline,
impact fees collected for sewer connections, and urban runoff fees.
GOLF COURSES ( LAS POSITAS AND SPRINGTOWN)
Established to account for operations of the two self- supporting golf courses in Livermore.
49
PROPRIETARY FUNDS
STATEMENT OF NET ASSETS
JUNE 30, 2005
Business- type Activities- Enterprise Funds
Airport Water Sewer
ASSETS
Cash and investments in City Treasury ( Note 3) $ 996,381 $ 16,021,552 $ 54,150,211
Accounts receivables ( net of allowable for uncollectibles) 371,166 1,026,539 325,818
Prepaids, deposits and supplies 35,919 29,337
Total current assets 1,403,466 17,077,428 54,476,029
Capital assets ( net of accumulated depreciation) ( Note 6) 6,340,692 20,674,003 107,500,156
Land & construction in progress 12,282,418 696,506 4,161,765
Total noncurrent assets 18,623,110 21,370,509 111,661,921
Total assets 20,026,576 38,447,937 166,137,950
CURRENT LIABILITIES
Accounts payable and other accruals 141,698 734,280 743,228
Accrued payroll and compensated absences 59,971 114,452 345,697
Deposit payable 160,488 148,935
Total current liabilities 362,157 997,667 1,088,925
NON- CURRENT LIABILITIES
Claims payable
Long- term debt ( Note 7):
Due within one year 473,889 210,000 657,551
Due in more than one year 2,591,667 6,345,000 5,941,487
Total non- current liabilities 3,065,556 6,555,000 6,599,038
Total liabilities 3,427,713 7,552,667 7,687,963
NET ASSETS ( Note 9)
Invested in Capital Assets, net of related debt 15,557,554 14,815,509 105,062,883
Unrestricted 1,041,309 16,079,761 53,387,104
Total net assets $ 16,598,863 $ 30,895,270 $ 158,449,987
Some amounts reported for business- type activities in the Statement of Net Assets are different
because certain internal service fund assets and liabilities are included with business- type activities.
Net assets business- type activities
See accompanying notes to financial statements
50
CITY OF LIVERMORE
Governmental
Activities-
Internal Service
LAVWMA Las Positas Springtown Totals Funds
$ 2,826,585 $ 266,520 $ 114,618 $ 74,375,867 $ 13,930,770
13,489 1,737,012 478,244
65,256 251,882
2,826,585 280,009 114,618 76,178,135 14,660,896
7,586,341 411,554 142,512,746 5,622,038
725,484 53,725 17,919,898
8,311,825 465,279 160,432,644
2,826,585 8,591,834 579,897 236,610,779 20,282,934
16,924 24 1,636,154 385,573
100,432 1,847 622,399 89,895
309,423
117,356 1,871 2,567,976 475,468
2,149,080
210,060 1,551,500
2,506,673 17,384,827
2,716,733 18,936,327 2,149,080
2,834,089 1,871 21,504,303 2,624,548
5,595,092 465,279 141,496,317 5,622,038
2,826,585 162,653 112,747 73,610,159 12,036,348
$ 2,826,585 $ 5,757,745 $ 578,026 215,106,476 $ 17,658,386
( 51,208)
$ 215,055,268
51
PROPRIETARY FUNDS
STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND NET ASSETS
FOR THE YEAR ENDED JUNE 30, 2005
Business- type Activities- Enterprise Funds
Airport Water Sewer
OPERATING REVENUES
Charges for services $ 2,780,637 $ 743,955 $ 21,015,209
Sales 1,852,734 8,108,159 174,710
Miscellaneous 46,089 529 20,258
Total Operating Revenues 4,679,460 8,852,643 21,210,177
OPERATING EXPENSES
Cost of sales, salaries and benefits 2,710,133 4,723,766 4,003,543
Contracted services 633,933 618,423 1,765,988
Insurance premiums
Materials, supplies and others 437,405 866,354 2,295,710
Utilities 120,172 112,102 618,094
Depreciation 552,264 743,666 5,523,932
Repairs & maintenance 25,832 ( 66,962) 89,017
Claims expense
Total Operating Expenses 4,479,739 6,997,349 14,296,284
Operating Income ( Loss) 199,721 1,855,294 6,913,893
NONOPERATING REVENUES ( EXPENSES)
Interest revenue 119,880 509,910
Interest and fiscal charges ( expense) ( 62,703) ( 101,499) ( 181,060)
Net Nonoperating Revenues ( Expenses) ( 62,703) 18,381 328,850
Income ( Loss) Before Transfers 137,018 1,873,675 7,242,743
Contributed assets 1,213,200 1,497,585
Transfers in ( Note 4B) 717,868 309,382
Transfers ( out) ( Note 4B) ( 400,072) ( 7,108,478) ( 2,656,963)
Change in net assets 454,814 ( 3,712,221) 6,083,365
Total net assets- beginning 16,776,699 26,626,009 84,985,968
GASB Statement No. 34 Implementation
Adjustment ( Note 6B) ( 632,650) 7,981,482 67,380,654
Total net assets- ending $ 16,598,863 $ 30,895,270 $ 158,449,987
Some amounts reported for business- type activities in the Statement of Activities are different because the portion
of the net income of certain internal service funds is reported with the business- type activities which those funds
services.
