City of San Bruno
Comprehensive Annual Financial Report
For the year ended June 30, 2004
Table of Contents
Page
i
INTRODUCTORY SECTION
Table of Contents ............................................................................................................................... ............................ i
Transmittal Letter ............................................................................................................................... ........................... v
Directory of City Officials...................................................................................................................... ....................... xi
Organization Chart.......................................................................................................................... .............................. xii
FINANCIAL SECTION
Independent Auditors’ Report ............................................................................................................................... .... 1
Management’s Discussion and Analysis .................................................................................................................. 3
Basic Financial Statements:
Government- Wide Financial Statements:
Statement of Net Assets......................................................................................................................... ......... 21
Statement of Activities and Changes in Net Assets .................................................................................... 22
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ............................................................................................................................... ............. 28
Reconciliation of the Governmental Funds Balance Sheet
to the Government- Wide Statement of Net Assets........................................................................ 31
Statement of Revenues, Expenditures and Changes in Fund Balances............................................. 32
Reconciliation of the Governmental Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Government- Wide
Statement of Activities and Changes in Net Assets....................................................................... 34
Proprietary Fund Financial Statements:
Statement of Net Assets......................................................................................................................... .. 36
Statement of Revenues, Expenses and Changes in Net Assets........................................................... 38
Statement of Cash Flows .......................................................................................................................... 40
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Assets.......................................................................................................... 46
Notes to Basic Financial Statements ..................................................................................................................... 47
Required Supplementary Information:
Budgets and Budgetary Accounting ............................................................................................................. 72
Defined Pension Plan........................................................................................................................... ........... 77
City of San Bruno
Comprehensive Annual Financial Report
For the year ended June 30, 2004
Table of Contents, Continued
Page
ii
FINANCIAL SECTION, Continued
Supplementary Information:
Non- Major Governmental Funds:
Combining Balance Sheet.......................................................................................................................... ..... 82
Combining Statement of Revenues, Expenditures and Changes in Fund Balances............................... 86
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Park In- Lieu Special Revenue Fund ....................................................................................................... 89
Agency On Aging Special Revenue Fund.............................................................................................. 90
Gas Tax Special Revenue Fund ............................................................................................................... 91
State Reimbursement ILL Program Special Revenue Fund ................................................................ 92
State Library Special Revenue Fund....................................................................................................... 93
Police Asset Seizure Special Revenue Fund .......................................................................................... 94
Measure A Sales Tax Special Revenue Fund......................................................................................... 95
Highway Emergency Relief Special Revenue Fund ............................................................................. 96
Safety Augmentation Special Revenue Fund........................................................................................ 97
Supplemental Law Enforcement Special Revenue Fund..................................................................... 98
State Law Enforcement Special Revenue Fund..................................................................................... 99
SB 322 Recycling/ Litter Clean- Up Special Revenue Fund.................................................................. 100
California Law Enforcement Equipment Program Special Revenue Fund ...................................... 101
Traffic Congestion Relief Special Revenue Fund.................................................................................. 102
Reimbursed Street Construction Special Revenue Fund ..................................................................... 103
Restricted Donation Special Revenue Fund .......................................................................................... 104
General Debt Service Fund ...................................................................................................................... 105
General Capital Projects Fund................................................................................................................. 106
Street Improvement Capital Projects Fund............................................................................................ 107
Internal Service Funds:
Combining Statement of Net Assets.............................................................................................................. 110
Combining Statement of Activities and Changes in Net Assets ............................................................... 112
Combining Statement of Cash Flows ............................................................................................................ 114
Fiduciary Funds:
Combining Statement of Fiduciary Net Assets............................................................................................ 118
City of San Bruno
Comprehensive Annual Financial Report
For the year ended June 30, 2004
Table of Contents, Continued
Page
iii
STATISTICAL SECTION ( Unaudited)
General Government Expenditures by Function – Last Ten Fiscal Years.............................................................. 120
General Government Revenues by Source – Last Ten Fiscal Years........................................................................ 121
Property Tax Levies and Collection – Last Ten Fiscal Years ................................................................................... 122
Assessed and Estimated Actual Value of Property – Last Ten Fiscal Years.......................................................... 123
Property Tax Rates – All Overlapping Governments – Last Ten Fiscal Years ...................................................... 124
Principal Taxpayers ............................................................................................................................... ....................... 125
Special Assessments Billings and Collections – Last Ten Fiscal Years................................................................... 126
Computation of Legal Debt Margin......................................................................................................................... .. 127
Direct and Estimated Overlapping Bonded Debt ..................................................................................................... 128
Demographic Statistics – Last Ten Fiscal Years......................................................................................................... 129
Building Permit Valuation and Bank Deposits – Last Ten Fiscal Years................................................................. 130
Miscellaneous Statistics..................................................................................................................... ........................... 131
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CITY OF SAN BRUNO
FINANCE DEPARTMENT
567 El Camino Real, San Bruno, CA 94066- 4299
Voice: ( 650) 616- 7080 • Fax: ( 650) 876- 0256
http:// sanbruno. ca. gov
April 1, 2005
Honorable Mayor and Members of the City Council
City of San Bruno
San Bruno, CA 94066
Dear Mayor and Members of the City Council:
The Comprehensive Annual Financial Report ( CAFR) for the City of San Bruno for the fiscal year
ended June 30, 2004 is hereby submitted. The financial statements have been prepared by the City’s
Finance Department in accordance with generally accepted accounting principles for local governments as
prescribed by the Governmental Accounting Standards Board ( GASB). The accuracy of the data and
completeness of the presentation including all disclosures rests with the City.
The City believes the data is accurate in all material respects and is presented in a manner fairly
setting forth the City’s financial position, results of operations, and cash flows of the various funds and
account groups. Further, the City believes that all disclosures have been included that are necessary for a
reader to understand the City’s financial condition.
The CAFR is presented in three sections: Introductory Section, Financial Section, and the Statistical
Section. Each of these sections is made up of a number of elements.
1. Introductory Section – This section includes this transmittal letter that highlights significant
aspects of the City’s financial operations during the year and the financial issued faced by the
City as of June 30, 2004. This section also includes a list of principle officials and an
organization chart.
2. Financial Section – This section includes the independent auditors’ report, Management’s
Discussion and Analysis ( MD& A) of the fiscal year, the basic financial statement and notes
that explain the City’s financial position and operating results, and supplementary statements,
schedules, and notes that provide additional detailed information relative to the basic financial
statements. This transmittal letter, read in conjunction with the MD& A, assists readers in
assessing the City’s financial condition.
3. Statistical Section – This section includes pertinent financial and non- financial statistical data
that presents various economic, social, and demographic trends and other information about
the City for the past ten years.
REPORTING ENTITY
The CAFR for the year ended June 30, 2004 covers the activities, organizational elements, and
functions that the City’s elected officials have the ability to control. The City’s CAFR presents financial
information on actions by which the City Council has the ability to impose its will and on the component unit
that provides a financial benefit or creates a financial burden. A component unit is reported either as blended
because of this imposition of will and general oversight or one that is discrete and operates somewhat
separately from the City.
Honorable Mayor and members of the City Council - Comprehensive Annual Financial Report, Fiscal Year
Ended June 30, 2004
April 1, 2005
Page 2 of 6
vi
Imposition of its will is derived from the City’s power and influence, including but is not limited to:
1. Ability to modify or approve budgets,
2. Appointment of a voting majority of other governing authorities,
3. Identification of management,
4. Ability to significantly influence operations, and
5. Ability to modify, veto or overrule decisions.
The City’s blended component unit includes the operations of the San Bruno Redevelopment Agency.
Component Unit Financial Statements and Independent Auditors’ Reports for the San Bruno Redevelopment
Agency were prepared for the year ended June 30, 2004.
ECONOMIC CONDITION AND OUTLOOK
The City of San Bruno is located in the San Francisco Bay Area, in the northern area of San Mateo
County. It is located twelve miles south of San Francisco and adjacent to the San Francisco International
Airport. Strategically located along Highway 101 and Interstate 280, the City enjoys easy access to the vast
cultural, educational, and recreational opportunities of the San Francisco Bay Area.
The City’s general economic outlook is closely tied to the Bay Area region and the country as a whole.
For nearly all of 2003- 04, the Bay Area’s economic trends declined, a condition made worse in the aftermath
of events on September 11, 2001. All counties in the Bay Area experienced lower number of home sales
during 2003, although the median prices throughout the region continued to climb.
The City’s economy was being strained by several factors in the Bay Area: first, the high tech industry
has been in a prolonged economic slump since 2002. This has had a negative impact on office rentals
throughout the Bay Area. Second, the economic slump was exacerbated by the September 11, 2001 events,
particularly in areas affected by the airline industry. San Bruno, adjacent to the San Francisco International
Airport, has been affected directly by a 40% reduction in hotel tax revenues from the peak three years earlier.
Third, sales tax revenues have declined 11% since 2000- 01. Fourth, with the overall stock market decline,
the state- wide public retirement system ( CalPERS) realized two years of investment losses, meaning that
pension contributions by the City have to rise to make up the actuarial difference. Finally, as the State has
struggled with its ever- widening budget gap, it has looked to local governments by taking back various
revenues that historically have been granted to local governments.
One bright spot for the City has been that property tax revenues have continued to grow as a faster
rate than inflation, as normal property turnover and Bay Area prices have increased assessed valuations in
San Bruno.
MAJOR INITIATIVES
City Council Strategic Planning and Goals
On January 26, 2000, the City Council initiated a strategic planning and goal setting process. The City
Council identified relevant issues facing the City and solicited public comment on the direction and goals for
City action. At another follow- up, day long session on October 10, 2002, the City Council rearticulated the
following strategic goals for 2003- 04:
1. Protect and enhance revenue sources for programs,
2. Aggressively implement the Redevelopment Agency Plan, with emphasis on the Downtown,
3. Develop, adopt, and proceed with the City utility and infrastructure master plans,
4. Upgrade public facilities, and
5. Improve the community’s image.
Honorable Mayor and members of the City Council - Comprehensive Annual Financial Report, Fiscal Year
Ended June 30, 2004
April 1, 2005
Page 3 of 6
vii
Redevelopment Plan
The City Council and the Redevelopment Agency of San Bruno approved the Redevelopment Plan for
the San Bruno Redevelopment Area in August 1999. The Project Area, approximately 717 acres of
commercial, industrial, and residential land uses in the City, consists of most of the area east of El Camino
Real and the area known as The Crossing/ San Bruno ( formerly the U. S. Navy Site). It includes the
predominantly commercial areas along San Bruno Avenue, San Mateo Avenue ( downtown), El Camino Real,
and the Tanforan Park Shopping Center.
The Redevelopment Project Area was created in order to:
1. Eliminate adverse physical and economic conditions in the Project Area and enhance
commercial districts,
2. Achieve redevelopment objectives for revitalization of the area and furthering the goals and
objectives of the City’s General Plan, and
3. Develop a pro- active strategy to respond to the significant regional transportation
improvements in and surrounding the Project Area ( BART, Caltrain, and the San Francisco
International Airport) and to protect existing residential neighborhoods.
Redevelopment program activities continued in 2003- 04 for meeting the long- term objectives of the
Redevelopment Plan. The following programs were the focus of Agency efforts:
1. The comprehensive strategic plan for downtown San Bruno including traffic and pedestrian
circulation systems and parking, street lighting, landscaping, sidewalks, and street furniture,
2. Work with the property owners to facilitate the renovation of the Shops at Tanforan,
3. Neighborhood improvements within the Residential Conservation Areas that included a loan
assistance program,
4. Develop Design Guidelines to enhance the attractiveness and desirability of commercial areas
in conjunction with a commercial Façade Improvement Program, and
5. Continue and expand Code Enforcement activities, including a sign abatement and inventory
of non- conforming or illegal signs.
2002 Wastewater Improvement Program
The City Council approved a resolution in September 2001 authorizing the accumulation of Lower City
and Upper City Interceptor sewer improvement projects to be included in a certificate of participation
financing. Proposed Wastewater Fund capital improvements for the period 2001- 04, identified in the
Wastewater Master Plan and Utility Rate Study, amount to $ 7,117,000, about two- thirds of the identified
capital project needs for the five- years ending in 2005- 06. The bond closing date was June 13, 2002.
During 2003- 04, significant progress occurred on the 7th Avenue Relief Sewer Project, the Engvall
Relief Sewer Project, the Angus Sewer Connector Project, the Lower Sneath Lane Trunk Sewer
Replacement, and Kains Avenue to Angus Avenue Relief Sewer Project. A total of $ 2,888,000 in bond
proceeds was drawn down for these projects.
Planned Development Permit – The Shops at Tanforan Development
The planned development permit authorizes a major remodel of the Tanforan Park Shopping Center
involving several significant upgrades to the existing mall. The interior of the mall will be gutted and some
modification to the internal traffic circulation will take place. The project includes the construction of two grand
new entrances, a 3,500- seat multiplex movie theater, and a new parking structure. The Tanforan Park
Shopping Center interior stores and department store anchors, cumulatively, are the City’s largest sales tax
generators.
