ACFR FY 2008-2009COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2009
Old Poway Park Train Depot
Dedicated October 20, 2009
City of Poway
Poway, California
Comprehensive Annual Financial Report
For the year ended June 30, 2009
PREPARED BY THE CITY OF POWAY, CALIFORNIA
FINANCE DEPARTMENT
City of Poway
Basic Financial Statements
For the year ended June 30, 2009
Table of Contents
i
Page
INTRODUCTORY SECTION
Table of Contents ....................................................................................................................................................... i
Letter of Transmittal ................................................................................................................................................ v
Principal Officials .................................................................................................................................................. xiii
Organizational Chart ............................................................................................................................................ xiv
GFOA Certificate of Achievement for Excellence in Financial Reporting ..................................................... xv
FINANCIAL SECTION
Independent Auditors’ Report .............................................................................................................................. 1
Management’s Discussion and Analysis (Required Supplementary Information) ................................... 3
Basic Financial Statements:
Government – Wide Financial Statements:
Statement of Net Assets ............................................................................................................................ 16
Statement of Activities and Changes in Net Assets.............................................................................. 18
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ....................................................................................................................................... 24
Reconciliation of Governmental Funds Balances Sheet to the
Government-Wide Statement of Net Assets ............................................................................. 26
Statement of Revenues, Expenditures
and Changes in Fund Balances ................................................................................................... 28
Reconciliation of Governmental Statement of Revenues, Expenditures,
and Changes in Fund Balances to the Government-Wide Statement
of Activities and Changes in Net Assets ................................................................................... 30
Proprietary Fund Financial Statements:
Statement of Net Assets ..................................................................................................................... 32
Statement of Revenues, Expenses and Changes in Fund Net Assets .......................................... 33
Statement of Cash Flows .................................................................................................................... 34
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Assets ................................................................................................... 36
Notes to Basic Financial Statements ............................................................................................................ 37
City of Poway
Basic Financial Statements
For the year ended June 30, 2009
Table of Contents, Continued
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Page
FINANCIAL SECTION, Continued
Required Supplementary Information:
Budgetary Information ............................................................................................................................. 78
Budgetary Comparison Schedule – General Fund ............................................................................... 79
Budgetary Comparison Schedule – Low/Moderate Income Housing Special Revenue Fund ...... 80
Defined Benefit Pension Plans ................................................................................................................. 81
Supplementary Information:
Non-Major Governmental Funds:
Combining Balance Sheet ......................................................................................................................... 88
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................ 94
Non-Major Special Revenue Funds:
City of Poway RDA Debt Service Fund .................................................................................... 99
Fire Protection ............................................................................................................................. 100
800 MHz Communication System ........................................................................................... 101
Gas Tax ......................................................................................................................................... 102
Street Improvement ................................................................................................................... 103
Drainage Special ......................................................................................................................... 104
Maintenance Districts ............................................................................................................... 105
Miscellaneous Grants ................................................................................................................. 106
Community Development Block Grant .................................................................................. 107
Transportation Development Act ............................................................................................ 108
Proposition A Special ................................................................................................................ 109
Royal Mobilehome Park Administration ................................................................................ 110
Traffic Congestion AB 2928 ....................................................................................................... 111
Bette Bendixen ........................................................................................................................... 112
Poway Road Beautification ....................................................................................................... 113
Poway Valley Senior Center Endowment ............................................................................... 114
Old Poway Park Tree ................................................................................................................. 115
Poway Public Arts Special Revenue Fund .............................................................................. 116
Kumeyaay Endowment ............................................................................................................ 117
Poway Fine Arts Center ............................................................................................................ 118
Senior Volunteer Patrol ............................................................................................................. 119
Prop 1B Transportation Bond Special Revenue Fund ........................................................... 120
Storm Water Management Special Revenue Fund ................................................................ 121
Fire Equipment Trust Special Revenue Fund ......................................................................... 122
Public Art Trust Special Revenue Fund .................................................................................. 123
Regional Arterial Mitigation Special Revenue Fund ............................................................. 124