Net business- type activities
See accompanying notes to financial statements
52
CITY OF LIVERMORE
Governmental
Activities-
Internal Service
LAVWMA Las Positas Springtown Totals Funds
$ 2,102,718 $ 26,642,519 $ 7,702,659
10,135,603
$ 401,286 6,081 $ 79,292 553,535
401,286 2,108,799 79,292 37,331,657 7,702,659
1,107,821 43,831 12,589,094 1,929,666
2,432,617 433,433 59,520 5,943,914 1,257,161
580,569
339,040 25,993 3,964,502 1,592,665
29,429 61,389 941,186
503,501 28,086 7,351,449 916,571
73,671 76 121,634 1,135,073
388,789
2,432,617 2,486,895 218,895 30,911,779 7,800,494
( 2,031,331) ( 378,096) ( 139,603) 6,419,878 ( 97,835)
629,790
( 60,907) ( 406,169)
( 60,907) 223,621
( 2,031,331) ( 439,003) ( 139,603) 6,643,499 ( 97,835)
2,710,785
2,500,000 670,407 4,197,657
( 2,786,159) ( 12,951,672)
468,669 ( 2,554,755) ( 139,603) 600,269 ( 97,835)
2,357,916 9,714,686 751,975 141,213,253 16,338,691
( 1,402,186) ( 34,346) 73,292,954 1,417,530
$ 2,826,585 $ 5,757,745 $ 578,026 215,106,476 $ 17,658,386
( 51,208)
$ 215,055,268
53
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2005
Business- type Activities- Enterprise Funds
Airport Water Sewer
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 4,526,596 $ 9,065,458 $ 21,535,027
Payments to suppliers ( 1,229,341) ( 1,356,430) ( 4,374,332)
Payments to employees ( 2,694,797) ( 4,698,070) ( 3,939,111)
Claims paid
Net cash provided by operating activities 602,458 3,010,958 13,221,584
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 562,973 309,382
Transfers ( out) ( 400,072) ( 353,478) ( 2,656,963)
Cash Flows from Noncapital Financing Activitie 162,901 ( 44,096) ( 2,656,963)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Capital asset additions ( 49,918) ( 909,639) ( 5,288,540)
Proceeds from capital lease
Long term debt:
Repayments ( 453,992) ( 200,000) ( 640,263)
Interest paid ( 62,703) ( 101,499) ( 181,060)
Cash Flows from Capital and Related
Financing Activities ( 566,613) ( 1,211,138) ( 6,109,863)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 119,880 509,910
Cash Flows from Investing Activitie 119,880 509,910
Net increase ( decrease) in cash and cash equivalent 198,746 1,875,604 4,964,668
Cash and investments at beginning of perio 797,635 14,145,948 49,185,543
Cash and investments at end of period $ 996,381 $ 16,021,552 $ 54,150,211
Reconciliation of operating income ( loss) to net cash
provided by operating activities:
Operating income ( loss) $ 199,721 $ 1,855,294 $ 6,913,893
Adjustments to reconcile operating income to net cas
provided by operating activities:
Depreciation 552,264 743,666 5,523,932
Change in assets and liabilities
Accounts receivable ( 155,010) 208,746 324,850
Prepaids, deposits and supplies 57,873 ( 11,027)
Accounts payable and other accrual ( 69,872) 184,514 394,477
Accrued payroll and compensated absence 15,336 25,696 64,432
Deposits payable 2,146 4,069
Net cash provided by operating activities $ 602,458 $ 3,010,958 $ 13,221,584
Capital Assets transferred from governmental activities $ 1,213,200 $ 1,497,585
Capital Assets - GASB 34 Implementation adjustment ($ 632,650) $ 7,981,482 $ 67,380,654
Allocation of long- term debt ( Note 7) - thru Transfers ($ 154,895) $ 6,755,000
See accompanying notes to financial statement
54
CITY OF LIVERMORE
Governmental
Activities-
Internal Service
LAVWMA Las Positas Springtown Totals Funds
$ 401,286 $ 2,110,618 $ 79,292 $ 37,718,277 $ 7,929,416
($ 2,432,617) ( 901,918) ( 207,977) ( 10,502,615) ( 4,494,727)
( 1,108,964) ( 43,578) ( 12,484,520) ( 1,920,391)
( 833,115)
( 2,031,331) 99,736 ( 172,263) 14,731,142 681,183
2,500,000 670,407 4,042,762
( 871,509) ( 4,282,022)
2,500,000 ( 201,102) ( 239,260)
( 458,336) ( 6,706,433) ( 389,186)
450,300 450,300
( 763,567) ( 2,057,822)
( 60,907) ( 406,169)
( 832,510) ( 8,720,124) ( 389,186)
629,790