Honorable Mayor and members of the City Council - Comprehensive Annual Financial Report, Fiscal Year
Ended June 30, 2004
April 1, 2005
Page 4 of 6
viii
Planned Development Permit – Marisol Homes Development
The planned development permit authorizes the construction of 115 detached single- family
residences, a playground, trail system, and extensive site landscaping on open space purchased by private
developers from the San Mateo Community College District. The estimated increase in the City’s assessed
value as a result of this development is approximately $ 74,500,000.
City Hall Remodel and Upgrade Project
The City Hall Remodel and Update Project was the first comprehensive remodel of the city hall
building interior since it opened in 1954. Architectural, structural, mechanical, and electrical engineering work
was required. All bathrooms were brought into compliance with the Americans with Disabilities Act. Other
project enhancements included the new sprinkler system, electrical wiring, and total renovation of the area
previously occupied by the Police Department.
The project also included improvements providing operational and customer service enhancements
such as a centralized public information area, a new data center, and additional meeting space.
City Cable System Adds High Definition Television ( HDTV) Service
The City’s San Bruno Cable Television is committed to compete and offer its customers the best
available television service— and serves over 70% of the households in the City. Many cable networks and
satellite service competitors have begun offering HDTV programming as U. S. broadcasting systems are
increasing offering complete digital transmission of television signals. Cable Television began HDTV service
for San Bruno customers in June 2004.
Comprehensive Parks and Recreation Master Plan
The City’s system of parks and recreation facilities are unique. One the one hand there are an
adequate number of parks and numerous large recreation facilities including the Senior Center, Recreation
Center, and the San Bruno Park Pool Center. However, the park system and recreation facilities are aging
and in need of refurbishing.
The Master Plan is a vision for the parks and recreation facilities over the next 15- years. The Plan
creates a vision— as a guide for the improving and developing the parks and recreation facilities. The Parks
and Recreation Commission— and the community— fashioned this first comprehensive vision.
FINANCIAL INFORMATION
Accounting and Budgetary Control
The City’s accounting records are maintained on a modified accrual basis of accounting for all
governmental fund types and agency funds. Under this basis, revenues are recognized when susceptible to
accrual, i. e., both measurable and available and expenditures are recorded when paid, and recognized when
the liability is expected to be liquidated with expendable, available resources. The full basis of accounting is
used for the City’s proprietary fund types that recognize revenues when earned and expenses when incurred.
In developing the City’s accounting system, consideration was given to the adequacy of the internal
accounting controls. Such controls are designed to provide reasonable, although not absolute assurance
regarding the safeguarding of assets against loss from unauthorized use or disposition and the reliability of
financial records used for preparing financial statements and maintaining accountability of assets. The
concept of reasonable assurance recognizes that the costs of a control should not exceed the benefits likely
to be derived and that the evaluation of costs and benefits requires estimates and judgments by management.
The City’s internal accounting controls adequately safeguard assets and reasonably assure the proper
accounting of financial transactions.
Honorable Mayor and members of the City Council - Comprehensive Annual Financial Report, Fiscal Year
Ended June 30, 2004
April 1, 2005
Page 5 of 6
ix
The City’s budgets ( General Fund and Special Operating Funds, Enterprise Funds, and the Capital
Improvement Program) are detailed operating plans that identify estimated costs and results in relation to
estimated revenues. The budgets represent processes through policy decisions are made, implemented, and
controlled.
Fiduciary Operations
The City’s fiduciary operations consist of agency funds. Agency funds are used to account for assets
that are held by the City as an agency for private organizations and other governmental units. Agency funds
held by the City include developers’ payments for street project improvements and payments due the San
Bruno Garbage Company collected from utility customers by the City’s Finance Department.
Debt Administration
As of June 30, 2004, the City has $ 9,135,000 outstanding Certificates of Participation for the San
Bruno Redevelopment Agency and $ 9,275,000 outstanding Certificates of Participation issued in May 2002
for waste water system improvements.
Advances from Other Funds amounted to $ 3,545,700. Of this total, the General Fund has advanced
$ 318,700 and the Equipment Reserve has advanced $ 3,227,000 to the Redevelopment Agency. An
additional $ 162,100 has been advanced to the Stormwater Fund from the General Fund.
Cash Management
The City maintains a cash and investment pool for all City funds. The City Treasurer invests funds in
accordance with the Investment Policy approved by the City Council. The objectives stated in the investment
policy are legality, safety, yield, and liquidity. The Investment Policy addresses soundness of the financial
institutions transacting business and safekeeping investments and the types of investments permitted by the
California Government Code.
City investments include obligations of the U. S. Treasury, Agencies, the State Treasurer’s Local
Agency Investment Fund, and the San Mateo County Pooled Investment Fund.
Risk Management
The City’s risk management program provides for general liability, workers compensation, and
property damage loss coverage. Resources have been accumulated in the Self- Insurance Fund ( an internal
service fund) to fund claim losses. General liability and property insurance coverage and claims and risk
management services are provided through the City’s participation in the Association of Bay Area
Governments ( ABAG) Plan Corporation. The City is self insured for workers compensation and contracts with
an outside firm to administer and adjust workers compensation claims. In addition, the City maintains an
excess workers compensation policy.
INDEPENDENT AUDIT
The City’s Municipal Code requires an annual audit of the financial records by an independent audit
firm selected by the City Council. The Basic Finance Statements for the year ended June 30, 2004 have
been audited by Caporicci & Larson, Certified Public Accountants. The firm’s opinion is included in the
financial section of this report.
Honorable Mayor and members of the City Council - Comprehensive Annual Financial Report, Fiscal Year
Ended June 30, 2004
April 1, 2005
Page 6 of 6
x
ACKNOWLEDGEMENTS
This audit report was prepared in conformance with the requirements for a Comprehensive Annual
Finance Report. Enhancing the City’s overall financial reporting, in this instance going beyond basic audited
financial statements, is an acknowledged objective for the Finance Department.
I would like to express my appreciation for the collective effort that was necessary for the preparation
of the Comprehensive Annual Financial Report. I would like to thank the City Council for their interest and
policy oversight on the various fiscal issues addressed during the year. In addition, the City Manager and the
City’s Department Heads should be acknowledged for their continued attention to planning and conducting
the City financial operations in a responsible and progressive manner. Finally, I thank Caporicci & Larson for
their professional assistance in conducting the audit.
DIRECTORY OF CITY OFFICIALS
xi
City Council
Term Expires
Larry Franzella, Mayor November 2005
Irene O’Connell, Vice Mayor November 2007
Ken Ibarra, Councilmember November 2005
Chris Pallas, Councilmember November 2005
Jim Ruane, Councilmember November 2007
OTHER OFFICIALS
Position
Connie Jackson City Manager
Pamela Thompson City Attorney
James O’Leary Finance Director
Ed Simon City Clerk
Karen Bava Hornung City Treasurer
xii
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
3
The City of San Bruno was required for the first time in 2002- 03 to issue its financial statements in the format
prescribed by the provisions of Government Accounting Standards Board Statement 34 ( GASB 34), which
requires the City to provide this overview of its financial activities for the fiscal year. Please read the
Management and Discussion Analysis in conjunction with the accompanying transmittal letter and basic
financial statements.
2003- 04 FINANCIAL HIGHLIGHTS
As the economic outlook section of the transmittal letter discussed, the City continues to be effected by a 40%
reduction in hotel tax revenues and 5.5% decline in sales taxes from 2002- 03. Combined with increased pension
plan contributions and State takeaways of revenues traditionally earmarked for cities, budgetary pressures on
the City continue to grow. Increases in the property tax base and the stable level of operating transfers from the
City’s Enterprise Funds kept general fund revenues in line with last year, however overall revenues were below
budget estimates. Financial highlights of the year include the following:
• The City’s total net assets increased $ 1,420,193 during 2003- 04 to an ending June 30, 2004 balance of
$ 50,372,611.
• Total City revenues, including program and general revenues, were $ 48,846,195, while total expenses
were $ 47,426,002 in 2003- 04.
• Net assets in governmental activities were $ 13,816,593 at June 30, 2004, while net assets in business- type
activities were $ 35,556,018.
• Governmental program revenues were $ 9,910,835 in 2003- 04. Program expenses were $ 29,059,524.
• Revenues generated from business- type activities were $ 19,493,864 in 2003- 04. Business- type expenses
were $ 18,366,478.
• General Fund revenues of $ 23,455,607 represented a $ 4,818,200 increase over the prior year.
Expenditures of $ 25,127,378 were significantly higher when compared with the prior year due to
employee salary and benefit costs. General Fund trends are further examined in the Analysis of Major
Governmental Funds.
• The overall General Fund balance of $ 4,396,931 at June 30, 2004 represented a decline of $ 660,600 from
prior year. The unreserved, undesignated portion of this balance is $ 3,740,260.
OVERVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
This Comprehensive Annual Financial Report is in six parts:
1) The Introductory Section, which includes the Transmittal Letter and general information,
2) Management’s Discussion and Analysis ( this part),
3) The Basic Financial Statements, which include the Government- wide and the Fund financial statements,
along with the notes accompanying these statements,
4) Required Supplementary Information and the accompanying notes,
5) Other Supplementary Information including combining statements for non- major governmental funds,
internal service funds, other budgetary information, and a fiduciary statement of changes in assets and
liabilities, and
6) The Statistical Section.
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
4
Basic Financial Statements
The Basic Financial Statements comprise the City- wide Financial Statements and the Fund Financial Statements.
These two sets of financial statements provide two different views of the City’s financial activities and financial
position.
The City- wide Financial Statements provide a longer- term view of the City’s activities as a whole, and comprise
the Statement of Net Assets and the Statement of Activities. The Statement of Net Assets provides information
about the financial position of the City as a whole, including all its capital assets and long- term liabilities on the
full accrual basis, similar to that used by corporations. The Statement of Activities provides information about
all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net
revenues or expenses of each the City’s programs. The Statement of Activities explains in detail the change in
Net Assets for the year.
All of the City’s activities are grouped into Government Activities and Business- type activities, as explained
below. All the amounts in the Statement of Net Assets and the Statement of Activities are separated into
Governmental Activities and Business- type Activities in order to provide a summary of these two activities of
the City as a whole.
The Fund Financial Statements report the City’s operations in more detail than the government- wide statements
and focus primarily on the short- term activities of the City’s General Fund and other Major Funds. The Fund
Financial Statements measure only current revenues and expenditures and fund balances; they exclude capital
assets, long- term debt and other long- term amounts.
Major Funds account for the major financial activities of the City and are presented individually, while the
activities of Non- major funds are presented in summary, with subordinate schedules presenting the detail for
each of these other funds. Major Funds are explained below.
The fiduciary statements provide financial information about the activities of Non- Obligated Assessment District,
for which the City acts solely as agent.
Note 1 to the Basic Financial Statements provides a summary of the City’s significant accounting policies, fund
categories, fund types, and account groups.
City- Wide Financial Statements
The Statement of Net Assets and the Statement of Activities present information about the following:
• Governmental activities— All of the City’s basic services are considered to be governmental activities,
including general government, fire, police, public works, parks and recreation, maintenance services,
library, and economic and community development. These services are supported by general City
revenues such as taxes, and by specific program revenues from grants, contributions, and fees.
• The City’s governmental activities include the activities of the San Bruno Redevelopment Agency,
because the City Council governs both of these entities, with services provided solely to the City.
• Business- type activities— All the City’s enterprise activities are reported here, including water,
wastewater, stormwater, and cable television. Unlike governmental services, user fees fully support
these services.
Citywide financial statements are prepared on the accrual basis, which means they measure the flow of all
economic resources of the City as a whole.
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
5
Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most significant funds,
called Major Funds. The concept of major funds, and the determination of which are major funds, was
established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total.
Instead, each Major Fund is presented individually, with all Non- major Funds summarized and presented only
in a single column. Subordinate schedules present the detail of these Non- major funds. Major Funds present the
major activities of the City for the year, and may change from year to year as a result of changes in the pattern of
City’s activities.
Fund Financial Statements include governmental, enterprise, and internal service funds as discussed below.
Governmental Fund Financial Statements are prepared on the modified accrual basis, which means they measure
only current financial resources and uses. Capital assets and other long- lived assets, along with long- term
liabilities, are not presented in the Governmental Fund Financial Statements.
Enterprise and Internal Service Fund financial statements are prepared on the full accrual basis, as in the past,
and include all their assets and liabilities, current and long- term.
Since the City’s Internal Service Funds provide goods and services only to the City’s governmental and business-type
activities, their activities are reported only in total at the Fund level. Internal Service Funds may not be
Major Funds because their revenues are derived from other City Funds. These revenues are eliminated in the
citywide financial statements and any related profits or losses are returned to the Activities, which created them,
along with any residual net assets of the Internal Service Funds.
Comparisons of Budget and Actual financial information are presented only for the General Fund and other
Major Funds that are Special Revenue Funds.
Fiduciary Statements
The City is the agent for an assessment district, individuals, and private corporations. The City’s fiduciary
activities are reported in the separate Statement of Fiduciary Net Assets. These activities are excluded from the
City’s other financial statements because on their custodial nature and do not involve the measurement of the
results of operations.
FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE
This analysis focuses on the net assets and changes in net assets of the City’s Governmental Activities ( Table and
Charts 1 through 5) and Business- type Activities ( Tables 6 and 7) presented in the City- wide Statement of Net
Assets and Statement of Activities.
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
6
Governmental Activities
Governmental Net Assets
Table 1
Governmental Net Assets at June 30, 2004
( in Millions)
June 30, 2004 June 30, 2003
Cash and investments $ 9.67 $ 10.05
Other assets 3.10 3.10
Capital assets 19.03 17.42
Total assets 31.80 30.57
Current Liabilities 3.25 3.48
Long- term debt outstanding 10.79 11.26
Other liabilities 3.27 2.81
Total liabilities 17.31 17.55
Net assets:
Invested in capital assets, net of debt 7.60 5.95
Restricted 3.68 4.87
Unrestricted 2.54 2.16
Total net assets $ 13.82 $ 12.98
The City’s net assets from governmental activities totaled $ 13,816,593, up from prior fiscal year due in large part
to an increase in capital assets. A total of $ 7,597,895, about 55%, is the equity of the City’s holdings in capital
assets such as land, buildings, infrastructure, vehicles, and equipment. This equity figure excludes the cost of
outstanding debt issued to finance the acquisition or construction of these assets and it excludes depreciation,
which writes down the value of the assets over a certain recorded life. A total of $ 3,680,156, about 27%, of net
assets reflects cash, investments, and other assets restricted to their use by bond covenants, and state and local
laws. Finally $ 2,538,542, or 19% of net assets are cash, investments, and other assets that are unrestricted and can
be used to finance day- to- day operations and other expenditures approved by City Council without legal or debt
constraints.
Revenues by Source
Chart 2
Revenues by Source - Governmental Activities 2003- 04
Capital Grants and
Contributions
14%
Sales taxes
19%
Property taxes
17%
Operating Grants and
Contributions 3%
Investment earnings 1%
Miscellaneous 2%
Charges for Services 20%
Motor vehicle in lieu 8%
Other taxes 3%
Nonregulatory business
taxes 10%
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
7
Chart 2 illustrates that property taxes made up 17% or $ 5,943,711 of the $ 30,087,797 in total governmental
revenues. A total of $ 5,014,400 of property taxes was directed toward the General Fund and $ 929,311 toward the
Redevelopment Agency. As discussed in the General Fund analysis of this report, the $ 5,014,400 was 15.1%
higher than prior year. Redevelopment Agency tax receipts were $ 929,311.
The 14% share of capital grants and contributions has as a main component $ 2,258,513 in Aircraft Noise
Insulation Project grants from the Federal Aviation Administration and the San Francisco International Airport.
An additional $ 1,854,716 in capital grants and contributions represent Gas Tax, Measure A sales Tax, and
Congestion Relief Funds for street and roadway improvements.
General sales taxes of $ 5,778,410, or 19% of revenues, support various General Fund programs. Such taxes
continued a four- year decline, down 5.4% from the previous year, reflecting the continued slowdown in Bay
Area retail activity.
Change in Governmental Net Assets
The Statement of Activities presents expenses, program revenues, and general revenues in detail. These
elements effect the Change in Governmental Net Assets as follows:
Table 3
Change in Governmental Net Assets
( in Millions)
2003- 04 2002- 03
Expenses
General government $ 3.57 $ 3.52
Public safety 13.75 14.60
Public works 1.62 3.02
Highway and streets 1.33 2.37
Parks and recreation 3.83 4.76
Library 1.77 1.72
Community development 2.63 3.62
Interest on long- term debt 0.56 0.84
Total expenses 29.06 34.46
Revenues
Program revenues:
Charges for services 4.85 6.48
Operating grants and contributions 0.95 1.02
Capital grants and contributions 4.11 5.67
Total program revenues 9.91 13.18
General revenues:
Taxes:
Property taxes 5.94 5.62
Sales taxes 5.78 6.11
Nonregulatory business license tax 2.15 3.36
Motor vehicle in lieu 1.90 2.54
Other taxes 2.16 0.97
Investment earnings 1.10 0.24
Miscellaneous 1.15 0.48
Gain ( loss) on sale of assets ( 0.02) ( 0.29)
Transfers ( 0.33) 0.80
Total general revenues 19.83 19.83
Total revenues 29.74 33.01
Change in net assets 0.68 ( 1.45)
Net assets - beginning, as restated 13.14 14.40
Net assets - ending $ 13.82 $ 12.95
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
8
A total of $ 9,910,835, or 33% of the City’s total governmental revenues, came from program revenues. An
additional $ 19,826,747, or 67% of governmental revenues, originates from general revenues such as taxes and
investment earnings.
In addition to capital grants and contributions, program revenues consisted of $ 4,848,083 in charges for services
or fee revenues from building permit reviews, fire inspections, police services, and recreation programs. A total
of $ 949,523 in federal and state grants, public safety sales taxes, transportation sales taxes, and gasoline taxes,
classified as operating grants and contributions, were directed toward various public safety, public works,
recreation, and library.
Besides property taxes, general revenues included $ 5,778,410 in general sales taxes. Transient occupancy ( hotel)
taxes ($ 844,000), motor vehicle in- lieu taxes from automobile registrations ($ 1,896,610), franchise, business license,
parking and other taxes ($ 4,309,332), investment earnings ($ 1,101,832), and rent and other miscellaneous income
($ 1,147,067) encompass other general revenues which are applied toward governmental operations not covered
by specific program or business- type revenues. Investment earnings include interest income and unrealized
gains from market values.
Total revenues exceed expenditures by $ 678,058, increasing governmental citywide net assets by this amount.
Expenditures and Program Revenues
Chart 4
Expenditures and Program Revenue Comparison in Governmental Activities
0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
$ Millions
General
Government
Public
Safety
Public
Works
Highway
& Streets
Parks &
Recreation
Library Community
Development
Governmental Activity
2003- 04 Revenue 2003- 04 Expense
Table 5
Governmental Activities
( in Millions)
Net ( Expense) Revenue From Services 2003- 04 2002- 03
General government ($ 2.05) ($ 0.70)
Public safety ( 12.95) ( 13.00)
Public works ( 1.54) ( 2.90)
Highway and streets ( 0.68) ( 0.30)
Parks and recreation ( 3.23) ( 3.90)
Library ( 1.61) ( 1.50)
Community development ( 1.13) 1 .80
Interest on long- term debt ( 0.50) ( 0.80)
Total ($ 23.19) ($ 21.30)
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
9
Chart 4 and Table 5 on the previous page illustrate the difference between program revenues and expenses.
Program revenues consist of capital and operating grants and contributions and fees for services. General City
revenues not shown in the chart, such as property taxes, sales and transient occupancy taxes, motor vehicle in-lieu
taxes, and investment earnings, cover the shortfall between program revenues and expenses.
• General government includes the City Council, City Manager’s Office, City Treasurer, City Clerk’s Office,
City Attorney’s Office, and Finance that are traditionally funded by general City revenues. The
$ 1,392,000 in program revenue primarily indirect cost charged to other City departments and business-type
activities.
• Public safety ( Police and Fire) patrol, investigation, dispatch, fire suppression, and fire prevention
operations are funded by $ 1,471,000 in vehicle, parking and non- vehicle, abandon vehicle abatement
charges, State booking fee reimbursement, County narcotics task force reimburse, County paramedic
reimbursement, and various fire inspection and permit fees. Revenue was divided between charges for
services ($ 795,200) and operating grants and contributions ($ 675,800).
• Public Works department activities are funded by various inspection, permit, and plan check fees.
• Highway and streets activity was supported through Gas Tax, Measure A sales tax, and other grants,
primarily from the state. Capital grants and contributions amounted to $ 1,436,900 supported this general
engineering function.
• A total of $ 948,100 in charges for services are generated through class fees, recreation program charges,
aquatics and sport program charges, and facility rental fees. Park- in- lieu fees and Federal grants and
donations contribute toward senior programs.
• The Library’s circulation, children’s/ young adult programs, information services, outreach, and technical
services utilize $ 106,700 in various state library grants. Along with $ 70,500 in fines and services charges,
these revenues support 14% of the Library’s operating expenses.
• The Community Development Department generated $ 1,501,700 in building and plan check review and
permit fees. Together, these represent 47% of the department’s operating expenses.
• The City accrued and paid $ 560,100 in long- term debt interest during the fiscal year, resulting from the
2000 certificates of participation and two capital leases.
Business- Type Activities
Table 6
Business- type Net Assets at June 30
( in Millions)
2004 2003
Cash and investments $ 15.50 $ 19.95
Other current assets 1.86 1.57
Capital assets 29.83 25.47
Total assets 47.19 46.98
Current Liabilities 1.00 1.70
Long- term debt outstanding 9.46 9.65
Other liabilities 0.16 0.00
Total liabilities 10.63 11.35
Net assets:
Invested in capital assets, net of debt 20.53 15.82
Restricted 11.54 11.05
Unrestricted 4.49 8.76
Total net assets $ 36.56 $ 35.63
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
10
The net assets of business- type activities increased $ 930,000, primarily in the Wastewater Fund due to active
capital improvements. Capital assets amounted to $ 29,830,000. Capital investments were funded by the $ 3.2
million increase in long- term State Water Resources Control Board loans that will be paid back by ratepayers and
joint city and agency users of the sewage treatment system. The $ 930,000 change in business- type net assets is
further explained as follows:
Table 7
Change in Business- type Net Assets 2003- 04
( in $ Millions)
2004 2003
Expenses
Water $ 6.16 $ 6.00
Stormwater 0.52 0.18
Wastewater 4.76 4.57
Cable television 6.92 6.25
Non- operating expenses 0.44 0.47
Total expense 18.81 17.46
Revenues
Water service charges 6.42 6.05
Stormwater fee 0.53 0.56
Wastewater service charges 5.46 5.32
Cable television service charges 7.09 6.65
Loss on sale of assets ( 0.70) 0.00
Investment earnings 0.43 0.49
Total revenue 19.23 19.08
Net transfers 0.33 ( 0.97)
Change in net assets 0.75 0.65
Net assets- beginning 35.81 34.98
Net assets- ending $ 36.56 $ 35.63
The $ 150,000 increase in net revenues from the Water, Stormwater, Wastewater, and Cable Television Funds is
largely due to an operating of $ 494,719 in the Wastewater Fund.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
Governmental funds highlight the City’s near- term inflows, outflows, and balances of spend able resources.
Such information can be helpful in determining the City’s financial status. Unreserved fund balance is a major
indicator of designated and uncommitted resources available for spending in future fiscal years.
At June 30, 2003, the City’s governmental funds reported combined fund balances of $ 3,489,700, which is a
decrease of $ 750,300 or a 18% decrease compared with the prior year. Significant fund balance decreases
occurred in the General Fund with the use of reserves to bridge the gap between revenues and expenses for the
fiscal year.
Total Governmental fund revenues this year amounted to $ 30,087,800, down $ 2,417,396 from prior year due in
large part to declines in sales taxes, vehicle license fees, and various business taxes. Governmental fund
expenditures totaled $ 31,209,000, down $ 5,055,379 from prior year due to significant operating budget reductions
including the elimination of 25.5 full time equivalent positions. Of this decrease, $ 884,000 was in the General
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
11
Fund, $ 1,151,000 was in the Redevelopment Agency, and the remainder in the non- Major Governmental funds.
In 2003- 04, overall governmental fund revenues were less than expenditures by $ 1,121,200. The overall fund
balance decreased by $ 1,202,200.
Proprietary Funds
Enterprise Fund net assets totaled $ 35,366,449 at June 30, 2004. This resulted from 2002- 03 net loss, before
transfers, of $ 62,200, significantly below last year’s net income of $ 1,599,000.
Enterprise operating revenues were $ 19,625,100 this year, up nearly $ 1,039,500 from prior year. Enterprise Fund
operating expenses were $ 19,687,316, in 2003- 04, exceeding prior year expenses by $ 2,700,800. The 2003- 04
combined non- operating revenues and expenses resulted in an additional expense of $ 11,831. A transfer of
assets and transfers out for 2004- 05 were less than in the prior year at $ 373,400.
Analysis of Major Governmental Funds
General Fund
General Fund revenues were overall higher at $ 23,455,600 this fiscal year, $ 1,463,800 lower than last year, but
$ 2,836,200 below the General Fund’s budget for revenues, as the effects of the national recession and Bay Area
economic downturn continued. Increases in property tax receipts, lower than expected sales, transient
occupancy, and business taxes all converged to lower the total General Fund revenues.
Property tax revenue growth remained flat, compared to last year, totaling $ 5,014,400 with last year’s total at
$ 4,356,700. The generally rising property value assessments resulting from the robust residential real estate sales
market resulted in a 15.1% gain. Gross sales taxes reached a five- year low at $ 5,778,410. These results were more
than $ 922,600 below the projected recovery of sales tax that was based on the stabilization of sales tax receipts
experienced in 2002- 03. Transient occupancy taxes ($ 844,000) were $ 26,000 below prior year, but the City had
budgeted this tax revenue to climb to $ 962,000.
