HomeMy WebLinkAboutCAFRCITY OF NATIONAL CITY
Comprehensive Annual Financial Report
For the Year Ended June 30, 2010
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CITY OF NATIONAL CITY
National City, California
Comprehensive Annual Financial Report
For the Year Ended June 30, 2010
1243 National City Blvd.
National City, California 91950
Phone: (619) 336-4241
Fax: (619) 336-4239
www.nationalcityca.gov
Prepared by the Finance Department
Jeanette Ladrido, CPA
Finance Director
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CITY OF NATIONAL CITY
Comprehensive Annual Financial Report
For the Year Ended June 30, 2010
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
Letter of Transmittal
Directory of City Officials vii
CSMFO Award viii
FINANCIAL SECTION
Independent Auditors' Report 1
Management's Discussion and Analysis 3
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Assets 16
Statement of Activities 17
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet 19
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Assets 22
Statement of Revenues, Expenditures and Changes in Fund Balances 23
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Government -Wide
Statement of Activities 25
Proprietary Fund Financial Statements:
Statement of Net Assets 26
Statement of Revenues, Expenses and Changes in Net Assets 27
Statement of Cash Flows 28
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Assets 29
Statement of Changes in Fiduciary Net Assets 30
Notes to the Basic Financial Statements 32
CITY OF NATIONAL CITY
Comprehensive Annual Financial Report
For the Year Ended June 30, 2010
TABLE OF CONTENTS, (CONTINUED)
FINANCIAL SECTION, (CONTINUED)
Required Supplementary Information:
Notes to Required Supplementary Information
Budgetary Information
Budgetary Comparison Schedule
Budgetary Comparison Schedule
Special Revenue Fund
Budgetary Comparison Schedule
Budgetary Comparison Schedule
Budgetary Comparison Schedule
Budgetary Comparison Schedule
Program Fund
- General Fund
— Section 8 Housing Assistance
— Other Special Revenue Fund
- Nutrition Program Special Revenue Fund
- Sewer Service Special Revenue Fund
— Low and Moderate Income Housing
Supplementary Information:
Non -Major Governmental Funds:
Combining Balance Sheet
Combined Statement of Revenues, Expenditures and Changes in Fund Balances
Schedule of Revenues, Expenditures and Changes in Fund Balances —
Budget and Actual
Internal Service Funds:
Combining Statement of Net Assets
Combining Statement of Revenues, Expenses and Changes in Net Assets
Combining Statement of Cash Flows
Page
73
74
75
76
77
78
79
83
87
90-107
109
111
113
Fiduciary Funds:
Combining Statement of Changes in Assets and Liabilities - Agency Funds 116
CITY OF NATIONAL CITY
Comprehensive Annual Financial Report
For the Year Ended June 30, 2010
TABLE OF CONTENTS, (CONTINUED)
Page
STATISTICAL SECTION
Net Assets by Component 119
Changes in Net Assets 121
Fund Balances of Governmental Funds 125
Changes in Fund Balances of Governmental Funds 127
Assessed Value of Taxable Property 129
Taxable Sales by Category 131
Direct & Overlapping Property Tax Rates 133
Principal Property Tax Payers 134
Property Tax Levies and Collections 135
Ratios of Outstanding Debt by Type 137
Direct and Overlapping Debt 140
Legal Debt Margin Information 141
Pledged Revenue Coverage 143
Demographic and Economic Statistics 145
Principal Employers 146
Full-time Equivalent City Government Employees by Function/Program 147
Operating Indicators by Function/Program 148
Capital Asset Statistics by Function 149
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INTRODUCTORY SECTION
CALIFORNIA
NATIONAL NAL r { -
t `�`
INCO Fr.P.Qia.ATI:1
December 23, 2010
To the Honorable Mayor, Members of the City Council
And the Citizens of the City of National City:
The Comprehensive Annual Financial Report of the City of National City for the fiscal year
ended June 30, 2010 is hereby submitted in accordance with Title 2.16.100(N) of the
National City Municipal Code and section 25253 of the Government Code of the State of
California. State law requires that all general-purpose local governments publish within six
months of the close of each fiscal year a complete set of financial statements presented in
conformity with generally accepted accounting principles (GAAP) and audited in accordance
with generally accepted auditing standards by a firm of licensed certified public
accountants.
The City is responsible for the accuracy, completeness, and fair presentation of this report.
Under the direction of the City's Director of Finance our financial reports are prepared in
accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the
Governmental Accounting Standards Board (GASB). To the best of our knowledge and
belief, the enclosed data are accurate in all material respects and are reported in a manner
designed to present fairly the financial position and results of operations of the various
Funds, account groups and component units of the City. It is believed that all disclosures
necessary have been included in order to enable the reader to gain maximum
understanding of the City's financial affairs as of June 30, 2010.
As required by the City of National City Municipal Code, Title 2.16.100(N), the independent
auditing firm Mayer Hoffman McCann, P.C. has reviewed the City's financial records and the
internal control system. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City of National City for the fiscal year ended
June 30, 2010, are free of material misstatements. The audit firm of Mayer Hoffman
McCann P.C., has issued an unqualified opinion on the City of National City's financial
statements for the year ended June 30, 2010. The independent auditor's report is located
at the front of the financial section of this report.
The Report is organized into three major sections:
Introductory Section: This section includes a table of contents, this transmittal
letter and a City organizational chart.
Financial Section:
Statistical Section:
This section includes the independent auditors' report,
the management discussion and analysis report, the
basic financial statements and the notes to these
financial statements, followed by supplemental
information.
This section contains both financial and non -financial
trend data about the City and its operations.
In addition to meeting the requirements set forth in the City's Municipal Code, the City is
required to have a Single Audit performed by our independent audit firm. The Single Audit
was designed to meet the needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair
presentation of the financial statements, but also on the City's internal controls and
compliance with legal requirements, with special emphasis on internal controls and
compliance with legal requirements involving the administration of federal awards. These
reports are available in the City of National City's separately issued Single Audit Report.
Generally Accepted Accounting Principles requires that management provide a narrative
introduction, overview and analysis to accompany the basic financial statements in the form
of a Management Discussion and Analysis (MD&A). This transmittal letter is designed to
complement the MD&A and should be read in conjunction with it. The City of National City's
MD& A is located in the Financial Section, following the independent auditor's report.
GOVERNMENT
The City of National City is located on the bay in San Diego County, bordered by the City of
San Diego to the north, and the port of San Diego to the west. The nearly built -out city is
home to a fairly constant population of about 61,115 residents over 9.2 square miles.
The City of National City was incorporated September 17, 1887. It is a general law city and
operates under the council-manager form of government. The City Council has five
members who are elected at large for a term of four years. The citizens of National City also
elect the City Treasurer and the City Clerk.
The City Council is responsible for setting policies, passing ordinances, adopting the budget,
appointing committees and appointing the City Manager. The City Manager is responsible
for carrying out policies and ordinances of the City Council, appointing City Department
heads and overseeing the day-to-day operations of the City. The City Manager also serves as
executive director and secretary of the Community Development Commission of the City of
National City and may delegate that authority.
REPORTING ENTITY
This report includes all funds of the City, as well as all of its component units. Component
units are legally separate entities for which the City is financially accountable.
ii
Blended component units, although legally separate entities, are, in substance, part of the
City's operations and are included in this CAFR as part of the City. Accordingly, the City of
National City Joint Powers Financing Authority, the National City Parking Authority and the
Community Development Commission of the City of National City are reported as part of
the City. Discretely presented component units are reported in a separate column in the
combined financial statements to emphasize that they are legally separate from the City
and to differentiate their financial position, results of operations and cash flows from those
of the City.
BOARDS AND COMMISSIONS
The City Manager is committed to the support of government programs that can expand
the City's ability to reach -out to the community. The National City Neighborhood Councils
were implemented in 2005 and has greatly enhanced the citizen interaction with the City
Services. The following boards and commissions are available for the citizens of National
City to participate on as advisors to the Mayor and City Council:
• Building and Advisory and Appeals Board - acts in matters related to the Building Code.
• Civil Service Commission - recommends hears appeals of any person in the classified
service relative to any suspension, demotion or dismissal.
• Community and Police Relations Commission - a forum for citizens to voice their
concerns about issues related to police -community relations.
• Housing and Community Development Committee - members stay in touch with
community attitudes, and identify the physical, social, and economic needs of National
City.
• Library Board of Trustees - acts in accordance with the Education Code; coordinates the
activities of the City Library; advises the City Librarian on operational policies; approves
warrants; and recommends to the City Council the adoption of rules and regulations.
• Parks and Recreation Advisory Board - acts in matters of policy and administration of the
city owned parks and the recreation programs operated in said parks.
• Planning Commission - recommends the adoption, amendment, or repeal of a master
plan or any part thereof for the physical development of the City.
• Public Art Committee - advises the City Council on public art projects meant to increase
the aesthetic value of parks, public buildings, and new development. The committee
also promotes the City's substantial historical and cultural assets throughout the county.
• Senior Citizens Advisory Board - acts in an advisory capacity in matters pertaining to
seniors.
• Street Tree and Parkway Committee - reviews and makes recommendations relative to
the planting, removal, or transplanting of trees upon public property.
• Traffic Safety Committee - reviews and makes recommendations concerning the safety
of traffic.
LOCAL ECONOMY
The City of National City has an economic
base composed of autos and
transportation, general consumer goods,
restaurants and hotels, fuel and service
stations, business and industry, building
and construction and food and drug
stores. Due to the economic recession,
the City's primary source of revenue, sales
tax, has dropped from a high of over $16
million in 2004 to under $9 million in
2010.
$20
$16
a
0
2 12
$8
$4
Sales Tax
2005 2006 2007 2008 2009 2010
Calendar Year
Council and Administrative actions were taken to assist in balancing the budget, attain fiscal
sustainability, and provide for efficient and transparent government. An employee -driven
committee was established to brainstorm ideas to reduce internal costs. The Cost
Reduction and Revenue Efficiency (C.A.R.E.) Committee publishes quarterly newsletters to
encourage voluntary participation in such endeavors. The Purchasing Review and Personnel
Review Committees were established to affirm fiscal responsibility in purchasing and hiring
practices.
In June 2006, National City voters approved Proposition D (District Tax), a 1 cent increase in
local sales tax that will be effective until 2016. It has been projected that the district tax
would generate $7-$9 million annually. The revenues from the district tax temporarily fix the
fundamental problem of more money going out than coming in. It also challenges National
City to become proactive in building stable and diverse revenue sources within the next five
to ten years to achieve financial sustainability. The last major revenue generating
developments, Plaza Bonita Mall and the Mile of Cars, occurred over 20 years ago.
Efficiency, vision and innovation are necessary to reverse the current stagnation.
LONG TERM FINANCIAL PLANNING
The City is currently working on a comprehensive update of its general plan. The general
plan serves as a blueprint for growth and the associated impacts. National City is rich in
infrastructure and has the foundation to grow through infill opportunities and increased
mobility. The smart growth goals and principals established in the general plan will be
implemented through a series of neighborhood action plans. These action plans will utilize
iv
city resources and leverage them with grants and other funding sources to build healthier
and safer neighborhoods.
The City's capital resources are prioritized and distributed through a five year capital
improvement program. (C.I.P) Developing the C.I.P. will be done concurrently with the
development of the general plan. All capital projects must be found consistent with the
general plan to ensure a commitment to the long range plans set forth by the community.
BUDGETARY CONTROLS
The City maintains budgetary controls at the individual fund level. The objective of these
budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Council. The budget includes estimated revenues
and appropriations for the City's funds categorized into six fund types including one general
fund, special revenue funds, debt service funds, capital projects funds, enterprise funds and
all internal service funds are included in the annual appropriated budgets of the City.
Using the City's automated accounting system, each City department's expenditures are
restricted to the amount of that department's budgeted appropriations for the year at the
object level. No department is allowed to spend more than its available appropriations.
Changes in appropriations in excess of a department's total appropriation or fund balance or
unrealized revenues must be approved by the City Council as a transfer from contingency
reserve, transfer from another department, or as an appropriation of unanticipated or over -
realized revenue identified to a specific source. There is no "floor" in the level amount
requiring approval.
CASH MANAGEMENT POLICIES AND PRACTICES
The investment operations of the City are under the direction of the City Finance Director.
The City Treasurer and the Finance Director share investment policy review, operations and
approval. On an annual basis, the City's investment policy is reviewed and approved by the
City Council. The Finance Director and Financial Services Officer monitor cash balances
daily and invest temporarily idle funds in accordance with the California Government Code
and the City's Investment Policy. The City employs a pooled cash system for various City
funds to maximize interest income. Investment earnings are distributed based on average
cash balance.
RISK MANAGEMENT
The City is self -insured for its general liability exposures up to $250,000 per occurrence and
for its Workers' Compensation up to $500,000 per claim. As a member of the San Diego
Pooled Insurance Program Authority (SANDPIPA), the City is insured for general liability
between $250,000 and $2 million. For general liability claims in excess of the pooled layer,
the City purchases excess liability insurance through SANDPIPA with limits up to $37 million
per occurrence. The City also obtains its first party, all-risk property insurance and crime
bond/fidelity coverage through SANDPIPA. In addition, the City participates in the County
V
Supervisors' Association of California Excess Insurance Authority (CSAC-EIA) which enables it
to purchase excess Workers' Compensation coverage for its large and catastrophic claims.
ACKNOWLEDGMENTS
The preparation of this Comprehensive Financial Report could not have been accomplished
without the professional and dedicated service of the staff of the Finance department and
the assistance of the City's auditors, Mayer Hoffman McCann, P.C. We sincerely thank you
for a job well done. In addition, we acknowledge and appreciate the continued support of
the Mayor and members of the City Council in the commitment to fiscal integrity and
financial leadership.
Sincerely,
(11: 7511e2S
Chris Zapata
City Manager
46toelc,411141-0--
Jeanette Ladrido, CPA
Director of Finance
vi
CALIFORNIA
NATIONAL Cirrir
-- Z�COR.pQa�.AT�p
DIRECTORY OF CITY OFFICIALS
City Council
Ron Morrison Mayor
Alejandra Sotelo-Solis Vice Mayor
Jess Van Deventer Council Member
Rosalie Zarate Council Member
Vacant Council Member
City Manager
Chris Zapata
City Treasurer
Mitch Beauchamp
City Clerk
Michael R. Dalla
Assistant City Manager
Leslie Deese
City Attorney
George H. Eiser
Community Development Commission Executive Director
Brad Raulston
Department Heads
Minh Duong City Librarian
Vacant Director of Community Development
Brenda Hodges Director of Community Services
Frank Parra Director of Emergency Services
Maryam Babaki Director of Engineering
Jeanette Ladrido, CPA Director of Finance
Stacey Stevenson Director of Human Resources
Joe Smith Director of Public Works
Dr. Adolfo Gonzales Police Chief
vii
CALIFORNIA �•
NATIONAL CITY
`- 1ECOnp ORATED
FINANCIAL AWARDS
California Society of �bfunicipa( Finance Office
Certificate of Award
For
Excellence in Operating Budgeting
Fiscal Year 2009-2010
The: Culifnrniu. Society of Municipal Finance Officers (CsnfFO) proudly presents this certificate to
City of National City
For meeting the criteria estaWisked to achieve the EXCELLENCEA WARD Fa Ike OPERATING BUDGET CATEGORY.
February 18, 2010
CiM EO Prssiacni
Pemels nrtnde�K�eB f,1e�r
dutlgel ng R linane�l Kxgnliwg
The California Society of
Municipal Finance Officers
(CSMFO presented the City
of National City the
Certificate of Award for
Outstanding Financial
Reporting for the Fiscal
Year ending June 30, 2009.
The California Society of
Municipal Finance Officers
(CSMFO presented the City
of National City the
Certificate of Award for
Excellence in Operating
Budgeting for Fiscal Year
2009-10.
Calfornia Society of
1vluniciparF'inance Officers
Certificate of Award
Outstanding Financial Reporting for the Fiscal
Year ending June 30, 2009
Presented to the
City of National City
This earl cafe is issued is recognition ofnrctdagprofessional Vanderds and criteria in reporting
which reflect a high level of ens* he the annuefuhancidl Miamians
and In the ander-444 amwMhsg sperm foam which Ike reports were prepernd
February 18, 2010
Rome Campbell, President
Chu Therlr Chair
RscvgnWWI Cwnnalm
Dedicated Excellence in Municipal Financial ,Nanageneenl
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FINANCIAL SECTION
Mayer Hoffman McCann P.C.
An Independent CPA Firm
2301 Dupont Drive, Suite 200
Irvine, California 92612
949-474-2020 ph
949-263-5520 fx
www.mhm-pe.com
To the Honorable Mayor and Members of the City Council
of the City of National City, California
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the
City of National City, California (City), as of and for the year ended June 30, 2010, which
collectively comprise the City's basic financial statements, as listed in the table of contents.
These financial statements are the responsibility of the City's management. Our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City as of June 30, 2010, and
the respective changes in financial position and cash flows, where applicable, thereof for the year
then ended in conformity with accounting principles generally accepted in the United States of
America.
The information identified in the accompanying table of contents as management's discussion
and analysis and required supplementary information are not a required part of the basic
financial statements but are supplementary information required by accounting principles
generally accepted in the United States of America. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the supplementary information. However, we did not audit the information
and express no opinion on it.
1
To the Honorable Mayor and Members of the City Council
of the City of National City, California
Page Two
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory section, combining
and individual nonmajor fund financial statements and schedules and statistical tables are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining and individual nonmajor fund financial statements and schedules
have been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole. The introductory section and statistical tables have not
been subjected to the auditing procedures applied in the audit of the basic financial statements
and, accordingly, we express no opinion on them.
In accordance with Government Auditing Standards, we have also issued a report dated
December 23, 2010 on our consideration of the City's internal control over financial reporting
and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant
agreements, and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on the internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
//% yz, 7/7 /47, C
Irvine, California
December 23, 2010
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of National City, we offer readers of the City's financial statements
this narrative overview and analysis of the financial activities of the City of National City for the
fiscal year ended June 30, 2010. We encourage readers to consider the information presented
here in conjunction with additional information that has been furnished in the letter of
transmittal, which can be found in the introductory section of this report.
FINANCIAL HIGHLIGHTS
• The City's assets exceeded its liabilities at the close of fiscal year 2010 by $169,455,369 (net
assets). Of this amount, $7,832,285 (unrestricted net assets) is for unrestricted uses in
accordance with finance -related legal requirements reflected in the City's fund structure.
• The City's total net assets decreased by $3,358,962 or -1.9%. Net assets of governmental
activities decreased by $2,575,545 and net assets of business type activities decreased by
$7,83,417.
• As of the close of fiscal year 2010, the City's governmental funds reported combined ending
fund balances of $80,678,584, a decrease of $3,640,189 in comparison with the prior year.
Total fund balance is broken -up as follows:
BALANCE SHEET
Governmental Funds
Total Fund Balance $80,678,584 €:
Reserves $29,138,132 (36%)
Unreserved $51,540,452 (64%)
Designated $36,133,099 (45%) I Undesignated $15,407,353 (19%)
• At the end of the current fiscal year, the contingency reserve fund balance for the General
Fund was 8,616,444 or 24% of general fund expenditures. The prior year balance was
$7,200,000.
• The City's total long-term debt had a net decrease of $687,626. In FY 09-10, the City
entered into a lease agreement with Municipal Finance Corporation to fund a City wide
energy retrofit program. The total capitalized lease obligation was $1,755,160.
• National City residents approved an additional 1% district tax in 2005. It has been projected
to generate additional revenue of $7 to $9 million Despite the nation-wide resection the City
of National City was able to maintain fiscal sustainability during the fiscal year 2010 through
the passing of Prop. D (Also called Prop. M on 2008 ballot), which implemented a 1%
district tax rate. In fiscal year 2010, the district tax brought in $7.9 million.
3
MANAGEMENT'S DISCUSSION AND ANALYSIS
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of National City's
basic financial statements. The City of National City's basic financial statements are comprised
of three components: 1) government -wide financial statements, 2) fund financial statements, and
3) notes to the basic financial statements. In addition to the basic financial statements, also
provided is other supplementary information. (Refer to figure A-1)
Government -Wide Financial Statements
The government -wide financial statements are
of the City of National City's finances, in a m
The Statement of Net assets (the "Unrestricted
Net Assets") is similar to a bottom line for the
City and its governmental and business -type
activities. This statement reports all of the
governmental fund's current financial
resources (short-term spendable resources)
with capital assets and long-term obligations.
Over time, increases or decreases in net assets
may serve as a useful indicator of whether the
financial position of the City of National City
is improving or deteriorating.
designed to provide readers with a broad overview
anner similar to a private -sector business.
The Statement of Activities presents
information to show how the government's
net assets changed during the most recent
fiscal year. All changes in net assets are
reported as soon as the underlying event
giving rise to the change occurs, regardless of
the timing of related cash flows. Thus,
revenues and expenses are reported in this
statement for some items that will only result
Figure A-1
Required Components of
City of National City's Annual Financial Report
I
•
9fanagements
Discussion and
Andysis
Basic Financial
Statements
Required
Supplementary
Information
♦
♦
•
•
•
•
5-
Government-
wide Financial
Statements
Fund Financial
Statements
Notes to the
PinanciaCStatements
Summary
ary
in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused vacation leave and sick leave).
Detail
Both of the government -wide financial statements distinguish services of the City of National
City that are principally supported by taxes and intergovernmental revenues (governmental
activities) from other functions that are intended to recover all or a significant portion of their
costs through user fees and charges (business -type activities). The governmental activities of the
City of National City include general government, public safety, transportation, health, culture
4
MANAGEMENT'S DISCUSSION AND ANALYSIS
and leisure, and community development. The business -type activities of the City of National
City include the community development commission.
The basic government -wide financial statements can be found in the accompanying
comprehensive financial report.
Fund Financial Statements
A fund is a grouping of related accounts used to maintain control over resources that have been
segregated for specific activities or objectives. The City of National City uses fund accounting
to ensure and demonstrate compliance with finance -related legal requirements. All of the funds
used by the City of National City can be divided into three categories: governmental funds,
proprietary funds, and fiduciary funds.
Governmental Funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. Governmental fund
financial statements focus on near term inflows and outflows of spendable resources, as well as
on the balances left at year end that are available for spending. Consequently, the governmental
fund financial statements provide a detailed short-term view that helps the reader determine
whether there are more or fewer financial resources that can be spent in the near future to finance
the City's programs. Because this information does not encompass the long-term focus of the
government -wide statement, additional information is provided that reconciles the governmental
fund financial statements to the government -wide statements explaining the relationship (or
differences) between them.
The City maintains 149 individual governmental funds, which includes 7 funds maintained by
the Community Development Commission. Information is presented separately in the
government fund balance sheet and in the governmental fund statement of revenues'
expenditures and changes in fund balance for the General Fund, Human Services Special
Revenue Funds, Capital Project Funds, each of which are considered to be major funds. Data
from the remaining not mentioned funds are combined into a single aggregate presentation.
Individual fund data for these major governmental funds is provided in the form of combining
statements elsewhere in this report.
The City adopts an annual appropriated budget for its Funds. A budgetary comparison statement
has been provided to demonstrate compliance with this budget. Except for the Community
Development Commission funds, the City maintains an automated budgetary accounting system
to restrict expenditures to established appropriations and to recognize yearend commitments
(encumbrances) in the financial statements.
Proprietary Funds. The City of National City maintains two different types of proprietary funds:
enterprise funds and internal service funds. Enterprise funds are used to report the same
functions presented as business -type activities in the government -wide financial statements. The
City uses enterprise funds to account for the Kimball Towers and Morgan Towers. Internal
Service Fund is an accounting device used to accumulate and allocate costs internally among the
5
MANAGEMENT'S DISCUSSION AND ANALYSIS
City's various functions. The City uses internal service funds to account for its vehicle
operations, workers compensation insurance, general liability insurance, separation benefits,
accounting services and technology development. The internal service funds predominantly
benefit governmental rather than business -type functions; therefore they have been included
within governmental activities in the government -wide financial statements.
Proprietary funds provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate
information for the Kimball Towers and Morgan Towers, each of which are considered to be
major funds of the City of National City. Date for the additional enterprise funds and all of the
internal service funds are combined into their respective single aggregated presentations.
Individual fund data for the non -major enterprise funds and all internal service funds is provided
in the form of combining statements elsewhere in this report.
Fiduciary Funds. The City uses fiduciary funds to account for assets held on behalf of outside
parties. The City of National City's fiduciary funds reflect activity related to retiree medical and
dental insurance premiums and refundable customer deposits for performance. Fiduciary funds
are not reflected in the government -wide financial statement because the resources of those funds
are not available to support the City's own programs. The accounting used for fiduciary funds is
much like that used for proprietary funds.
Notes to the Basic Financial Statements
The notes to the basic financial statements provide additional information that is essential to a
full understanding of the data provided in the government -wide and fund financial statements.
The notes to the basic financial statements can be found in the financial section of this report.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents
certain required supplementary information concerning the City of National City's progress in
funding its obligation to provide pension benefits to its employees. Required supplementary
information can be found in the financial section of this report.