629,790
468,669 ( 933,876) ( 172,263) 6,401,548 291,997
2,357,916 1,200,396 286,881 67,974,319 13,638,773
$ 2,826,585 $ 266,520 $ 114,618 $ 74,375,867 $ 13,930,770
($ 2,031,331) ($ 378,096) ($ 139,603) $ 6,419,878 ($ 97,835)
503,501 28,086 7,351,449 916,571
1,819 380,405 226,757
46,846 ( 22,014)
( 26,345) ( 60,999) 421,775 ( 351,571)
( 1,143) 253 104,574 9,275
6,215
($ 2,031,331) $ 99,736 ($ 172,263) $ 14,731,142 $ 681,183
$ 2,710,785
($ 1,402,186) ($ 34,346) $ 73,292,954 $ 1,417,530
$ 1,914,650 $ 8,514,755
55
CITY OF LIVERMORE
FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET ASSETS
JUNE 30, 2005
Agency
Funds
ASSETS
Cash and investments in City Treasury ( Note 3) $ 4,620,620
Cash and investments with Trustees ( Note 3) 4,282,948
Total Assets $ 8,903,568
LIABILITIES
Accounts payable $ 64,245
Due to special assessment districts 8,839,323
Total Liabilities $ 8,903,568
See accompanying notes to financial statements
56
CITY OF LIVERMORE
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
The City of Livermore was incorporated April 1, 1876. The City operates under the Council- Manager form of
government and provides the following services; public safety ( police and fire), highways and streets, sewer,
water, public improvements, planning and zoning, general administration services and redevelopment, through
the Livermore Redevelopment Agency.
The accounting policies of the City conform with generally accepted accounting principles in the United States
of America as applicable to governments. The following is a summary of these policies:
A. Reporting Entity
The accompanying basic financial statements present the financial activity of the City, which is the primary
government presented, along with the financial activities of its component units, which are entities for which the
City is financially accountable. Although they are separate legal entities, blended component units are in
substance part of the City’s operations and are reported as an integral part of the City’s financial statements.
This City’s component units which are described below are all blended.
COMPONENT UNITS INCLUDED IN THE REPORTING ENTITY:
The Livermore Redevelopment Agency is a separate government entity whose purpose is to prepare and
implement plans for improvement, rehabilitation, and development of certain areas within the City. The Agency
is controlled by the City and has the same governing board as the City, which also performs all accounting and
administrative functions for the Agency. The financial activities of the Agency have been included in these
financial statements in the Redevelopment Low and Moderate Income Housing Special Revenue Fund,
Redevelopment Agency Capital Projects Fund, and Redevelopment Debt Service Fund. Separate financial
statements for the Agency may be obtained from the City’s Finance Department located in City Hall at 1052
South Livermore Avenue, Livermore, CA 94550.
The Livermore Capital Projects Financing Authority provides financing assistance to the City and has been
included in these financial statements in the Livermore Capital Projects Financing Authority Debt Service Funds,
and as part of the Airport Enterprise Fund, the Sewer Enterprise Fund and the Las Positas Golf Course Enterprise
Fund. The Authority is controlled by the City and has the same governing body as the City, which also performs
all accounting and administrative functions for the Authority.
B. Basis of Presentation
The City’s basic financial statements are prepared in conformity with accounting principles generally
accepted in the United States of America. The Government Accounting Standards Board is the acknowledged
standard setting body for establishing accounting and financial reporting standards followed by governmental
entities in the United States of America.