In this year, business taxes were reclassified from License and permit revenues to Taxes. Both categories totaled
$ 17,714,800 in 2003- 04 compared to a total of $ 19,054,400 in 2003- 04. As with the prior year, building permit and
plan check activity remains a strong as a contributor to the license and permit revenues. Actual charges for
service revenues at $ 3,564,648 decreased compared to 2002- 03 actual charges, by about $ 168,400. The decrease in
charges for services, however, maintains about $ 1,600,000 of the $ 1,800,000 gain realized in 2002- 03 resulting
from prior action by the City Council to reduced the General Fund subsidies to specialized programs and
increased the indirect costs charged to other City departments and business- type activities.
Use of money and property increased to $ 874,700 in 2003- 04 reflecting a reclassification of the equity earnings
from Cable Television from charges for services. Absent the reclassification, continued low interest rates and a
declining fund balance in the General Fund resulted in a continued lower return on investments. However, the
low interest rate environment had a favorable effect on market value since the fixed interest rates on investments
were higher than market interest rates. Intergovernmental revenues were significantly lower than in 2002- 03 and
compared to the 2003- 04 budget. Fines and forfeitures were nearly unchanged between the two years.
General Fund expenditures in 2003- 04 were $ 884,000, or 3.4%, less than in 2002- 03 reflecting savings realized
from the City Council approved budget deficit reduction plans which included elimination of certain
administrative services, limited service reductions to the public, and employee compensation reductions.
Minor individual program fluctuations from last year’s actual expenditures were as follows: Public safety ( 1%),
Public works ( 35%), Highways and streets ( 28%), Parks and recreation ( 4%), and Library ( 1%). The 2003- 04
budget proposed no additional positions impacting the General Fund. Increases in salaries and benefits,
including retirement costs resulted in increased spending.
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
12
At June 30, 2004, the General Fund balance comprised $ 3,916,000 in unreserved, undesignated dollars. The
$ 3,916,000 unreserved, undesignated amount represents discretionary resources available for absorbing future
expenditures that exceed revenues. The overall General Fund Balance decreased from $ 5,057,500 to $ 4,396,931
during 2003- 04. In 2003- 04, the General Fund’s reserves absorbed the excess of expenditures over revenues.
San Bruno Redevelopment Agency
The San Bruno Redevelopment Agency first received tax increment in 2000- 01. The City Council and the
Redevelopment Agency approved the Redevelopment Plan and a single project area in 1999. Outside of the
required $ 318,367 ( 20% of tax increment revenues) allocated to the Low and Moderate Income Housing RDA
Fund, $ 610,944 of the $ 929,311 in 2003- 04 property tax increment received was used toward Agency operations
and debt service. The $ 929,311 in tax increment revenues was after deducting $ 18,500 that was lost to the State in
order to meet the State’s funding obligation to schools.
Federal Aviation Administration Grant Special Revenue Fund
Revenue for the Aircraft Noise Insulation Project are received and expended in this fund, with the goal of sound
insulating residential structures ( and churches and care facilities) in San Bruno from jet noise emanating from
San Francisco International Airport ( SFO). The City is operating three funding phases ( Phases 11, 12, and 13),
out a total of thirteen phases and three MOU phases. The $ 2,311,825 in project expenditures for 2003- 04 was a
decrease from the $ 2,685,600 expended in the prior fiscal year. $ 3,444,240 was budgeted in this fund, supported
by grants from SFO and the Federal Aviation Administration ( FAA). Since this is a multi- year project, unspent
appropriations will continue into the next fiscal year. The current funding phases target a total of 400 houses,
one nursing facility, and one church for completion.
State Highway Special Revenue Fund
The State Highway Special Revenue Fund provides for improvements to the streets and roadways within the
City. Expenses exceeded revenues by $ 145,472 and net assts changed by the net income increasing the fund
deficit to $ 1,470,500.
Other Governmental Funds
Presented as a group in the Basic Financial Statements, these funds are individually presented as Supplementary
Information.
Analysis of Enterprise Funds
Water Fund
The Water Fund reported operating income of $ 256,263 in the current year, up from an operating income of
$ 54,857 in the prior year. Operating revenues decreased $ 86,000 from the previous year as monthly water
consumption dropped with the introduction of tiered rates. Operating expenses increased $ 163,780. Net non-operating
revenue decreased by $ 57,600 based on lower investment earnings. The operating income and net
non- operating expenses led to the net assets of this fund increasing $ 496,748 to $ 15,561,954.
A total of $ 4,332,649 of the $ 15,561,954 in this Fund’s Net Assets was unrestricted at the fiscal year end. The
restricted monies are earmarked for the capital improvements.
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
13
Stormwater Fund
Current year operating revenues from storm water assessment fees were fairly flat at $ 532,322 compared to last
year. Operating expenses rose from $ 178,500 to $ 522,949 this year, but still remained $ 48,500 under budget,
partly due to costs incurred to alleviate and deal with the threat of winter storms and local flooding. The expense
increase resulted in an operating income decline to $ 9,373 this year compared with $ 28,447 last year. Along with
interest income of $ 33,300 net assets increased $ 103,700 to $ 1,486,500 at June 30, 2003 with $ 1,279,500 of the assets
being unrestricted.
Wastewater Fund
The Wastewater Fund reported an operating income of $ 777,111 in the current year, down from an operating
income of $ 757,022 in the prior year. Operating revenues increased $ 131,310 in the previous year. Operating
expenses increased $ 51,221 with the majority of the increase resulting from higher waste treatment costs. Net
non- operating expense increased to $ 189,683, up $ 12,257 from prior year. The operating income and net non-operating
expense led to the net assets of the this fund increasing by $ 456,621.
Cable Television Fund
Current year operating revenues from cable television services amounted to $ 7,090,544, 7 % higher than in 2002-
03. Operating expenses rose 6%, or $ 678,200 to $ 6,923,700 this year, but remained within budget. Transfers to
other funds decreased slightly from prior year to $ 620,178.
Net non- operating revenue decreased to $ 7,500 due to lower investment earnings. The operating income of
$ 166,900 and net non- operating income of $ 7,500 led to the net assets of this fund decreasing by $ 445,800 to a
total of $ 7,910,000.
CAPITAL ASSETS
GASB Statement 34 requires the City to add infrastructure to its reportable capital assets as of the end of 2002- 03.
Infrastructure includes streets, drainage systems, and traffic control and safety devices. Previously, governments
excluded the value of such property from their reports of fixed assets. The City has until the end of 2005- 06 to
fully report the depreciated value of all such assets acquired or built since 1980. Beginning this year and until
the City can compile the list of infrastructure assets, the City shall report the infrastructure built or acquired
annually and shall depreciate such assets over their useful lives. Also new for this year, the City reports the
depreciated book value of other types of capital assets such as buildings, land, equipment and furniture existing
as of the end of fiscal 2002- 03, on a City- wide Statement of Net Assets. Such information is summarized below
and is more completely detailed in Note 4 to the Basic Financial Statements. The City depreciates all its capital
assets, except land.
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
14
At June 30, 2004, the City had $ 47,813,200, net of depreciation, invested in a broad range of capital assets used in
governmental and business- type activities, as shown in Table 8 below:
Table 8
Capital Assets
( in Millions) at June 30
2004 2003
Governmental Activities:
Land $ 1 .2 $ 1.0
Buildings and improvements 1 9.0 8 .9
Construction in progress - 7.3
Equipment and vehicles 7 .9 8.4
Infrastructure – streets* 0 .5 0.5
Less accumulated depreciation ( 9.6) ( 8.7)
Totals $ 1 9.0 $ 17.4
* Additions during the fiscal year only
Business- type Activities
Land $ 0 .6 $ 0.6
Improvements 2 7.7 24.3
Buildings and structures 1 .0 1.5
Machinery and equipment 7 .7 7.0
Construction in progress 4 .1 2.9
Less accumulated depreciation ( 12.3) ( 10.8)
Totals $ 2 8.8 $ 25.5
Non- depreciable asset additions amounted to $ 30,761 and depreciable asset additions amounted to $ 2,768,860 in
2003- 04. Total accumulated depreciation increased to $ 9,590,800. Total buildings and improvements increased
$ 10,134,200 to $ 18,985,200 reflecting full capitalization of the new police facility and the addition of $ 2,580,423 in
new assets added largely due to energy conservation improvements made to City facilities.
Significant Wastewater Fund projects began in 2001- 02 in anticipation of the certificate of participation debt
issuance in May 2002. Construction in progress additions amounted to $ 4,710,700 and depreciable asset
additions amounted to $ 231,400 in 2003- 04. The total for accumulated depreciation, after retirements amounting
to $ 93,969, increased to a total of $ 28,816,800.
City of San Bruno
Management’s Discussion and Analysis
Required Supplementary Information ( Continued)
15
DEBT ADMINISTRATION
Each of the City’s debt issues is discussed in detail in Note 5 to the Basic Financial Statements. A summary of the
City’s outstanding debt for the past two fiscal years is as follows:
Table 9
Outstanding Debt at June 30
( in Millions)
Governmental activities 2004 2003
Certificates of participation $ 9.3 $ 9.5
Capital leases 1.5 1.8
Compensated absences 1.7 1.2
$ 12.5 $ 12.4
Business- type Activities
Certificates of participation $ 9.3 $ 9.6
No additions to long- term debt occurred in 2003- 04 and the total balance was decreased by $ 474,154. The
decrease of debt outstanding was offset by a increase in the calculation of compensated absences. Compensated
absences represent the liability of the City for payouts to long- term employees upon separation. Due to
clarification from the independent auditor on the calculation of these absences, an adjustment was made this
year in the amount of $ 482,771. In January 2001 and March 2001, the City entered into capital leases for the
acquisition of fire equipment. In December 2001, the City entered into a capital lease related to energy
conservation improvements at various City buildings and with street lighting. In May 2002, the City issued
certificates of participation for wastewater system improvements.
The Redevelopment Agency project area has outstanding certificates of participation that were issued in 2000 to
fund the new police facility. Bond principal repayments, covered by Agency property tax increment revenues,
amounted to $ 643,900.
Assessment District Debt
In June 1989, the City issued $ 870,000 in limited obligation bonds for the Downtown Parking District No. 1. At
June 30, 2004, a total of $ 170,000 in special assessment debt was outstanding. Although the City bears no
responsibility on the debt, it does act as the district’s agent in the collection and remittance of the assessments.
ECONOMIC OUTLOOK AND MAJOR ACCOMPLISHMENTS
The economic outlook and major accomplishments of the City are discussed in the accompanying Transmittal
Letter.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Comprehensive Annual Financial Report is intended to provide readers with a general overview of the
City’s finances. Questions about this report or requests for additional financial information should be directed to
the Finance Director, City of San Bruno, 567 El Camino Real, San Bruno, CA 94066, phone ( 650) 616- 7023.
Additional resources are available online at the City’s website: www. sanbruno. ca. gov.
16
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BASIC FINANCIAL STATEMENTS
17
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18
GOVERNMENT- WIDE
FINANCIAL STATEMENTS
19
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20
City of San Bruno
Statement of Net Assets
June 30, 2004
Governmental Business- Type
Activities Activities Total
ASSETS
Current assets:
Pooled cash and investments $ 8,475,537 $ 10,304,070 $ 18,779,607
Restricted pooled cash and investments 1,184,674 5,197,681 6,382,355
Receivables:
Taxes 291,032 - 291,032
Accounts 417,441 140,403 557,844
Interest 88,452 - 88,452
Utilities - 1,700,054 1,700,054
Other 39,367 21,999 61,366
Internal balances 162,088 ( 162,088) -
Prepaid items 19,217 - 19,217
Total current assets 10,677,808 17,202,119 27,879,927
Noncurrent assets:
Notes receivable 840,093 - 840,093
Land held for resale 596,761 - 596,761
Capital assets:
Non- depreciable 1,196,116 5,866,093 7,062,209
Depreciable, net 17,837,289 24,121,251 41,958,540
Total capital asset 19,033,405 29,987,344 49,020,749
Total noncurrent assets 20,470,259 29,987,344 50,457,603
Total assets 31,148,067 47,189,463 78,337,530
LIABILITIES
Current liabilities:
Accounts payable 1,254,361 699,051 1,953,412
Interest payable 204,780 - 204,780
Accrued salaries and employee benefits 1,284,501 - 1,284,501
Customer and other deposits 222,546 188,604 411,150
Payable to other agencies 280,093 - 280,093
Compensated absences - due within one year - 285,790 285,790
Long- term debt - due within one year 501,323 185,000 686,323
Total current liabilities 3,747,604 1,358,445 5,106,049
Noncurrent liabilities:
Claims payable 1,560,704 - 1,560,704
Compensated absences - due in more than one year 1,732,392 - 1,732,392
Long- term debt - due in more than one year 10,290,774 9,275,000 19,565,774
Total noncurrent liabilities 13,583,870 9,275,000 22,858,870
Total liabilities 17,331,474 10,633,445 27,964,919
NET ASSETS
Invested in capital assets, net of related debt 7,597,895 20,527,344 28,125,239
Restricted for:
Capital projects 1,736,092 2,083,727 3,819,819
Debt service 685,214 9,460,000 10,145,214
Community development 181,310 - 181,310
Special projects 1,077,540 - 1,077,540
Total restricted 3,680,156 11,543,727 15,223,883
Unrestricted 2,538,542 4,484,947 7,023,489
$ 13,816,593 $ 36,556,018 $ 50,372,611
See accompanying Notes to Basic Financial Statements.