The combining statements referred to earlier in connection with non -major governmental funds
and internal service funds are presented immediately following the required supplementary
information.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the City of National City, assets exceeded liabilities by $162,838,989 at
the close of the most recent fiscal year.
6
MANAGEMENT'S DISCUSSION AND ANALYSIS
A portion of the City's net assets $7,832,285 (5%) is unrestricted and may be used to meet the
City's ongoing financial obligations. These are net assets that are not restricted by external
requirements nor invested in capital.
Of the City's $169,455,369 in net assets, $104,489,076 (62%) reflects investment in capital
assets (e.g., land, buildings, machinery, and equipment). The City of National City uses these
capital assets to provide services to citizens; consequently, these assets are not available for
future spending. Although the City of National City's investment in its capital assets is reported
net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these
liabilities. Net assets of the City also include $57,134,008 of restricted net assets. These are
assets representing resources subject to external restriction as to how they may be used by the
City.
The following reflects the City of National City's net assets:
Summary of Net Assets
($ thousands)
2010 2009
2010 2009
2010 2009
Current and other assets
Capital assets
Total assets
Long-term liabilities outstanding
Other liabilities
Total liabilities
Net assets:
Invested in capital assets, net
of related debt
Restricted
Unrestricted
Total net assets
$ 111,785,361 $ 104,686,916 $ 1,960,276 $ 2,397,137 $ 113,745,637 $ 107,084,053
120,874,728 121,154,824 7,629,909 8,027,839 128,504,637 129,182,663
232,660,089 225,841,740 9,590,185 10,424,976 242,250,274 236,266,716
63,348,301 63,854,003 2,917,546 2,673,586 66,265,847 66,527,589
6,529,058 6,604,804 435,884 295,334 6,964,942 6,900,138
69,877,359 70,458,807 3,353,430 2,968,920 73,230,789 73,427,727
99,340,829 98,809,386
55,609,616 48,092,405
7,832,285 8,481,142
$ 162,782,730 $ 155,382,933
5,148,247 5,354,253 104,489,076 104,163,639
1,524,392 2,101,803 57,134,008 50,194,208
- - 7,832,285 8,481,142
6,672,639 7,456,056 $ 169,455,369 $ 162,838,989
As in the prior fiscal year, the City of National City reported positive balances in all three
categories of net assets for the government as a whole and the separate governmental and
business -type activities.
7
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following reflects the City of National City's Changes in Net Assets:
Activities Activities
2010 2009 2010 2009
Government
2010 2009
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenue:
Property tax
Sales and Use tax
Franchise tax
Other taxes
Investment earnings
Other miscellaneous revenues
Rent
Transfers
Total Revenues
Expenses:
General government
Public safety
Transportation
Community development
Health
Culture and leisure
Interest and fiscal charges
TDA
Community Development Commission
Total Expenses
$ 14,256,336 $ 12,558,790 $ 2,063,715 $ 2,041,477 $ 16,320,051 $ 14,600,267
21,051,606 20,674,207 - 21,051,606 20,674,207
9,983,799 15,827,505 - 9,983,799 15,827,505
18,872,987 20,700,283 18,872,987 20,700,283
1,941,081 1,737,134 - 1,941,081 1,737,134
5,907,602 6,000,666 - 5,907,602 6,000,666
572,489 1,425,385 6,943 23,995 579,432 1,449,380
461,101 270,269 461,101 270,269
763,157 733,454 - 763,157 733,454
73,810,158 79,927,693 2,070,658 2,065,472 75,880,816 81,993,165
6,774,769
32,426,770
2,966,635
17,679,675
7,775,510
6,238,223
2,524,121
5,224,693
29,670,520
7,735,716
17,049,437
5,963,766
6,928,456
2,525,568
6,774,769 5,224,693
32,426,770 29,670,520
2,966,635 7,735,716
17,679,675 17,049,437
7,775,510 5,963,766
6,238,223 6,928,456
2,524,121 2,525,568
2,854,075 2,191,014 2,854,075 2,191,014
76,385,703 75,098,156 2,854,075 2,191,014 79,239,778 77,289,170
Increase (decrease) in net assets
before transfers (2,575,545) 4,829,537 (783,417) (125,542) (3,358,962) 4,703,995
Transfers - - - -
Increase (decrease) in net assets (2,575,545) 4,829,537 (783,417) (125,542) (3,358,962) 4,703,995
Net assets - Beginning of Year (note 11) 165,358,275 150,553,396 7,456,056 7,581,598 172,814,331 158,134,994
Net assets - End of Year
$ 162,782,730 $ 155,382,933 $ 6,672,639 $ 7,456,056 $ 169,455,369 $ 162,838,989
Governmental Activities
Governmental activities decreased the City of National City's net assets by $2,575,545 causing a
1.5 percent decrease in the primary government's net assets. Key elements of this increase are as
follows:
• Total governmental revenue decreased by $6.1 million or 7.6 percent from fiscal year 2009.
This change was a primarily attributable to decreases in property tax revenue ($5.8 million)
and sales tax ($1.8 million).
8
MANAGEMENT'S DISCUSSION AND ANALYSIS
Program Expenses -Governmental Activities
Interest and fiscal
Culture and leisure charges
8% 3%
Health
10%
Community
Development
23%
Transportation
4%
General Government
9%
Public Safety
43%
Expenses and Program Revenues- Governmental Activities
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
67.
�o
S06 S� 0,-,
s.
a'' C Sw
C�
) ti4�i
Intergovernmental revenues are grants and other revenues received from the state and federal
government. Licenses and permits include amounts collected from the issuance of licenses and
permits required by the City of National City for various purposes. Revenues from fees collected
by the City for a variety of services provided to the public are recorded as charges for services.
Investment income reflects revenue from investment activity. Other revenue includes rent
proceeds from the leasing of various government buildings.
9
MANAGEMENT'S DISCUSSION AND ANALYSIS
Revenue By Source - Governmental Activities
Operating Grants Property Taxes
28% __ 14%
Motor Vehicle
6%
Charges for
Services
19%
Other
4%
Sales and Use
Taxes
26%
Franchise Taxes
3%
Business -type Activities
The City's only current business type activity is the community development commission.
Revenue By Source - Business -Type Activities
Investment
Earnings
0.3%
10
Charges for
Services
99.7%
MANAGEMENT'S DISCUSSION AND ANALYSIS
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City of National City uses fund accounting to ensure and demonstrate
compliance with finance -related legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on current year revenue,
expenditures, and balances of spendable resources. Such information is useful in assessing the
City of National City's financing requirements. In particular, unreserved fund balance may serve
as a useful measure of a government's net resources available for spending at the end of the
fiscal year.
Governmental Funds report the difference between their assets and liabilities as fund balance,
which is divided into reserved and unreserved portions. The function of reserved fund balance is
simply to isolate the portion of fund balance that is unavailable for the following period's budget.
The unreserved fund balance can serve as a measure of current available financial resources.
City Council may commit a portion of the unreserved fund balance by designation of fund
balance to an intended future use.
As of the fiscal year ended June 30, 2010, the City of National City's governmental funds
reported combined ending fund balances of $80,678,584, a decrease of $3,640,189 in
comparison with the prior year. Approximately 64 percent of the total fund balance amount, or
$51,540,452, constitutes unreserved fund balance, $36,133,099 of this has been designated for
specific purposes by City Council. The remainder of fund balance is reserved to indicate that it
is not available for new spending because it has already been committed 1) to liquidate contracts
and purchase orders of the prior period ($1,085,633), 2) to pay debt service ($7,534,181), for
land held for resale ($10,267,509), 4) for long term loans receivable ($8,187,427) and 5) for
advances from other funds ($2,063,382).
The General Fund is the chief operating fund of the City. For the fiscal year ended June 30,
2010, unreserved fund balance of the General Fund was $10,699,617 while total fund balance
was $11,826,025. As a measure of the General Fund's liquidity, it may be useful to compare
both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund
balance represents 29 percent of total General Fund expenditures compared to 47 percent in the
prior year. Total fund balance represents 32 percent of the General Fund expenditures while the
prior year was at 50 percent.
The total fund balance of the City's General Fund decreased by $6,614,663 or 56 percent, during
the fiscal year ended June 30, 2010. Key factors in this increase are as follows:
• Overall revenues decreased by $3.6 million or 10 percent from the prior year. This decrease
is mainly attributed to lower than anticipated property tax and sales tax. Automobile sales
and building material sales decreased from the prior year.
11
-- CALIFOR I .
NATIONAL CITY
i j I
JNCORPORAS69
MANAGEMENT'S DISCUSSION AND ANALYSIS
• Interest and Rent Revenue decreased $1,056,699. This decrease is mainly attributed to the
decrease in interest revenue. Over 65% of the City's cash flow is invested in the State of
California's Local Agency Investment Fund (LAIF). Over the past year, LAIF's annual
yield in FY 08-09 was 2.224% and in FY 09-10 was .651%.
The Sewer Service Fund has an ending fund balance of $16,073,658, of which $87,809 is
reserved for encumbrances and $1,500,000 was advanced to another fund. The unreserved,
designated fund balance consists of the following 1) $5,406,132 in continuing appropriations, 2)
$3,184,801 for rate stabilization, 3) $338,946 in contingency reserves and 4) $2,727,746 for the
State Water Resource Control Board requirements.
The Community Development Commission Debt Service Fund has a total fund balance of
$4,771,650. For the year ended June 30, 2010 $826,093 was transferred in from other
governmental funds to provide funding to cover debt service payments made during the fiscal
year that related to low and moderate development. The net change in fund balance during the
current year in the debt service fund is 616,836 or 13 percent increase from the prior year fund
balance of $4,154,814.
Proprietary Funds
The City of National City's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail.
Total net assets for the Kimball Towers, and Morgan Towers Funds amounted to $6,366,288 and
$1,089,768; respectively. The total net income (loss) for each fund before transfers was
($126,614) and $1,072; respectively.
Kimball Towers and Morgan Towers Funds account for activities relating to the operations of
Kimball and Morgan Towers, which provide housing to low and moderate income seniors. For
the year ended June 30, 2010 total operating revenue for Kimball Towers and Morgan Towers
amounted to $887,828 and $1,175,887; respectively. Kimball Towers operating expenses
increased by $361,104 or 26 percent from the prior year, while Morgan Towers operating
expenses increased by $301,154 or 24 percent from the prior year.
Other factors concerning the finances of these funds have already been addressed in the
discussion of the City of National City's business -type activities.
GENERAL FUND BUDGETARY HIGHLIGHTS
Differences between the General Fund original budget and the final amended budget include
significant changes in the revenue and expenditure amounts.
12
--y CA LIIF7OgRMIA
i j 1
4NCORPOPAS69
MANAGEMENT'S DISCUSSION AND ANALYSIS
Original revenue estimates for the fiscal year 2009-10 were based on a predicted economical
recession. Actual total General Fund revenues were less than the final budgets estimated amount
by $972,745. The variance between actual and estimated revenue is mainly attributed to actual
revenue produced by taxes. The district tax (Proposition D) continues to meet the projections of
$7-$9 million in revenue however; sales tax has decreased significantly due to the slowing
economy.
The General Fund actual total expenditures did not exceed final budgeted appropriations. The
variance between actual total expenditures and the final appropriation was $2.2 million or 6
percent. Negative variances occurred in the debt service in principal expenditures by 36,802.
Ending Fund Balance exceeded the final budget estimated ending fund balance by $3,343,387 or
28.2 percent. General Fund actual end of year fund balance was $ 11,826,025.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's capital assets for its governmental and business type activities as of June 30, 2010,
amounted to $120,874,728 (net of accumulated depreciation). This investment in capital assets
includes land, buildings and improvements, machinery and equipment and infrastructure
(including streets, alleys, traffic signals and signs and bridges) of governmental activities.
Infrastructure type assets of business -type activities are reported as buildings and improvements.
The City's capital assets by activity at June 30, 2010 were as follows:
Governmental Business -type Total Primary
Activities Activities Government
2010 2009 2010 2009 2010 2009
Land $ 20,025,598 $ 20,025,598 $ 528,382 $ 528,382 $ 20,553,980 $ 20,553,980
Right of way 4,245,088 4,245,088 4,245,088 4,245,088
Construction in progress 5,078,125 3,106,170 5,078,125 3,106,170
Buildings and improvements 44,343,967 44,343,967 15,684,584 15,654,166 60,028,551 59,998,133
Machinery and equipment 14,070,632 12,838,883 462,153 462,153 14,532,785 13,301,036
Infrastructure 111,876,502 110,333,302 - - 111,876,502 110,333,302
Less accumulated depreciation 78,765,184 73,738,184 9,045,210 8,616,862 87,810,394 82,355,046
Total $ 120,874,728 $ 121,154,824 $ 7,629,909 $ 8,027,839 $ 128,504,637 $ 129,182,663
Major capital asset activity during the year ended June 30, 2010 includes the following:
• Various street resurfacing projects
• Marina Gateway construction
• Safe Routes to School projects
13
MANAGEMENT'S DISCUSSION AND ANALYSIS
Additional information on the City's capital assets can be found in the financial section of this
report (Note 5).
Long -Term Debt
At year-end the City had a total long-term debt of $63,836,005, a decrease of $2,665,996 from
the prior year. These include $3,605,000 of Lease revenue refunding bonds issued by National
City Joint Powers Financing Authority (NCJPFA) and $39,680,000 of tax allocation bonds
applicable to Community Development Commission. The City of National City's general
obligation bond is rated A- by Fitch and Standard & Poor's rating agencies.
Governmental Business -type Total Primary
Activities Activities Government
2010 2009
2010 2009
2010 2009
NCJPFA:
Lease Revenue Refunding Bonds
Community Development Commision:
1999 Tax Allocation Bonds
2004 Tax Allocation Bonds
2005 Series A and B
Tax Allocation Bonds
General Obligation Bonds
HUD 108 Bond 2003 A
Total Bonds
Claims Payable
Compensated Absences
Other postemployment Benefits
Capitalized Lease Obligations
Notes Payable
Total
$ 2,935,000 $ 3,605,000 $
3,965,000 4,210,000
4,345,000 4,885,000
26,620,000
5,120,000
5,505,000
4,286,256
1,053,748
53,795
2,423,051
30,585,000
5,440,000
5,975,000
4,825,000
3,176,653
34,624
1,099,728
$ $ 2,935,000 $ 3,605,000
3,965,000 4,210,000
4,345,000 4,885,000
26,620,000
5,120,000
5,505,000
4,286,256
1,053,748
53,795
- 2,423,051
2,276,886 2,673,586 2,276,886
30,585,000
5,440,000
5,975,000
4,825,000
3,176,653
34,624
1,099,728
2,673,586
$ 56,306,850 $
63,836,005 $ 2,276,886 $
2,673,586 $ 58,583,736 $ 66,509,591
Additional information on the City of National City's long-term debt can be in the financial
section of this report (Note 7).
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City of National City's
finances for all those with an interest in the government's finances. Questions concerning any of
the information provided in this report or requests for additional financial information should be
addressed to the Director of Finance, 1243 National City Boulevard, National City, California,
91950-4397.
14
Basic Financial Statements
15
CITY OF NATIONAL CITY
Statement of Net Assets
June 30, 2010
Governmental Business -Type
Activities Activities
Total
Assets
Current assets:
Cash and investments (note 2) $ 70,996,470 84,989 71,081,459
Accounts receivable 3,914,955 490 3,915,445
Property tax receivable 256,947 256,947
Interest receivable 127,976 127,976
Due from other governmental entities 5,073,009 5,073,009
Total current assets 80,369,357 85,479 80,454,836
Noncurrent assets:
Restricted assets:
Restricted cash and investments with fiscal agents (note 2) 5,055,261 1,717,538 6,772,799
Inventories 14,649 14,649
Prepaid items and deposits - 157,259 157,259
Land held for resale 10,267,509 10,267,509
Contracts, notes and loans receivable (note 4) 16,076,692 16,076,692
Subtotal 31,414,111 1,874,797 33,288,908
Capital assets (note 5):
Non -depreciable 29,348,811 528,382 29,877,193
Depreciable, net 91,525,917 7,101,527 98,627,444
Total capital assets 120,874,728 7,629,909 128,504,637
Total noncurrent assets 152,288,839 9,504,706 161,793,545
Total assets 232,658,196 9,590,185 242,248,381
Liabilities
Current liabilities:
Accounts payable and accrued liabilities
Interest payable
Salaries payable
Deposits payable
Total current liabilities
Long-term liabilities (note 7):
Due within one year
Due beyond one year
Total noncurrent liabilities
Total liabilities
4,581,120
298,727
1,369,408
279,803
6,529,058
7,041,451
56,306,850
63,348,301
69,877,359
322,295 4,903,415
298,727
24,714 1,394,122
88,875 368,678
435,884 6,964,942
204,776 7,246,227
2,276,886 58,583,736
2,481,662 65,829,963
2,917,546 72,794,905
Net Assets
Invested in capital assets, net of related debt 99,340,829 5,148,247 104,489,076
Restricted for:
Community development 43,423,854 43,423,854
Public Safety 4,018,272 4,018,272
Transportation 1,694,415 1,694,415
Culture and leisure 5,394,040 5,394,040
Housing 1,079,035 1,524,392 2,603,427
Unrestricted
Total restricted 55,609,616 1,524,392 57,134,008
7,832,285 7,832,285
Total net assets $ 162,782,730
6,672,639 169,455,369
See accompanying notes to the basic financial statements.
16
CITY OF NATIONAL CITY
Statement of Activities
For the Year Ended June 30, 2010
Expenses
Program Revenues
Operating Capital Total
Charges for Grants and Grants and Program
Services Contributions Contributions Revenue
Primary Government:
Governmental activities:
General government $ 6,774,769 3,624,978 54,383 - 3,679,361
Public safety 32,426,770 1,976,414 3,410,980 - 5,387,394
Transportation 2,966,635 2,967,617 - 2,967,617
Community development 17,679,675 625,194 12,757,100 - 13,382,294
Health 7,775,510 7,258,317 563,807 - 7,822,124
Culture and leisure 6,238,223 771,433 1,297,719 - 2,069,152
Interest and fiscal charges 2,524,121 - -
Total governmental activities
Business -type activities:
Community development commission
Total business -type activities
Total primary government
76,385,703 14,256,336 21,051,606 - 35,307,942
2,854,075 2,063,715 - - 2,063,715
2,854,075
$ 79,239,778
2,063,715 - - 2,063,715
16,320,051
21,051,606 - 37,371,657
General revenue and transfers:
Taxes:
Property taxes, net
Sales taxes
Franchise taxes
Motor vehicle in -lieu, unrestricted
Transient occupancy taxes
Total taxes
Investment earnings
Other miscellaneous revenues
Rent
Total general revenues
Change in net assets
Net assets at beginning of year, as restated (note 12)
Net assets - end of year
See accompanying notes to the basic financial statements.
17
Net (Expense) Revenue
and Changes in Net Assets
Governmental Business -Type
Activities Activities
Total
(3,095,408) - (3,095,408)
(27,039,376) - (27,039,376)
982 - 982
(4,297,381) - (4,297,381)
46,614 - 46,614
(4,169,071) - (4,169,071)
(2,524,121) - (2,524,121)
(41,077,761) - (41,077,761)
- (790,360) (790,360)
- (790,360) (790,360)
(41,077,761) (790,360) (41,868,121)
9,983,799 - 9,983,799
18,872,987 - 18,872,987
1,941,081 - 1,941,081
5,181,701 - 5,181,701
725,901 - 725,901
36,705,469 - 36,705,469
572,489 6,943 579,432
461,101 - 461,101
763,157 - 763,157
38,502,216
6,943 38,509,159
(2,575,545) (783,417) (3,358,962)
165,358,275 7,456,056 172,814,331
$ 162,782,730 6,672,639 169,455,369
18
CITY OF NATIONAL CITY
Balance Sheet
Governmental Funds
June 30, 2010
Special Revenue Funds
Section 8 Other
General Housing Special Nutrition
Fund Assistance Revenue Program
ASSETS
Cash and investments (note 2) $ 9,024,317 1,142,448 9,307,407 32,077
Restricted cash and investments with fiscal agents (note 2) - - - -
Accounts receivable 731,539 45,616 24,930 112,163
Property tax receivable - - -
Interest receivable 64,196 3,463
Due from other funds (note 3) 1,636,843 106 - -
Due from other governmental entities 2,919,636 1,123,885
Land held for resale - - -
Contracts, notes and loans receivable (note 4) - - -
Advances to other funds (note 3) - 563,382 -
Total assets $ 14,376,531 1,188,170 11,023,067 144,240
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ 849,314 71,636 334,809 7,792
Salaries payable 975,789 21,615 135,271 52,531
Due to other funds (note 3) - 15,884 938,116 -
Deposits payable 150,120 104,683
Deferred revenue 13,794 29,251
Advances from other funds (note 3) 563,382 -
Total liabilities 2,552,399 109,135 1,542,130 60,323
Fund balances (deficit):
Reserved:
Encumbrances 197,797 9,600 338
Advances from other funds - 563,382 -
Land held for resale - - -
Long-term loans receivable - - -
Debt service 928,611
Total reserved 1,126,408 572,982 338
Unreserved, designated:
Continuing appropriations 767,234 6,825,857
Employee accrued benefits 1,256,040
Other 59,899
Rate stabilization -
Continuing CIPs - - -
Contingencies 8,616,444
Total unreserved, designated 10,699,617 6,825,857
Unreserved, undesignated
General fund - - -
Special revenue funds - 1,079,035 2,082,098 83,579
Capital projects funds - - - -
Total unreserved, undesignated - 1,079,035 2,082,098 83,579
Total fund balances 11,826,025 1,079,035 9,480,937 83,917
Total liabilities and fund balances $ 14,378,424 1,188,170 11,023,067 144,240
See accompanying notes to the basic financial statements.
19
Debt Capital
Special Revenue Funds Service Project
Low and Community Funds Other Total
Sewer Moderate Income Development Redevelopment Governmental Governmental
Service Housing Program Commission Fund Funds Funds
14,491,934 7,598,805 3,635,561 1,697,859 9,909,699 56,840,107
- - 2,677,291 35,619 1,094,028 3,806,938
54,357 - - 2,571,068 301,000 3,840,673
- 49,691 198,766 8,167 323 256,947
26,107 12,544 6,117 2,869 12,680 127,976
- - - 15,884 124,561 1,777,394
53,156 - - 2,796 973,536 5,073,009
- 360,000 - 9,032,509 875,000 10,267,509
- 12,757,954 - 298,287 3,020,451 16,076,692
1,500,000 - - - - 2,063,382
16,125,554 20,778,994 6,517,735 13,665,058 16,311,278 100,130,627
35,293 12,346 1,746,085 553,494 558,957 4,169,726
16,603 2,790 - 52,361 60,592 1,317,552
- - - 106 823,288 1,777,394
- - - 25,000 - 279,803
- 7,889,265 - 62,500 1,851,269 9,846,079
- - - 739,966 760,034 2,063,382
51,896
7,904,401 1,746,085
87,809 802 -
1,500,000 - -
- 360,000 -
- 4,868,689 -
- - 4,771,650
1,587,809 5,229,491
5,406,132
2,727,746
3,184, 801
338,946
149,763
1,433,427 4,054,140 19,453,936
650,129 139,158 1,085,633
- - 2,063,382
9,032,509 875,000 10,267,509
298,287 3,020,451 8,187,427
- 1,833,920 7,534,181
4,771,650 9,980,925
5,868,529 29,138,132
615,738 5,684,499 19,449,223
- - 1,256,040
- - 2,787,645
- - 3,184,801
500,000 - 9,455,390
11,657,625 149,763 - 1,115,738
2,828,224 7,495,339
5,684,499 36,133,099
- 2,083,263 15,651,538
1,134,968 (1,379,153) (244,185)
2,828,224 7,495,339 - 1,134,968
16,073,658 12,874,593
16,125,554 20,778,994
4,771,650 12,231,631
6,517,735 13,665,058
704,110 15,407,353
12,257,138 80,678,584
16,311,278 100,132,520
20
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21
CITY OF NATIONAL CITY
Reconciliation of the Governmental Funds Balance Sheet
to the Government -Wide Statement of Net Assets
June 30, 2010
Fund balances of governmental funds $ 80,678,584
Amounts reported for governmental activities in the statement of net assets are different because:
Capital assets used in governmental activities were not current financial resources. Therefore, they
were not reported in the governmental funds balance sheet. Excluding the internal service funds
capital assets which are reported below, capital assets were adjusted as follows:
- Capital assets
- Accumulated depreciation
Interest payable on long-term debt did not require current financial resources. Therefore, interest
payable was not reported as a liability in the governmental funds balance sheet.
Certain revenues were not available to pay for current -period expenditures and, therefore, were
deferred in funds.
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.
Long-term liabilities were not due and payable in the current period. Therefore, they were not reported
in the governmental funds balance sheet. This amount excludes long-term liabilities reported in
Internal Service funds.
192,379,031
(73,361,538)
(298,727)
9,816,079
9,099,883
(55,530,582)
Net assets of governmental activities $ 162,782,730
See accompanying notes to the basic financial statements.