Mary Patricia Ross ...................................................................................................................... 125
Library Permanent ..................................................................................................................... 126
City Debt Service Fund .............................................................................................................. 127
Park Improvement Capital Project Fund ................................................................................ 128
Municipal Improvement Capital Project Fund ...................................................................... 129
City of Poway
Basic Financial Statements
For the year ended June 30, 2009
Table of Contents, Continued
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Page
FINANCIAL SECTION, Continued
Internal Service Funds:
Combining Statement of Net Assets ..................................................................................................... 132
Combining Statement of Revenues, Expenses and Changes in Net Assets .................................... 133
Combining Statement of Cash Flows ................................................................................................... 134
Agency Funds:
Statement of Fiduciary Net Assets ........................................................................................................ 136
Combining Statement of Changes in Assets and Liabilities .............................................................. 137
STATISTICAL SECTION
Net Assets by Component – Current and Prior Three Years ......................................................................... 140
Changes in Net Assets for Governmental Activities – Current and Prior Three Years ............................. 141
Changes in Net Assets for Business-Type Activities – Current and Prior Three Years ............................. 143
Fund Balances, Governmental Funds – Last Ten Fiscal Years ....................................................................... 144
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................................. 146
Assessed Value of Taxable Property General Property Tax – Last Ten Fiscal Years .................................. 148
Direct and Overlapping Property Tax Rates General Property Tax – Last Ten Fiscal Years .................... 150
Principal Secured Property Tax Payers General Property Tax
– Current Year and Nine Years Ago ............................................................................................................ 151
Assessed Value of Taxable Property Redevelopment Tax Increment
Property Tax – Last Ten Fiscal Years .......................................................................................................... 152
Redevelopment Property Tax Levies and Collections – Last Ten Fiscal Years ........................................... 154
General Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 155
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ......................................................................... 156
Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years .......................................................... 158
Direct and Overlapping Debt as of June 30, 2009 ............................................................................................ 159
Legal Debt Margin Information – Last Ten Fiscal Years ................................................................................. 160
Pledged Revenue Coverage – Last Ten Fiscal Years ....................................................................................... 162
Demographic and Economic Statistics – Last Ten Calendar Years ............................................................... 163
Principal Employers – Current and Prior Three Years ................................................................................... 164
Full-Time-Equivalent City Employees by Function – Last Six Fiscal Years ................................................. 165
Operating Indicators – Current and Prior Three Years ................................................................................... 166
Capital Assets Statistics – Current and Prior Three Years .............................................................................. 167
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DON HIGGINSON, Mayor
CARL KRUSE, Deputy Mayor
MERRILEE BOYACK, Councilmember
JIM CUNNINGHAM, Councilmember
BETTY REXFORD, Councilmember
CITY OF POWAY
City Hall Located at 13325 Civic Center Drive
Mailing Address: P.O. Box 789, Poway, California 92074-0789
www.poway.org
January 23, 2010
Honorable Mayor and Members of the City Council
Poway, California
This Comprehensive Annual Financial Report (CAFR) is prepared in order to provide you and the
community with a report of the financial transactions of the City of Poway, for the year ended June 30,
2009. Responsibility for the accuracy, completeness, and fairness of the report rests with the City.
We believe that the data, as presented, is accurate in all material aspects; that it is presented in a
manner designed to fairly set forth the financial position and results of operations of the City, as
measured by the financial activity of its various fund types; and that all disclosures necessary to enable
the reader to gain the maximum understanding of the City's financial affairs have been included.
The significant accounting policies of the City are described in the Notes to Financial Statements.
These accounting policies have been approved by the City's independent certified public accountants,
and are in conformance with the recommendations of the American Institute of Certified Public
Accountants and the Governmental Accounting Standards Board (GASB).
This report is prepared following the guidelines set forth by the Government Finance Officers
Association of the United States and Canada and the California Society of Municipal Finance Officers.
In accordance with the above-mentioned guidelines, the report is divided into three sections:
1. Introductory Section - including this letter of transmittal, the City's organizational chart, and
the list of principal officers.
2. Financial Section - including the independent report from the City's certified public
accountants, management’s discussion and analysis, basic financial statements, notes to
financial statements, and required supplementary information.
3. Statistical Section - including other pertinent unaudited financial tables and information that
presents historical trends, demographics, and miscellaneous data about the City.
Management’s discussion and analysis (MD&A) immediately follows the independent auditor’s report
and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A
complements this letter of transmittal and should be read in conjunction with it.
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January 23, 2010
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The Reporting Entity and Its Services
Included within the City's financial statements is the financial information of the Poway Redevelopment
Agency and the Poway Public Financing Authority. Although the entities are legally separate from the
City, their financial operations are closely related. Their activities are included with the activities of the
City, because the City Council serves as the Board of Directors and is able to impose its will on both
entities. There is, therefore, a financial benefit/burden relationship. This financial presentation is in
accordance with GASB Codification, Section 2100.
The City of Poway was incorporated December 1, 1980, under the general laws of the State of
California. The City operates under a Council-Manager form of government and provides the following
services: public safety (law enforcement), community services, development services, public works,
general administrative services, and capital improvements.