Primary Government
Total net assets
21
City of San Bruno
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2004
Operating Capital
Charges for Grants and Grants and
Functions/ Programs Expenses Services Contributions Contributions Total
Primary Government:
Governmental activities:
General government $ 3,573,796 $ 1,065,110 $ 26,698 300,423 $ 1,392,231
Public safety 13,748,562 795,542 640,224 13,484 1,449,250
Public works 1,617,595 724,874 110,824 1,348,226 2,183,924
Highway and streets 1,328,866 - - - -
Parks and recreation 3,833,251 602,110 153,383 192,583 948,076
Library 1,768,145 158,762 18,394 - 177,156
Community development 2,629,160 1,501,685 - 2,258,513 3,760,198
Interest on long- term debt 560,149 - - - -
Total governmental activities 29,059,524 4,848,083 949,523 4,113,229 9,910,835
Business- type activities:
Water 6,159,239 6,415,502 - - 6,415,502
Stormwater 522,949 532,322 - - 532,322
Wastewater 4,760,646 5,455,496 - - 5,455,496
Cable television 6,923,644 7,090,544 - - 7,090,544
Total business- type activities 18,366,478 19,493,864 - - 19,493,864
Total primary government $ 47,426,002 $ 24,341,947 $ 949,523 $ 4,113,229 $ 29,404,699
General Revenues:
Taxes and fees:
Property taxes
Sales taxes
Nonregulatory business license taxes
Motor vehicle fees
Other taxes
Total taxes and fees
Investment earnings
Miscellaneous
Gain ( loss) on sale of asset
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning of year, as restated ( Note 12)
Net assets - end of year
See accompanying Notes to Basic Financial Statements.
Program Revenues
22
Governmental Business- Type
Activities Activities Total
$ ( 2,181,565) $ - $ ( 2,181,565)
( 12,299,312) - ( 12,299,312)
566,329 - 566,329
( 1,328,866) - ( 1,328,866)
( 2,885,175) - ( 2,885,175)
( 1,590,989) - ( 1,590,989)
1,131,038 - 1,131,038
( 560,149) - ( 560,149)
( 19,148,689) - ( 19,148,689)
- 256,263 256,263
- 9,373 9,373
- 694,850 694,850
- 166,900 166,900
- 1,127,386 1,127,386
( 19,148,689) 1,127,386 ( 18,021,303)
5,943,711 - 5,943,711
5,778,410 - 5,778,410
2,152,189 - 2,152,189
1,896,610 - 1,896,610
2,157,143 - 2,157,143
17,928,063 - 17,928,063
1,101,832 ( 11,831) 1,090,001
1,147,067 - 1,147,067
( 19,457) ( 704,178) ( 723,635)
( 330,758) 330,758 -
19,826,747 ( 385,251) 19,441,496
678,058 742,135 1,420,193
13,138,535 35,813,883 48,952,418
$ 13,816,593 $ 36,556,018 $ 50,372,611
and Changes in Net Assets
Net ( Expense) Revenue
23
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24
FUND FINANCIAL STATEMENTS
25
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26
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
27
City of San Bruno
Balance Sheet
Governmental Funds
June 30, 2004
Federal
Aviation
Administration State
Redevelopment Grant Highway
General Agency Special Revenue Special Revenue
ASSETS
Pooled cash and investments $ 795,324 $ 1,567,309 $ - $ -
Restricted pooled cash and investments - 653,488 - -
Receivables:
Taxes 291,032 - - -
Accounts 417,441 - - -
Interest 88,452 - - -
Other - - - -
Due from other funds 3,634,824 - - -
Long term note receivable/ other assets 560,000 280,093 - -
Prepaid Items - - - -
Land held for resale - 596,761 - -
Advances to other funds 480,788 - - -
Total assets $ 6,267,861 $ 3,097,651 $ - $ -
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 363,883 $ 625,993 $ 18,664 $ -
Accrued salaries and employee benefits 1,284,501 - - -
Due to other funds - 349,561 564,334 1,470,529
Compensated absences - 6,966 - -
Advances from other funds - 3,545,733 - -
Customer and other deposits 222,546 - - -
Payable to other agencies - 280,093 - -
Total liabilities 1,870,930 4,808,346 582,998 1,470,529
Fund Balances:
Reserved:
Encumbrances 175,883 - - -
Advances to other funds 480,788 - - -
Land held for resale - - - -
Debt service - - - -
Capital projects - - - -
Donations - - - -
Community development - - - -
Unreserved, designated, reported in:
Capital projects - - - -
Unreserved, undesignated, reported in:
General fund 3,740,260 - - -
Special Revenue funds - ( 1,710,695) ( 582,998) ( 1,470,529)
Total fund balances 4,396,931 ( 1,710,695) ( 582,998) ( 1,470,529)
Total liabilities and fund balances $ 6,267,861 $ 3,097,651 $ - $ -
See accompanying Notes to Basic Financial Statements.
Major Funds
28
Other Total
Governmental Governmental
Funds Funds
$ 3,505,898 $ 5,868,531
474,986 1,128,474
- 291,032
- 417,441
- 88,452
39,367 39,367
- 3,634,824
- 840,093
19,217 19,217
- 596,761
- 480,788
$ 4,039,468 $ 13,404,980
$ 174,698 $ 1,183,238
- 1,284,501
1,007,779 3,392,203
- 6,966
- 3,545,733
- 222,546
- 280,093
1,182,477 9,915,280
- 175,883
- 480,788
-
33,326 33,326
- -
320,398 320,398
- -
181,487 181,487
- 3,740,260
2,321,780 ( 1,442,442)
2,856,991 3,489,700
$ 4,039,468 $ 13,404,980
29
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30
City of San Bruno
Reconciliation of the Governmental Funds Balance Sheet
to the Government- Wide Statement of Net Assets
June 30, 2004
Total Fund Balances - Total Governmental Funds $ 3,489,700
Capital assets used in governmental activities were not current
financial resources. Therefore, they were not reported in the
Governmental Funds Balance Sheet. Except for the internal service
funds reported below, the capital assets were adjusted as follows:
Government-
Wide Statement
of Net Assets
Redevelopment
Agency
Internal Service
Funds
Non- depreciable $ 1,196,116 $ - $ - 1,196,116
Depreciable, net 1 7,837,289 - ( 438,633) 17,398,656
Total capital assets $ 19,033,405 $ - $ ( 438,633) 18,594,772
Interest payable on long- term debt did not require current financial
resources. Therefore, interest payable was not reported as a liability in
Governmental Funds Balance Sheet. ( 204,780)
Internal service funds were used by management to charge the costs of
certain activities, such as insurance, to individual funds. The assets
and liabilities of the Internal service funds were included in
governmental activities in the Government- Wide Statement of Net
Assets:
Central Garage 225,674
Self- Insurance ( 1,710,221)
General Equipment Reserve 4,443,411
Technology Development 801,998
Facilities Maintenance 585,377
Total internal service funds 4,346,239
Long- term liabilities were not due and payable in the current period.
Therefore, they were not reported in the Governmental Funds Balance
Sheet.
Government-
Wide Statement
of Net Assets
Redevelopment
Agency
Internal Service
Funds
Compensated absences $ 1,732,392 $ ( 6,966) $ ( 108,185) ( 1,617,241)
Long- term debt - due within one year 5 01,323 - - ( 501,323)
Long- term debt - due in more than one year 10,290,774 - - ( 10,290,774)
Total long- term liabilities $ 12,524,489 $ ( 6,966) $ ( 108,185) ( 12,409,338)
Net Assets of Governmental Activities $ 13,816,593
See accompanying Notes to Basic Financial Statements.
Amounts reported for governmental activities in the Statement of Net
Assets were different because:
31
City of San Bruno
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2004
Federal
Aviation
Administration State
Redevelopment Grant Highway
General Agency Special Revenue Special Revenue
REVENUES:
Taxes $ 16,000,961 $ 929,311 $ - $ -
Licenses and permits 1,713,887 - - -
Intergovernmental 290,170 - 2,189,803 -
Charges for services 3,564,648 - - -
Fines and forfeitures 552,679 - - -
Use of money and property 874,677 8,301 - -
Other 458,585 5,610 68,710 -
Total revenues 23,455,607 943,222 2,258,513 -
EXPENDITURES:
Current:
General government 3,587,063 - - -
Public safety 13,216,862 - - -
Public works 1,885,060 - - -
Highways and streets 1,053,835 - - 145,472
Parks and recreation 3,653,477 - - -
Library 1,731,081 - - -
Community development - 693,268 2,311,825 -
Capital outlay - 200,063 - -
Debt service:
Principal - 155,000 - -
Interest and fiscal charges - 486,303 - -
Total expenditures 25,127,378 1,534,634 2,311,825 145,472
REVENUES OVER ( UNDER) EXPENDITURES ( 1,671,771) ( 591,412) ( 53,312) ( 145,472)
OTHER FINANCING SOURCES ( USES):
Proceeds from sale of assets - - - -
Transfers in 547,176 - - -
Transfers out ( 4,948) - - -
Total other financing sources ( uses) 542,228 - - -
Net change in fund balances ( 1,129,543) ( 591,412) ( 53,312) ( 145,472)
FUND BALANCES:
Beginning of year, as restated 5,526,474 ( 1,119,283) ( 529,686) ( 1,325,057)
End of year $ 4,396,931 $ ( 1,710,695) $ ( 582,998) $ ( 1,470,529)
24,002,783 ( 1,710,695) ( 582,998) ( 1,470,529)
See accompanying Notes to Basic Financial Statements.
Major Funds
32
Other Total
Governmental Governmental
Funds Funds
$ 1,348,226 $ 18,278,498
121,363 1,835,250
1,480,381 3,960,354
371,643 3,936,291
2,454 555,133
25,161 908,139
81,226 614,131
3,430,454 30,087,796
- 3,587,063
20,483 13,237,345
58,931 1,943,991
8,287 1,207,594
137,774 3,791,251
- 1,731,081
- 3,005,093
1,461,646 1,661,709
319,153 474,153
83,473 569,776
2,089,747 31,209,056
1,340,707 ( 1,121,260)
- -
2,260,329 2,807,505
( 2,883,481) ( 2,888,429)
( 623,152) ( 80,924)
717,555 ( 1,202,184)
2,139,436 4,691,884
$ 2,856,991 $ 3,489,700
2,856,991
33
City of San Bruno
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in
Fund Balances to the Government- Wide Statement of Activities and Changes in Net Assets
For the year ended June 30, 2004
Net Change in Fund Balances - Total Governmental Funds $ ( 1,202,184)
Governmental funds reported capital outlay as expenditures. However, in the Government- Wide Statement of Activities
and Changes in Net Assets, the cost of those assets was allocated over their estimated useful lives as depreciation expense.
This was the amount of capital assets recorded in the current period.
Capital outlay 1 ,661,709
General governments 1 80,764
Public works 3 59,217
Parks and recreation 1 45,080
Library 4 5,555
Community development 4 00,000
Proceeds from sale of property was a revenue in governmental funds, but the net realized value of the capital assets was
reduced in the Government- Wide Statement of Net Assets. ( 19,457)
Depreciation expense on capital assets was reported in the Government- Wide Statement of Activities and Changes in Net
Assets, but they did not require the use of current financial resources. Therefore, depreciation expense was not reported as
expenditures in the Governmental Funds. ( 931,697)
Payment of compensated absences was an expenditure in governmental funds, but the payment reduced compensated
absences liabilities in the Government- Wide Statement of Net Assets. ( 445,949)
Repayment of long- term debt principal was an expenditure in governmental funds, but the repayment reduced long- term
liabilities in the Government- Wide Statement of Net Assets. 474,153
Interest expense on long- term debt was reported in the Government- Wide Statement of Activities and Changes in Net
Assets, but they did not require the use of current financial resources. Therefore, interest expense was not reported as
expenditures in governmental funds. The following amount represented the change in accrued interest prior year. 9 ,628
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet
management, to individual funds. The net change in net assets of the internal service funds was reported with
governmental activities. ( 2,761)
Change in Net Assets of Governmental Activities $ 6 74,058
See accompanying Notes to Basic Financial Statements.