22
Revenues:
Taxes
Licenses and permits
Fines and forfeitures
Interest and rents
Intergovernmental
Charges for services
Other revenues
CITY OF NATIONAL CITY
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2010
General
Fund
$ 29,007,351
551,517
1,219,418
432,226
571,308
482,975
593,968
Special Revenue Funds
Section 8
Housing
Assistance
9,704,442
75
Total revenues 32,858,763 9,704,517
Expenditures:
Current:
General government
Public safety
Transportation
Community development
Health
Culture and leisure
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in (note 3)
Transfers out (note 3)
Total other financing sources (uses)
Net change in fund balances
Fund balances (deficit), beginning of year,
as restated (note 12)
Fund balances, end of year
4,578,197
28,402,451
1,777,073
1,828,785
301,404
261,174
23,962
9,418,147
37,173,046 9,418,147
(4,314,283) 286,370
3,047,887 608,152
(5,348,267)
(2,300,380) 608,152
(6,614,663) 894,522
18,440,688 184,513
$ 11,826,025 1,079,035
See accompanying notes to the basic financial statements.
Other
Special
Revenue
4,200
92,560
28,087
5,946,896
1,439,267
602,980
8,113,990
1,853,392
2,274,135
216,964
128,004
1,645,287
15,838
6,133,620
Nutrition
Program
338,373
206,036
544,409
791,032
791,032
1,980,370 (246,623)
2,047,464 1,716,103
(1,117,756)
929,708 1,716,103
2,910,078 1,469,480
6,570,859 (1,385,563)
9,480,937 83,917
23
Debt Capital
Special Revenue Funds Service Project
Low and Community Funds Other Total
Sewer Moderate Income Development Redevelopment Governmental Governmental
Service Housing Program Commission Fund Funds Funds
196,696
7,120,640
1,265,131
2,796,072 11,184,289 1,448,099 44,435,811
- - - 555,717
- - 142,350 1,454,328
264,663 33,746 102,104 357,225 1,414,747
- - 160,066 5,479,484 22,200,569
- - 21,316 9,064,198
- - 368,251 428,855 3,465,296
8,582,467 3,060,735
7,633,903
670,912
7,633,903 670,912
948,564 2,389,823
927,881
(1,434,245)
(506,364)
948,564 1,883,459
15,125,094 10,991,134
16,073,658
11,218,035 630,421
7,406,010
2,225,000
1,796,282
7,877,329 82,590,666
85,479 6,517,068
38,887 30,715,473
341,252 2,118,325
2,745,974 591,043 21,840,082
7,761,907
2,686,543 6,160,615
2,034,918 3,149,728 5,501,888
11,427,292 4,780,892
(209,257) (4,150,471)
826,093
(666,667)
826,093 (666,667)
705,000 3,191,174
714,869 2,535,113
8,312,801 86,341,645
(435,472) (3,750,979)
1,446,996 10,620,576
(2,350,501) (10,917,436)
(903,505) (296,860)
616,836 (4,817,138) (1,338,977) (4,047,839)
4,154,814
12,874,593 4,771,650
17,048,769 13,596,115 84,726,423
12,231,631 12,257,138 80,678,584
24
CITY OF NATIONAL CITY
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and
Changes in Fund Balances to the Governmental -Wide Statement of Activities
For the Year Ended June 30, 2010
Changes in fund balances of governmental funds
Amounts reported for governmental activities in the statement of activities are different because:
$ (4,047,839)
Governmental funds report capital outlay as expenditures. However, in the government -wide
statement of activities, the cost of those assets are allocated over their estimated useful lives as
depreciation expense. This is the amount by which depreciation expense exceeded capital outlays
in the current year, net of disposals. (649,046)
Repayment of bond principal and capitalized lease obligations are expenditures in governmental funds,
but the repayments reduces long-term liabilities in the government -wide statement of net assets. 3,191,174
Interest expense on long-term debt was reported in the government -wide statement of activities
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 represents the change in accrued
interest. 10,992
To record as an expense the net change in compensated absences in the statement of activities. 142,897
To record as an expense the net change in other post employment benefits liability in the statement
of activities. (19,173)
Revenues in the government -wide statement of activities that did not provide current financial resources
were not reported as revenues in the governmental funds. (1,065,188)
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 revenue (expense) of the internal
service funds are reported with governmental activities.
(139,362)
Change in net assets of governmental activities $ (2,575,545)
See accompanying notes to the basic financial statements.
25
CITY OF NATIONAL CITY
Statement of Net Assets
Proprietary Funds
June 30, 2010
Governmental
Enterprise Funds Activities -
Kimball Morgan Internal
Towers Towers Total Service Funds
ASSETS
Current assets:
Cash and investments (note 2) $ 75,886 9,103 84,989 14,156,363
Restricted cash and investments
with fiscal agents (note 2) 1,044,470 673,068 1,717,538 1,248,323
Accounts receivable 490 - 490 74,282
Inventories - - - 14,649
Prepaid items and deposits 76,979 80,280 157,259 -
Total current assets 1,197,825 762,451 1,960,276 15,493,617
Noncurrent assets:
Capital assets (note 5):
Nondepreciable assets 315,814 212,568 528,382 507,000
Depreciable assets, net of accumulated
depreciation 4,565,917 2,535,610 7,101,527 1,350,235
Total capital assets, net 4,881,731 2,748,178 7,629,909 1,857,235
Total noncurrent assets 4,881,731 2,748,178 7,629,909 1,857,235
Total assets 6,079,556 3,510,629 9,590,185 17,350,852
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 172,028 150,267 322,295 381,394
Salaries payable - 24,714 24,714 51,856
Capital lesases payable - due within one year - - - 21,381
Compensated absences - due within one year - - - 178,559
Note payable - due within one year - 204,776 204,776 -
Self-insurance claims payable -
due within one year - - - 1,597,744
Total current liabilities 172,028 379,757 551,785 2,230,934
Noncurrent liabilities (note 7):
Tenant security deposit liability 43,977 44,898 88,875 -
Capital lesases payable - due in more than one year - - - 1,733,779
Note payable - due in more than one year - 2,276,886 2,276,886 -
Self-insurance claims payable -
due in more than one year - - - 4,286,256
Total noncurrent liabilities 43,977 2,321,784 2,365,761 6,020,035
Total liabilities 216,005 2,701,541 2,917,546 8,250,969
NET ASSETS
Invested in capital assets, net of related debt 4,881,731 266,516 5,148,247 1,857,235
Restricted for:
Housing 981,820 542,572 1,524,392 -
Unrestricted - - - 7,242,648
Total net assets $ 5,863,551 809,088 6,672,639 9,099,883
See accompanying notes to the basic financial statements.
26
CITY OF NATIONAL CITY
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the Year Ended June 30, 2010
Enterprise Funds
Kimball Morgan
Towers Towers
Total
Governmental
Activities -
Internal
Service Funds
Operating revenues:
Rental income $ 880,569 1,168,845 2,049,414 -
Service charges - - - 9,411,591
Other revenues 7,259 7,042 14,301 429,232
Total operating revenues
887,828 1,175,887 2,063,715 9,840,823
Operating expenses:
Personnel services - 2,091,642
Maintenance and operations 1,207,062 1,037,683 2,244,745 7,862,780
Depreciation 187,350 240,998 428,348 322,624
Total operating expenses 1,394,412 1,278,681 2,673,093 10,277,046
Operating income (loss) (506,584) (102,794) (609,378) (436,223)
Nonoperating revenues (expenses):
Interest income 3,847 3,096 6,943
Interest expense (180,982) (180,982)
Total nonoperating
revenues (expenses) 3,847 (177,886) (174,039)
Income (loss) before transfers (502,737) (280,680) (783,417) (436,223)
Transfers in (note 3) - 1,326,860
Transfers out (note 3) - (1,030,000)
Change in net assets (502,737) (280,680) (783,417) (139,363)
Net assets at beginning of year 6,366,288 1,089,768 7,456,056 9,239,246
Net assets, end of year $ 5,863,551 809,088 6,672,639 9,099,883
See accompanying notes to the basic financial statements.
27
CITY OF NATIONAL CITY
Statement of Cash Flows
Proprietary Funds
For the year Ended June 30, 2010
Enterprise Funds
Kimball Morgan
Towers Towers
Total
Governmental
Activities -
Internal
Service Funds
Cash flows from operating activities:
Cash received from customers/other funds $ 884,039 1,174,031 2,058,070 9,409,575
Cash payments to suppliers (1,188,477) (771,250) (1,959,727) (7,072,908)
Cash payments for general and administrative - (176,029) (176,029) (2,086,291)
Cash received from (payments to) other 7,259 7,042 14,301 418,455
Net cash provided (used by) operating activities (297,179) 233,794 (63,385) 668,831
Cash flows from noncapital financing activities:
Cash received from other funds - - 1,175,356
Cash paid to other funds - - (1,030,000)
Net cash provided (used by) noncapital financing
activities - - 145,356
Cash flows from capital and related financing activities:
Acquisition of capital assets (30,417) (30,417) (691,574)
Issuance of lease payable - - 1,755,160
Principal payments of note payable - (191,924) (191,924) -
Interest paid - (180,982) (180,982) -
Net cash provided (used by) capital and related
financing activities (30,417) (372,906) (403,323) 1,063,586
Cash flows from investing activities:
Interest income 3,847 3,796 7,643
Net cash provided (used by) investing activities 3,847 3,796 7,643
Net increase (decrease) in cash and cash equivalents (323,749) (135,316) (459,065) 1,877,773
Cash and equivalents, beginning of year 1,444,105 817,487 2,261,592 13,526,913
Cash and equivalents, end of year $1,120,356 682,171 1,802,527 15,404,686
Reconciliation of operating income to net cash provided
by operating activities:
Operating income (loss) $ (506,584) (102,794) (609,378) (436,223)
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 187,350 240,998 428,348 322,624
Changes in current assets and liabilities:
Accounts receivable 2,577 5,186 7,763 (2,016)
Inventories - - - 6,399
Prepaid items and deposits (29,868) 845 (29,023) -
Accounts payable and accrued liabilities 49,346 82,165 131,511 (275,527)
Salaries payable - 7,394 7,394 (463)
Compensated absences - - (4,963)
Self-insurance claims payable - - 1,059,000
Total adjustments 209,405 336,588 545,993 1,105,054
Net cash provided (used) by operating activities $ (297,179) 233,794 (63,385) 668,831
See accompanying notes to the basic financial statements.
28
ASSETS
Cash and investments (note 2)
Accounts receivable
Interest receivable
CITY OF NATIONAL CITY
Statement of Fiduciary Net Assets
Fiduciary Funds
June 30, 2010
Library
Private- Total
Purpose Agency Fiduciary
Trust Funds Funds
$ 49,380
90
Total assets 49,470
LIABILITIES
Accounts payable
Deposits payable
Total liabilities
NET ASSETS
Held in trust for private purposes
$
684,375
1,768
733,755
1,768
90
686,143 735,613
32,416
653,727
32,416
653,727
686,143 686,143
$ 49,470 - 49,470
See accompanying notes to the basic financial statements.
29
CITY OF NATIONAL CITY
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
Year Ended June 30, 2010
Additions:
Investment income
Total additions
Net increase (decrease)
Net assets, beginning of year
Net assets, end of year
Library
Private -
Purpose
Trust
$ 583
583
583
48,887
$ 49,470
See accompanying notes to the basic financial statements.
30
Notes to the Basic Financial Statements
31
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
For the Year Ended June 30, 2010
(1) Summary of Significant Accounting Policies
The basic financial statements of the City of National City, 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 was incorporated September 17, 1887 under the general laws of the State
of California. The City operates under a Council -Manager form of government
and provides basic local governmental services including public safety (police and
fire), maintenance and construction of public improvements, cultural, recreation,
planning, zoning, transportation, health services and general administration. In
addition, the City operates the Community Development Commission (including
Morgan Towers and Kimball Towers Enterprise Funds).
The financial reporting entity consists of (a) the primary government, the City, (b)
organizations for which the primary government is financially accountable, and
(c) other organizations for which the primary government is not accountable, but
for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity's financial
statements to be misleading or incomplete.
As required by GAAP, these basic financial statements present the City and its
component units, entities for which the City is considered to be financially
accountable. Blended component units, although legally separate entities are, in
substance, part of the City's operations and data from these units are combined
with data of the City. Each blended component unit has a June 30 year-end. The
City had no discretely presented component units. The following entities are
reported as blended component units:
Community Development Commission of the City of National City - The
Community Development Commission of the City of National City (the
"CDC") was established in April 1967 pursuant to provisions of the
California Health and Safety Code. The CDC was created to undertake
and carry out the redevelopment of certain areas within the City which the
CDC has determined to be blighted areas by encouraging development of
residential, commercial, industrial, recreational and public facilities and to
assist neighborhood redevelopment through residential property
improvement loans and housing assistance payments to low and moderate
income earners. The City Council is the Governing Board of the CDC.
Separate CDC financial statements may be obtained from the City's
Finance Department located at 1243 National City Boulevard, National
City, California 91950.
32
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
National City Joint Powers Financing Authority - The National City Joint
Powers Financing Authority (the "NCJPFA") was created pursuant to a
joint exercise of powers agreement entered into by and between the City
and the CDC on April 16, 1991. The purpose of such agreement was to
provide for the financing and construction of a new police facility and a
new community center. The NCJPFA is administered by a commission
consisting of the members of the City Council and all voting power of the
NCJPFA resides in the commission. The NCJPFA exclusively benefits the
City. There are no separate financial statements available.
Parking Authority of the City of National City - In July 1977, the Parking
Authority of the City of National City (the "Authority") was activated
pursuant to the Parking Law of 1949 for the financing and construction of
the Plaza Bonita Parking Facility. The City Council is the governing
board of the Authority. The Authority exclusively benefits the City. The
capital assets of the Authority have been included in the Government -
Wide Financial Statements. There are no separate financial statements
available.
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's 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 the Government -wide statements.
33
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
These 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 are reported as program revenues for the City in
three categories:
• Charges for services
• Operating grants and contributions
• Capital grants and contributions
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 and Changes in Net Assets,
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
• Loans receivable/related deferred revenue
• 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.
34
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Fund Financial Statements
Governmental Funds 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 the applicable
criteria.
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 Sheet. The Statement of Revenues, Expenditures and Changes in Fund
Balances presents 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 for that 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, sales tax, intergovernmental revenues and other taxes. Expenditures
are recorded in the accounting period in which the related fund liability is
incurred.
Deferred revenues arise when potential revenues do not meet both the
"measurable" and "available" criteria for recognition in the current period.
Deferred revenues also arise when the government receives resources before it
has a legal claim to them, as when grant monies are received prior to incurring
qualifying expenditures. In subsequent periods, when both revenue recognition
criteria are met or when the government has a legal claim to the resources, the
deferred revenue is removed and revenue is recognized.
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.
35
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
The City reported the following types of major governmental funds:
General Fund
This fund is used to account for resources, which are not required legally or by
sound financial management to be accounted for in another fund.
Section 8 Housing Assistance Special Revenue Fund
This fund is used to account for the activities of Section 8 Housing Assistance
Program. The program provides rental assistance to low income families by
subsidizing a portion of the rent directly to landlords on behalf of low income
households.
Other Special Revenue Fund
This represents a combination of minor and less active funds that the City has
combined for reporting purposes.
Nutrition Program Special Revenue Fund
This fund is used for operations of the Nutrition grant.
Sewer Service Special Revenue Fund
This fund is used to account for the collection of sewer connection fees and
monthly sewer service charges used for the construction and maintenance of City
sewers.
Low and Moderate Income Housing Fund
This fund is used to account for the Community Development Commission 20%
Set Aside.
Community Development Commission Debt Service Fund
This fund is used to account for debt service of the Community Development
Commission.
Redevelopment Capital Project Fund
This fund is used to account for the administrative expenditures of the
Community Development Commission and redevelopment capital projects.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Assets, a
Statement of Revenues, Expenses and Changes in Fund Net Assets, and a
Statement of Cash Flows for each major proprietary fund.
36
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
A separate 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 Changes 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 the liability is
incurred. In these funds, receivables have been recorded as revenue and
provisions have been made for uncollectible amounts. In accordance with GASB
Statement No. 20, Accounting and Financial Reporting for Proprietary Funds
and Other Government Entities that Use Proprietary Fund Accounting, the City
applies all GASB pronouncements currently in effect as well as Financial
Accounting Standard Board Statements and Interpretations, Accounting Principles
Board Opinions and Accounting Research Bulletins of the Committee on
Accounting Procedure issued on or before November 30, 1989.
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.
The City reported the following types of major proprietary funds:
Kimball Towers
This fund is used to account for activities relating to the operations of Kimball
Tower, which is used to provide housing to low and moderate income seniors.
Morgan Towers
This fund is used to account for activities relating to the operations of Morgan
Tower, which is used to provide housing to low and moderate income seniors.
37
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
The City also reports the following fund types:
Internal Service Funds
These funds are used to account for interdepartmental operations where it is the
stated intent that costs of providing services to the departments of the City on a
continuing basis be financed or recovered primarily by charges to the user
departments.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Assets and a
Statement of Changes in Fiduciary Net Assets. The City's fiduciary funds
represent private -purpose trust fund and agency funds. The private -purpose trust
fund is used to account for resources legally held in trust for special purposes.
The Agency funds are custodial in nature (assets equal liabilities) and do not
involve measurement of results of operations. The Agency funds are accounted
for using an accrual basis of accounting.
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. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. 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 Cash and Investments.
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.
38
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
The City participates in an investment pool managed by the State of California,
entitled 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.
E. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the
redemption of bonded debt and for acquisition and construction of capital
projects.
F. 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 Governmental -Wide Financial Statements as "internal balances."
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.
G. Inventories and Prepaid Items
Inventories are stated at cost using the average cost method. Payments made to
vendors for services that will benefit periods beyond June 30, 2008 are recorded
as prepaid items. The City uses the consumption method when reporting prepaid
items. Prepaid items are recorded as an asset and are offset by a reserve in the
fund financial statements.
H. Land Held for Resale
Land held for resale is recorded at the lower of cost or, upon entering into a
contract for sale, the estimated net realizable value. Fund balances are reserved in
amounts equal to the carrying value of land and buildings held for resale, because
such assets are not available to finance the City's current operations.
39
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
Capital Assets
The City's assets are capitalized at historical cost or estimated historical cost.
City policy has set the capitalization threshold for reporting general capital assets
at $5,000 (including infrastructure assets). Gifts or contributions of capital assets
are recorded at fair market value when received. Depreciation is recorded on a
straight-line basis over the useful lives of the assets as follows:
Buildings and Improvements 10 -50 years
Machinery and Equipment 2 -20 years
Infrastructure 25 -75 years
In June 1999, the GASB issued Statement No. 34 which requires the inclusion of
infrastructure capital assets in local governments' basic financial statements. In
accordance with Statement No. 34, the City has included the value of all
infrastructures in the Basic Financial Statements.
The City defines infrastructure as the basic physical assets that allow the City to
function. The assets include the streets, water purification and distribution
system, sewer collection and treatment system, parks and recreation, lands and
improvement system, storm water conveyance system, and buildings combined
with the site amenities such as parking and landscaped areas used by the City in
the conduct of its business. Each major infrastructure system can be divided into
subsystems. For example, the street system can be subdivided into pavement,
curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs,
signals and pavement markings), landscaping and land.
These subsystems were not delineated in the basic financial statements. The
appropriate operating department maintains information regarding the
subsystems.
Interest accrued during capital assets construction, if any, is capitalized for the
business -type and proprietary funds as part of the asset cost.
For all infrastructure systems, the City elected to use the Basic Approach as
defined by GASB Statement No. 34 for infrastructure reporting. The City
commissioned an appraisal of City owned infrastructure and property as of
June 30, 2003. This appraisal determined the estimated historical cost, which is
defined as the actual cost to acquire new property in accordance with market
prices at the time of first construction/acquisition. Estimated historical costs were
developed in one of three ways: (1) historical records; (2) standard unit costs
appropriate for the construction/acquisition date; or (3) present cost indexed by a
reciprocal factor of the price increase from the construction/acquisition date to the
current date. The accumulated depreciation, defined as the total depreciation
from the date of construction/acquisition to the current date on a straight line,
40
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
unrecovered cost method was computed using industry accepted life expectancies
for each infrastructure system. The book value was then computed by deducting
the accumulated depreciation from the estimated historical cost.
J. Interest Payable
In the government -wide financial statements, interest payable on long-term debt is
recognized as the liability is incurred for governmental fund types and proprietary
fund types.
In the fund financial statements, proprietary fund types recognize the interest
payable when the liability is incurred.
K. Compensated Absences
In the governmental fund financial statements, compensated absences are
recorded as expenditures in the year paid, as it is the City's policy to liquidate any
unpaid vacation or sick leave at year-end from future resources rather than
currently available and expendable resources. Accordingly, the entire unpaid
liability for employee compensated absences related to governmental fund types
is recorded in the government -wide financial statements and is typically
liquidated by the General Fund.
For proprietary funds, the estimated value of the total accrued vacation and vested
sick leave is recorded as current liability in the fund financial statements and
government -wide financial statements and is typically liquidated by the respective
enterprise and internal service funds.
L. Long -Term Debt
In the government -wide financial statements, long-term debt and other long-term
obligations are reported as liabilities in the applicable governmental 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.
In the fund financial statements, governmental fund types recognize bond
premiums and discounts, as well as bond issuance costs, during the current period.
The face amount of debt issued is reported as other financial sources. Premiums
received on debt issuances are reported as other financing sources while discounts
on debt issuances are reported as other financing uses. Issuance costs, whether or
not withheld from the actual debt proceeds received, are reported as debt service
expenditures.
41
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
M. Fund Balances - Reservations 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.
N. 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."
O. Property Taxes
The City has elected, by ordinance, that the duties of assessing and collecting
property taxes be performed by the San Diego County Assessor and Tax
Collector, respectively. Tax levies cover the period from July 1 to June 30 of each
year. All tax liens attach annually on the first day in March preceding the fiscal
year for which the taxes are levied. Taxes are levied on both real and personal
property as it exists on that date.
Secured property taxes are levied against real property and are due and payable in
two equal installments. The first installment is due on November 1 and becomes
delinquent if not paid by December 10. The second installment is due on
February 1 and becomes delinquent if not paid by April 10. Unsecured personal
property taxes are due on July 1 each year. These taxes become delinquent if not
paid by August 31.
The City records property tax revenues in the fiscal year to which they relate
rather than at the related lien date.
42
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(1) Summary of Significant Accounting Policies, (Continued)
One of the CDC's primary sources of revenue is from property tax increments.
The assessed valuation of all property within the Downtown Redevelopment
Project area was determined on the date of adoption of the Redevelopment Plan.
Property tax related to the incremental increase in assessed values after the
adoption of the Redevelopment Plan are allocated to the CDC; all taxes on the
"frozen" assessed valuation of the property are allocated to the City and unrelated
taxing agencies.
P. Community Development Commission Rental Revenue
Rental revenues received from tenants in the CDC's Morgan Towers Housing
Project (an enterprise fund) are subsidized with Federal government funds under a
Section 8 contract with the U.S. Department of Housing and Urban Development
(HUD). The rent subsidy received from HUD is equal to the excess of the fair
market rent of the apartment units over the amounts paid by the tenants. The
amounts paid by the tenants are subject to certain Section 8 eligibility
requirements and application procedures.
Use of Estimates
The preparation of the basic financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions. These estimates and assumptions affect the reported amounts of
assets and liabilities and the disclosure of contingent assets and liabilities. In
addition, estimates affect the reported amount of expenses. Actual results could
differ from these estimates and assumptions.
Q•
(2) Cash and Investments
Cash and investments as of June 30, 2010 are classified in the accompanying financial
statements as follows:
Statement of Net Assets:
Cash and investments
Restricted cash and investments with fiscal agents
Statement of Fiduciary Net Assets:
Cash and investments
Total cash and investments
Cash and investments as of June 30, 2010 consist of th
Cash on hand
Deposits with financial institutions
Investments
Total cash and investments
$ 71,081,459
6,772,799
733,755
$ 78,588,013
e following:
$ 3,333
6,350,676
72,234,004
$ 78,588,013
43
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Investments Authorized by the California Government Code and the City's Investment
Policy
The table below identifies the investment types that are authorized for the City by the
California Government Code and the City's investment policy. The table also identifies
certain provisions of the California Government Code (or the City's investment policy, if
more restrictive) that address interest rate risk and concentration of credit risk. This table
does not address investments of debt proceeds held by fiscal agent that are governed by
the provisions of debt agreements of the City, rather than the general provisions of the
California Government Code or the City's investment policy.
Investment Types
Authorized by State Law
Local Agency Bonds
U.S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase Agreements
Medium -Term Notes
Mutual Funds
Money Market Mutual Funds
Mortgage Pass -Through Securities
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
JPA Pools (other investment pools)
Authorized
By Investment
Policy
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes
*Maximum
Maturity
5 years
5 years
5 years
180 days
180 days
2 years
1 year
92 days
5 years
N/A
N/A
5 years
N/A
N/A
N/A
*Maximum
Percentage
Of Portfolio
None
None
None
5%
15%
30%
None
20% of base value
30%
15%
20%
20%
None
None
None
*Maximum
Investment
in One Issuer
None
None
None
5%
10%
None
None
None
None
10%
10%
None
None
None
None
* Based on state law requirements or investment policy requirements, whichever is more restrictive.