The Poway Redevelopment Agency was established April 26, 1983, pursuant to the State of California
Health and Safety Codes, Section 33000, entitled "Community Redevelopment Law." Its purpose is to
eliminate blighted areas by encouraging the development of residential, commercial, industrial,
recreational, and public facilities.
The Poway Public Financing Authority is a joint powers authority organized pursuant to the State of
California Government Code, Section 6500. The authority exists under a Joint Exercise of Power
Agreement dated October 8, 1991, between the City of Poway and the Poway Redevelopment Agency.
Its purpose is to assist in financing and refinancing projects for the benefit of the City and the Agency.
History
Poway, from Indian words meaning "where the waters meet," first gained prominence in the 1800s as
an important link in Southern California's stagecoach network. Today the City is a thriving, civic-spirited
community, located in the coastal foothills of San Diego County, just twenty miles north of downtown
San Diego and three miles east of Interstate 15.
The City of Poway flourishes with a family-oriented population of 51,126 and covers 39 square miles
with elevations ranging from 450 to 2,250 feet above sea level. Poway is a full-service general-law city
governed by a council of five members-at-large serving staggered four-year terms. In 1990, the City
had its first mayor directly elected by the voters. The City absorbed existing special districts as of
February 1, 1981. The City provides water, sewage collection, fire, paramedic, parks and recreation,
planning and building, street maintenance, and redevelopment services. Law enforcement services are
contracted through the San Diego County Sheriff’s Department, and wastewater treatment is provided
by the City of San Diego.
Poway is predominately a single-family community that has the lowest crime rate in the County. The
Poway Unified School District is a top performer in the State and nation, and is a source of great pride
for the City.
As part of San Diego County, Poway has a relatively dry climate with frost-free temperatures over 300
days per year, and rainfall of about 10 inches, which falls principally between October and April. The
average daytime temperature in Poway is about 74° F.
Poway has been popularly dubbed the "City in the Country." Poway has set aside over 65 percent of
total land use as open space, nearly 3,000 acres of dedicated public open space, 568 acres of
developed parkland featuring community parks and centers, and 82 miles of riding and hiking trails.
Poway has the third highest median household income in San Diego County, at $105,350 for 2009.
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January 23, 2010
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Home lots are often larger than in most other areas, with a median sales price of $373,500 in June
2009. Like many areas of the country, especially in Southern California, the June 2009 median sales
price represents a 17.9% decrease from the June 2008 median sales price of $455,000. While Poway
has not been immune to the national downturn in housing prices, Poway’s property tax base has not
been materially affected as of this date.
Economic Condition and Outlook
Economic Development: Poway's local economy is based primarily on automobile and transportation
related sales, general consumer goods, and business and industry. New retail development in the
Poway Business Park in recent years has generated substantial growth in sales tax. While automobile
sales have traditionally led the way, with the development of the Business Park, other sectors such as
business and industry and general consumer goods have helped to diversify the City’s sales tax base.
While diversification has helped, the slow down in the larger economy is still reflected in the City’s sales
tax revenue. In Fiscal Year 2009, Poway’s sales tax revenues decreased, because of the continued
slowing of consumer spending, especially in the automobile sector, and the loss of sales tax being
reported in Poway by Gateway Computers. The loss of sales tax from Gateway had been anticipated,
and had already been factored into the City’s budget. However, the extent of the decline in automobile
sales was not anticipated. The future of the auto industry is unsure. For this reason, we expect sales
tax revenues from automobile sales in Fiscal Year 2010 to continue to decrease.
The Poway Business Park remains a strong component of the local and regional economy. The
Business Park now represents approximately 8.9 million square feet of developed space, with an
average overall vacancy rate of 7.9%, which is among the lowest in San Diego County through the
second quarter of 2009. In addition, the Park is comprised of approximately 532 businesses, a
workforce of more than 18,000 people, and is a substantial contributor to the City’s sale tax revenue. In
Fiscal Year 2010, the Business Park will see little new development activity as developers, lenders and
business owners seek to weather the recession while looking for early signs of economic recovery.
However, the relocation of General Atomics which occupies one million square feet in the Business
Park was a highlight in 2009, bringing more than 3,000 professional positions to the City. As the
national economy slowly turns toward recovery, the Poway Business Park is well positioned to be a
strong growth center for San Diego County in the years ahead.
Partnering with the Chamber of Commerce, the City has continued the “Poway: Your First Choice”
campaign to promote the importance of shopping locally. The City recently co-sponsored ads for local
movie theaters, and promoting the Road of Cars. Community discount cards that will enable patrons to
secure discounts from Chamber of Commerce member businesses were distributed for the 2009
holiday shopping season.