57
CITY OF LIVERMORE
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES ( Continued)
These Standards require that the financial statements described below be presented.
Government- wide Statements: The Statement of Net Assets and the Statement of Activities display
information about the primary government ( the City) and its component units. These statements include the
financial activities of the overall City government, except for fiduciary activities. Eliminations have been
made to minimize the double counting of internal activities. These statements distinguish between the
governmental and business- type activities of the City. Governmental activities generally are financed through
taxes, intergovernmental revenues, and other nonexchange transactions. Business- type activities are financed
in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each
segment of the business- type activities of the City and for each function of the City’s governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly
identifiable to a particular function. Program revenues include ( a) charges paid by the recipients of goods or
services offered by the programs, ( b) grants and contributions that are restricted to meeting the operational
needs of a particular program and ( c) fees, grants and contributions that are restricted to financing the
acquisition or construction of capital assets. Revenues that are not classified as program revenues, including
all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's funds,
including fiduciary funds and blended component units. Separate statements for each fund category—
governmental, proprietary, and fiduciary— are presented. The emphasis of fund financial statements is on
major individual governmental and enterprise funds, each of which is displayed in a separate column. All
remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment
earnings, result from nonexchange transactions or ancillary activities.
C. Major Funds
The City’s major governmental and business- type funds be identified and presented separately in the fund
financial statements. All other funds, called non- major funds, are combined and reported in a single column,
regardless of their fund- type.
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/ expenses equal
to ten percent of their fund- type total and five percent of the grand total. The General Fund is always a major
fund. The City may also select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund - The general operating fund of the City. It is used to account for all financial resources except
those required to be accounted for in another fund.
58
CITY OF LIVERMORE
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES ( Continued)
Redevelopment Agency Capital Projects - Established to account for the acquisition, demolition, relocation,
and sales of land in the Livermore redevelopment area. Financing is provided by bond proceeds, loans from the
general fund, property tax increments and transfers from the low- income housing fund and the community
development fund.
Street Improvements - Established to account for developer fees paid for construction of major streets and
interchanges.
Developer Deposits - Established to account for developer fees received pursuant to development
agreements, performance deposits, public park improvement fees and transportation development fees
collected.
The City reported all of its business- type funds as major funds in the accompanying financial statements.
Airport Fund - Established to account for the operations of the Livermore Municipal Airport.
Water Fund - Established to account for the operations of the self- supporting municipal water service.
Services are rendered on a user charge basis and impact fees are collected for future water storage needs.
Water Reclamation Funds ( Sewer and LAVWMA) - Established to account for operations of the self-supporting
wastewater disposal plant, the export pipeline, impact fees collected for sewer connections, and
urban runoff fees.
Golf Course Funds ( Las Positas and Springtown) - Established to account for operations of the two self-supporting
golf courses in Livermore.
The City also reports the following fund types:
Internal Service Funds - These funds are used to account for the financing of services and supplies provided
by one City department to another on a cost- reimbursement basis. The City operates the Liability Insurance
Fund, Workers Compensation Fund, Fleet and Equipment Services Fund, Information Technology Fund,
Facilities Rehabilitation Fund Internal Service Funds.
Fiduciary Funds - These funds are used to account for assets held by the City in a fiduciary capacity for
special assessment districts.
D. Basis of Accounting
The government- wide and proprietary fund financial statements are reported using the economic resources
measurement focus and the full accrual basis. Revenues are recorded when earned and expenses are recorded at
the time liabilities are incurred, regardless of when the related cash flows take place.
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CITY OF LIVERMORE
NOTES TO BASIC FINANCIAL STATEMENTS
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES ( Continued)
Governmental funds are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
Measurable means the amount of the transaction can be determined and available means the amount is collectible
within the current period or soon enough thereafter ( sixty days in the City’s case) to be used to pay liabilities of
the current period.
Non- exchange transactions, in which the City gives or receives value without directly receiving or giving
equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue
from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants,
entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been
satisfied.
Other revenues susceptible to accrual are property taxes, sales taxes, interest revenue and charges for services.
Fines, license, and permit revenues are not susceptible to accrual because generally they are not measurable until
received in cash.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund
liability is incurred ( generally thirty days). An exception to this general rule is principal and interest on
governmental funds’ long- term debt which is recognized when due. Financial resources usually are appropriated
in other funds for transfe