44
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Investments Authorized by Debt Agreements
Investment of debt proceeds held by fiscal agent are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
City's investment policy. The table below identifies the investment types that are
generally authorized for investments held by fiscal agent. The table also identifies certain
provisions of these debt agreements that address interest rate risk and concentration of
credit risk.
Authorized
Investment Type
Maximum Maximum
Maximum Percentage Investment
Maturity Allowed in One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker's Acceptances 360 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Contracts 30 years None None
Certificates of Deposit None None None
Repurchase Agreements None None None
Mortgage Pass -Through Securities None None None
State Bonds or Notes None None None
Municipal Bonds or Notes None None None
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the
greater the sensitivity of its fair value to changes in market interest rates. One of the ways
that the City manages its exposure to interest rate risk is by purchasing a combination of
shorter term and longer term investments and by timing cash flows from maturities so
that a portion of the portfolio is maturing or coming close to maturity evenly over time as
necessary to provide the cash flow and liquidity needed for operations.
45
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Information about the sensitivity of the fair values of the City's investments (including
investments held by fiscal agent) to market interest rate fluctuations is provided by the
following table that shows the distribution of the City's investments by maturity:
Remaining Maturity (in Months)
Investment Type
U.S. Agency Securities
Certificates of Deposit-CDARS
Certificates of Deposit
CalTrust
Local Agency Investment Fund
Commercial Paper
Held by Fiscal Agent:
Money Market Funds
Total
12 Months 13 to 24
or Less Months
$ 6,908,807 -
3,000,000 3,000,000
1,089,245 1,089,245
2,339,397 2,339,397
54,420,257 54,420,257
515,065
25 to 60
Months
- 6,908,807
- 515,065
3,961,233 3,961,233
Total $72,234,004 64,810,132 515,065 6,908,807
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its
obligation to the holder of the investment. This is measured by the assignment of a rating
by a nationally recognized statistical rating organization. Presented below is the
minimum rating required by (where applicable) the California Government Code, the
City's investment policy, or debt agreements, and the actual rating as of year end for each
investment type.
Investment Type
U.S Agency Securities
Certificates of Deposit-CDARS
Certificates of Deposit
CalTrust
Local Agency Investment Fund
Commercial Paper
Held by Fiscal Agent
Money Market Funds
Total
Minimum
Legal
Total Rating
$ 6,908,807 AAA
3,000,000 N/A
1,089,245 N/A
2,339,397 N/A
54,420,257 N/A
515,065 A
3,961,233 N/A
$72,234,004
Rating as of Year End
AA+ AAA Not Rated
- 6,908,807 -
- - 3,000,000
- - 1,089,245
- - 2,339,397
- - 54,420,257
515,065
3,961,233
515,065 6,908,807 64,810,132
46
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be
able to recover collateral securities that are in the possession of an outside party. The
custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty (e.g., broker -dealer) to a transaction, a government will not be able to
recover the value of its investment or collateral securities that are in the possession of
another party. The California Government Code and the City's investment policy do not
contain legal or policy requirements that would limit the exposure to custodial credit risk
for deposits or investments, other than the following provision for deposits: The
California Government Code requires that a financial institution secure deposits made by
state or local governmental units by pledging securities in an undivided collateral pool
held by a depository regulated under state law (unless so waived by the governmental
unit). The market value of the pledged securities in the collateral pool must equal at least
110% of the total amount deposited by the public agencies. California law also allows
financial institutions to secure City deposits by pledging first trust deed mortgage notes
having a value of 150% of the secured public deposits.
For investments identified herein as held by fiscal agent, the fiscal agent generally selects
the investment under the terms of the applicable trust agreement, acquires the investment,
and holds the investment on behalf of the reporting government.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the
State of California. The fair value of the City's investment in this pool is reported in the
accompanying financial statements at amounts based upon the City's pro-rata share of the
fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized
cost of that portfolio). The balance available for withdrawal is based on the accounting
records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not
rated.
47
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(2) Cash and Investments, (Continued)
Restricted Cash and Investments of Community Development Commission Enterprise
Fund
The activities of Morgan Towers and Kimball Towers activities are recorded in
and presented as Community Development Commission Enterprise Fund. In
accordance with HUD requirement, the CDC maintains the following:
Morgan Towers:
Replacement reserve $ 428,091
Residual receipts reserve 226,604
MIP and insurance impounds reserve 18,373
Total Morgan Towers $ 673,068
Kimball Towers:
Residual receipts reserve $ 304,710
Other 739,760
Total Kimball Towers $1,044,470
Total restricted cash and investments $1,717,538
Morgan Towers
• Reserve for replacements of $428,091 represents a monthly deposit of
$3,127 plus income earned thereon. This reserve will be used for the
future replacement of property with HUD's approval.
• Residual receipts reserve of $226,604 is an accumulation of surplus cash
as calculated by HUD's Computation of Surplus Cash, Distributions and
Residual Receipts, which can be expended only with HUD's approval.
• Reserve for MIP and insurance impounds of $10,498 and $7,875,
respectively, totaling $18,373 represent amounts held for the future
payment of property and mortgage insurance.
Kimball Towers
• Residual receipts reserve of $304,710 is an accumulation of surplus cash
as calculated by HUD's Computation of Surplus Cash, Distributions and
Residual Receipts, which can be expended only with HUD's approval.
• Other restricted cash and investments totaling $739,760 are included in the
accompanying basic financial statements.
48
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Interfund Transactions
Due To/From Other Funds
Current interfund receivable and payable balances at June 30, 2010 are as follows:
Due From Other Funds
General Fund
Subtotal — General Fund
Section 8 Housing Fund
Nonmajor Other Governmental Funds
Redevelopment Capital Projects Fund
Due To Other Funds Amount
Other Special Revenue Fund $ 938,116
Nonmajor Other Governmental Funds 698,727
1,636,843
Redevelopment Capital Projects Fund
Nonmajor Other Governmental Funds
Section 8 Housing Fund
106
124,561
15,884
$1,777,394
Interfund balances are primarily related to short-term borrowings to cover deficit
cash balances at June 30, 2010.
49
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Interfund Transactions, (Continued)
Interfund Transfers
For the year ended June 30, 2010, interfund transfers were as follows:
Transfers In Transfers Out Amount
Other Governmental Funds General Fund $ 924,507 (a)
Other Special Revenue Fund General Fund 1,380,797 (b)
Nutrition Program Fund General Fund 1,716,103 (c)
Internal Service Funds General Fund 1,326,860 (d)
Total General Fund 5,348,267
General Fund Other Special Revenue Funds 1,117,756 (e)
General Fund Other Governmental Funds 900,131 (f)
Other Governmental Funds Other Governmental Funds 522,489 (g)
Total Other Governmental Funds 1,422,620
General Fund Internal Service Funds 1,030,000 (h)
Community Development
Other Special Revenue Funds Capital Projects Fund 666,667 (i)
Community Development Community Development Low
Debt Service Fund and Moderate Housing Fund 826,093 (j)
Community Development Low
and Moderate Housing Fund Other Governmental Funds 927,881 (k)
Community Development Community Development Low
Section 8 Housing Fund and Moderate Housing Fund 608,152 (1)
Total Community Development Low and Moderate Housing Fund 1,434,245
Total $11,947,436
Significant interfund transfers were primarily to: (a) to subsidize operations for the
National City Library operations; (b) to provide funding for one time employee incentive
payments and leave sellbacks; (c) to subsidize the nutrition center program in FY 10 in
the amount of 177,765 and subsidize the prior year's deficit balance in the amount of
1,538,338 as approved by the City Council; (d) to subsidize the prior year funding for
various library and community services programs; (e) to provide funding for various
General Fund programs and services; (f) to provide funding for various General Fund
programs and services; (g) to provide funding for various library and community services
program; (h) to provide funding for various General Fund programs and services; (i) to
provide funding for the General Plan Update; (j) to record the Low and Moderate Income
Housing fund's share of the debt service payment related to the 1999 TAB and the 2005
TAB (18% of series A); (k) to use HUD program income to reimburse CDBG program
costs; and (1) to subsidize Section 8 operations.
50
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(3) Interfund Transactions, (Continued)
Interfund Advances
Long-term interfund receivables and payables as of June 30, 2010 are as follows:
Receivable Fund
Sewer Service Fund
Total Sewer Service Fund
Other Special Revenue Fund
Payable Fund Amount
Other Special Revenue Fund $ 760,034 (a)
Community Development
Capital Project Fund 739,966 (b)
1,500,000
General Fund 563,382 (c)
$2,063,382
(a) To borrow funding for the fiscal year 2010-11 street resurfacing improvements
program: the loan establishes a 5 year re -payment agreement with the Tax Increment
fund for the first three years at an interest rate of 0.75% per annum.
(b) To borrow funding for the fiscal year 2010-11 street resurfacing improvements
program: the loan establishes a 5 year re -payment agreement with the TransNet (Prop
A) fund for the last two years at an interest rate of 0.75% per annum.
(c) To borrow funding for the purchasing of a new fire truck: the loan established a 10
year re -payment agreement with the NCFD at an interest equal to 3.69% per annum.
(4) Contracts, Notes and Loans Receivable
As of June 30, 2010, the Contracts, Notes and Loans Receivable
following:
Community Development Commission Governmental Fund:
First time home buyer loans
Loans
Copper Hills Apartments, LP
Plaza Manor
Single -Family Housing Rehabilitation Loan Program
Young Trust
Casa Familiar
Plaza City
Subtotal
Total
consisted of the
Outstanding at
June 30, 2010
$ 2,066,093
8,057,792
500,558
223,349
230,000
1,576,900
3,422,000
14,010,599
$16,076,692
51
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(4) Contracts, Notes and Loans Receivable, (Continued)
Copper Hills Apartments, LP — CDC Residual Receipts Note dated February 19, 1999
disclosed a loan of $2,400,000 with 3% interest per annum for 55 years, funded by
HOME and Low & Moderate Income Housing Funds. A second and junior to the CDC
Residual Receipts Note was made on June 1, 1999 referred to as CDC Rehabilitation
Note with 3% interest per annum for 55 years and funded by Low & Moderate Income
Housing Fund. These loans were made to acquire, develop, rehabilitate and operate the
multi -family apartments located at "Q" Avenue in National City, Ca. This project will
contain 134 apartment dwelling units following rehabilitation and renovation.
Plaza Manor — CDC of the City of National City entered into a loan agreement with
Plaza Manor Preservation, LP on December 18, 2001 in the amount of $500,000 with 3%
compound interest per annum and shall end on April 15, 2032. The borrower has
acquired a property located in the City of National City with aid of the said loan and with
the intention to operate a 372 unit project as a very low and low income housing project.
Funding sources for this loan were HOME (48%) and Low & Moderate Income Housing
Funds (52%).
Single -Family Housing Rehabilitation Loan Program — Prior to 2005, the CDC of the
City of National City provided loans to eligible low-income homeowners to make repairs
and basic home improvements that maintain the quality of their housing and created a
positive effect in the surrounding neighborhood. Loans were offered at below -market
interest rates utilizing federal HOME Investment Partnerships Program funds.
Young Trust — A Promissory Note secured by Deed of Trust was made on December 17,
2003 between CDC of the City of National City and Robert Dale Young and Deborah
Mae Young in the amount of $230,000 with interest of 5% per year. This loan is in
reference to the California Community Redevelopment Law, where CDC appeals to
redevelop a portion of the National City Redevelopment project, which is bounded by the
location at Harrison Avenue, National City.
Casa Familiar — CDC of the City of National City entered in an Acquisition,
Rehabilitation and Permanent Loan Agreement with Casa Familiar, Inc. on October 1,
2009 amounting to $516,900 with 2% per annum from the date of the disbursement.
Interest shall accrue, however, no payments shall be due under the CDC Note until July 1,
2011, and annually on July 1 of each year during the term of the CDC note, and Borrower
shall make payments to the CDC in the manner provided in the CDC note until 55 years.
This loan was intended to acquire, rehabilitate and permanently finance the property
located at 304 East Fifth Street, National City, CA and is comprised entirely of HUD
HOME funds all of which shall be used for HOME eligible purposes.
Plaza City — CDC of the City of National City entered into a Loan Agreement with Plaza
City Apartments, LP on November 1, 2005 in the amount of $2,700,000 with 3% interest
per annum for 55 years. It was amended per Resolution No. 2006-202 dated September
19, 2006 which increased the loan amount by $722,000 for a total of $3,422,000. This
loan will be used by the borrower to pay the balance of the purchase price and additional
costs relating to the acquisition, demolition and development of certain real property
located at 1535 Plaza Blvd., National City, CA.
52
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Capital Assets
The following is a summary of changes in the capital assets for governmental activities at
June 30, 2010:
Balance at Balance at
July 1, 2009 Additions Deletions June 30, 2010
Governmental -type activities:
Depreciable:
Buildings and improvements $ 44,343,967 - 44,343,967
Machinery and equipment 12,838,883 1,231,749 14,070,632
Infrastructure 110,333,302 1,582,127 (38,927) 111,876,502
Total cost of depreciable
capital assets 167,516,152 2,813,876 (38,927) 170,291,101
Less accumulated depreciation:
Buildings and improvements (15,746,887) (1,396,566) (17,143,453)
Machinery and equipment (8,488,584) (909,418) (9,398,002)
Infrastructure (49,502,713) (2,689,071) 31,945 (52,223,729)
Total accumulated depreciation (73,738,184) (4,995,055) 31,945 (78,765,184)
Net depreciable capital assets 93,777,968 (2,181,179) (70,872) 91,525,917
Non -depreciable:
Land 20,025,598 20,025,598
Rights of way 4,245,088 - 4,245,088
Construction in progress 3,106,170 4,357,391 (2,385,436) 5,078,125
Total non -depreciable
capital assets
27,376,856 4,357,391 (2,385,436) 29,348,811
Capital assets, net $121,154,824 2,176,212 (2,456,308) 120,874,728
Depreciation expense for governmental activities for the year ended June 30, 2010 of
$4,995,055 was allocated as follows:
General Government $ 353,549
Community Development 1,524,047
Public Safety 881,660
Transportation 2,235,799
$4,995,055
53
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Capital Assets, (Continued)
The following is a summary of changes in the capital assets for business -type activities at
June 30, 2010:
Balance at Balance at
July 1, 2009 Additions Deletions June 30, 2010
Business -type activities:
Depreciable:
Buildings and improvements $ 15,654,166
Machinery and equipment 462,153
30,418
15,684,584
462,153
Total depreciable capital assets 16,116,319 30,418 - 16,146,737
Less accumulated depreciation (8,616,862) (428,348) (9,045,210)
Total depreciable assets, net 7,499,457 (397,930) 7,101,527
Non -depreciable assets:
Land 528,382 - 528,382
Total non -depreciable capital assets
Capital assets, net
528,382 - 528,382
$8,027,839 (397,930) 7,629,909
Depreciation expense for business -type activities for the year ended June 30, 2010 was
allocated as follows:
Kimball Towers
Morgan Towers
$ 187,350
240,998
Total depreciation expense $428,348
54
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(6) Risk Management
The City is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; natural disasters; and workers' compensation
claims. A self-insurance (internal service) fund is used to account for the City's
insurance programs. Operating revenues of this fund represent payments from other City
funds and are based upon estimated umbrella insurance premium expenses, self-insurance
losses and other operating expenses.
The City is a member of the San Diego Pooled Insurance Program Authority (the
"Program Authority"), a joint powers authority established to provide insurance and
insurance -related services to its members. The Program Authority's governing board
consists of one member from each participating city and is responsible for the selection of
management as well as budgeting and finance. Insurance activities are financed by
charges to member cities. Each participating city has its own self -insured retention level.
The City is insured for general liability with a self -insured retention of $150,000.
Losses between the self -insured retention level and $2,000,000 are shared by the
participant cities. Excess liability insurance coverage is provided by the Program
Authority for losses greater than $2,000,000 up to $35,000,000. Losses in excess of
$35,000,000 are not covered and are self -funded by the City. The City is completely self -
insured for unemployment claims.
The City is also a member of CSAC Excess Insurance Authority ("CSAC"), a joint
powers authority, for workers compensation claims. The City is self -insured for workers
compensation claims and losses up to $500,000 per occurrence. Losses between the self -
insured retention level and $5,000,000 are shared by the participant cities. Losses in
excess of $5,000,000 up to $200,000,000 are reinsured by a commercial insurance
carrier. The City is completely self -insured for unemployment claims.
During the current year, there were no significant reductions in insurance coverage from
the prior year. For each of the past three fiscal years, the settlements have not exceeded
the City's insurance coverage.
55
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(6) Risk Management, (Continued)
At June 30, 2010, the City accrued $5,884,000 of workers' compensation and general
liability claims representing estimates of amounts to be paid for actual and incurred but
not reported claims based upon past experience, modified for current trends and
information. Allocated claim adjustment expenses are included in claim liabilities.
While the ultimate amount of losses incurred through June 30, 2010 is dependent on
future developments, based upon information from the City Attorney, outside counsel
and others involved with the administration of the programs, City management believes
that the aggregate accrual is adequate to cover such losses. For the past three years, no
settlements or claims payments have exceeded the amount of the applicable coverage.
For the past two fiscal years, the changes in the City's liability for claims payable are
summarized as follows:
Fiscal Year 2009-10 Fiscal Year 2008-09
Unpaid claims, July 1 $ 4,825,000 4,508,000
Incurred claims and adjustments 1,832,888 2,051,528
Claims paid (773,888) (1,734,528)
Total $ 5,884,000 4,825,000
56
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Long -Term Debt
Following is a summary of long-term debt transactions for the fiscal year ended June 30,
2010:
Classification
Amount Due Amount Due
Balance at Balance at Within Beyond
July 1, 2009 Additions Deletions June 30, 2010 One Year One Year
Governmental Activities:
National City Joint
Powers Financing
Authority:
Lease Revenue
Refunding Bonds $ 3,605,000 (325,000) 3,280,000 345,000 2,935,000
Community Development
Commission:
1999 Tax Allocation Bonds 4,210,000 (120,000) 4,090,000 125,000 3,965,000
2004 Tax Allocation Bonds 4,885,000 (265,000) 4,620,000 275,000 4,345,000
2005 Series A and B Tax
Allocation Bonds 30,585,000 (1,840,000) 28,745,000 2,125,000 26,620,000
General Obligation Bonds 5,440,000 (155,000) 5,285,000 165,000 5,120,000
HUD 108 Bond 2003 A 5,975,000 (225,000) 5,750,000 245,000 5,505,000
Total Bonds 54,700,000 (2,930,000) 51,770,000 3,280,000 48,490,000
Claims Payable 4,825,000 1,832,888 (773,888) 5,884,000 1,597,744 4,286,256
Compensated Absences 3,176,651 2,276,019 (2,423,878) 3,028,792 1,975,044 1,053,748
Other postemployment
Benefits 34,624 110,954 (91,783) 53,795 - 53,795
Capitalized Lease Obligations 1,117,728 1,755,160 (261,174) 2,611,714 188,663 2,423,051
Total Governmental
Activities 63,854,003 5,975,021 (6,480,723) 63,348,301 7,041,451 56,306,850
Business -type Activities:
Note Payable 2,673,586 (191,924) 2,481,662 204,776 2,276,886
Total Primary
Government $66,527,589 4,219,861 (6,672,647) 65,839,963 7,246,227 58,583,736
57
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Long -Term Debt, (Continued)
National City Joint Powers Financing Authority (NCJPFA) Lease Revenue
Refunding Bonds
The NCJPFA issued $6,255,000 of refunding bonds on October 1, 1998 to provide funds
for the advance refunding of the previously issued bonds. Interest on the bonds is
payable semiannually on each April 1 and October 1, commencing April 1, 1999. The
bonds are special obligations of NCJPFA secured by a pledge of revenues which consist
of lease payments received by NCJPFA, as lessor, from the City, as lessee.
The bonds have interest rates that range from 3.20% to 3.95 % for those that mature from
1999 through 2008 and 4.70% for those that mature from 2009 through 2017. The bonds
maturing on or before October 1, 2008 are not subject to optional redemption prior to
maturity. The bonds maturing on or after October 1, 2009 are subject to optional
redemption prior to maturity on October 1, 2008, and any payment date thereafter at the
option of NCJFPA, as a whole or in part pro rata among maturities and by lot within a
maturity, expressed as percentages of the principal amount to be redeemed, plus accrued
interest to the redemption date as follows:
October 1, 2008 and April 1, 2009 102%
October 1, 2009 and April 1, 2010 101%
October 1, 2010 and thereafter 100%
The annual debt service payments for the bonds are as follows:
Fiscal Year Principal Interest Total
2011 $ 345,000 146,053 491,053
2012 360,000 129,486 489,486
2013 375,000 112,213 487,213
2014 400,000 94,000 494,000
2015 420,000 74,730 494,730
2016 435,000 54,638 489,638
2017 460,000 33,606 493,606
2018 485,000 11,398 496,398
Total $3,280,000 656,124 3,936,124
58
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Long -Term Debt, (Continued)
Community Development Commission 1999 Tax Allocation Bonds
In June 1999, the Commission issued $5,050,000 in Tax Allocation Bonds for the Q
Avenue Redevelopment project. The bonds consist of $1,085,000 in serial bonds which
mature from 2000 to 2010 in amounts ranging from $45,000 to $125,000, and $1,425,000
in term bonds which mature in 2019, and $2,540,000 in term bonds which mature in
2029. Interest is payable semi-annually on February 1 and August 1, at interest rates
ranging from 3.30% to 4.50%.
The annual debt service requirements for the 1999 Tax Allocation Bonds outstanding are
as follows:
Fiscal Year Principal Interest Total
2011 $ 125,000 204,237 329,237
2012 130,000 198,175 328,175
2013 135,000 191,550 326,550
2014 145,000 184,550 329,550
2015 150,000 177,176 327,176
2016 155,000 169,550 324,550
2017 165,000 161,549 326,549
2018 175,000 153,050 328,050
2019 180,000 144,175 324,175
2020 190,000 134,925 324,925
2021 200,000 125,050 325,050
2022 210,000 114,543 324,543
2023 220,000 103,525 323,525
2024 235,000 91,866 326,866
2025 245,000 79,566 324,566
2026 260,000 66,625 326,625
2027 270,000 53,044 323,044
2028 285,000 38,822 323,822
2029 300,000 23,831 323,831
2030 315,000 8,072 323,072
Total $4,090,000 2,423,881 6,513,881
59
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Long -Term Debt, (Continued)
Community Development Commission 2004 Tax Allocation Bonds
In June 2004, the Commission issued $5,860,000 Tax Allocation Bonds to finance a
portion of the cost to construct a fire station, library, and community art center. The
bonds consist of $3,045,000 in serial bonds, which mature from 2005-2015 in amounts
ranging from $220,000 to $330,000, and $1,085,000 in term bonds, which matures in
fiscal year 2033. Interest is paid semi-annually on February 1 and August 1, at interest
rates ranging from 1.50% to 5.50%.
The annual debt service requirements for the 2004 Tax Allocation Bonds outstanding are
as follows:
Fiscal Year Principal Interest Total
2011 $ 275,000 214,685 489,685
2012 285,000 204,880 489,880
2013 295,000 194,145 489,145
2014 305,000 182,440 487,440
2015 315,000 169,883 484,883
2016 330,000 156,413 486,413
2017 - 149,440 149,440
2018 - 149,440 149,440
2019 - 149,440 149,440
2020 - 149,440 149,440
2021 - 149,440 149,440
2022 - 149,440 149,440
2023 - 149,440 149,440
2024 - 149,440 149,440
2025 - 149,440 149,440
2026 - 149,440 149,440
2027 345,000 140,775 485,775
2028 360,000 123,150 483,150
2029 380,000 104,650 484,650
2030 400,000 84,150 484,150
2031 420,000 61,600 481,600
2032 445,000 37,813 482,813
2033 465,000 12,788 477,788
Total $4,620,000 3,181,772 7,801,772
60
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Long -Term Debt, (Continued)
Community Development Commission 2005 Tax Allocation Bonds
In January 2005, the Commission issued 2005 Tax Allocation Bonds Series A & B, in the
aggregate principal amount of $27,940,000 and $9,840,000, respectively. The bonds were
issued for the purpose of refunding the 2001 Tax Allocation Refunding Bonds Series A &
B. Interest on the bonds is payable semiannually on August 1 and February 1,
commencing August 1, 2005, at rates ranging from 2.9% to 5.25% per annum.