Redevelopment: Staff is actively pursuing new tenants to occupy the vacant auto dealer parcels along
Poway Road. This high priority project will create an anchor business at the end of Poway Road that
will bring customers to both new and existing businesses.
Redevelopment Services is soliciting restaurant operators that are interested in developing a full-
service restaurant on the 1.23-acre Agency-owned site adjacent to the Hampton Inn & Suites Hotel in
the Poway Business Park. The goal is to create a synergy between the hotel and the restaurant that
can serve guests, and create a regional dining destination.
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January 23, 2010
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Major Accomplishments
The City started the year with high expectations and a manageable list of both long and short-term
goals and objectives for the year. These goals and objectives for the City included:
Continued emphasis on strong financial planning;
Reduced water consumption City-wide;
Strengthen the City’s Disaster Preparedness System;
Remain the safest community in San Diego County;
Workforce Housing Development;
Continue Technology Initiatives; and
Develop Master Plan for Community Park.
Fiscal Responsibility: Poway was faced with challenges over the last year due to the effect of
economic changes at the national, State, and regional levels. However, because of prudent financial
management, and a focus on accurate revenue projections, the City has been able to fund equipment
and facilities replacement, build reserves, and fund capital improvements without making significant
service level cuts. The City also undertook efforts to improve operational and program efficiencies in
light of slowing revenue growth.
The City continues to strive for a diversified local economy. With minimal opportunities for revenue
growth anticipated in the future, largely due to the availability of undeveloped land, the City has
concentrated on the expenditure side of its budget and maintained focus on long-term sustainability.
The City plans to assess and evaluate its budget at least quarterly and will make additional adjustments
as necessary to ensure a sustainable budget.
Water Conservation: In Spring 2009, the City’s main water supplier – Metropolitan Water District of
Southern California – announced mandatory water curtailments beginning July 1, 2009. For Poway,
the mandatory reduction from the San Diego County Water Authority equated to approximately an 8%
reduction of the average amount of water used during fiscal years 2005, 2006, and 2007.
Simultaneously, the City’s cost to purchase raw water increased sharply, by approximately 40% in less
than one year.
Anticipating reduced water deliveries, as well as increased costs, in March 2009, the City of Poway
established a five-pillar approach to achieve the necessary conservation and assist customers in
making long-term, sustainable change to how they use our limited water supply. These pillars include:
enhanced public education; additional incentive programs; water-savings projects at City-owned
properties; implementation of a more progressive rate structure; and enforcement of water waste
violations. On July 1, 2009 the City implemented mandatory water use restrictions, including limitations
on outdoor watering.
During winter and spring 2009, the City conducted a water rate study. The City’s rates required
adjustment because of the increased raw water costs. At the same time, the City Council considered
alternative rate structures to better promote conservation. In August 2009, the City Council approved
implementation of an inclining block rate structure for single-family residential customers to replace the
previous uniform rate structure. The new rate structure took effect with water bills mailed after
September 1, 2009. Initial results indicate that Powegians have responded to the call for conservation.
Water use in Poway between July and September 2009 is down approximately 20% compared to the
same period in 2008.
Disaster Preparedness: To protect the lives of fire fighters, and to provide for greater structure
protection, the City created the Wildfire Defensible Space Program (WDSP). The program requires 100
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January 23, 2010
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feet of defensible space be cleared around habitable structures within the Wildfire Urban Interface
Area. Staff continues to work with residents to ensure that the amount of flammable vegetation is
significantly reduced on properties. To date, 916 private properties have been identified as needing to
comply with the WDSP, with 822 properties completed. Similarly, approximately 18-acres of City
property near structures has been thinned and trimmed.
In 2009, the City continued to improve its Emergency Planning and Disaster Preparedness activities.
These improvements build upon the effectiveness of the recently adopted Emergency Operations Plan
and creation of a revamped Emergency Operations Center (EOC). The City remains committed to
training employees, implementing measures to minimize our risk to the effects of disasters, and provide
educational opportunities to community members. Staff received refresher training on the use of
WebEOC, AlertSanDiego emergency notification system, Disaster Service Worker, and care and
shelter operations. The Red Cross awarded the City an $80,000 grant to improve its care and shelter
operation capabilities. These funds are being used to establish three care and shelter sites by
partnering with local faith-based organizations, training their congregation members, and pre-
positioning supplies.