Amounts reported for governmental activities in the Statement of Activities and Changes in Net Assets were different
because:
34
PROPRIETARY FUND
FINANCIAL STATEMENTS
35
City of San Bruno
Statement of Net Assets
Proprietary Funds
June 30, 2004
Cable
Water Stormwater Wastewater Television
ASSETS
Current assets:
Pooled cash and investments $ 4,136,226 $ 1,448,370 $ 4,489,930 $ 229,544
Restricted pooled cash and investments - - 5,197,681 -
Receivables:
Accounts - - - 140,403
Interest - - - -
Utilities 932,203 - 767,851 -
Other - - - 21,999
Due from other funds - - - -
Advance to other funds - - - -
Total current assets 5,068,429 1,448,370 10,455,462 391,946
Noncurrent assets:
Capital assets:
Nondepreciable 2,676,585 - 2,689,508 500,000
Depreciable, net 8,552,720 206,912 8,087,396 7,274,223
Total capital asset 11,229,305 206,912 10,776,904 7,774,223
Total noncurrent assets 11,229,305 206,912 10,776,904 7,774,223
Total assets 16,297,734 1,655,282 21,232,366 8,166,169
LIABILITIES
Current liabilities:
Accounts payable 461,173 18 104,345 133,515
Refundable deposits/ customer refunds 188,604 - - -
Due to other funds - - - -
Claims payable - - - -
Compensated absences 86,003 6,729 70,565 122,493
Long- term debt - due within one year - - 185,000 -
Total current liabilities 7 35,780 6,747 359,910 256,008
Noncurrent liabilities:
Advance from other funds - 162,088 - -
Long- term debt - due in more than one year - - 9 ,275,000 -
Total noncurrent liabilities - 162,088 9,275,000 -
Total liabilities 735,780 168,835 9,634,910 256,008
NET ASSETS
Invested in capital assets, net of related debt 11,229,305 206,912 1,316,904 7,774,223
Restricted for:
Capital projects 1,131,223 57,481 805,602 89,421
Debt service - - 9,460,000 -
Special projects - - - -
Unrestricted 3,201,426 1,222,054 14,950 46,517
Total net assets $ 15,561,954 $ 1,486,447 $ 11,597,456 $ 7,910,161
See accompanying Notes to Basic Financial Statements.
36
Governmental
Activities
Internal
Total Service Funds
$ 10,304,070 $ 2,607,006
5,197,681 56,200
140,403 -
- -
1,700,054 -
21,999 -
- 1,127,524
- 3,227,033
17,364,207 7,017,763
5,866,093 -
24,121,251 438,633
29,987,344 438,633
29,987,344 438,633
47,351,551 7,456,396
699,051 71,123
188,604 -
- 1,370,145
- 1,560,704
285,790 108,185
185,000 -
1,358,445 3,110,157
162,088 -
9,275,000 -
9,437,088 -
10,795,533 3,110,157
20,527,344 438,633
2,083,727 -
9,460,000 -
- -
4,484,947 3,907,606
$ 36,556,018 $ 4,346,239
37
City of San Bruno
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the year ended June 30, 2004
Cable
Water Stormwater Wastewater Television
OPERATING REVENUES:
Water sales $ 6,069,014 $ - $ - $ -
Sewer charges - - 5,446,208 -
Cable television charges - - - 5,210,179
Charges for current services 137,596 532,322 - 1,873,230
Other 208,892 - 9,288 7,135
Total operating revenues 6,415,502 532,322 5,455,496 7,090,544
OPERATING EXPENSES:
Water supply 2,245,231 - - -
Distribution 1,939,334 - - -
Customer accounting 901,547 - - 19,539
Transmission - - 2,102,959 -
Treatment - - 2,329,382 -
Cable operations - - - 5,941,856
Central garage - - - -
Insurance premiums - 123,394 124,404 54,515
Equipment replacement 446,062 153,518 - 258,831
Technology support - - - -
Facilities maintenance - 210,383 - -
Depreciation 627,065 35,654 203,901 648,903
Total operating expenses 6,159,239 522,949 4,760,646 6,923,644
OPERATING INCOME ( LOSS) 256,263 9,373 694,850 166,900
NONOPERATING REVENUES EXPENSES:
Interest income 137,004 33,329 254,084 7,519
Interest expense and fiscal charges - - ( 443,767) -
Total nonoperating revenues ( expenses) 137,004 33,329 ( 189,683) 7,519
INCOME ( LOSS) BEFORE TRANSFERS 393,267 42,702 505,167 174,419
Transfers of assets - - - ( 704,178)
Transfers in 103,481 61,015 82,262 109,000
Transfers out - - - ( 25,000)
Change in net assets 496,748 103,717 587,429 ( 445,759)
NET ASSETS:
Beginning of year, as restated 15,065,206 1,382,730 11,010,027 8,355,920
End of year $ 15,561,954 $ 1,486,447 $ 11,597,456 $ 7,910,161
$ - $ - $ - $ -
See accompanying Notes to Basic Financial Statements.
38
Governmental
Activities
Internal
Total Service Funds
$ 6,069,014 $ -
5,446,208 -
5,210,179 -
2,543,148 4,133,438
225,315 -
19,493,864 4,133,438
2,245,231 -
1,939,334 -
921,086 -
2,102,959 -
2,329,382 -
5,941,856 -
- 485,615
302,313 1,625,567
858,411 145,080
- 537,626
210,383 955,994
1,515,523 136,483
18,366,478 3,886,365
1,127,386 247,073
431,936 -
( 443,767) -
( 11,831) -
1,115,555 247,073
( 704,178) -
355,758 -
( 25,000) ( 249,834)
742,135 ( 2,761)
35,813,883 4,349,000
$ 36,556,018 $ 4,346,239
$ -
39
City of San Bruno
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2004
Cable
Water Stormwater Wastewater Television
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers/ other funds $ 6,123,406 $ 548,945 $ 5,410,951 $ 7,134,381
Cash payments to suppliers for goods and services ( 5,469,900) ( 487,277) ( 4,951,424) ( 6,365,873)
Cash received from ( payments to) others 200,357 6,729 31,460 ( 24,585)
Net cash provided ( used) by operating activities 853,863 68,397 490,987 743,923
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers in 103,481 61,015 82,262 109,000
Transfers out - - - ( 25,000)
Net cash provided by noncapital financing activities 103,481 61,015 82,262 84,000
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Net changes in capital assets ( 2,402,343) - ( 3,635,345) -
Cable TV Equity Earnings Transfer - - - ( 704,178)
Long- term debt repayment - - ( 185,000) -
Interest expense and fiscal charges - - ( 443,767) -
Net cash provided ( used) by capital and related financing activities ( 2,402,343) - ( 4,264,112) ( 704,178)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income 137,004 33,329 254,084 7,519
Net cash provided ( used) by investing activities 137,004 33,329 254,084 7,519
NET INCREASE ( DECREASE) IN CASH AND CASH EQUIVALENTS ( 1,307,995) 162,741 ( 3,436,779) 131,264
CASH AND CASH EQUIVALENTS:
Beginning of year 5,444,221 1,285,629 13,124,390 98,280
End of year $ 4,136,226 $ 1,448,370 $ 9,687,611 $ 229,544
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO THE STATEMENT OF NET ASSETS - - - -
Pooled cash and investments $ 4,136,226 $ 1,448,370 $ 4,489,930 $ 229,544
Restricted pooled cash and investments - - 5,197,681 -
Total $ 4,136,226 $ 1,448,370 $ 9,687,611 $ 229,544
See accompanying Notes to Basic Financial Statements.
40
Governmental
Activities
Internal
Total Service Funds
$ 19,217,683 $ 4,016,974
( 17,274,474) ( 4,042,975)
213,961 33,331
2,157,170 7,330
355,758 -
( 25,000) ( 249,834)
330,758 ( 249,834)
( 6,037,688) ( 10,498)
( 704,178) -
( 185,000) -
( 443,767) -
( 7,370,633) ( 10,498)
431,936 -
431,936 -
( 4,450,769) ( 253,002)
19,952,520 2,916,208
$ 15,501,751 $ 2,663,206
-
$ 10,304,070 2,607,006
5,197,681 56,200
$ 15,501,751 $ 2,663,206
41
City of San Bruno
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2004
Cable
Water Stormwater Wastewater Television
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income ( loss) $ 256,263 $ 9,373 $ 694,850 $ 166,900
Adjustments to reconcile operating income ( loss)
to net cash provided ( used) by operating activities:
Prior period adjustments ( 30,047) - - 209,515
Depreciation 627,065 35,654 203,901 648,903
Changes in assets and liabilities:
Receivables ( 120,761) 16,623 ( 35,257) ( 158,543)
Due from other funds - - - -
Advance to other funds - - - -
Accounts payable 62,274 18 ( 394,679) ( 91,132)
Interest payable - - - -
Refundable deposits 37,557 - - -
Claims payable - - - -
Compensated absences 21,512 6,729 22,172 ( 31,720)
Total adjustments 597,600 59,024 ( 203,863) 577,023
Net cash provided ( used) by operating activities $ 853,863 $ 68,397 $ 490,987 $ 743,923
See accompanying Notes to Basic Financial Statements.
42
Governmental
Activities
Internal
Total Service Funds
$ 1,127,386 $ 247,073
179,468 ( 174,924)
1,515,523 136,483
( 297,938) -
- 438,448
- ( 797,533)
( 423,519) ( 97,286)
- -
37,557 316,261
- ( 94,523)
18,693 33,331
1,029,784 ( 239,743)
$ 2,157,170 $ 7,330
43
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44
FIDUCIARY FUND
FINANCIAL STATEMENTS
45
City of San Bruno
Statement of Fiduciary Net Assets
Agency Funds
June 30, 2004
Total
Agency
Funds
ASSETS
Pooled cash and investments $ 278,813
Accounts receivable 480,614
Due from developers 324,000
Total assets $ 1,083,427
LIABILITIES AND NET ASSETS
Liabilities:
Accounts payable $ 440,433
Customer and other deposits 165,910
Payable to others 477,084
Total liabilities $ 1,083,427
See accompanying Notes to Basic Financial Statements.
46
47
NOTES TO BASIC
FINANCIAL STATEMENTS
City of San Bruno
Notes to Basic Financial Statements
For the year ended June 30, 2004
48
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of San Bruno, California ( City) have been prepared in conformity
with generally accepted accounting principles ( GAAP) as applied to governmental agencies. The
Governmental Accounting Standards Board ( GASB) is the accepted standard setting body for establishing
governmental accounting and financial reporting principles. The more significant of the City’s accounting
policies are described below.
A. Reporting Entity
The City of San Bruno ( City) was incorporated under the General Laws of the State of California and
enjoys all the rights and privileges pertaining to such “ General Law” cities. The City is governed by an
elected five- member City Council. The City operates under a Council- Manager form of government and
provides public safety including police protection and fire protection, streets and street lighting, parks,
recreation, public improvements, planning and zoning, and general government services. Activities
operated similar to a business include the municipal water, sewer/ wastewater utilities and cable television
enterprises.
Generally accepted accounting principles require that these basic financial statements present the financial
activities of the City ( the primary government) and its component units. Component units are legally
separate entities for which the City is considered financially accountable.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self- balancing
accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as
appropriate. Governmental resources are allocated to and accounted for in individual funds based upon
the purposes for which they are to be spent and the means by which spending activities are controlled.
Government- Wide Financial Statements
The City Government- Wide Financial Statements include a Statement of Net Assets and a Statement of
Activities and Changes in Net Assets. These statements present summaries of Governmental and
Business- Type Activities for the City accompanied by a total column. Fiduciary Activities of the City are
not included in these statements.
The basic financial statements are presented on an “ economic resources” measurement focus and the accrual
basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as
infrastructure assets, and long- term liabilities, are included in the accompanying Statement of Net Assets.
The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues
are recognized in the period in which they are earned while expenses are recognized in the period in which
the liability is incurred.
Certain types of transactions reported as program revenues for the City are reported in three categories:
• Charges for services
• Operating grants and contributions
• Capital grants and contributions.
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
49
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Government- Wide Financial Statements, Continued
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables and receivables. All internal balances in the Statement of Net Assets have been
eliminated except those representing balances between the governmental activities and the business- type
activities, which are presented as internal balances and eliminated in the total primary government
column. In the Statement of Activities, internal service fund transactions have been eliminated; however,
those transactions between governmental and business- type activities have not been eliminated. The
following interfund activities have been eliminated:
• Due to/ from other funds
• Advances to/ from other funds
• Transfers in/ out
The City applies all applicable GASB pronouncements ( including all NCGA Statements and Interpretations
currently in effect) as well as the following pronouncements issued on or before November 30, 1989 to the
business type activities, unless those pronouncements conflict with or contradict GASB pronouncements:
Financial Accounting Standards Board ( FASB) Statements and Interpretations, Accounting Principles
Board ( APB) Opinions, and Accounting Research Bulletins ( ARB) of the committee on Accounting
Procedure. The City applies all applicable FASB Statements and Interpretations issued after November 30,
1989 except those that conflict with or contradict GASB pronouncements.
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and non- major funds
aggregated. An accompanying schedule is presented to reconcile and explain the differences in net assets
as presented in these statements to the net assets presented in the government- wide financial statements.
The City has presented all major funds that met those qualifications.
All governmental funds are accounted for on a spending or “ current financial resources” measurement focus
and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are
included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances
present increases ( revenues and other financing sources) and decreases ( expenditures and other financing
uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the
accounting period in which they become both measurable and available to finance expenditures of the
current period.