The annual debt service requirements for the 2005 Tax Allocation Bonds outstanding are
as follows:
Fiscal Year Principal Interest Total
2011 $ 2,125,000 1,324,418 3,449,418
2012 3,060,000 1,233,043 4,293,043
2013 3,200,000 1,095,343 4,295,343
2014 3,345,000 948,143 4,293,143
2015 3,505,000 790,928 4,295,928
2016 3,670,000 622,688 4,292,688
2017 760,000 444,693 1,204,693
2018 790,000 415,813 1,205,813
2019 825,000 385,003 1,210,003
2020 855,000 352,003 1,207,003
2021 890,000 317,803 1,207,803
2022 570,000 277,753 847,753
2023 595,000 253,528 848,528
2024 780,000 227,943 1,007,943
2025 815,000 194,013 1,009,013
2026 855,000 153,263 1,008,263
2027 555,000 110,513 665,513
2028 435,000 81,375 516,375
2029 250,000 58,538 308,538
2030 200,000 45,413 245,413
2031 210,000 34,913 244,913
2032 220,000 23,888 243,888
2033 235,000 12,338 247,338
Total $28,745,000 9,403,356 38,148,356
61
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Long -Term Debt, (Continued)
2003 General Obligation Bonds
The City issued $6,000,000 of general obligation bonds, Election of 2002, Series A on
April 24, 2003 to provide funds for a new public library. The bonds mature annually
through August 1, 2028 in the amounts ranging from $120,000 to $425,000 beginning
August 1, 2003. The interest of the bonds is payable semi-annually on each February 1
and August 1, commencing February 1, 2004. The interest rate of the bonds ranges from
3.70% to 6.10%. The bonds are payable solely from and secured by ad valorem taxes of
all property subject to taxation by the City. The bonds are subject to optional and
mandatory early redemption provisions.
The annual debt service payments for the bonds outstanding are as follows:
Fiscal Year Principal Interest Total
2011 $ 165,000 234,740 399,740
2012 175,000 224,658 399,658
2013 185,000 213,889 398,889
2014 200,000 204,870 404,870
2015 210,000 197,075 407,075
2016 220,000 188,580 408,580
2017 230,000 179,580 409,580
2018 240,000 170,030 410,030
2019 255,000 159,725 414,725
2020 265,000 148,673 413,673
2021 280,000 136,850 416,850
2022 295,000 124,235 419,235
2023 310,000 110,770 420,770
2024 330,000 96,370 426,370
2025 345,000 81,010 426,010
2026 365,000 64,635 429,635
2027 385,000 47,290 432,290
2028 405,000 29,022 434,022
2029 425,000 9,828 434,828
Total $5,285,000 2,621,830 7,906,830
62
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Long -Term Debt, (Continued)
2003 A HUD 108 Bond
The City issued $6,900,000 of HUD 108 Bonds, Series A on August 7, 2003 to provide
funds for the construction of a fire station. The bonds mature annually through 2024 in
the amount ranging from $170,000 to $635,000 beginning in 2005. The interest of the
bonds is payable semi-annually on each February 1 and August 1, commencing
February 1, 2004.
The annual debt service payments for the bonds outstanding are as follows:
Fiscal Year Principal Interest Total
2011 $ 245,000 297,269 542,269
2012 260,000 286,413 546,413
2013 280,000 274,117 554,117
2014 305,000 260,227 565,227
2015 325,000 244,850 569,850
2016 350,000 227,967 577,967
2017 380,000 209,233 589,233
2018 410,000 188,528 598,528
2019 440,000 165,847 605,847
2020 475,000 141,044 616,044
2021 510,000 113,975 623,975
2022 545,000 84,640 629,640
2023 590,000 52,770 642,770
2024 635,000 18,066 653,066
Total $5,750,000 2,564,946 8,314,946
63
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Long -Term Debt, (Continued)
Morgan Towers Note Payable
The note payable is secured by a deed of trust and is payable to GMAC. The original
note was dated March 1, 1978 in the amount of $5,125,000. Payments of principal and
interest at 6.5% aggregating $30,005 are made monthly with the final payment due
August 1, 2019. The unpaid principal portion of the note at June 30, 2010 was
$2,481,662. The note is insured by HUD and is secured by substantially all property and
equipment of the Morgan Towers Enterprise Fund.
The annual principal payments of the note payable outstanding are as follows:
Fiscal Year Principal Interest Total
2011 $ 204,777 155,283 360,060
2012 218,492 141,568 360,060
2013 233,124 126,936 360,060
2014 248,736 111,324 360,060
2015 265,395 94,665 360,060
2016 283,170 76,890 360,060
2017 302,136 57,924 360,060
2018 322,368 37,692 360,060
2019 343,957 16,103 360,060
2020 59,507 503 60,010
Total $2,481,662 818,888 3,300,550
Defeasance of Debt
As of June 30, 2010, the outstanding balance of defeased issues are as follows:
2001 Series A Tax Allocation Bonds (Series A & B)
1998 Tax Allocation Bonds
$34,105,000
11,930,000
64
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
City Defined Benefit Pension Plan (PERS)
The City of National City contributes to the California Public Employees Retirement
System (PERS). The miscellaneous employees of the City and the safety employees are
part of a single -employer defined benefit pension plan. PERS provides retirement and
disability benefits, annual cost of living adjustment, and death benefits to plan members
and beneficiaries. PERS acts as a common investment and administrative agent for
participating public entities within the State of California. Copies of PERS' annual
financial report may be obtained from its executive office at 400 "P" Street, Sacramento,
California 95814.
Miscellaneous and safety participants are required to contribute 8% and 9%, respectively,
of their annual covered salary. The City makes the contributions required of City
employees on their behalf and for their account. Benefit provisions and all other
requirements are established by state statute and City contract with employee bargaining
groups.
Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual
required contribution (ARC) plus an adjustment for the cumulative difference between
the APC and the employer's actual plan contributions for the year. The cumulative
difference is called the net pension obligation (NPO). The ARC for the period July 1,
2009 to June 30, 2010 has been determined by an actuarial valuation of the plan as of
June 30, 2007. The contribution rate indicated for the period is 28.401% of payroll for
the safety plan and 16.397% of payroll for the miscellaneous plan. In order to calculate
the dollar value of the ARC for inclusion in the financial statements prepared as of June
30, 2010, the contribution rate is multiplied by the payroll of covered employees that
were paid during the period from July 1, 2009 to June 30, 2010.
A summary of principle assumptions and methods used to determine the ARC is shown
below.
City Miscellaneous Employees Group Safety Employees Group
Valuation Date June 30, 2007 June 30,2007
Actuarial Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method
Amortization Method Level Percent of Payroll Level Percent of Payroll
Average Remaining Period 25Years as of the Valuation Date 32 Years as of the Valuation Date
Asset Valuation Method 15 Year Smoothed Market 15 Year Smoothed Market
Actuarial Assumptions
Investment Rate of Return 7.75% (net of administrative expenses) 7.75% (net of administrative expenses)
Projected Salary Increases 3.25% to 14.45% depending on Age, 3.25% to 13.15% depending on Age,
Service, and type of employment Service, and type of employment
Inflation 3.00% 3.00%
Payroll Growth 3.25% 3.25%
Individual Salary Growth A merit scale varying by duration of A merit scale varying by duration of
employment coupled with an assumed employment coupled with an assumed
annual inflation component of 3.00% annual inflation component of 3.00%
and an annual production growth of and an annual production growth of
0.25% 0.25%
65
Fiscal
Year
6/30/08
6/30/09
6/30/10
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(8) City Defined Benefit Pension Plan (PERS), (Continued)
Initial unfunded liabilities are amortized over a closed period that depends on the plan's
date of entry into CalPERS. Subsequent plan amendments are amortized as a level
percentage of pay over a closed 20-year period. Gains and losses that occur in the
operation of the plan are amortized over a rolling 30 year period, which results in an
amortization of 6% of unamortized gains and losses each year. If the plan's accrued
liability exceeds the actuarial value of plan assets, then the amortization payment on the
total unfunded liability may not be lower than the payment calculated over a 30 year
amortization period.
The Schedule of Funding Progress below shows the recent history of the actuarial value
of assets, actuarial accrued liability, their relationship, and the relationship of the
unfunded accrued liability to payroll. The schedule of funding progress, presented below
presents multiyear information about whether the actuarial value of plan assets is
increasing or decreasing over time relative to the actuarial accrued liability for benefits.
Required Supplementary Information —City Miscellaneous Employees Group
Valuation
Date
6/30/07
6/30/08
6/30/09
Entry Age
Normal
Accrued
Liability
$70,797,946
75,995058
82,507,216
Required Supplementary
Entry Age
Normal
Accrued
Liability
Valuation
Date
6/30/07
6/30/08
6/30/09
$102,027,654
112,532,571
122,308,588
Actuarial
Value
of Assets
62,442,682
67,252,370
70,686,597
Information —
Actuarial
Value
of Assets
85,092,163
91,454,242
95,876,636
Unfunded
Liability/
(Excess
Assets)
8,355,264
8,742,688
11,820,619
Funded
Status
88.2%
88.5%
85.7%
Safety Employees Group
Unfunded
Liability/
(Excess
Assets)
16,935,491
21,078,329
26,431,952
Funded
Status
83.4%
81.3%
78.4%
Three -Year Trend Information
Annual Pension Cost (Employer Contribution)
Percentage of
Miscellaneous APC Contributed
2,565,047 100%
1,901,577 100%
1,871,038 100%
Safety
3,866,043
3,199,780
3,461,800
Annual
Covered
Payroll
11,132,479
11,798,468
11,644,870
Annual
Covered
Payroll
9,431,560
10,600,069
11,268,294
UAAL
As a % of
Payroll
75.1%
74.5%
101.5%
UAAL
As a % of
Payroll
179.6%
198.9%
234.6%
Net Pension
Obligation
- 0-
- 0-
- 0-
66
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Other Postemployment Benefit Plan
Plan Description: The City administers a single -employer defined benefit plan which
provides medical insurance benefits to eligible retirees and their spouses in accordance
with various labor agreements. The City has not established a trust that is administered by
the City for the purpose of holding assets accumulated for plan benefits. After age 65,
Medicare automatically becomes the primary provider of health coverage. The City's
defined benefit plan becomes the secondary provider. Eligible retirees will have no
noticeable change in health benefits or plan administration; however, there is a reduction
in the City's cost of health coverage as the secondary provider. The City's defined
benefit plan administrator establishes the cost of secondary provider rates annually. The
City will pay 100% for eligible retirees' health coverage.
Eligibility: Employees are eligible for retiree health benefits if they retire from the City
on or after age 50 with at least 5 years of service, and are eligible for a PERS pension.
Membership of the plan consisted of the following at June 30, 2010, the date of the latest
actuarial valuation:
Retirees and beneficiaries receiving benefits 24
Active plan members 357
Total 381
City's Funding Policy: The contribution requirements of plan members and the City are
established and may be amended by City Council. The contribution required to be made
under City Council and labor agreement requirements is based on a pay-as-you-go basis
(i.e., as medical insurance premiums become due). For fiscal year 2009-10, the City
contributed $91,783 to the plan for current premiums.
Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment
benefit (OPEB) cost (expense) is calculated based on the annual required contribution of
the employer (ARC), an amount actuarially determined in accordance with the parameters
of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded
actuarial liabilities (or funding excess) over a period not to exceed thirty years. The
following table shows the components of the City's annual OPEB cost for the year, the
amount actually contributed to the plan, and changes in the City's net OPEB obligation
for these benefits:
67
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(9) Other Postemployment Benefit Plan, (Continued)
Annual required contribution $110,954
Interest on net OPEB obligation
Adjustments to annual required contributions
Annual OPEB cost (expense) 110,954
Contributions made (including premiums paid) (91,783)
Increase in net OPEB obligation 19,171
Net OPEB obligation -beginning of year 34,624
Net OPEB obligation -end of year $ 53,795
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for 2010 and the two preceding years were as follows:
Percentage of
Annual Net
Fiscal Annual OPEB Cost OPEB
Year OPEB Cost Contributed Obligation
6/30/08
6/30/09
6/30/10
N/A
$110,954
$110,954
N/A
68%
83%
N/A
$34,624
$53,795
Funded Status and Funding Progress. The funded status of the plan as of June 30, 2010,
was as follows:
Actuarial accrued liability (AAL)
Actuarial value of plan assets
Unfunded actuarial accrued liability (UAAL)
Funded ratio (actuarial value of plan assets/AAL)
Covered payroll (active plan members)
UAAL as a percentage of covered payroll
$1,058,356
$1,058,356
0.0%
23,196,000
4.6%
68
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Other Postemployment Benefit Plan, (Continued)
Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts and assumptions about the probability of occurrence of events far into the future.
Examples include assumptions about future employment, mortality, and the healthcare
cost trend. Amounts determined regarding the funded status of the plan and the annual
required contributions of the employer are subject to continual revision as actual results
are compared with past expectations and new estimates are made about the future. The
schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multi -year trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for the benefits.
Actuarial Methods and Assumptions. Projections of benefits for financial reporting
purposes are based on the substantive plan (the plan as understood by the employer and
the plan members) and include the types of benefits provided at the time of each valuation
and the historical pattern of sharing of benefit costs between employer and plan members
to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term volatility in actuarial accrued liabilities and
the actuarial assets, consistent with the long-term perspective of the calculations.
The actuarial cost method used for determining the benefit obligations is the Frozen Entry
Age Actuarial Cost Method. The actuarial assumptions included a 5% percent investment
rate of return, which is the assumed rate of the expected long-term investment returns on
plan assets calculated based on the funded level of the plan at the valuation date. The
UAAL is being amortized as a level percentage of projected payroll over 20 years. It is
assumed the City's payroll will increase 3.25% per year.
SCHEDULE OF FUNDING PROGRESS
Actuarial UAAL as a
Accrued Unfunded Percentage of
Actuarial Actuarial Liability AAL Funded Covered Covered
Valuation Value of (AAL)-Entry (UAAL) Ratio Payroll Payroll
Date Assets (a) Age (b) (b-a) (a/b) (c) (a-b)/c)
7/01/08 $ $1,058,356 $1,058,356 0% $22,466,000 0.3%
69
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(10) Commitments and Contingencies
A. Lawsuits in the Normal Course of Business
The City is presently involved in certain matters of litigation that have arisen in
the normal course of conducting City business. City management believes, based
upon consultation with the City Attorney, that these cases, in the aggregate, are
not expected to result in a material adverse financial impact on the City.
Additionally, City management believes that the City's insurance programs are
sufficient to cover any potential losses should an unfavorable outcome
materialize.
B. Federal and State Grant Programs
The City participates in several federal and state grant programs. These programs
have been audited by the City's independent auditors in accordance with the
provisions of the federal Single Audit Act, as amended and applicable state
requirements. No cost disallowances were proposed as a result of these audits.
However, these programs are still subject to further examination by the grantors
and the amount, if any, of expenditures which may be disallowed by the granting
agencies cannot be determined at this time.
(11) Pledged Revenues
The City and its component units have a number of debt issuances outstanding
that are collateralized by the pledging of certain revenues. The amount and term
of the remainder of these commitments are indicated in the debt service to
maturity tables presented in the accompanying notes. The purposes for which the
proceeds of the related debt issuances were utilized are disclosed in the debt
descriptions in the accompanying notes. For the current year, debt service
payments as a percentage of the pledged gross revenue (or net of certain expenses
where so required by the debt agreement) are indicated in the table below. These
percentages also approximate the relationship of debt service to pledged revenue
for the remainder of the term of the commitment:
Description of
Pledged Revenue
Tax increment revenues
Annual Amount of
Pledged Revenue
(net of expenses,
where required)
$11,184,289
Annual Debt
Service Payments
(of all debt secured
by this revenue)
Debt Service
as a Percentage of
Pledged Revenue
4,021,382 36%
70
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(12) Prior Period Adjustments
The accompanying financial statements include adjustments that resulted in the
restatements of beginning fund balances/net assets. The following summarizes the effect
of the prior period adjustments to beginning fund balance net assets as of July 1, 2009:
Other
Capital Special
Project Revenue
Fund Special Total
Redevelopment Revenue Governmental
Fund Fund Funds
Fund balance — beginning of year,
as previously reported $16,213,769 14,023,465 84,318,773
To recognize revenues earned in prior year
previously deferred 835,000 835,000
To adjust land held for resale for
transactions not recorded in prior years (427,350) (427,350)
Fund balance — beginning of year,
as restated
$17,048,769 13,596,115 84,726,423
The following summarizes the effect of the prior period adjustments to beginning fund
balance net assets as of July 1, 2009:
Net assets — beginning of year,
as previously reported
To record notes receivable previously
unrecorded in prior years
Government -
Wide
Statement
of Net
Assets
$155,382,933
9,975,342
Net assets — beginning of year,
as restated $165,358,275
71
CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
(13) Accumulated Fund Deficits
The following funds had fund deficits at June 30, 2010:
Library Special Revenue Fund $(172,139)
Parks Maintenance Special Revenue Fund (40,941)
STP/Local Transnet Highway Special Revenue Fund (333,206)
Traffic Congestion Relief Special Revenue Fund (61,537)
The City is in the process of identifying a repayment method of the funds noted. The
deficit fund balances will remain on the books until an agreed upon method is approved
by the City Council of the City of National City.
(14) Expenditures in Excess of Appropriations
The following funds reported excess of expenditures over appropriations for the year
ended June 30, 2010:
Variance with
Final Final Budget
Fund Budget Actual Positive (Negative)
Section 8 Housing Assistance
Special Revenue Fund $9,268,420 9,418,147 (149,727)
Joint Powers Financing Authority
Debt Service Fund 486,798 486,807 (9)
Library Bond
Debt Service Fund 399,500 402,578 (3,078)
72
CITY OF NATIONAL CITY
Notes to Required Supplementary Information
For the Year Ended June 30, 2010
(1) Budgetary Information
Annual budgets are adopted for the general, special revenue, debt service, and capital
projects funds. All unencumbered appropriations lapse at the end of the fiscal year.
Encumbered appropriations are carried forward in the subsequent fiscal year.
The City Manager is authorized to transfer budgeted amounts within a fund. However,
any revisions that increase the total budget of any fund must be approved by the City
Council. All necessary supplemental appropriations were adopted by the City Council
and are included in the reported data. For the fiscal year ended June 30, 2010,
supplemental appropriations requiring City Council approval were insignificant. The
legal level of control for appropriations is exercised at the fund level.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g.,
purchase orders, contracts) outstanding at year-end are reported as reservations of fund
balances and do not constitute expenditures or liabilities because the commitments will
be honored during the subsequent year.
The following is the budget comparison schedules for the General Fund and all major
special revenue funds.
(2) Required Disclosures
The following funds reported excess of expenditures over appropriations for the year
ended June 30, 2010:
Fund
Section 8 Housing Assistance
Special Revenue Fund
Final
Budget Actual
$9,268,420 9,418,147
Variance with
Final Budget
Positive (Negative)
(149,727)
73
CITY OF NATIONAL CITY
General Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Revenues:
Taxes
Licenses and permits
Fines and forfeitures
Interest and rents
Intergovernmental
Charges for services
Other revenues
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Culture and leisure
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Fund balance, beginning of year
Fund balance, end of year
Budget Amounts
Original Final
$ 28,470,135
417,732
1,028,258
697,100
576,400
441,280
255,113
Actual
Amounts
28,470,135 29,007,351
417,732 551,517
1,028,258 1,219,418
697,100 432,226
576,400 571,308
441,280 482,975
255,113 593,968
31,886,018 31,886,018 32,858,763
Variance with
Final Budget
Positive
(Negative)
537,216
133,785
191,160
(264,874)
(5,092)
41,695
338,855
972,745
5,164,879 5,164,879 4,578,197 586,682
29,044,391 29,044,391 28,402,451 641,940
1,887,479 1,887,479 1,777,073 110,406
1,950,722 1,950,722 1,828,785 121,937
1,086,606 1,086,606 301,404 785,202
224,372 224,372 261,174 (36,802)
69,780 69,780 23,962 45,818
39,428,229 39,428,229 37,173,046 2,255,183
(7,542,211) (7,542,211) (4,314,283) 3,227,928
3,132,428
(5,548,267)
3,132,428 3,047,887
(5,548,267) (5,348,267)
(2,415,839) (2,415,839) (2,300,380)
(84,541)
200,000
115,459
(9,958,050) (9,958,050) (6,614,663) 3,343,387
18,440,688
18,440,688 18,440,688
$ 8,482,638 8,482,638 11,826,025 3,343,387
74
CITY OF NATIONAL CITY
Section 8 Housing Assistance Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental $ 7,459,000 8,659,000 9,704,442 1,045,442
Other revenues - - 75 75
Total revenues
Expenditures:
Current:
Community development
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
7,459,000 8,659,000
8,696,220 9,268,420
8,696,220 9,268,420
9,704,517 1,045,517
9,418,147 (149,727)
9,418,147 (149,727)
(1,237,220) (609,420) 286,370 895,790
Other financing sources (uses):
Transfers in 1,215,884 1,215,884 608,152 (607,732)
Total other financing sources (uses) 1,215,884 1,215,884 608,152 (607,732)
Net change in fund balances (21,336) 606,464 894,522 288,058
Fund balance, beginning of year 184,513 184,513 184,513
Fund balance, end of year $ 163,177 790,977 1,079,035 288,058
75
CITY OF NATIONAL CITY
Other Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Revenues:
Licenses and permits
Fines and forfeitures
Interest and rents
Intergovernmental
Charges for services
Other revenues
Total revenues
Expenditures:
Current:
General government
Public safety
Community development
Health
Culture and leisure
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources:
Transfers in
Transfers out
Total other financing sources
Net change in fund balances
Fund balance, beginning of year
Fund balance, end of year
Budget Amounts
Original Final
$ 12,594
95,327
8,500
6,631,508
1,063,900
503,304
8,315,133
2,403,186
4,073,885
447,263
218,902
1,820,815
3,949,533
12,913,584
(4,598,451)
2,047,464
(1,202,297)
845,167
(3,753,284)
Actual
Amounts
12,594 4,200
95,327 92,560
8,500 28,087
6,631,508 5,946,896
1,063,900 1,439,267
503,304 602,980
8,315,133 8,113,990
2,403,186
4,073,885
447,263
218,902
1,820,815
3,949,533
1,853,392
2,274,135
216,964
128,004
1,645,287
15,838
12,913,584 6,133,620
(4,598,451) 1,980,370
2,047,464 2,047,464
Variance with
Final Budget
Positive
(Negative)
(8,394)
(2,767)
19,587
(684,612)
375,367
99,676
(201,143)
549,794
1,799,750
230,299
90,898
175,528
3,933,695
6,779,964
6,578,821
(1,202,297) (1,117,756) 84,541
845,167 929,708 84,541
(3,753,284) 2,910,078 6,663,362
6,570,859 6,570,859 6,570,859
$ 2,817,575
2,817,575 9,480,937 6,663,362
76
CITY OF NATIONAL CITY
Nutrition Program Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental $ 292,691 292,691 338,373 45,682
Other revenues 184,718 184,718 206,036 21,318
Total revenues 477,409 477,409 544,409 67,000
Expenditures:
Current:
Community development 806,374 806,374 791,032 15,342
Total expenditures 806,374 806,374 791,032 15,342
Excess (deficiency) of revenues
over (under) expenditures (328,965) (328,965) (246,623) 82,342
Other financing sources:
Transfers in 1,916,103 1,916,103 1,716,103 (200,000)
Total other financing sources 1,916,103 1,916,103 1,716,103 (200,000)
Net change in fund balances 1,587,138 1,587,138 1,469,480 (117,658)
Fund balance (deficit), beginning of year (1,385,563) (1,385,563) (1,385,563)
Fund balance (deficit), end of year $ 201,575 201,575 83,917 (117,658)
77
CITY OF NATIONAL CITY
Sewer Service Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
Revenues:
Interest and rents
Charges for services
Other revenues
Total revenues
Expenditures:
Current:
Health
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ - 196,696 196,696
7,141,800 7,141,800 7,120,640 (21,160)
- 1,265,131 1,265,131
7,141,800 7,141,800
13,530,033 13,530,033
8,582,467 1,440,667
7,633,903 5,896,130
Total expenditures 13,530,033 13,530,033 7,633,903 5,896,130
Net change in fund balances (6,388,233) (6,388,233) 948,564 7,336,797
Fund balance, beginning of year 15,125,094 15,125,094 15,125,094
Fund balance, end of year $ 8,736,861 8,736,861 16,073,658 7,336,797
78
CITY OF NATIONAL CITY
Low and Moderate Income Housing Program Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes $ 2,808,046 2,808,046 2,796,072 (11,974)
Interest and rents - - 264,663 264,663
Other revenues 200,000 200,000 - (200,000)
Total revenues
3,008,046 3,008,046 3,060,735 52,689
Expenditures:
Current:
Community development 878,132 878,132 670,912 207,220
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
878,132 878,132 670,912 207,220
2,129,914 2,129,914 2,389,823 259,909
Other financing sources (uses):
Transfers in - - 927,881 927,881
Transfers out (2,042,002) (2,042,002) (1,434,245) 607,757
Total other financing sources (uses) (2,042,002) (2,042,002) (506,364) 1,535,638
Net change in fund balances 87,912 87,912 1,883,459 1,795,547
Fund balance, beginning of year 10,991,134 10,991,134 10,991,134
Fund balance, end of year $ 11,079,046 11,079,046 12,874,593 1,795,547
79
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80
NON -MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
General Capital Outlay Fund
This fund is used to account for funds set aside from the proceeds of sale of and rental from
surplus real property for the City's five-year capital improvement program.