A workshop on “Community Partnering for Disaster Response” was held with representatives from local
businesses, churches, schools, and emergency responder agencies attending. The workshop provided
an opportunity for community sectors to share information and discuss the various supporting roles
each will perform during a disaster. The community was invited to a demonstration of fire suppressing
gels and fire protection products. Poway’s Community Emergency Response Teams (CERT) consists
of 64 members divided into three separate groups. In 2009, CERT members attended four training
sessions.
Housing: Last year, the Housing Element of the General Plan was updated. State law mandates that
the Housing Element be updated at least every five years. The Housing Element contains the City’s
overall goals, objectives, policies and programs, and addresses the City’s affordable housing needs.
The State Department of Housing and Community Development has approved and accepted the City’s
Housing Element. This update represents a significant accomplishment and collaborative effort by staff
and City Council.
The construction of The Meadows affordable for-sale housing is now complete. The project, which
includes 30 homes, is located on Metate Road just west of Community Road. The entire development
is affordable to households at low and moderate income levels and includes a variety of “green” energy
efficient elements including photovoltaic systems, dual pane windows, low-flow toilets, tankless water
heaters, energy efficient appliances, and drought-tolerant landscaping.
The City Council approved the construction of 71 affordable apartment units located on Brighton
Avenue near Midland Road, adjacent to Old Poway Park. The project will feature a Craftsman style
two-story design with ample open space and on-site resident services. Construction is scheduled to
begin in 2010, and will be part of the overall revitalization efforts within Old Poway Park. Extensive
traffic improvements to Midland Road and construction of the Train Depot were completed in old Poway
this year.
Design is also underway of 62 affordable family apartment units at Monte Vista near Pomerado
Hospital. The site, situated on 2.5 acres, will have underground parking with almost 50% of the site
dedicated to open space for use by residents. The townhomes will be designed in a contemporary
architectural style that will enhance the surrounding uses. Monte Vista will offer onsite resident
services and will include numerous “green” energy features.
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Witch Creek Fire Rebuilding Efforts: Staff has provided personalized service to assist in obtaining
project approval and building permits for the 90 families that lost their homes due to the Witch Creek
Fire. This program has been very successful. As of December 1, 2009, building plans for 51 homes
had been submitted for review, of which 46 building permits have been issued and 29 homes have
been completed and approved for occupancy.
Public Safety: The City of Poway remains the safest City in San Diego County. The Sherriff’s
Department continued its aggressive zero-tolerance policy toward gang related crimes. The
Department also reduced calls for service at multi-family housing complexes by employing a strategic
community policing outreach program and partnered with code compliance, and apartment managers.
In fiscal year 2008, the Fire Department responded to 3,829 emergency responses. Approximately
70% of the incidents were Emergency Medical Services (EMS) related. The Paramedics used new
automated handheld devices for initiating and processing the ambulance billing. This new equipment is
carried on all engines and ambulances.
Safety Services also improved its ability to deliver service to the community. A new engine designed
for a wildland fire was purchased in 2009. The hydraulic rescue tools on truck 3773 have been
upgraded. This truck company provides the community with the tools commonly referred to as the
“Jaws of Life.” The new state-of-the-art cutting and prying tools that are engineered to cut and pry the
advanced metals used in today’s automobiles, which continue to be designed and constructed to better
protect occupants. With significant upgrades to our waterline infrastructure, the City has greater
capacity and improved ability to serve and protect both residents and firefighters from wildfires.
Community Services: The Community Services Department offered a wide variety of cultural, social,
and recreational services for all ages. Staff organized and hosted 24 community-wide events, such as
Christmas in the Park and Community Day; and 36 smaller-scaled events that showcased the City’s
unique facilities and park settings.
In 2009, budgetary constraints led to operational changes and internal reorganization within the
department. However, staff managed these changes without significant service reductions from the
prior year. Operational changes included improvements in technology and automation. This reduced
staff time and enhanced customer access to program and facility information through web content and
automated phone trees, and enabled youth sports leagues to better control their field lighting expenses.
A focus on staff development equipped lead employees to identify and achieve continued operational
efficiencies.
Reduced City resources created new partnership opportunities. For example, the Poway Chamber of
Commerce has assumed responsibility for Community Day activities by organizing a street fair; and the
Poway Community Association has assumed responsibility for the Community Day Parade.
Major On-going Initiatives
Community Park Master Plan: Community Park is a 22.3-acre park with a combination of passive
and active uses which include: ball fields, skate park, swim center, tennis courts, dog park, and a
senior center. This is a major initiative that will include active participation from several departments.
The Community Park Master Plan effort will focus on significant community input from public hearings
to open houses. As part of this planning effort, staff met with the community to get input on how the
park is used and how it could best be improved. The Master Plan will be completed during 2010.