Revenues are recorded when received in cash, except the revenues subject to accrual ( generally 60 days
after year- end) are recognized when due. The primary revenue sources, which have been treated as
susceptible to accrual by the City, are property tax, taxpayer- assessed tax revenues ( sales taxes, transient
occupancy taxes franchise taxes, etc.), grant revenues and earnings on investments. Expenditures are
recorded in the accounting period in which the related fund liability is incurred.
The Reconciliation of the Fund Financial Statements to the Government- Wide Financial Statements is
provided to explain the differences created by the integrated approach of GASB Statement No. 34.
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
50
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Assets, a Statement of Revenues,
Expenses and Change in Net Assets, and a Statement of Cash Flows for all proprietary funds.
Column representing internal service funds is also presented in these statements. However, internal
service balances and activities have been combined with the governmental activities in the government-wide
financial statements.
Proprietary funds are accounted for using the “ economic resources” measurement focus and the accrual basis
of accounting. Accordingly, all assets and liabilities ( whether current or noncurrent) are included on the
Statement of Net Assets. The Statement of Revenues, Expenses and Change in Fund Net Assets presents
increases ( revenues) and decreases ( expenses) in total net assets. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned while expenses are recognized in the
period in which liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary
operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are
those expenses that are essential to the primary operations of the fund. All other expenses are reported as
nonoperating expenses.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Assets. The City's fiduciary funds represent
agency funds, which are custodial in nature ( assets equal liabilities) and do not involve measurement of
results of operations.
C. Use of Restricted/ Unrestricted Net Assets
When an expense is incurred for purposes for which both restricted and unrestricted net assets are
available, the City’s policy is to apply restricted net assets first.
D. Pooled Cash and Investments
The City pools cash resources from all funds in order to facilitate the management of cash and achieve the
goal of obtaining the highest yield with the greatest safety and least risk. The balance in the pooled cash
account is available to meet current operating requirements. Cash in excess of current requirements is
invested in various interest- bearing accounts and other investments for varying terms.
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short- term
investments with original maturity of three months or less from the date of acquisition. Cash and cash
equivalents are combined with investments and displayed as Equity in City Treasury Cash in All Funds or
Cash and Investments.
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
51
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
D. Pooled Cash and Investments, Continued
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and
for External Investment Pools, highly liquid market investments with maturities of one year or less at time of
purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used
as fair value for those securities for which market quotations are readily available.
The City participates in an investment pool managed by the State of California titled Local Agency
Investment Fund ( LAIF) which has invested a portion of the pool funds in Structured Notes and Asset-backed
Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of
California collateralizing these investments. In addition, these Structured Notes and Asset- backed
Securities are subject to market risk as to change in interest rates.
The City also participates in an investment pool managed by the County of San Mateo titled San Mateo
County Pooled Investment Fund ( Pool) which has invested a portion of the pool funds in Structured Notes
and Asset Backed Securities. The Pool’s investments are subject to credit risk with collateral being
provided based on the specific type of investment as described in the Investment Policy in effect for the
Pool. In addition, these Structured Notes and Asset Backed Securities are subject to market risk as to
change in interest rates.
E. Property Tax Revenue
Property taxes attach as an enforceable lien on property. Secured and unsecured property taxes are levied
on January 1. Secured property taxes are payable in two installments, on November 1 and February 1 of
each year, and become delinquent on December 10 and April 10, respectively. Unsecured property tax lien
date is January 1 and becomes delinquent on August 31. The County of San Mateo, California ( County)
bills and collects the property taxes and remits them to the City according to a payment schedule
established by the County. City property tax revenues are recognized when received in cash except at
year end when they are accrued pursuant to the modified accrual basis of accounting. The County is
permitted by State law to levy property taxes at 1% of full market value ( at time of purchase) and can
increase property assessed value no more than 2% per year.
F. Inventory
Inventory, consisting of gasoline and office supplies, is stated at cost using the first- in/ first- out ( FIFO)
basis and is controlled by a perpetual inventory system which is adjusted to reflect periodic physical
counts. Inventories are recorded as expenditures when consumed.
G. Land Held for Resale
Land held for resale is recorded at the lower of acquisition cost or net realizable value.
H. Interfund Transactions
Activity between funds that are representative of lending/ borrowing arrangements outstanding at the end
of the fiscal year are referred to as either “ due to/ from other funds” ( i. e., the current portion of interfund
loans) or “ advances to/ from other funds” ( i. e., the noncurrent portion of interfund loans).” Any residual
balances outstanding between the governmental activities and business- type activities are reported in the
government- wide financial statements as “ internal balances.”
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
52
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
H. Interfund Transactions, Continued
Advances between funds, reported in the fund financial statements, are offset by a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are
not expendable available financial resources.
I. Capital Assets
Capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure
assets ( e. g. roads, sidewalks, and similar items), are reported in the applicable governmental or business-type
activities in the Government- Wide Financial Statements. Capital assets are recorded at historical cost
or estimated historical cost if actual cost in not available. Donated assets are valued at their estimated fair
value on the date donated.
City policy has set the capitalization threshold for reporting capital assets at the following:
General Capital Assets $ 10,000
Infrastructure Capital Assets $ 100,000
For capital assets, depreciation is recorded on a straight- line basis over the useful lives of the assets as
follows:
Sewer Treatment Plant and Transmission Lines 60 years
Buildings and Improvements 20 - 25 years
Machinery and Equipment 3 – 15 years
Infrastructure 25 – 50 years
In June 1999, the Governmental Accounting Standards Board ( GASB) issued Statement No. 34 which
requires the inclusion of infrastructure capital assets in local governments’ basic financial statements. In
accordance with GASB Statement No. 34, the City has elected to defer recording and reporting of its major
general infrastructure assets acquired prior to fiscal year 2002- 2003.
J. Interest Payable
In the government- wide financial statements, interest payable of long- term debt is recognized as the liability is
incurred for governmental fund types and proprietary fund types.
In the fund financial statements, propriety fund types recognize the interest payable when the liability is
incurred.
K. Long- Term Liabilities
In the government- wide financial statements, long- term debt and other long- term obligations are reported as
liabilities in the appropriate activities.
Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds
using the effective interest method. Bonds payable are reported net of the applicable bond premium or
discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
53
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
K. Long- Term Liabilities, Continued
In the fund financial statements, it does not present long- term debt but are shown in the Reconciliation of the
Governmental Funds Balance Sheet to the Government- Wide Statement of Net Assets.
Bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond
proceeds are reported as other financing sources net of the applicable premium or discount. Issuance
costs, whether or not withheld from the actual net proceeds received, are reported as debt service
expenditures.
L. Compensated Absences
City employees have vested interest in varying levels of vacation, sick leave and compensatory time based
on their length of employment. It is the policy of the City to pay all accumulated vacation pay, up to a
maximum of 30 working days, and a portion of sick pay, if eligible, when an employee retires or
terminates. The liabilities for compensated absences are included in the governmental and business- type
activities of the Government- Wide financial statements.
In the fund financial statements, the liabilities for compensated absences for proprietary funds are
recorded in those funds when incurred.
M. Net Assets
In the government- wide financial statements, net assets are classified in the following categories:
Invested in Capital Assets, net of Related Debt – This amount consists of capital assets net of accumulated
depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or
improvement of the assets.
Restricted Net Assets – This amount is restricted by external creditors, grantors, contributors, laws or
regulations of other governments.
Unrestricted Net Assets – This amount is all net assets that do not meet the definition of “ invested in
capital assets, net of related debt” or “ restricted net assets.”
N. Fund Balance – Reserves and Designations
In the fund financial statements, governmental funds report reservations of fund balances for amounts that
are not available for appropriation or are legally restricted by outside parties for use for a specific purpose.
Designations of fund balance represent tentative management plans that are subject to change.
Description of fund reservations are as follows:
Encumbrances - Reserved for purchase orders, contracts or other commitments for expenditures.
Advance to Other Funds - Reserved for use in repayment of long- term interfund loans.
Donations – Reserved for donations received that were pledged for specific purposes by outside parties.
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
54
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
O. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires City management to make estimates and assumptions that affect certain amounts and disclosures.
Accordingly, actual results could differ from those estimates.
P. Reclassifications
Certain reclassifications have been made to the prior year totals in order to conform to the current year
presentation.
2. CASH AND INVESTMENTS
The City pools its cash and investments of all funds for investing, except for certain restricted funds, which are
held and invested by independent outside custodians through contractual agreements. These restricted funds
include cash held by fiscal agents.
A. Deposits
At June 30, 2004, the carrying amount of the City’s cash deposits was $( 1,667,227). Bank balances before
reconciling items total $ 302,958 of which $ 100,500 was insured and $ 202,458 was collateralized.
California law requires banks and savings and loan institutions to pledge government securities with a
market value of 110% of the deposit or first trust deed mortgage notes with a value of 150% of the deposit
as collateral for all municipal deposits. This collateral is considered to be held in the City’s name and
places the City ahead of general creditors of the institution. The City has waived collateral requirements
for the portion of deposits covered by federal deposit insurance.
The City’s dependence on property tax receipts, which are received semi- annually, requires the City to
maintain significant cash reserves to finance operations during the remainder of the year.
B. Investments
The City’s investments are limited to those allowable under State statutes as incorporated into the City’s
Investment Policy that is even more conservative than that allowed by State statute. The City’s Investment
Policy and the California Government Code allow the City to invest in the following, provided the credit
ratings of the issuers are acceptable to the City:
• Local Agency Investment Fund ( State of California)
• U. S. Treasury Obligations
• U. S. Government Agency Securities
• Medium Term Notes
• Bankers Acceptances
• Repurchase Agreements
• Commercial Paper of United States corporations
• Passbook Savings
• Mutual Funds ( invested solely in authorized investments)
• San Mateo County Investment Pool
• Certificates of Deposit
The City has not entered into reverse repurchase agreements during fiscal year 2003- 2004.
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
55
2. CASH AND INVESTMENTS, Continued
C. Local Agency Investment Fund
The City invests in the Local Agency Investment Fund ( LAIF), a State of California external investment
pool. LAIF determines fair value on its investment portfolio based on market quotations for those
securities where market quotations are readily available and based on amortized cost or best estimate for
those securities where market value is not readily available.
The City’s investments with LAIF at June 30, 2004, include a portion of the pool funds invested in
Structured Notes and Asset- Backed Securities. These investments may include the following:
• Structured Notes are debt securities ( other than asset- backed securities) whose cash- flow
characteristics ( coupon rate, redemption amount, or stated maturity) depend upon one or more
indices and/ or that have embedded forwards or options.
• Asset- backed Securities, the bulk of which are mortgage- backed securities, entitle their purchasers
to receive a share of the cash flows from a pool of assets such as principal and interest repayments
from a pool of mortgages ( such as CMOs) or credit card receivables.
As of June 30, 2004, the City had $ 5,989,910 invested in LAIF, which had invested 1.603% of the pool
investments funds in Structured Notes and Asset- Backed Securities.
D. San Mateo County Pooled Investment Fund
The City invests in the San Mateo County Pooled Investment Fund ( Pool) an external investment pool.
The Pool determines fair value on its investment portfolio based on market quotations for those securities
where market quotations are readily available and based on amortized cost or best estimate for those
securities where market value is not readily available.
The City’s investments with the Pool at June 30, 2004, include a portion of the pool funds invested in
Asset- Backed Securities. These investments may include the following:
• Asset- backed Securities, the bulk of which are mortgage- backed securities, entitle their purchasers
to receive a share of the cash flows from a pool of assets such as principal and interest repayments
from a pool of mortgages ( such as CMOs) or credit card receivables.
As of June 30, 2004, the City had $ 9,735,737 invested in the Pool.
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
56
2. CASH AND INVESTMENTS, Continued
E. Risk Category
In accordance with GASB Statement No. 3, cash deposits and investments are categorized separately to
give an indication of the level of risk assumed by the City:
Deposits:
Category 1 – Insured or collateralized with securities held by the entity or by its agent in the entity’s
name.
Category 2 – Collateralized with securities held by the pledging financial institution’s trust department
or agent’s name.
Category 3 – Deposits which are uninsured or uncollaterized.
Investments:
Category 1 - Insured or registered, with securities held by the City or its agent in the City’s name.
Category 2 - Uninsured and unregistered, with securities held by the counterparty’s trust department or
agent in the City’s name. The City has no investments in risk category 2.
Category 3 - Uninsured and unregistered securities held by the counterparty, or by its trust department
or agent but not in the City’s name.
Uncategorized – Certain cash deposits and investments are not subject to categorization. Investments in
LAIF are not categorized, as GASB Statement No. 3 does not require categorization of investment pools
managed by another government. Certain fiscal agent investments are not categorized because of the
open- ended mutual funds. Such investments are not required to be categorized under interpretative
guidelines issued by the GASB.