Library Fund
This fund is used to account for the operation of the National City Library.
Parks Maintenance Fund
This fund is used to account for operating and maintaining the City's parks.
Library Capital Outlay Fund
This fund is used to account for revenues from real property transfer taxes set aside to finance
capital outlay and capital improvement expenditures of the National City Library.
Gas Tax Fund
This fund is used to account for the City's share of state gas tax revenue restricted for street
improvement and maintenance.
Parks and Recreation Capital Outlay Fund
This fund is used to account for revenues from dwelling fees set aside for capital improvement
expenditures of the Parks and Recreation Department.
Community Development Block Grant Fund
This fund is used to account for federal funds received from the U.S. Department of Housing and
Urban Development — Community Development Block Program.
HUD Program Income Fund
This fund is used to provide for the funding of CDBG program activities as approved by the City
Council utilizing HUD program income.
Home Program Fund
This fund is used to account for federal funds received from the U.S. Department of Housing and
Urban Development Home Program.
Asset Forfeiture Fund
This fund is used to account for the receipt and expenditure of funds provided by the federal
government's asset seizure fund to be used exclusively for law enforcement purposes.
81
NON -MAJOR GOVERNMENTAL FUNDS, (CONTINUED)
DEBT SERVICE FUND:
National City Joint Powers Financing Authority Fund
This fund is used to account for funds maintained by the trustee bank solely for the purpose of
paying, when due and payable, the principal of or interest on the lease revenue bonds and lease
revenue refunding bonds issued by the National City Joint Powers Financing Authority.
Library Bond Debt Service Fund
This fund is used to account for debt service of the Library.
CAPITAL PROTECTS FUNDS:
Library Construction Project Capital Projects Fund
This fund is used to account for activities of the library construction.
Proposition "A" Capital Projects Fund
This fund is used to account for the City's allocation of the 2% transactions and use tax imposed
by Proposition "A" (San Diego Transportation Improvement Program Ordinance) passed by the
voters in San Diego County in November 1987.
STP Local/TransNet Highway Fund
This fund is used to account for funds received from the San Diego Association of Governments
("SANDAG") for TransNet projects.
State -Local Partnership Fund
This fund is used to account for the receipt and expenditures of funds provided by the State
under the State -Local Transportation Partnership Program.
Traffic Congestion Relief Fund
This fund is used for the maintenance, rehabilitation and reconstruction of transportation related
to Capital Projects; specifically pertaining to local streets and roads.
Fire Construction Project Capital Projects Fund
This fund is used to account for activities for fire department construction.
82
CITY OF NATIONAL CITY
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2010
Special Revenue Funds
General Library Park and
Capital Parks Capital Recreation
Outlay Library Maintenance Outlay Gas Tax Capital Outlay
ASSETS
Cash and investments $ 1,023,418 - 749,192 623,444 1,279,815
Restricted cash and investments
with fiscal agent - - - - -
Accounts receivable - 976 1,138 7,921 402
Property tax receivable - - - - -
Interest receivable - - - 1,056 -
Due from other funds - - - - -
Due from other governmental entities - - - 98,491
Land held for resale - - - - -
Contracts, notes and loans receivable - - - - -
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Salaries payable
Due to other funds
Deferred revenue
Advances from other funds
Total liabilities
Fund balances:
Reserved:
Encumbrances
Land held for resale
Contracts, loans, notes receivable
Debt service
$ 1,023,418 976 1,138 757,113 722,991 1,280,217
20,791
3,322 4,995 - 5,977
30,391 19,773 - 872
139,402 17,311
173,115 42,079 - 6,849
- - 11,289 7,065
Total reserved 20,791 - - 11,289 7,065
Unreserved, designated:
Continuing appropriations 1,000,736 - - 592,841 662,016
Total reserved, designated 1,000,736 - - 592,841 662,016
Unreserved, undesignated:
Special revenue funds
Capital projects funds
Total fund balances (deficits)
1,891 (172,139) (40,941) 757,113 112,012 611,136
1,023,418 (172,139) (40,941) 757,113 716,142 1,280,217
Total liabilities and fund balances $ 1,023,418 976 1,138 757,113 722,991 1,280,217
83
Special Revenue Funds Debt Service
Community HUD Joint Powers
Development Program HOME Asset Financing Library
Block Grant Income Program Forfeiture Authority Bonds
- 415,510 2,160,158 548,512 1 739,568
- 1,094,028 - - -
290,563 - - -
- - - 323
- 2,705 3,635 1,002 - -
- 124,561 - - -
582,390 145,311 - -
- 875,000 - -
- 223,349 2,797,102 -
872,953 1,860,153 5,981,206 549,514 1 739,891
339,343 57,021 115,768 1,525 - -
2,416 1,999 - -
146,909 - - -
108,737 1,647,039 - -
597,405 57,021 1,764,806 1,525
16,896 25,157 -
- - 875,000
- 223,349 2,797,102
- 1,094,028 -
16,896 1,342,534 3,672,102
1 739,891
1 739,891
479,318 500,000 18,028 -
479,318 500,000 18,028 -
(220,666) 460,598 44,298 529,961 -
275,548 1,803,132 4,216,400 547,989 1 739,891
872,953 1,860,153 5,981,206 549,514 1 739,891
(Continued)
84
CITY OF NATIONAL CITY
Nonmajor Governmental Funds
Combining Balance Sheet, Continued
June 30, 2010
Capital Projects Funds
Library STP Local/ State- Traffic Fire Total Other
Constuction TransNet Local Congestion Construction Governmental
Bonds Proposition A Highway Partnership Relief Project Funds
ASSETS
Cash and investments $ 137,770 2,091,851 122,344 - 18,116 9,909,699
Restricted cash and investments
with fiscal agent - - - 1,094,028
Accounts receivable - - - 301,000
Property tax receivable - - - 323
Interest receivable 250 3,809 223 - - 12,680
Due from other funds - - - 124,561
Due from other governmental entities - 2,597 144,747 - 973,536
Land held for resale - - - 875,000
Contracts, notes and loans receivable - - - 3,020,451
Total assets
$ 138,020 2,095,660 2,597 122,567 144,747 18,116 16,311,278
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ - 8,585 22,421 - - 558,957
Salaries payable - 5,141 - - - 60,592
Due to other funds - 313,382 206,284 - 823,288
Deferred revenue - 95,493 - - 1,851,269
Advances from other funds - 760,034 - - 760,034
Total liabilities
773,760 335,803 95,493 206,284 - 4,054,140
Fund balances:
Reserved:
Encumbrances - 40,529 17,431 - - 139,158
Land held for resale - - - 875,000
Contracts, loans, notes receivable - - - 3,020,451
Debt service - - - 1,833,920
Total reserved
40,529 17,431 - - 5,868,529
Unreserved, designated:
Continuing appropriations - 2,341,887 87,638 2,035 - 5,684,499
Total reserved, designated - 2,341,887 87,638 2,035 - 5,684,499
Unreserved, undesignated:
Special revenue funds - - - 2,083,263
Capital projects funds 138,020 (1,060,516) (438,275) 27,074 (63,572) 18,116 (1,379,153)
Total fund balances 138,020 1,321,900 (333,206) 27,074 (61,537) 18,116 12,257,138
Total liabilities and fund balances $ 138,020 2,095,660 2,597 122,567 144,747 18,116 16,311,278
85
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86
CITY OF NATIONAL CITY
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2010
Special Revenue Funds
General Library Park and
Capital Parks Capital Recreation
Outlay Library Maintenance Outlay Gas Tax Capital Outlay
Revenues:
Taxes $ 632,544 737,075 78,480
Fines and forfeitures
Interest and rents 5,904 228,093
Intergovernmental 6,172 7,194 1,097,704
Charges for services 21,316
Other revenues
Total revenues 638,716 744,269 99,796 1,103,608 228,093
Expenditures:
Current:
General government
Public safety
Transportation
Community development
Culture and leisure
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
4,209
1,555,436 1,054,431
341,252
20,868 19,607
4,209 1,555,436 1,054,431 20,868 341,252 19,607
(4,209) (916,720) (310,162) 78,928 762,356 208,486
688,326 236,181
(700,000)
Total other financing sources (uses) 688,326 236,181 (700,000)
Net change in fund balances (4,209) (228,394) (73,981) 78,928 62,356 208,486
Fund balances, beginning of year,
as restated 1,027,627 56,255 33,040 678,185 653,786 1,071,731
Fund balances (deficits), end of year $ 1,023,418 (172,139) (40,941) 757,113 716,142 1,280,217
87
Special Revenue Funds Debt Service
Community HUD Joint Powers
Development Program HOME Asset Financing Library
Block Grant Income Program Forfeiture Authority Bonds
- - 142,350 -
- 18,565 79,788 3,461 11
817,696 631,387 - 486,796
817,696
396 - - - 428,459
18,961 711,175
82,401 -
218,991 86,924 285,128
76,676 -
253,729 -
145,811 486,807 428,459
- - 3,078
38,887 -
225,000 - - 325,000 155,000
170,776 137,786 - - 161,807 244,500
1,027,573
(209,877)
224,710 285,128
(205,749) 426,047
522,489
- (1,256,501)
522,489 (1,256,501)
38,887 486,807 402,578
106,924 - 25,881
312,612 (1,462,250) 426,047 106,924 - 25,881
(37,064) 3,265,382 3,790,353 441,065 1 714,010
275,548 1,803,132
4,216,400 547,989 1 739,891
(Continued)
88
CITY OF NATIONAL CITY
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued
Revenues:
Taxes
Fines and forfeitures
Interest and rents
Intergovernmental
Charges for services
Other revenues
Total revenues
Expenditures:
Current:
General government
Public safety
Transportation
Community development
Culture and leisure
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
For the Year ended June 30, 2010
Capital Projects Funds
Library STP Local/ State- Traffic Fire Total Other
Construction TransNet Local Congestion Construction Governmental
Bonds Proposition A Highway Partnership Relief Project Funds
$ - - - 1,448,099
- - - 142,350
2,623 14,407 1,440 - 2,933 357,225
14,656 1,500,000 403,547 514,332 5,479,484
- - - 21,316
- - - 428,855
17,279 1,514,407 403,547 1,440 514,332 2,933 7,877,329
1,844,119
500,597
506,599
85,479
38,887
341,252
591,043
2,686,543
3,149,728
705,000
714,869
1,844,119 500,597 506,599 8,312,801
17,279 (329,712) (97,050) 1,440 7,733 2,933 (435,472)
1,446,996
(394,000) (2,350,501)
Total other financing sources (uses) - - - (394,000) (903,505)
Net change in fund balances 17,279 (329,712) (97,050) 1,440 7,733 (391,067) (1,338,977)
Fund balances, beginning of year,
as restated 120,741 1,651,612 (236,156) 25,634 (69,270) 409,183 13,596,115
Fund balances (deficits), end of year $ 138,020 1,321,900 (333,206) 27,074 (61,537) 18,116 12,257,138
89
CITY OF NATIONAL CITY
General Capital Outlay Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Expenditures:
Capital outlay $ 1,019,945 1,019,945 4,209 1,015,736
Total expenditures 1,019,945 1,019,945 4,209 1,015,736
Net change in fund balances (1,019,945) (1,019,945) (4,209) 1,015,736
Fund balance, beginning of year 1,027,627 1,027,627 1,027,627
Fund balance, end of year $ 7,682 7,682 1,023,418 1,015,736
90
CITY OF NATIONAL CITY
Library Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes $ 648,300 648,300 632,544 (15,756)
Intergovernmental 6,600 6,600 6,172 (428)
Total revenues 654,900 654,900 638,716 (16,184)
Expenditures:
Current:
Culture and leisure 1,671,465 1,671,465 1,555,436 116,029
Total expenditures 1,671,465 1,671,465 1,555,436 116,029
Excess (deficiency) of revenues
over (under) expenditures (1,016,565) (1,016,565) (916,720) 99,845
Other financing sources (uses):
Transfers in 688,326 688,326 688,326
Total other financing sources (uses) 688,326 688,326 688,326
Net change in fund balances (328,239) (328,239) (228,394) 99,845
Fund balance, beginning of year 56,255 56,255 56,255
Fund balance (deficit), end of year $ (271,984) (271,984) (172,139) 99,845
91
CITY OF NATIONAL CITY
Parks Maintenance Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes $ 755,379 755,379 737,075 (18,304)
Intergovernmental 7,700 7,700 7,194 (506)
Total revenues 763,079 763,079 744,269 (18,810)
Expenditures:
Current:
Culture and leisure 1,104,229 1,104,229 1,054,431 49,798
Total expenditures 1,104,229 1,104,229 1,054,431 49,798
Excess (deficiency) of revenues
over (under) expenditures (341,150) (341,150) (310,162) 30,988
Other financing sources:
Transfers in 236,181 236,181 236,181
Total other financing sources 236,181 236,181 236,181
Net change in fund balances (104,969) (104,969) (73,981) 30,988
Fund balance, beginning of year 33,040 33,040 33,040
Fund balance (deficit), end of year $ (71,929) (71,929) (40,941) 30,988
92
CITY OF NATIONAL CITY
Library Capital Outlay Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Taxes $ 84,052 84,052 78,480 (5,572)
Charges for services 18,200 18,200 21,316 3,116
Total revenues
Expenditures:
Capital outlay
Total expenditures
Net change in fund balances
Fund balance, beginning of year
Fund balance, end of year
102,252 102,252 99,796 (2,456)
98,700 98,700
98,700 98,700
3,552 3,552
678,185
20,868 77,832
20,868 77,832
78,928 75,376
678,185 678,185
$ 681,737 681,737
757,113 75,376
93
CITY OF NATIONAL CITY
Gas Tax Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
Revenues:
Interest and rents
Intergovernmental
Total revenues
Expenditures:
Current:
Transportation
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 26,200 26,200 5,904 (20,296)
1,032,500 1,032,500 1,097,704 65,204
1,058,700 1,058,700 1,103,608 44,908
943,484 943,484 341,252 602,232
943,484 943,484 341,252 602,232
115,216 115,216
762,356 647,140
Other financing sources (uses):
Transfers out (700,000) (700,000) (700,000)
Total other financing sources (uses) (700,000) (700,000) (700,000)
Net change in fund balances (584,784) (584,784) 62,356 647,140
Fund balance, beginning of year 653,786 653,786 653,786
Fund balance, end of year $ 69,002 69,002 716,142 647,140
94
CITY OF NATIONAL CITY
Park and Recreation Capital Outlay Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Interest and rents $ 248,000 248,000 228,093 (19,907)
Total revenues 248,000 248,000 228,093 (19,907)
Expenditures:
Current:
Capital outlay 682,988 682,988 19,607 663,381
Total expenditures 682,988 682,988 19,607 663,381
Net change in fund balances (434,988) (434,988) 208,486 643,474
Fund balance, beginning of year 1,071,731 1,071,731 1,071,731
Fund balance, end of year $ 636,743 636,743 1,280,217 643,474
95
CITY OF NATIONAL CITY
Community Development Block Grant Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
Revenues:
Intergovernmental
Total revenues
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$ 1,107,495 1,107,495 817,696 (289,799)
1,107,495 1,107,495 817,696 (289,799)
Expenditures:
Current:
General government 82,037 82,037 82,401 (364)
Community development 239,492 239,492 218,991 20,501
Culture and leisure 83,130 83,130 76,676 6,454
Capital outlay 863,439 863,439 253,729 609,710
Debt service:
Principal - - 225,000 (225,000)
Interest and fiscal charges 1,776 1,776 170,776 (169,000)
Total expenditures 1,269,874 1,269,874 1,027,573 242,301
Excess (deficiency) of revenues
over (under) expenditures
(162,379) (162,379) (209,877) (47,498)
Other financing sources (uses):
Transfers in - - 522,489 522,489
Transfers out (241,334) (241,334) - 241,334
Total other financing sources (uses)
(241,334) (241,334) 522,489 763,823
Net change in fund balances (403,713) (403,713) 312,612 716,325
Fund balance (deficit), beginning of year (37,064) (37,064) (37,064)
Fund balance (deficit), end of year $ (440,777) (440,777) 275,548 716,325
96
CITY OF NATIONAL CITY
HUD Program Income Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Interest and rents $ - 18,565 18,565
Other revenues - 396 396
Total revenues
18,961 18,961
Expenditures:
Current:
General government 33,937 33,937 - 33,937
Community development 1,031,883 1,031,883 86,924 944,959
Culture and leisure 19,256 19,256 - 19,256
Capital outlay 54,290 54,290 - 54,290
Debt service:
Principal 795,067 795,067 - 795,067
Interest and fiscal charges 1,036,650 1,036,650 137,786 898,864
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
2,971,083 2,971,083 224,710 2,746,373
(2,971,083) (2,971,083) (205,749) 2,765,334
Other financing sources (uses):
Transfers out (328,620) (328,620) (1,256,501) (927,881)
Total other financing sources (uses) (328,620) (328,620) (1,256,501) (927,881)
Net change in fund balances (3,299,703) (3,299,703) (1,462,250) 1,837,453
Fund balance, beginning of year 3,265,382 3,265,382 3,265,382
Fund balance (deficit) , end of year $ (34,321) (34,321) 1,803,132 1,837,453
97
CITY OF NATIONAL CITY
HOME Program Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Interest and rents $ - - 79,788 79,788
Intergovernmental 1,201,730 1,201,730 631,387 (570,343)
Total revenues 1,201,730 1,201,730 711,175 (490,555)
Expenditures:
Current:
Community development 1,099,882 1,099,882 285,128 814,754
Total expenditures 1,099,882 1,099,882 285,128 814,754
Net change in fund balances 101,848 101,848 426,047 324,199
Fund balance, beginning of year,
as restated 3,790,353 3,790,353 3,790,353
Fund balance, end of year $ 3,892,201 3,892,201 4,216,400 324,199
98
CITY OF NATIONAL CITY
Asset Forfeiture Special Revenue Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Fines and forfeitures $ 119,058 119,058 142,350 23,292
Interest and rents 15,400 15,400 3,461 (11,939)
Total revenues
Expenditures:
Current:
Public safety
134,458 134,458 145,811 11,353
44,865 44,865
38,887 5,978
Total expenditures 44,865 44,865 38,887 5,978
Net change in fund balances 89,593 89,593 106,924 17,331
Fund balance, beginning of year 441,065 441,065 441,065
Fund balance, end of year $ 530,658 530,658 547,989 17,331
99
CITY OF NATIONAL CITY
Joint Powers Financing Authority Debt Service Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
Revenues:
Interest and rents
Intergovernmental
Total revenues
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
$
490,656 490,656
490,656 490,656
11
486,796
11
(3,860)
486,807 (3,849)
Expenditures:
Debt service
Principal 325,000 325,000 325,000
Interest and fiscal charges 161,798 161,798 161,807 (9)
Total expenditures 486,798 486,798 486,807 (9)
Net change in fund balances 3,858 3,858 - (3,858)
Fund balance, beginning of year 1 1 1 -
Fund balance, end of year $ 3,859 3,859 1 (3,858)
100
CITY OF NATIONAL CITY
Library Bond Debt Service Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Other revenues $ 488,900 488,900 428,459 (60,441)
Total revenues 488,900 488,900 428,459 (60,441)
Expenditures:
Current:
General government - 3,078 (3,078)
Debt service
Principal 155,000 155,000 155,000
Interest and fiscal charges 244,500 244,500 244,500
Total expenditures 399,500 399,500 402,578 (3,078)
Net change in fund balances 89,400 89,400 25,881 (63,519)
Fund balance, beginning of year 714,010 714,010 714,010 -
Fund balance, end of year $ 803,410 803,410 739,891 (63,519)
101
CITY OF NATIONAL CITY
Library Construction Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Interest and rents $ 3,200 3,200 2,623 (577)
Intergovernmental - - 14,656 14,656
Total revenues 3,200 3,200 17,279 14,079
Expenditures:
Capital outlay
Total expenditures - - -
Net change in fund balances 3,200 3,200 17,279 14,079
Fund balance, beginning of year 120,741 120,741 120,741
Fund balance, end of year $ 123,941 123,941 138,020 14,079
102
CITY OF NATIONAL CITY
Proposition A Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Interest and rents $ 72,511 72,511 14,407 (58,104)
Intergovernmental 924,000 924,000 1,500,000 576,000
Total revenues 996,511 996,511 1,514,407 517,896
Expenditures:
Capital outlay 4,490,643 4,490,643 1,844,119 2,646,524
Total expenditures 4,490,643 4,490,643 1,844,119 2,646,524
Net change in fund balances (3,494,132) (3,494,132) (329,712) 3,164,420
Fund balance, beginning of year 1,651,612 1,651,612 1,651,612
Fund balance, end of year $ (1,842,520) (1,842,520) 1,321,900 3,164,420
103
CITY OF NATIONAL CITY
STP Local/TransNet Highway Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Interest and rents $ 20,852 20,852 - (20,852)
Intergovernmental - 403,547 403,547
Total revenues 20,852 20,852 403,547 382,695
Expenditures:
Capital outlay 599,742 599,742 500,597 99,145
Total expenditures 599,742 599,742 500,597 99,145
Net change in fund balances (578,890) (578,890) (97,050) 481,840
Fund balance (deficit), beginning of year (236,156) (236,156) (236,156) -
Fund balance (deficit), end of year $ (815,046) (815,046) (333,206) 481,840
104
CITY OF NATIONAL CITY
State - Local Partnership Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Interest and rents $ 2,671 2,671 1,440 (1,231)
Total revenues 2,671 2,671 1,440 (1,231)
Net change in fund balances 2,671 2,671 1,440 (1,231)
Fund balance, beginning of year 25,634 25,634 25,634 -
Fund balance, end of year $ 28,305 28,305 27,074 (1,231)
105
CITY OF NATIONAL CITY
Traffic Congestion Relief Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Intergovernmental $ 578,823 578,823 514,332 (64,491)
Total revenues 578,823 578,823 514,332 (64,491)
Expenditures:
Current:
Capital outlay 508,634 508,634 506,599 2,035
Total expenditures 508,634 508,634 506,599 2,035
Net change in fund balances 70,189 70,189 7,733 (62,456)
Fund balance (deficit), beginning of year (69,270) (69,270) (69,270)
Fund balance (deficit), end of year $ 919 919 (61,537) (62,456)
106
CITY OF NATIONAL CITY
Fire Construction Capital Projects Fund
Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual
For the Year Ended June 30, 2010
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:
Interest and rents $ - 2,933 2,933
Total revenues
Expenditures:
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers out
Total other financing sources (uses)
2,933 2,933
2,933 2,933
(394,000) 394,000
(394,000) 394,000
Net change in fund balances - (391,067) 396,933
Fund balance, beginning of year 409,183 409,183 409,183
Fund balance, end of year $ 409,183 409,183 18,116 396,933
107
INTERNAL SERVICE FUNDS
Facilities Maintenance Fund
This fund is used to account for the costs of maintaining all City -owned buildings in a clean,
safe, workable, and pleasant condition.
Liability Insurance Fund
This fund is used to account for the costs of maintaining the City's workers' compensation and
liability insurance programs.
General Services Fund
This fund is used to account for the costs of maintaining the City's centralized procurement
system providing supplies, equipment, and certain services for all City departments.
Information Systems Maintenance Fund
This fund is used to account for the costs of maintaining the City's computer -related information
systems.
Office Equipment Depreciation Fund
This fund is used to account for the costs to replace City office equipment.
Telecommunications Revolving Fund
This fund is used to account for the costs of maintaining the City's telecommunications system.
General Accounting Services Fund
This fund is used to account for the costs of general accounting services.
Motor Vehicle Services Fund
This fund is used to account fort the City's costs of preventative maintenance and repairs for all
City vehicles including police, fire, general administrative, park, sewer and public works
equipment.
Equipment Replacement Reserve Fund
This fund is used to account for the costs to replace City general equipment.
Unemployment Insurance Reserve Fund
This fund is used to account for a reserve for unemployment insurance.