Capital Improvement Projects: There are 19 CIP projects that are either under construction or are
substantially complete. Some of the major projects are the Espola Road Pipeline, the Oak Knoll Road
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January 23, 2010
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Improvement project, the Highlands Ranch Pump Station Replacement, the Iron Mountain Park & Ride,
and the 2008-09 Street Overlay project.
There are 7 CIP projects totaling approximately $3.5 million that are in the pre-construction phase.
These include the High Valley Pump Station, the Settled Water Launder Replacement project and the
2009-10 Street Overlay project.
There are 16 CIP projects totaling approximately $13.9 million that are in various stages of design. It is
expected that construction on most of these will begin within the next 2 years. Some of the major
projects currently being designed are the County Water Authority Treated Water Connection and
Clearwell Pipeline replacement, the Boulder Mountain Reservoir Replacement, the High Valley
Waterline Replacement and the St. Andrews Lift Station Reconstruction.
Technology Upgrades: The City’s web site continues to improve over time. Online services such as
e-Zoning, and Business Registration applications and renewals, have been added to its functionality.
The City is updating and improving the layout and graphics of the web site to provide easier access to
our online applications, improved navigation to the commonly used functions, and to implement
functionality that was not available during its initial launch. Of note, the site has improved search
capabilities and staff has improved the content management tools that are used to keep the web sites
updated.
In January 2009, the Customer Service Division implemented CRW’s LicenseTrak application that
provide staff the ability to track, review and issue Business Certificates and Regulatory Licenses.
Businesses can now apply, pay, and print their business certificate all online.
Approximately 25 existing servers at City Hall will be replaced with a four blade server configuration in
which most of the existing server will be virtualized. Virtualization technology allows for multiple
servers to reside on a single Blade Server reducing the electrical consumption and amount of physical
hardware in the data center. The City will also centralize storage with a new Storage Area Network
(SAN) appliance. This project is expected to be completed by January 2010.
Early last year, Development Services contracted with CRW Systems to provide municipal tracking
software. Their product, TRAKiT, will provide a significant benefit to staff, management, and our
customers. Staff will have the ability to track the status, progress, and history of all projects, permits,
and Code Compliance cases in one easily accessible place. This new system will be a significant
change to the way the City does business and interacts with its customers. The greater efficiency,
accountability, and transparency it provides will continue to reap benefits for a long time to come. All
new projects, permits, Code Compliance cases, and inspection records will be entered into the new
system. Basic information on many of our historical records that predate the system will also be
available.
The electronic versions of our records will reduce the need for paper files, better organize the routing
and reviewing process, and link to our existing GIS system to graphically display the relationship
between different projects and land parcels. Project information will be accessible to any staff member
in the City at their own computer, greatly reducing the need to track down particular staff members to
answer most questions.
Another technology focus has been the further development of the City’s Geographic Information
System (GIS). The most important GIS enhancement this fiscal year was the beginning of the Water
and Wastewater Data Conversion project. This included the scanning of over 16,000 as-built
engineering drawings that were used to interpolate the data into GIS format. When complete, this
detailed information will greatly assist the Development Services staff with engineering design and
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provide Public Works operations staff with the information needed for maintenance and emergency
repairs.
Sustainability Initiatives: The City will be replacing old lighting at City Hall, the Poway Center for the
Performing Arts (PCPA), the Poway Library, and all of its Fire Stations with energy-efficient interior
lighting. The City is also working on future upgrades to the air conditioning system at the PCPA and the
Library. A recent review of electricity use at eight City buildings showed that an investment of about
$55,000 could save over $20,000 each year, save 175,000 kilowatt hours of electricity annually, and
reduce our the City’s carbon dioxide output by 76 tons.
The City is scheduled to receive $1.3 million for a variety of projects under the American Recovery and
Reinvestment Act (ARRA). Those projects include funding for streets maintenance and repair,
enhancing disabled access to public walkways, and providing traffic enforcement equipment to the
Poway Sheriff’s Department to help lower the number of traffic accidents along our major corridors,
such as Highway 67.
In addition, the City will receive $212,000 in funding to retrofit the Public Works Operations Center with
solar technology, allowing us to lower our operating costs and recoup our matching investment over a
shorter period of time. This dovetails nicely with the City’s overall efforts to reduce operating costs by
retrofitting our facilities with energy efficiency measures, such as lighting replacements, smart
controllers, occupancy sensors, and others. This project will save the City thousands of dollars a year
and reduce the City’s green house gas emissions. The solar installation is scheduled for completion in
2010.