The following is a summary of pooled cash and investments, including restricted cash and investments at
June 30, 2004:
Funds Financials
Business Fiduciary Funds
Governmental Type Statement of
Activities Activities Total Net Assets Total
Cash and Investments $ 8,475,537 $ 10,304,070 $ 18,779,607 $ 278,813 $ 19,058,420
Restricted Cash and Investments:
Held by fiscal agents $ 1,184,674 $ 5,197,681 $ 6,382,355 $ - $ 6,382,355
Government- Wide Statement of Net Assets
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
57
2. CASH AND INVESTMENTS, Continued
E. Risk Category, Continued
At June 30, 2004, the City’s cash and investments, including restricted funds, classified by risk category
consisted of the following:
Category 1 Category 3 Uncategorized Fair Value
Cash Deposits:
Demand cash deposits $ ( 1,667,227) $ - $ - $ ( 1,667,227)
Investments:
Local Agency Investment Fund - - 5 ,989,910 5 ,989,910
San Mateo County Pool - - 9 ,735,737 9 ,735,737
Securities of U. S. Government Agencies - - 5 ,000,000 5 ,000,000
Total investments - - 2 0,725,647 2 0,725,647
Total pooled cash and investments ( 1,667,227) - 2 0,725,647 1 9,058,420
Restricted pooled cash and investments - 6 ,382,355 - 6 ,382,355
Total cash and investments $ ( 1,667,227) $ 6 ,382,355 $ 2 0,725,647 $ 2 5,440,775
F. Summary of Investments to Maturity
Investments held in the City grouped by maturity date at June 30, 2004, are shown below:
Maturity
Current to One Year $ 15,725,647
Two to Three Years 1,000,000
Three to Four Years 2,000,000
Four to Five Years 2,000,000
Total $ 20,725,647
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
58
3. INTERFUND TRANSACTIONS
Due To and From Other Funds
At June 30, 2004, the City had the following due to/ from other funds:
Internal
General Service
Fund Fund Total
Governmental Activities:
Major Funds:
Redevelopment Agency $ 349,561 $ - $ 349,561
Federal Aviation
Administration Grant Fund 564,334 - 564,334
State Highway Fund 1,470,529 - 1,470,529
Non- Major Governmental
Funds 1,007,779 - 1,007,779
Internal Service Funds 242,621 1,127,524 1,370,145
Total $ 3,634,824 $ 1,127,524 $ 4,762,348
Due From Other Funds
Governmental Activities
Due To Other Funds
Advance To and From Other Funds
At June 30, 2004, the City had the following advances to/ from other funds:
Internal
General Service
Fund Fund Total
Governmental Activities:
Redevelopment Agency $ 318,700 $ 3,227,033 $ 3,545,733
Business- Type Activities:
Stormwater 162,088 - 162,088
Total $ 480,788 $ 3,227,033 $ 3,545,733
Advances To Other Funds
Advances From Other Funds
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
59
3. INTERFUND TRANSACTIONS, Continued
Transfers In and Out
At June 30, 2004, the City had the following transfers in/ out which arise in the normal course of operations.
Non- Major Cable
General Governmental Water Stormwater Wastewater Television
Fund Funds Fund Fund Fund Fund Total
General Fund $ - $ 4 ,948 $ - $ - $ - $ - $ 4 ,948
Non- Major Governmental
Funds 5 47,176 1 ,980,547 1 03,481 6 1,015 8 2,262 1 09,000 2 ,883,481
Cable Television Fund - 2 5,000 - - - - 2 5,000
Internal Service Funds - 2 49,834 - - - - 2 49,834
Total $ 5 47,176 $ 2 ,260,329 $ 1 03,481 $ 6 1,015 $ 8 2,262 $ 1 09,000 $ 3 ,163,263
Transfers In
Transfers Out
4. CAPITAL ASSETS
A. Government- Wide Financial Statements
At June 30, 2004 the City’s capital assets consisted of the following:
Governmental Business- Type
Activities Activities Total
Non- depreciable assets:
Land $ 1,157,958 $ 576,842 $ 1,734,800
Construction in process 38,158 5,289,251 5,327,409
Total non- depreciable assets 1,196,116 5,866,093 7,062,209
Depreciable assets:
Buildings and structures 18,985,239 1,041,974 20,027,213
Machinery and equipment 7,919,616 7,654,509 15,574,125
Improvements - 27,749,528 27,749,528
Infrastructure 523,220 - 523,220
27,428,075 36,446,011 63,874,086
Less accumulated depreciation ( 9,590,786) ( 12,324,760) ( 21,915,546)
Total depreciable assets, net 17,837,289 24,121,251 41,958,540
Total capital assets $ 19,033,405 $ 29,987,344 $ 49,020,749
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
60
4. CAPITAL ASSETS, Continued
A. Government- Wide Financial Statements, Continued
The following is a summary of changes in the capital assets for governmental activities during the fiscal
year:
Governmental Activities Balance Transfers/ Balance
7/ 1/ 2003 Additions Deletions Adjustments 6/ 30/ 2004
Non- depreciable assets:
Land $ 962,317 $ 30,761 $ - $ 164,880 $ 1,157,958
Construction in progress 7,357,735 - - ( 7,319,577) 38,158
Total non- depreciable assets 8,320,052 30,761 - ( 7,154,697) 1,196,116
Depreciable assets:
Buildings and structures 8,851,040 2,580,423 - 7,553,776 18,985,239
Machinery and equipment 8,406,671 188,437 ( 234,495) ( 440,996) 7,919,617
Infrastructure 523,220 - - - 523,220
Total depreciable assets, at costs 17,780,931 2,768,860 ( 234,495) 7,112,780 27,428,076
Accumulated depreciation:
Buildings and structures ( 4,621,463) ( 527,764) - 92,341 ( 5,056,886)
Machinery and equipment ( 4,050,327) ( 540,416) 215,038 ( 158,196) ( 4,533,901)
Total accumulated depreciation ( 8,671,790) ( 1,068,180) 215,038 ( 65,855) ( 9,590,787)
Total depreciable assets, net 9,109,141 1,700,680 ( 19,457) 7,046,925 17,837,289
Total governmental capital assets, net $ 17,429,193 $ 1,731,441 $ ( 19,457) $ ( 107,772) $ 19,033,405
Depreciation expenses of the governmental activities for the year ended June 30, 2004 are as follows:
General government $ 35,963
Public safety 4 66,687
Public works 31,864
Highway and streets 1 32,115
Parks and recreation 2 15,408
Library 4 6,399
Community development 3 ,261
Internal service funds 136,483
Total depreciation expense $ 1,068,180
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
61
4. CAPITAL ASSETS, Continued
A. Government- Wide Financial Statements, Continued
The following is a summary of changes in the capital assets for business- type activities during the fiscal
year:
Business- Type Activities Balance Transfers/ Balance
7/ 1/ 2003 Additions Retirements Adjustments 6/ 30/ 2004
Non- depreciable assets:
Land $ 5 76,842 $ - $ - $ - $ 5 76,842
Construction in progress 2 ,882,412 5 ,900,287 ( 91,503) ( 3,401,945) 5 ,289,251
Total non- depreciable assets 3 ,459,254 5 ,900,287 ( 91,503) ( 3,401,945) 5 ,866,093
Depreciable assets:
Buildings 1 ,549,979 - - ( 508,005) 1 ,041,974
Improvements 2 4,347,583 - - 3 ,401,945 2 7,749,528
Machinery and equipment 6 ,962,547 2 31,370 ( 47,413) 5 08,005 7 ,654,509
Total depreciable assets, at costs 3 2,860,109 2 31,370 ( 47,413) 3 ,401,945 3 6,446,011
Accumulated depreciation:
Buildings ( 336,074) ( 2,118) - - ( 338,192)
Improvements ( 8,106,642) ( 878,795) - - ( 8,985,437)
Machinery and equipment ( 2,411,468) ( 634,610) 4 4,947 - ( 3,001,131)
Total accumulated depreciation ( 10,854,184) ( 1,515,523) 4 4,947 - ( 12,324,760)
Total depreciable assets, net 2 2,005,925 ( 1,284,153) ( 2,466) 3 ,401,945 2 4,121,251
Total capital assets $ 2 5,465,179 $ 4 ,616,134 $ ( 93,969) $ - $ 2 9,987,344
Depreciation expenses of the business- type activities for the year ended June 30, 2004 are as follows:
Water $ 627,065
Stormwater 35,654
Wastewater 203,901
Cable Television 648,903
Total depreciation expense $ 1,515,523
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
62
5. LONG- TERM DEBT
A. Governmental Activities
The following is a summary of long- term debt transactions for the year ended June 30, 2004:
Balance Balance Due Within Due in More
Description July 1, 2003 Additions Retirements June 30, 2004 One Year than One Year
Capital Lease Obligation $ 1,811,251 $ - $ ( 319,154) $ 1,492,097 $ 336,323 $ 1,155,774
Bonds Payable:
2000 Certificates of
Participation 9,455,000 - ( 155,000) 9,300,000 165,000 9,135,000
Compensated Absences 1,249,621 482,771 - 1,732,392 - 1,732,392
Total $ 12,515,872 $ 482,771 $ ( 474,154) $ 12,524,489 $ 501,323 $ 12,023,166
Classification
Capital Lease Obligation
At June 30, 2004, Capital Lease Obligation consisted of the following:
Balance Balance Due Within Due in More
Description July 1, 2003 Additions Retirements June 30, 2004 One Year than One Year
Lighting Improvements $ 1,251,200 $ - $ ( 114,669) $ 1,136,531 $ 120,110 $ 1,016,421
Pumper Equipment 162,142 - ( 62,158) 99,984 65,723 34,261
Ladder Equipment 397,909 - ( 142,327) 255,582 150,490 105,092
Total $ 1,811,251 $ - $ ( 319,154) $ 1,492,097 $ 336,323 $ 1,155,774
Classification
Energy Conservation Improvements
During December 2001, the City entered into a $ 1,360,674 capital lease with GE Capital Public Finance, Inc.
for energy conservation improvements. Principal and interest payments are due June 1 and December 1
annually. The interest rate is 4.69%.
The annual debt service requirements were as follows as of June 30, 2004:
Fiscal
Year- end Principal Interest Totals
2005 $ 120,110 $ 51,912 $ 172,022
2006 125,808 46,212 172,020
2007 131,779 40,243 172,022
2008 138,031 33,990 172,021
2009 144,581 27,440 172,021
2010 - 2012 476,222 39,840 516,062
Total $ 1,136,531 $ 239,637 $ 1,376,168
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
63
5. LONG- TERM DEBT, Continued
A. Governmental Activities, Continued
Pumper Equipment
During January 2001, the City entered into a $ 303,183 capital lease with GE Capital Public Finance, Inc. for
pumper equipment for the fire department. Principal and interest payments are due monthly. The interest
rate is 5.59%.
The annual debt service requirements were as follows as of June 30, 2004:
Fiscal
Year- end Principal Interest Total
2005 $ 65,723 $ 3,922 $ 69,645
2006 34,261 561 34,822
Total $ 99,984 $ 4,483 $ 104,467
Ladder Equipment
During March 2001, the City entered into a $ 700,703 capital lease with GE Capital Public Finance, Inc. for
aerial ladder equipment for the fire department. Principal and interest payments are due monthly. The
interest rate is 5.59%.
The annual debt service requirements were as follows as of June 30, 2004:
Fiscal
Year- end Principal Interest Total
2005 $ 150,490 $ 10,470 $ 160,960
2006 105,092 2,215 107,307
Total $ 255,582 $ 12,685 $ 268,267
2000 Certificates of Participation
During December 2000 the City issued $ 9,600,000 in Certificates of Participation, Series 2000 for the
construction of a police facility. Principal and interest payments are due annually on February 1. The
interest rate ranges from 5.25% to 7.00%.
The San Bruno Redevelopment Agency ( Agency) has agreed under a separate agreement to reimburse the
City for all costs associated with the construction of the police facility.
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
64
5. LONG- TERM DEBT, Continued
A. Governmental Activities, Continued
2000 Certificates of Participation, Continued
The annual debt service requirements were as follows as of June 30, 2004:
Fiscal
Year- end Principal Interest Total
2005 $ 165,000 $ 480,813 $ 645,813
2006 180,000 469,263 649,263
2007 190,000 458,463 648,463
2008 200,000 449,348 649,348
2009 205,000 439,938 644,938
2010- 2014 1,190,000 2,044,542 3,234,542
2015- 2019 1,510,000 1,723,974 3,233,974
2019- 2024 1,950,000 1,291,502 3,241,502
2025- 2029 2,510,000 724,238 3,234,238
2030 - 2031 1,200,000 95,288 1,295,288
Total $ 9,300,000 $ 8,177,369 $ 17,477,369
B. Business- Type Activities
Balance Balance Due Within Due in More
Description July 1, 2003 Additions Retirements June 30, 2004 One Year than One Year
2002 Certificates of
Participation $ 9,645,000 $ - $ ( 185,000) $ 9,460,000 $ 185,000 $ 9,275,000
Compensated absences 267,097 18,693 - 285,790 285,790 -
Total $ 9,645,000 $ - $ ( 185,000) $ 9,460,000 $ 185,000 $ 9,275,000
Classification
2002 Certificates of Participation
During May 2002 the City issued $ 9,800,000 in Certificates of Participation, Series 2000 for the construction
of various improvements to the City’s waste water system. Principal and interest payments are due
annually on January and July 1. The interest rate ranges from 2.25% to 5.00%.
City of San Bruno
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2004
65
5. LONG- TERM DEBT, Continued
B. Business- Type Ac