108
CITY OF NATIONAL CITY
Combining Statement of Net Assets
Internal Service Funds
June 30, 2010
Information Office
Facilities Liability General Systems Equipment
Maintenance Insurance Services Maintenance Depreciation
ASSETS
Current assets:
Cash and investments $ 752,771 7,066,242 491,045 1,085,711 1,877,507
Cash and investments with fiscal agents 1,248,323 - - -
Accounts receivable 918 1,133 72,231
Inventories - 14,649 -
Total current assets
Noncurrent assets:
Capital assets:
Nondepreciable assets
Depreciable assets, net of
accumulated depreciation
2,001,094 7,067,160 506,827 1,157,942 1,877,507
507,000
98,878 109,819
Total capital assets 507,000 - 98,878 109,819
Total noncurrent assets 507,000 - 98,878 109,819
Total assets 2,508,094 7,067,160 506,827 1,256,820 1,987,326
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 160,576 91,117 6,861 12,357 33,661
Salaries payable 18,639 1,029 3,830 2,076
Capital lesases payable -
due within one year 21,381 - -
Compensated absences 58,927 2,272 4,025 13,693
Self-insurance claims payable -
due within one year 1,597,744
Total current liabilities 259,523 1,692,162 14,716 28,126 33,661
Noncurrent liabilities:
Capital lesases payable -
due in more than one year
Self-insurance claims payable -
due in more than one year
1,733,779
Total liabilities 1,993,302
NET ASSETS
4,286,256
5,978,418 14,716
28,126 33,661
Invested in capital assets,
net of related debt 507,000 - 98,878 109,819
Unrestricted 7,792 1,088,742 492,111 1,129,816 1,843,846
Total net assets $ 514,792 1,088,742 492,111 1,228,694 1,953,665
109
General Motor Equipment Unemployment
Telecommunications Accounting Vehicle Replacement Insurance
Revolving Services Services Reserve Reserve
722,290
Total
527,883 1,179,324 266,038 187,552 14,156,363
- - - 1,248,323
- - - 74,282
- - - 14,649
722,290 527,883 1,179,324 266,038 187,552 15,493,617
- -
- - 507,000
- - 843,264 298,274 1,350,235
- 843,264 298,274 1,857,235
- 843,264 298,274 1,857,235
722,290 527,883
2,022,588 564,312
187,552 17,350,852
37,374 4,451 33,585 1,412 381,394
1,296 15,145 9,841 - 51,856
- - - 21,381
66,642 33,000 - 178,559
- - - 1,597,744
38,670 86,238 76,426 1,412 2,230,934
- - - 1,733,779
- - - 4,286,256
38,670 86,238 76,426 1,412 8,250,969
683,620
683,620
- 843,264 298,274 1,857,235
441,645 1,102,898 264,626 187,552 7,242,648
441,645 1,946,162
562,900 187,552 9,099,883
110
CITY OF NATIONAL CITY
Combining Statement of Revenues, Expenses and Changes in Net Assets
Internal Service Funds
For the Year Ended June 30, 2010
Operating revenues:
Services charges
Other revenues
Total operating revenues
Information Office
Facilities Liability General Systems Equipment
Maintenance Insurance Services Maintenance Depreciation
$ 2,099,016 2,859,483 432,960 714,624 425,616
163 408,116 - 10,777
2,099,179 3,267,599 432,960 725,401 425,616
Operating expenses:
Personnel services 728,462 78,398 101,387 119,876
Maintenance and operations 1,800,856 3,671,881 195,952 492,393 220,129
Depreciation - - 31,006 43,459
Total operating expenses 2,529,318 3,750,279 297,339 643,275 263,588
Operating income (loss) (430,139) (482,680) 135,621 82,126 162,028
Transfers in 1,326,860 - -
Transfers out (200,000) - (400,000)
Change in net assets 896,721 (682,680) 135,621 82,126 (237,972)
Net assets, beginning of year (381,929) 1,771,422 356,490 1,146,568 2,191,637
Net assets, end of year $ 514,792 1,088,742 492,111 1,228,694 1,953,665
111
General Motor Equipment Unemployment
Telecommunications Accounting Vehicle Replacement Insurance
Revolving Services Services Reserve Reserve
Total
397,812 865,908 1,577,352 - 38,820 9,411,591
7,335 1,892 949 - 429,232
405,147 867,800 1,578,301 - 38,820 9,840,823
57,531 570,626 435,362 - 2,091,642
291,311 210,808 906,939 16,943 55,568 7,862,780
3,737 - 220,768 23,654 322,624
352,579 781,434 1,563,069 40,597 55,568 10,277,046
52,568 86,366 15,232 (40,597) (16,748) (436,223)
1,326,860
(200,000) (230,000) - (1,030,000)
(147,432) (143,634) 15,232 (40,597) (16,748) (139,363)
831,052 585,279 1,930,930 603,497 204,300 9,239,246
683,620 441,645 1,946,162 562,900 187,552 9,099,883
112
CITY OF NATIONAL CITY
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2010
Information Office
Facilities Liability General Systems Equipment
Maintenance Insurance Services Maintenance Depreciation
Cash flows from operating activities:
Cash received from customers/other funds 2,099,016 2,858,600 431,827 714,624 425,616
Cash payments to suppliers (1,794,706) (2,577,268) (186,800) (527,944) (265,529)
Cash payments for general and administrative (726,895) (89,923) (101,016) (95,760) -
Cash received from (payments to) other 163 408,116
Net cash provided (used) by
operating activities
(422,422) 599,525 144,011 90,920 160,087
Cash flows from capital and related financing
activities:
Acquisition or disposal of capital assets (507,000) - (109,269)
Issuance of lease payable 1,755,160
Net cash provided (used) by capital
and related financing activities
1,248,160 - (109,269)
Cash flows from non -capital financing activities:
Cash received from other funds 1,175,356 - - -
Cash paid to other funds (200,000) - (400,000)
Net cash provided (used) by non -capital
financing activities
1,175,356 (200,000) - (400,000)
Net increase (decrease) in cash and
cash equivalents 2,001,094 399,525 144,011 (18,349) (239,913)
Cash and investments:
Beginning of year 6,666,717 347,034 1,104,060 2,117,420
End of year $ 2,001,094 7,066,242 491,045 1,085,711 1,877,507
Cash flows from operating activities:
Operating income (loss) $ (430,139) (482,680) 135,621 82,126 162,028
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation - 31,006 43,459
Changes in current assets and liabilities:
Accounts receivable (883) (1,133) -
Inventories - 6,399 -
Accounts payable and accrued liabilities 6,150 35,613 2,753 (35,551) (45,400)
Salaries payable 1,983 (2,120) 159 (354) -
Compensated absences (416) (9,405) 212 13,693 -
Self-insurance claims payable 1,059,000 -
Total adjustments 7,717 1,082,205 8,390 8,794 (1,941)
Net cash provided (used) by
operating activities $ (422,422) 599,525 144,011 90,920 160,087
113
General Motor Equipment Unemployment
Telecommunications Accounting Vehicle Replacement Insurance
Revolving Services Services Reserve Reserve
Total
397,812 865,908 1,577,352 - 38,820 9,409,575
(284,544) (216,034) (1,147,572) (16,943) (55,568) (7,072,908)
(57,609) (582,622) (432,466) - (2,086,291)
7,335 1,892 949 - 418,455
62,994 69,144
(1,737) (16,943)
(16,748) 668,831
(75,305) - (691,574)
- - 1,755,160
(75,305) - 1,063,586
- - - 1,175,356
(200,000) (230,000) - - (1,030,000)
(200,000) (230,000) - - 145,356
(137,006) (160,856) (77,042) (16,943) (16,748) 1,877,773
859,296 688,739 1,256,366 282,981 204,300 13,526,913
722,290 527,883 1,179,324 266,038 187,552 15,404,686
52,568 86,366 15,232 (40,597) (16,748) (436,223)
3,737 - 220,768 23,654 322,624
- - - (2,016)
- - - 6,399
6,767 (5,226) (240,633) - (275,527)
(78) 171 (224) - (463)
(12,167) 3,120 - (4,963)
- - - 1,059,000
10,426 (17,222) (16,969) 23,654 1,105,054
62,994 69,144
(1,737) (16,943)
(16,748) 668,831
114
FIDUCIARY FUNDS
AGENCY FUNDS:
Cobra Insurance Fund
This fund is used to account for amounts collected by the City from retirees to pay their health
insurance premiums.
Miscellaneous Deposits Fund
This fund is used to account for miscellaneous deposits collected by the City.
115
CITY OF NATIONAL CITY
Statement of Changes in Assets and Liabilities
Agency Funds
For the Year Ended June 30, 2010
Balance Balance
July 1, 2009 Additions Deletions June 30, 2010
COBRA INSURANCE FUND
Assets:
Cash and investments $ 5,163 235,940 (210,455) 30,648
Accounts receivable - 1,768 - 1,768
Total assets $ 5,163 237,708 (210,455) 32,416
Liabilities:
Accounts payable $ 5,163 237,708 (210,455) 32,416
Total liabilities $ 5,163 237,708 (210,455) 32,416
Balance Balance
July 1, 2009 Additions Deletions June 30, 2010
MISCELLANEOUS DEPOSITS FUND
Assets:
Cash and investments $ 593,376 188,436 (128,085) 653,727
Total assets $ 593,376 188,436 (128,085) 653,727
Liabilities:
Accounts payable $ 593,376 188,436 (128,085) 653,727
Total liabilities $ 593,376 188,436 (128,085) 653,727
Balance Balance
July 1, 2009 Additions Deletions June 30, 2010
TOTAL AGENCY FUNDS
Assets:
Cash and investments $ 598,539 424,376 (338,540) 684,375
Accounts receivable - 1,768 - 1,768
Total assets $ 598,539 426,144 (338,540) 686,143
Liabilities:
Accounts payable $ 5,163 237,708 (210,455) 32,416
Depostis payable 593,376 188,436 (128,085) 653,727
Total liabilities
$ 598,539 426,144 (338,540) 686,143
116
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117
DESCRIPTION OF STATISTICAL SECTION
June 30, 2010
This part of the City of National City's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information say about the government's overall
financial health.
Contents: Pages
Financial Trends - these schedules contain trend information to help the
reader understand how the City's financial performance and well-being
have changed over time.
Revenue Capacity - these schedules contain information to help the
reader assess the City's most significant local revenue source, the
property tax.
Debt Capacity - these schedules present information to help the reader
assess the affordability of the City's current levels of outstanding debt
and the City's ability to issue additional debt in the future
Demographic and Economic Information - these schedules offer
demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
Operating Information - these schedules contain service and
infrastructure data to help the reader understand how the information in
the City's financial report relates to the services the City provides and the
activities it performs.
119 - 128
129 - 136
137 - 144
145 - 146
147 - 149
118
CITY OF NATIONAL CITY
Net Assets by Component'
Last Eight Fiscal Years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006
Governmental Activities:
Invested in Capital assets,
net of related debt 50,268,232 92,988,998 101,117,839 93,916,816
Restricted 26,694,109 49,185,546 44,125,574 37,597,633
Unrestricted 44,331,476 (19,947,768) (18,088,821) (2,314,564)
Total governmental activities net assets 121,293,817 122,226,776 127,154,592 129,199,885
Business -type Activities:
Invested in Capital assets,
net of related debt 12,481,289 11,844,051 11,204,491 10,854,822
Restricted 1,913,163 1,157,359 2,439,808 2,134,043
Unrestricted (241,387) 1,142,236 - -
Total business -type activities net assets 14,153,065 14,143,646 13,644,299 12,988,865
Primary Government:
Invested in Capital assets,
net of related debt 62,749,521 104,833,049 112,322,330 104,771,638
Restricted 28,607,272 50,342,905 46,565,382 39,731,676
Unrestricted 44,090,089 (18,805,532) (18,088,821) (2,314,564)
Total primary government net assets 135,446,882 136,370,422 140,798,891 142,188,750
Notes: ' The City of National City implemented GASB 34 for the period ended June 30, 2003.
Information prior to the implementation is not available.
Source: City of National City Comprehensive Annual Financial Reports.
119
Fiscal Year
2007 2008 2009 2010
95,083,039 90,395,315 98,809,386 99,340,829
41,250,048 53,081,951 48,092,405 55,609,616
5,449,969 7,376,407 8,481,142 7,351,272
141,783,056 150,853,673
155,3 82,933 162,3 01,717
10,407,472 5,584,797 5,354,253 5,148,247
1,778,624 1,996,801 2,101,803 1,524,392
12,186,096 7,581,598
7,456,056 6,672,639
105,490,511 95,980,112 104,163,639 104,489,076
43,028,672 55,078,752 50,194,208 57,134,008
5,449,969 7,376,407 8,481,142 7,351,272
153,969,152 158,435,271
162,838,989 168,974,356
CITY OF NATIONAL CITY
Change in Net Assets12
Last Eight Fiscal Years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005
Expenses:
Governmental Activities:
General government 15,228,774 4,840,699 5,821,973
Public safety 21,707,108 20,691,526 29,517,769
Transportation 1,499,506 3,118,995 5,185,480
Community development 7,845,282 18,772,524 23,565,808
Health 5,683,202 6,776,503 6,776,548
Culture and leisure 4,054,931 5,321,896 6,261,480
Interest on long-term debt (unallocated) 948,690 2,401,283 4,809,381
Depreciation expense (unallocated) 3,418,754 - -
Total governmental activities expenses 60,386,247 61,923,426 81,938,439
Business -type Activities:
TDA 3,003,738 3,037,348 3,100,807
Community development commission 1,618,597 1,694,815 1,816,212
Total business -type activities expenses 4,622,335 4,732,163 4,917,019
Total primary government expenses
65,008,582 66,655,589 86,855,458
Program Revenue:
Government Activities:
Charges for services:
General government 821,488 8,638,252 11,726,343
Public safety 2,159,250 1,294,738 552,384
Transportation 44,074 1,650 -
Community development 1,111,801 902,399 467,810
Health 4,733,821 1,225 -
Culture and leisure 278,139 637,165 559,500
Operating grants and contributions 12,666,340 21,815,537 30,438,839
Capital grants and contributions 3,474,092 136,227 186,889
Total governmental activities program revenue 25,289,005 33,427,193 43,931,765
Business -type Activities:
Charges for services:
TDA 1,210,576 1,321,281 1,170,795
Community development commission 1,806,538 1,819,435 1,843,918
Operating grants and contributions 1,352,066 1,365,549 1,307,972
Capital grants and contributions - - 52,137
Total business -type activities program revenue 4,369,180 4,506,265 4,374,822
Total primary government program revenue 29,658,185 37,933,458 48,306,587
Net Revenues (Expenses):
Governmental activities (35,097,242) (28,496,233) (38,006,674)
Business -type activities (253,155) (225,898) (542,197)
Total Net Revenues (Expenses) (35,350,397) (28,722,131) (38,548,871)
Notes: 1 The City of National City implemented GASB 34 for the period ended June 30, 2003.
Information prior to the implementation is not available.
2 The National City transit operation (TDA) was discontinued during fiscal year 2007.
Source: City of National City Comprehensive Annual Financial Reports.
121
Fiscal Year
2006 2007 2008 2009 2010
3,141,167 5,219,116 5,881,015 5,224,693 6,774,769
24,841,408 25,943,803 27,218,309 29,670,520 32,426,770
9,979,551 2,680,880 7,144,911 7,735,716 2,966,635
23,709,596 22,209,522 24,841,387 17,049,437 17,693,511
6,049,689 6,273,178 7,426,569 5,963,766 7,775,510
6,243,390 6,387,197 6,304,412 6,928,456 6,238,223
2,631,082 2,768,004 2,853,399 2,525,568 2,524,121
76,595,883 71,481,700 81,670,002 75,098,156 76,399,539
3,684,772 2,689,687 2,218,661 - -
2,535,540 2,059,738 2,078,822 2,191,014 2,854,075
6,220,312 4,749,425 4,297,483 2,191,014 2,854,075
82,816,195 76,231,125 85,967,485 77,289,170 79,253,614
11,731,690 11,210,231 3,035,893 2,331,329 3,624,978
182,214 74,987 192,291 1,820,369 1,976,414
557,715 767,558 776,094 631,769 625,194
- 7,426,730 7,355,009 7,258,317
650,428 843,273 935,297 420,314 771,433
27,308,279 23,016,167 26,090,615 20,674,207 21,051,606
243,662 166,994 112,107 - -
40,673,988 36,079,210 38,569,027 33,232,997 35,307,942
1,287,218 891,013 - -
1,920,403 1,955,520 2,044,277 2,041,477 2,063,715
2,002,041 990,340
5,209,662 3,836,873 2,044,277 2,041,477 2,063,715
45,883,650 39,916,083
40,613,304
35,274,474 37,371,657
(35,921,895) (35,402,490) (43,100,975) (41,865,159) (41,091,597)
(1,010,650) (912,552) (2,253,206) (149,537) (790,360)
(36,932,545) (36,315,042) (45,354,181) (42,014,696) (41,881,957)
CITY OF NATIONAL CITY
Changes in Net Assets (Continued)' 2 3
Last Eight Fiscal Years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005
General Revenue and Other Changes in Net Assets:
Governmental Activities:
Taxes:
Property taxes 10,020,098
Sales taxes 14,746,115
Franchise taxes 1,267,983
Motor vehicle license 3,443,936
Transient occupancy taxes 959,078
Other taxes 922,906
Investment earnings 1,381,560
Other misc
Rent 60,993
Transfers
Total governmental activities 32,802,669
Business -type Activities:
Investment earnings 27,958
Other misc
Rent
Transfers
Total business -type activities 27,958
8,091,564
16,458,677
1,369,136
2,950,346
927,873
44,092
1,294,564
1,932,799
86,467
10,634,257
18,723,950
1,421,404
4,488,802
1,002,664
1,239,038
1,795,642
82,011
33,155,518 39,387,768
37,340 42,850
9,684
47,024 42,850
Total primary government 32,830,627 33,202,542 39,430,618
Changes in Net Assets:
Governmental activities
Business -type activities
Total Primary Government
(2,294,573)
(225,197)
4,659,285
(178,874)
1,381,094
(499,347)
(2,519,770) 4,480,411 881,747
Notes: ' The City of National City implemented GASB 34 for the period ended June 30, 2003.
Information prior to the implementation is not available.
2 The National City transit operation (TDA) was discontinued during fiscal year 2007.
3 The City of National City implemented a one cent district tax during fiscal year 2007
causing an increase in sales tax revenue and investment earnings.
Source: City of National City Comprehensive Annual Financial Reports.
123
Fiscal Year
2006 2007 2008 2009 2010
13,304,816 15,232,910 16,421,961 15,827,505 9,983,799
17,571,328 22,102,515 24,072,743 20,700,283 18,872,987
1,357,256 1,440,770 1,416,236 1,737,134 1,941,081
4,558,078 4,837,677 5,100,399 5,370,617 5,181,701
618,378 908,187 841,745 630,049 725,901
1,460,288 3,405,789 3,369,224 1,425,385 572,489
314,606 (27,714) 270,269 461,101
80,711 85,527 305,082 733,454 763,157
2,378,910
39,265,461 47,985,661 53,906,300 46,694,696 38,502,216
59,721
34,653
94,374
39,359,835
82,069 27,618
27,714
(2,378,910)
109,783 (2,351,292)
48,095,444 51,555,008
3,343,566 12,583,171 10,805,325
(916,276) (802,769) (4,604,498)
23,995 6,943
23,995 6,943
46,718,691 38,509,159
4,829,537
(125,542)
(2,589,381)
(783,417)
2,427,290 11,780,402 6,200,827 4,703,995 (3,372,798)
CITY OF NATIONAL CITY
Fund Balances of Government Funds'
Last Eight Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2003 2004 2005
General Fund:
Reserved 83,397
Unreserved 7,439,565
Total general fund 7,522,962
1,101,354
8,056,981
1,126,090
11,457,153
9,158,335 12,583,243
All Other Governmental Funds:
Reserved 13,241,484 46,548,352 19,446,936
Unreserved
Designated 27,833,769 14,949,382 15,596,121
Undesignated:
Special revenue funds 8,553,693 3,714,794 13,350,731
Capital projects funds 12,071,391 2,233,057 9,978,986
Debt service funds
Total all other governmental funds 61,700,337 67,445,585 58,372,774
Notes: 1 The City of National City has elected to show only six years of data for this schedule.
Source: City of National City Comprehensive Annual Financial Reports.
125
Fiscal Year
2006 2007 2008 2009 2010
1,171,748
11,620,584
1,501,213
15,585,066
1,727,692
18,298,540
1,164,034
17,276,654
1,126,408
10,699,617
12,792,332 17,086,279 20,026,232 18,440,688 11,826,025
21,676,313 25,758,503 23,958,237 22,821,977 27,090,770
7,416,455 15,554,052 10,832,286 18,774,518 19,332,920
17,346,630 15,595,453 23,394,266 19,853,304 21,864,572
7,107,297 4,201,534 9,750,823 4,428,286 (394,314)
53,546,695 61,109,542 67,935,612 65,878,085 67,893,948
126
CITY OF NATIONAL CITY
Changes in Fund Balances of Government Funds' 2
Last Eight Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2003 2004 2005
Revenues:
Taxes $ 27,753,702 $ 30,511,964 $ 36,831,882
Licenses and permits 246,354 297,937 895,617
Fines and forfeitures 992,882 1,125,965 1,234,563
Interest and rents 1,813,396 1,411,209 2,176,345
Intergovernmental 20,190,583 20,493,616 26,776,553
Charges for services 6,607,356 7,767,770 9,386,573
Other revenues 1,784,270 1,719,177 6,726,776
Total revenues 59,388,543 63,327,638 84,028,309
Expenditures:
Current:
General government 16,217,080 4,895,801 5,087,967
Public safety 18,391,488 21,008,075 29,230,210
Transportation 1,499,506 1,587,585 2,904,547
Community development 8,179,356 18,922,721 25,061,379
Health 5,683,202 6,776,503 6,776,548
Culture and leisure 4,070,165 5,321,896 6,261,480
Capital outlay 5,390,611 5,874,829 15,058,251
Debt service:
Principal 715,000 745,000 985,000
Interest and fiscal charges 952,313 2,079,792 4,206,020
Total expenditures 61,098,721 67,212,202 95,571,402
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (uses)
Proceeds from issuance of debt
Payment to bond escrow agent
Proceeds from lease
Proceeds from sale of land
Transfers in
Transfers out
Total other financing
sources (uses)
Net change in fund balances
(1,710,178)
(3,884,564) (11,543,093)
6,000,000 12,760,000
2,180,736
(2,249,687)
5,931,049
261,937
1,997,101
9,774,100
(9,749,297)
37,780,000
(37,111,533)
18,113,443
(16,433,443)
15,043,841 2,348,467
$ 4,220,871 $ 11,159,277 $ (9,194,626)
Debt services as a percentage of
noncapital expenditures 2.99%
4.61% 6.45%
Notes: ' The City of National City has elected to show only six years of data for this schedule.
2 The City of National City implemented a one cent district tax during fiscal year 2007
causing an increase in sales tax revenue and investment earnings.
Source: City of National City Comprehensive Annual Financial Reports.
127
Fiscal Year
2006 2007 2008 2009 2010
$ 39,138,480 $ 46,477,691 $ 49,871,559 $ 47,448,811 $ 44,435,811
887,009 872,998 801,232 742,616 555,717
1,237,069 939,083 1,322,347 1,303,006 1,454,328
1,957,322 3,405,789 3,369,224 2,387,531 1,414,747
24,345,988 23,863,565 24,377,473 21,575,928 22,200,569
9,330,082 9,328,340 8,471,286 8,371,734 9,064,198
2,662,154 2,358,768 2,680,389 1,926,494 3,465,296
79,558,104 87,246,234 90,893,510 83,756,120 82,590,666
5,395,508 4,723,185 5,354,513 4,559,601 6,517,068
25,784,443 25,130,868 26,528,937 27,958,385 30,715,473
3,369,380 3,236,793 3,756,298 3,079,647 2,118,325
23,315,799 20,992,576 23,721,153 18,029,047 21,870,082
6,049,689 6,273,178 7,426,569 5,963,766 7,761,907
6,243,390 6,387,197 6,276,859 6,928,456 6,160,615
10,957,597 2,074,818 1,636,398 14,450,567 5,501,888
3,224,395 2,871,863 2,891,709 3,024,837 3,191,174
3,014,431 2,898,962 2,864,933 2,689,608 2,535,113
87,354,632 74,589,440 80,457,369 86,683,914 86,371,645
(7,796,528)
458,994
10,431,154
(7,931,154)
12,656,794 10,436,141
8,182,525
(8,982,525)
2,958,994 (800,000)
13,096,724
(13,151,446)
(2,927,794) (3,780,979)
8,119,544
(8,534,544)
9,692,695
(9,989,555)
(54,722) (415,000) (296,860)
$ (4,837,534) $ 11,856,794 $ 10,381,419 $ (3,342,794) $ (4,077,839)
8.17%
7.96% 7.30%
7.91% 7.08%
128
CITY OF NATIONAL CITY
Assessed Value and Actual Value of Taxable Property,
Last Ten Fiscal Years
Category
Secured:
Residential Property
Commercial Property
Industrial Property
Institutional Property
Irrigated Property
Recreational Property
Unknown
Vacant Land
Total Secured
Unsecured
SBE Nonunitary
Total Taxable Assessed
Value
Total Direct Tax Rate
Fiscal Year
2001
2002
2003
2004
$ 788,688,010
536,869,078
161,263,160
2,457,011
2,906,723
11,700
28,414,815
$ 858,637,562
556,740,563
174,165, 831
5,322,431
2,416,278
356,276
31,387,754
$ 910,661,353
583,704,244
184,467,093
4,045,907
4,778,254
504,895
29,305,007
$ 977,435,596
578,140,896
193,821,784
25,829,220
3,082,188
943,052
37,815,694
1,520,610,497
100,902,500
11,076,114
1,629,026,695
103,159,838
11,138,470
1,717,466,753
107,821,517
10,884,643
1,817,068,430
119,327,613
11,768,070
$ 1,632,589,111 $ 1,743,325,003 $ 1,836,172,913 $ 1,948,164,113
0.46454%
0.49717%
Source: HDL, San Diego County Assessor 1999/00- 2009/10 Combined Tax Rolls.