Accounting System and Budgetary Control
The City's accounting records for governmental fund types and the Agency funds are maintained on the
modified accrual basis of accounting. The modifications to the accrual basis of accounting are
described in the Notes to Financial Statements. The accounting records for proprietary funds (water
and sewer) and the internal service funds are maintained on the full accrual basis of accounting.
Accordingly, revenues are recognized in the accounting period earned, and expenses are recognized in
the period incurred.
In developing and evaluating the City's accounting system, consideration is given to the adequacy of
internal accounting controls. Internal accounting controls are designed to provide reasonable, but not
absolute, assurance regarding (1) the safeguarding of assets against loss from unauthorized use or
disposition, and (2) the reliability of financial records for preparing financial statements and maintaining
accountability of assets. The concept of reasonable assurance recognizes that the cost of a control
should not exceed the benefits likely to be derived. The evaluation of this cost/benefit relationship
requires estimates and judgments by management.
All internal control evaluations occur within the above framework. We believe that the City's internal
accounting controls adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
Financial transactions are continuously updated in the City’s computerized financial reporting system,
and all managers have instant access to the current budget information for which they are responsible.
These financial reports compare the budgeted figures to the recorded transactions and compute the
resulting variance. These reports form the basis of the budgetary control system that allows for the
timely review and continuous assessment of the financial position and results of operations.
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January 23, 2010
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Additionally, an encumbrance system is employed as an extension of the formal budget integration.
The estimated purchase order amounts are encumbered prior to releasing the order to a vendor.
Purchase orders which would result in an overrun of balances at the functional level, are normally not
released until budget transfers are approved by the City Manager or additional appropriations are
authorized by the City Council. Open encumbrances are reported as annual reservations of fund
balances at year-end. The level of budgetary control (the level on which expenditures may not legally
exceed appropriations) is the individual fund level.
Other financial reports available for management and legislative review include quarterly reports of
investments and Capital Improvement Projects. At the end of six months, a midyear report is
distributed, which assesses the City's financial position and results of operations and projects activity
for the remainder of the fiscal year. The interim report forms the basis for the budget projections for the
upcoming fiscal year's budget. A budget review committee, consisting of five Council-designated
citizens, reviews the City's financial operations and budget controls twice each year. During Fiscal
Year 2006-07, the City, for the sixth time, adopted a two-year budget covering Fiscal Years 2007-08
and 2008-09.
The City’s investment policy is reviewed annually for changes in State regulations and is approved by
the City Council. Since Fiscal Year 1996-97, the City has utilized a professional investment
management company to assist in the investment of its funds. The investment management company
actively monitors the portfolio and advises the City of various investment strategies that assist the City
in meeting its stated investment goals of (1) safety of principal, (2) liquidity, and (3) return on
investment.
Risk Management
The City of Poway is a member of the California Joint Powers Insurance Authority (Authority), a
consortium of approximately 122 public entities. The Authority's governing board consists of one
member from each participating entity and is responsible for the selection of management as well as
budgeting and finance. Insurance activities are financed by charges to members, and no long-term
debt has been incurred. Actual annual premiums are determined using a retrospective method.
At June 30, 2009, for general liability, the City is self-insured for each loss to the extent of $30,000.
Losses between $30,001 and $10,000,000 are shared by the participating entities. Costs of covered
claims between $10,000,001 and $50,000,000 are paid by excess insurance. As for workers
compensation, the City is responsible for the first $50,000 of each claim. Costs between $50,001 and
$2,000,000 are shared by the participating entities. Costs between $2,000,001 and $200,000,000 are
paid by excess insurance purchased by the Authority. The Authority does maintain reserves, which are
regularly reviewed by an independent third party. Because of the low deductible amounts of the self-
insurance program, the City does not maintain reserves or a sinking fund for its unpaid claims and
judgments. They are expended as they occur, and the City intends to pay all of its unpaid claims and
judgments from available resources.
Independent Audit
The Government Code of the State of California requires general law cities such as Poway to be
audited annually by independent certified public accountants selected by the City Council. This
requirement has been met and the auditors' independent report is included in this report. Also, please
refer to the Management Discussion and Analysis section for an in-depth review of this year’s Financial
Statements.