Note: Exempt values are not included in Total.
0.51221%
0.52091%
129
Fiscal Year
2005
2006
2007
2008
2009
2010
$ 1,082,306,711
611,146, 522
184,112,160
9,13 7,490
3,119,237
45,967,328
$ 1,249,018,196
677,325,076
237,113,411
6,773,868
4,369,771
41,602,858
$ 1,519,346,327
704,702,806
262,732, 815
5,568,713
4,745,005
58,129,839
$ 1,675,533,232
744,585,873
264,996,707
4,3 82,185
6,697,142
68,304,793
$ 1,727,050,075
797,911,588
276,149,692
44,982,886
35,858
14,655,682
92,409,693
$ 1,486,019,671
871,757,000
288,230,654
54,514,910
36,575
26,509,839
93,470,678
1,935,789,448
121,108,202
6,177,516
2,216,203,180
132,740,967
6,064,199
2,555,225,505
142,087,044
5,931,260
2,764,499,932
154,942,915
4,039,249
2,953,195,474
168,066,373
5,858,889
2,820,539,327
204,465,642
5,586,456
$ 2,063,075,166 $ 2,355,008,346 $ 2,703,243,809 $ 2,923,482,096 $ 3,127,120,736 $ 3,030,591,425
0.53714%
0.55593%
0.56773%
0.56773%
0.57066%
0.55977%
130
Apparel Stores
General Merchandise
Food Stores
Eating and Drinking Places
Building Materials
Auto Dealers and Supplies
Service Stations
Other Retail Stores
All Other Outlets
Total
CITY OF NATIONAL CITY
Taxable Sales by Category
Last Ten Calendar Years
(in thousands of dollars)
Fiscal Year
2000
$ 68,747
111,743
22,414
76,964
107,523
505,252
50,383
152,722
224,792
2001 2002
$ 80,205
102,599
23,546
85,359
109,537
559,094
55,835
154,463
230,643
$ 81,644
91,623
24,853
89,744
116,682
599,535
54,877
161,749
237,629
2003
$ 88,193
116,240
23,164
94,911
129,890
625,127
61,579
165,782
230,318
$ 1,320,540 $ 1,401,281 $ 1,458,336 $ 1,535,204
Source: HDL, State of California Board of Equalization
Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories
presented are intended to provide alternative information regarding the sources of the City's revenue.
131
Fiscal Year
2004 2005 2006 2007 2008 2009
$ 93,647
152,364
23,095
100,584
174,606
676,045
72,078
167,541
245,383
$ 100,833
156,538
23,922
101,601
176,404
688,366
74,105
174,630
290,701
$ 101,026
149,482
24,024
106,731
124,594
651,140
79,548
176,574
271,636
$ 101,928
144,515
24,781
107,109
100,055
587,778
81,823
150,407
266,338
$ 106,482
149,789
27,680
112,064
74,872
426,316
87,171
142,477
235,434
$ 110,113
143,897
27,885
111,565
34,355
335,246
66,560
121,245
203,713
$ 1,705,343 $ 1,787,100 $ 1,684,755 $ 1,564,734 $ 1,362,285 $ 1,154,579
132
Agency
CITY OF NATIONAL CITY
Direct and Overlapping Property Tax Rates,
Last Ten Fiscal Years
(Rate Per $100 of Taxable Value)
Fiscal Year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Basic Levy' 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000
Chula Vista Elementary 0.02515 0.02396 0.02645 0.02723 0.02811 0.02738 0.02662 0.02029 0.01762 0.02507
Lower Sweetwater Fire Prot D Tax Rate Reduction 0.00000 -0.16701 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
Metropolitan Water District 0.00880 0.00770 0.00670 0.00610 0.00580 0.00520 0.00470 0.00450 0.00430 0.00430
National City Gen. Obligation Bonds 2002 Series A 0.00000 0.00000 0.00000 0.02275 0.02000 0.01770 0.01570 0.01430 0.01300 0.01270
San Diego Community College 0.00000 0.00000 0.00000 0.01786 0.01901 0.02495 0.01782 0.02740 0.01212 0.02482
San Diego Unified 0.00000 0.00000 0.00000 0.09575 0.08676 0.07590 0.07149 0.06007 0.06184 0.06670
San Diego Unified Lease/Purchase 0.09575 0.09575 0.09575 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
San Diego Water Authority 0.00091 0.00083 0.00075 0.00067 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
Southwestern Community College Bond 2000 0.00000 0.01544 0.01304 0.00727 0.01301 0.01505 0.01405 0.01253 0.01320 0.03442
Sweetwater High Bond 0.00000 0.02527 0.02196 0.01956 0.01818 0.02252 0.02016 0.04711 0.04621 0.05580
Total Direct & Overlapping2 Tax Rates 1.13061 1.00194 1.16465 1.19719 1.19087 1.18870 1.17054 1.18620 1.16829 1.22381
City's Share of 1% Levy Per Prop 133 0.17720 0.17720 0.17720 0.17720 0.17720 0.17720 0.17720 0.17720 0.17720 0.17720
General Obiligation Debt Rate 0.00000 0.00000 0.00000 0.02275 0.02000 0.01770 0.01570 0.01430 0.01300 0.01270
Redevelopment Rate 1.00971 1.00853 1.00745 1.00677 1.00580 1.00520 1.00470 1.00450 1.00430 1.00430
Total Direct Rate 0.49349 0.49814 0.51297 0.52942 0.54468 0.56253 0.57282 0.58192 0.57590 0.55977
Analysis of the Basic Tax Levy'
General Elementary National
National City General Fund
High Sweetwater Union
County General
Educational Revenue Augmentation Fund
Southwestern Community College
County School Service
Regional Occupation Centers
CWA City of National City
Physically Handicapped Minors Elem. Comp.
Trainable Mentally Retarded Minors Elem. Comp.
County School Service - Capital Outlay
Children's Institutions Tuition
Development Centers For Handicapped EC56811 Elem.
Chula Vista Project (19/84602)
Chula Vista Project (19/84601)
Autistic Pupils Minors Elementary Comp.
Total
0.28860
0.17720
0.17660
0.14930
0.13550
0.04760
0.00710
0.00453
0.00401
0.00314
0.00203
0.00179
0.00152
0.00045
0.00037
0.00019
0.00010
$ 1.0000
'In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides
within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax
ratio figues.
Source: HDL, San Diego County Assessor 1999/00- 2009/10 Combined Tax Rolls.
133
Taxpayer
CITY OF NATIONAL CITY
Principal Property Tax Payers,
Current Year and Nine Years Ago
2010 2001
Percentage
of Total City
Taxable Taxable Taxable
Assessed Assessed Assessed
Value Rank Value Value
Rank
Percentage
of Total City
Taxable
Assessed
Value
Plaza Bonita LP $ 237,591,621 1 7.84%
PASHA Group 41,348,146 2 1.36%
MPT of Paradise Valley LP 40,306,136 3 1.33%
Costco Wholesale 31,579,508 4 1.04%
Pacific Castle Bay Plaza LLC 26,530,200 5 0.88%
Adventist Health System West 24,496,400 6 0.81%
Prime Healthcare Services Foundation 23,103,000 7 0.76%
Sweetwater Associates LP 22,890,307 8 0.76%
G.W. Williams Company 22,750,226 9 0.75%
Dexter Street LP - Joseph Grego Trust 22,150,000 10 0.73%
Centermark Properties Inc. $ 107,750,197 1 6.60%
Dixiline Lumber Company 24,784,990 2 1.52%
G F Pinnacle Peak Limited Partnership 21,408,880 3 1.31%
Wells Fargo Bank 19,427,537 4 1.19%
Plaza Bonita LLC 15,032,891 5 0.92%
PASHA Group 14,485,933 6 0.89%
C I P Venture 13,857,673 7 0.85%
National City Capital 12,238,459 8 0.75%
WDOP SUB I LP 12,009,686 9 0.74%
Sweetwater Square LLC LF AARDEMA 11,108,321 10 0.68%
Total
$ 492,745,544 16.26% $ 252,104,567 15.45%
Source: HDL, San Diego County Assessor 2000/01- 2009/10 Combined Tax Rolls.
134
Current Year Tax Levy
Current Tax Collections
Percent of Levy Collected
Delinquent Tax Receivable
Delinquent Tax Collections
Total Tax Collections
Percent of Total Tax
Collections To Tax Levy
Outstanding Delinquent Taxes
Percent of Delinquent Taxes
To Tax Levy
CITY OF NATIONAL CITY
Property Tax Levies and Collections
Last Eight Fiscal Years
Fiscal Year
2003
2004
2,083,370 2,163,020.93
2,073,381 2,153,774.45
99.52% 99.57%
10,511.53 12,083.88
1,221.20 2,129.39
2,074,602
99.58%
19,279.10
2,155,904
99.67%
19,200.97
0.93% 0.89%
2005
2,211,147.75
2,203,473.44
99.65%
12,541.85
1,320.07
2,204,794
99.71 %
18,896.09
2006
2,415,266.09
2,407,113.65
99.66%
12,204.02
2,060.98
2,409,175
99.75%
18,295.48
0.85% 0.76%
135
Fiscal Year
2007
2,678,831.84
2,670,617.78
99.69%
13,617.59
1,502.01
2,672,120
99.75%
20,329.64
0.76%
2008
2,855,586.70
2,843,810.13
99.59%
15,637.23
1,104.17
2,844,914
99.63%
26,309.63
0.92%
2009
3,119,017.93
3,102,793.31
99.48%
16,471.53
2,886.11
3,105,679
99.57%
29,810.04
0.96%
2009
3,119,017.93
3,102,793.31
99.48%
16,471.53
2,886.11
3,105,679
99.57%
29,810.04
0.96%
2010
3,133,983.84
3,104,248.21
99.05%
16,862.66
1,863.54
3,106,112
99.11%
44,734.75
1.43%
CITY OF NATIONAL CITY
Ratios of Outstanding Debt by Type
Last Eight Fiscal Years
Governmental Activities:
NCJPFA Lease Revenue Refunding Bond
Tax Allocation Bonds
General Obligation Bonds
HUD 108 Bond 2003 A
Total Bonded Debt
Percent of Taxable Assessed Values
Per Capita
Capital Lease Payable
Business -Type Activities:
Notes Payable
Total Primary Government
Percent of Personal Income
Per Capita
Fiscal Year
2003
$ 5,315,000
42,580,000
6,000,000
2004
$ 5,060,000
47,950,000
6,000,000
6,900,000
53,895,000 65,910,000
2.94% 3.38%
$ 969 $ 1,207
3,597,013
261,937
3,466,933
2005
$ 4,790,000
48,280,000
5,970,000
6,730,000
65,770,000
3.19%
$ 1,181
1,727,591
3,328,141
$ 57,492,013 $ 69,638,870 $ 70,825,732
4.91%
$ 1,034 $
5.91%
1,276 $ 1,271
5.89%
137
Fiscal Year
2006 2007 2008 2009 2010
$ 4,510,000 $ 4,220,000 $ 3,920,000 $ 3,605,000 $ 3,280,000
45,885,000 43,885,000 41,820,000 39,680,000 37,455,000
5,850,000 5,720,000 5,585,000 5,440,000 5,285,000
6,560,000 6,380,000 6,185,000 5,975,000 5,750,000
62,805,000 60,205,000 57,510,000 54,700,000 51,770,000
2.67% 2.23% 1.97% 1.75% 1.71%
$ 1,124 $ 1,074 $ 1,021 $ 964 $ 896
1,927,190 1,655,327 1,372,940 1,117,728 856,554
3,180,054 3,022,049 2,853,463 2,481,662 2,853,463
$ 67,912,244 $ 64,882,376 $ 61,736,403 $ 58,299,390 $ 55,480,017
5.39% 5.03% 4.82% 4.80% n/a
$ 1,216 $ 1,157 $ 1,096 $ 1,028 $ 960
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139
2008-09 Assessed Valuation:
Redevelopment Incremental Valuation:
Adjusted Assessed Valuation:
CITY OF NATIONAL CITY
Direct and Overlapping Debt
As of June 30, 2010
$3,033,506,532
1,381,128,411
$1,652,378,121
Total Debt City's Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2010 % Applicable' Debt 6/30/10
Metropolitan Water District $264,220,000 0.091% $240,440
San Diego Community College District 623,390,828 0.003% 18,702
Southwestern Community College District 181,958,656 4.279% 7,786,011
Chula Vista City School District 78,430,000 1.646% 1,290,958
Sweetwater Union High School District 343,709,415 5.133% 17,642,604
Sweetwater Union High School District Community Facilities Districts 30,470,907 0.216 - 4.040 416,072
City of National City 5,285,000 100% 5,285,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $1,527,464,806 $32,679,787
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations $415,240,000 0.475% $1,972,390
San Diego County Pension Obligations 853,514,739 0.475% 4,054,195
San Diego County Superintendent of Schools Obligations 21,187,500 0.475% 100,641
Southwestern Community College District General Fund Obligations 1,625,000 4.279% 69,534
Sweetwater Union High School District Certificates of Participation 10,480,000 5.133% 537,938
Chula Vista City School District Certificates of Participation 143,025,000 1.646% 2,354,192
City of National City Certificates of Participation 3,280,000 100% 3,280,000
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $1,448,352,239 $12,368,890
COMBINED TOTAL DEBT
$2,975,817,045 $45,048,677 2
' Percentage of overlapping agency's assessed valuation located within boundaries of the city.
Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non -bonded capital lease obligations.
Ratios to 2009-10 Assessed Valuation:
Direct Debt ($5,285,000)
Total Direct and Overlapping Tax and Assessment Debt
Ratios to Adjusted Assessed Valuation:
Combined Direct Debt ($8,565,000)
Combined Total Debt
0.17%
1.08%
0.52%
2.73%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/10: $0
AB:($450)
Source : California Municipal Statistics, Inc.
140
CITY OF NATIONAL CITY
Legal Debt Margin Information,
Last Eight Fiscal Years
Fiscal Year
2003 2004 2005
Assessed Valuation $ 1,836,172,913 $ 1,948,164,113 $ 2,063,075,166
Conversion Percentage 25% 25% 25%
Adjusted Assessed Valuation 459,043,228 487,041,028 515,768,792
Debt Limit Percentage 15% 15% 15%
Debt Limit 68,856,484 73,056,154 77,365,319
Total Debt (due more than one year) $ 59,221,743 $ 73,917,274 $ 72,916,217
Less: Non Bonded Debt
Claims Payable (2,747,983) (4,670,000)
Compensated Absences (2,604,810) (2,707,375) (2,107,129)
Capitalized Lease Obligation (208,775) (154,034)
Notes Payable (3,466,933) (3,328,141) (3,180,054)
Total Applicable to Limitation 53,150,000 64,925,000 62,805,000
Legal Debt Margin 15,706,484 8,131,154 14,560,319
Total debt applicable to the limit as
a percentage of debt limit 77% 89% 81%
141
Fiscal Year
2006 2007 2008 2009 2010
$ 2,355,008,346 $ 2,703,243,809 $ 2,923,482,096 $ 3,127,120,736 $ 3,030,591,425
25% 25% 25% 25% 25%
588,752,087 675,810,952 730,870,524 781,780,184 757,647,856
15% 15% 15% 15% 15%
88,312,813 101,371,643 109,630,579 117,267,028 113,647,178
$ 68,984,074 $ 65,688,525 $ 62,378,019 $ 59,224,556 $ 59,224,556
(1,705,127) (2,890,000) (2,578,000) (2,759,900) (4,286,256)
(2,396,563) (1,062,113) (1,326,678) (1,356,431) (1,053,748)
(1,655,335) (1,372,949) (1,099,735) (856,565) (682,943)
(3,022,049) (2,853,463) (2,673,606) (2,481,662) (2,276,886)
60,205,000
57,510,000 54,700,000
28,107,813
51,769,998 50,924,723
43,861,643 54,930,579
65,497,030 62,722,455
68% 57% 50% 44% 45%
142
CITY OF NATIONAL CITY
Pledged Revenue Coverage
Last Eight Fiscal Years
2003
2004
2005
Revenue
Property Tax Gross Incremental Revenue $ 7,739,209 $ 6,833,182 $ 7,682,979
Debt Service Requirements
Principal
Interest and fiscal charges
Pass - through payments
Debt Coverage
470,000
712,829
1,118,535
$ 2,301,364
3.36
Source : City of National City Comprehensive Financial Annual Reports
745,000
1,916,639
1,174,999
$ 3,836,638
1.78
815,000
3,758,688
1,244,621
$ 5,818,309
1.32
143
Fiscal Year
2006 2007
2008 2009 2010
$ 9,847,226 $ 10,834,596 $ 11,766,428 $ 11,790,224 $ 11,184,289
2,795,000
2,614,817
1,367,750
2,000,000
2,033,220
1,452,351
2,065,000
2,017,843
1,525,468
$ 6,777,567 $ 5,485,571 $ 5,608,311
1.45 1.98
2,140,000
1,883,148
1,553,258
2,225,000
1,806,370
7,395,921
$ 5,576,406 $ 11,427,291
2.10 2.11 0.98
CITY OF NATIONAL CITY
Demographic and Economic Statistics
Last Ten Fiscal Years
Educational Attainment
v Pct. of S.D. from Avg. % High % Bachelor's Per Capita
Total County Previous Median Household School Degree or Pct. Below Unemployment Personal Personal
Year Population Population Year Age Size Graduate Higher Poverty Rate Income (000s)* Income*
2001 54,463 1.9% 0.5% 28.6 3.49 n/a n/a n/a 8.4% $1,172,000 $21,520
2002 54,743 1.9% 0.5% 28.4 3.51 n/a n/a n/a 10.3% $1,165,400 $21,290
2003 55,608 1.9% 1.6% 28.6 3.53 n/a n/a n/a 10.4% $1,170,000 $21,040
2004 54,592 1.8% -1.8% 28.6 3.53 n/a n/a n/a 9.5% $1,178,300 $21,580
2005 55,710 1.8% 2.0% 28.4 3.52 n/a n/a n/a 8.7% $1,201,700 $21,570
2006 55,863 1.8% 0.3% 28.7 3.49 n/a n/a n/a 8.0% $1,258,800 $22,530
2007 56,063 1.8% 0.4% 28.9 3.58 62% 9% 23.9% 9.1% $1,290,100 $23,010
2008 56,320 1.8% 0.5% 29.0 3.59 66% 13% 23.0% 11.8% $1,279,800 $22,720
2009 56,730 1.8% 0.7% 29.1 3.66 n/a n/a n/a 18.5% $1,214,000 $21,400
2010 57,799 1.8% 1.9% 29.7 3.81 n/a n/a n/a n/a n/a n/a
Sources: SANDAG, Current Estimates (Aug. 2010); California Department of Finance; California Employment Development Department; U.S. Census Bureau, Census 2000 and American Community
Survey; U.S. Bureau of Economic Analysis
Notes:
*Dollar values are inflation -adjusted to 2009
145
City of National City
Full-time Equivalent City Government Employees by Function/Program,
Last Eight Fiscal Years
Fiscal Year
2003' 2004' 20052 2006 2007 2008 2009 2010**
Function/Program
General Government
City Clerk 2.03 2.03 3.03 3.03 3.16 3.16 3.16 3.16
City Manager 5.00 5.00 7.50 7.00 7.50 7.50 7.50 7.50
Risk Management 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00
Management Information Systems 3.00 3.00 3.00 6.00 4.00 4.00 4.00 4.00
Finance 15.25 15.25 16.75 13.75 17.00 17.00 17.00 17.00
Purchasing 2.48 2.48 2.48 2.48 2.48 3.48 3.48 2.48
City Attorney 3.00 3.00 3.00 3.00 3.50 3.50 3.50 3.50
Human Resources 3.00 4.25 4.50 5.50 6.25 4.80 4.80 5.30
Community Development* 17.25 17.75 18.00 25.75
Planning 8.07 8.07 9.00 6.50 6.50 7.50 7.70 5.10
Building 8.50 8.15 13.63 15.00 4.00 4.00 4.00 4.40
Engineering 11.95 12.50 14.95 14.95 14.70 14.70
Redevelopment* 4.00 4.00 7.00 5.20
Advanced Planning/Economic Development* 1.00 5.50 2.40 2.75
Housing & Grants* 11.00 11.00 11.58 17.85
Neighborhood Services* 11.00 12.00 11.00 6.00
Public Works 48.43 47.45 51.27 51.27 51.25 51.00 50.00 51.00
Community Services 32.94 32.84 19.84 23.08 23.00 23.00 23.00 22.50
Nutrition Center 15.00 15.00 12.25 11.25
Library 20.81 19.56 19.56 21.41 25.91 25.91 31.18 28.51
Public Safetey
Police 126.86 128.34 128.84 134.84 134.36 139.36 139.36 139.36
Fire 47.25 48.25 48.25 48.25 48.25 48.25 48.25 48.25
Transit' 45.00 43.00 43.00 43.00
Public Works & Engineering were considered one Department during FY 2003 and 2004.
Parks Division is no longer included inder Community Services Department. It became a division of Public Works during FY 2005.
3 National City Transit is no longer managed by the City and is now operated by Metropolitan Transit System (MTS).
* Prior to FY 2007 Redevelopment, Advanced Planning/Economic Development, Housing & Grants and Neighborhood Services were
budgeted through the Community Development Commision.
**The information listed above includes frozen positions that are currently vacant and unfunded. The City of National City had 27.50 FTE frozen for FY 2010.
Sources: Based on annual City Budgeted personnel.
N/A: Not available.
146
Employer
CITY OF NATIONAL CITY
Principal Employers,
Current Year and Ten Years Ago
2010 2000
Percentage Percentage
of Total City of Total City
Employees Rank Employment Employees Rank Employment
National School District 462 1 2.35% N/A 2 N/A
Sweetwater Union High School District 400 2 2.04% N/A 4 N/A
Walmart 400 3 2.04% N/A N/A
NMS Management 300 4 1.53%
Dixiline Pro Build 285 5 1.45%
National City 275 6 1.40% N/A 6 N/A
Ball Automotive Group 250 7 1.27% 7
Macy's 250 8 1.27% N/A N/A
Motivational Systems Inc 245 9 1.25%
Mossy Nissan National City 200 10 1.02% 5
Paradise Valley Hospital N/A 1 N/A
General Motors Acceptance Corp N/A 3 N/A
National City Ford N/A 8 N/A
McCune Chrysler Plymouth N/A 9 N/A
Ron Baker Chevrolet Isuzu N/A 10 N/A
Sources: National City Finance Department, Dun & Bradstreet, Selectory.com
147
City of National City
Operating Indicators by Function/Program,
Last Eight Fiscal Years
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010
Function/Program
Police
Physical arrests N/A N/A N/A N/A 3,000 3,100 3,834 3,456
Parking violations N/A N/A N/A N/A 5,341 5,003 4,956 9,843
Traffic violations N/A N/A N/A N/A 1,941 2,450 3,154 3,491
Fire
Emergency responses 4,868 5,667 5,532 5,342 5,402 5,497 5,394 5,165
Fires extinguished 173 227 178 184 170 158 118 140
Inspections N/A N/A 1,779 1,638 2,099 N/A N/A N/A
Other public works
Street resurfacing (miles) N/A N/A N/A N/A N/A N/A 17 25
Parks and recreation
Athletic Yield permits issued b N/A N/A N/A N/A 24 24 24 17
Community center admissions N/A N/A N/A N/A 49,767 49,803 49,825 65,609
Library
Volumes in collection 172,258 180,925 144,952 170,915 185,722 194,383 200,516 207,100
Total volumes borrowed 216,166 292,766 272,840 214,837 273,646 312,591 316,075 285,527
Wastewater
Average daily sewage treatment
(million gallons per day) N/A N/A N/A N/A 5.211 5.211 5.211 4.482
Sources: Various City Departments.
N/A: Not available.
148
City of National City
Capital Asset Statistics by Function/Program,
Last Eight Calender Years
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010
Function/Program
Police
Stations 1 1 1 1 1 1 1 1
Zone offices 0 0 0 0 0 1 1 1
Patrol units N/A N/A N/A N/A N/A 38 38 38
Fire stations 2 2 2 2 2 2 2 2
Other public works
Streets (miles) N/A 101 101 101 101 101 101 101
Highways (miles) a 6 6 6 6 6 6 6 6
Streetlights N/A N/A N/A N/A 1,673 1,723 1,725 1,730
Traffic signals 89 89 89 89 89 89 89 88
Parks and recreation
Acreage 84 84 84 84 84 84 84 84
Playgrounds 4 4 4 4 4 4 4 4
Baseball/softball diamonds b 7 7 7 7 7 7 7 7
Soccer/football fields b 3 33 3 3 3 3 3 3
Community centers 5 5 5 5 5 5 5 5
Wastewater
Sanitary sewers (miles) N/A 100 100 100 100 100 100 97
Storm sewers (miles) N/A 25.3 25.3 25.3 25.3 25.3 25.3 25.3
Treatment capacity (million
gallons per day) 5.04 5.01 5.02 5.02 4.83 4.52 4.48 7.10
Sources: Various City Departments.
N/A: Not available.
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