Annual Financial Report
January 23, 2010
Page xiv
xiv
GFOA Certificate of Achievement for
Excellence in Financial Reporting
The Government Finance Officers Association of the United States and Canada (GFOA) has awarded
a Certificate of Achievement for Excellence in Financial Reporting to the City of Poway, California, for
its comprehensive annual financial report for the fiscal year ended June 30, 2008. In order to be
awarded a Certificate of Achievement for Excellence in Financial Reporting, a government must publish
an easily readable, efficiently organized Comprehensive Annual Financial Report whose contents
conform to program standards. Such reports must satisfy both generally accepted accounting
principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one
year only. We believe that our current report conforms to the program requirements, and we are
submitting it to the GFOA to determine its eligibility for the certificate.
Acknowledgments
Preparation of the City's Comprehensive Annual Financial Report is an undertaking of the
Administrative Services Department. Special credit is due to Andrew White, Finance Manager; Maria
Weston, Senior Accountant; Kelli Sherman, Accountant; and the entire Finance Division staff. Their
yearlong hard work and dedication have made this report possible.
We also thank the City Council for their interest and support in planning and conducting the financial
operations of the City in a responsible and progressive manner.
Respectfully submitted,
__________________________________ _________________________________
Penny Riley Steve Didier
Interim City Manager Director of Administrative Services
xv
City Council
Mayor Don Higginson
Deputy Mayor Carl Kruse
Council: Merrilee Boyack
Jim Cunningham
Betty Rexford
Appointed Officials
City Manager Rod Gould
Assistant City Manager Penny Riley
City Attorney Lisa Foster
City Clerk Linda Troyan
Administrative Personnel
Director of Administrative Services/Treasurer Steve Didier
Director of Development Services Robert Manis
Director of Public Works Leah Browder
Director of Redevelopment Services & Community Services Dena Fuentes
Director of Safety Services Mark Sanchez
CitizensCITY OF POWAYORGANIZATION CHARTCity CouncilPlanning CommissionRedevelopment AgencyCity ClerkCity AttorneyCouncilCommitteesxAttorneyCommitteesCity Manager/ Executive Directorxvi RedevelopmentSiAdministrativeSiCommunitySiDevelopmentSiPublicWkSafetySiServicesServicesServicesServicesWorksServices1. Human Resources2. Customer Services3. Finance4. Information 1. Leisure Services2. Lake Operations3. Aquatics Center4. Performing Arts1. Planning2. BuildingInspection3. Capital Projects1. Fleet Maintenance2. Water Supply3. Sewer Pumping &Disposal1. Fire Suppression2. Fire Prevention3. Paramedics4. Law Enforcement1. RedevelopmentServices2. Redevelopment3. Economic Technology5. Support Services6. Risk Management7. Capital ManagementgCenter5. Old Poway Park6. Library 7. Interpretive Centerpj4. LandDevelopment5. EngineeringInspection6. TrafficEngineeringp4. Water Distribution5. Wastewater Collection6. Maintenance Control7. Street Maintenance8. Drainage Maintenance9. Facilities Maintenance10. Trails & Open SpaceDevelopment4. Housing Programpp11. Park & Landscape Maint.12. Storm Water Mgmt13. Reclaimed Water14. Special District Admin.
xvii
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xviii
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
of the City of Poway
Poway, California
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 Poway, California (City), as of and for the year ended June 30, 2009, 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 generally accepted auditing standards in the
United States 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.
Subsequent to the financial statements date of June 30, 2009 and the year then ended, the State
of California (State) has borrowed, deferred paying certain revenues and proposed taking other
funds from local governments including, cities, counties, districts, and agencies. These actions
by the State include:
8% of Property Taxes borrowed – to be repaid in three years
Gas Tax payments deferred – two deferral periods during fiscal year 2009-2010
Redevelopment Agency funds – to be taken for fiscal year 2009-2010 and 2010-2011
These above amounts are very significant to the local governments and may affect their ongoing
operations. Certain lawsuits are in process to stop such State actions. The State Legislature has
passed a bill which allows local governments to securitize the 8% of property taxes borrowed by
the State. For more detailed information, see Note 18 of the Notes to Basic Financial Statements.
2
To the Honorable Mayor and Members of the City Council
of the City of Poway
Poway, California
Page 2
In our opinion, the basic 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, 2009, and the respective changes in financial position and cash flows, where applicable,
thereof for the year then ended in conformity with generally accepted accounting principles in
the United States.
In accordance with Government Auditing Standards, we have also issued our report dated
January 22, 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, and 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.
As described in Note 1 to the basic financial statements, the City implemented Governmental
Accounting Standards Board Statements No. 49, Accounting and Financial Reporting for Pollution
Remediation Obligations, No. 52, Land and Other Real Estate Held as Investments by Endowments, No.
55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments, and
No. 56, Codification of Accounting and Financial Reporting Guidance Contained in AICPA Statements
on Auditing Standards.
The accompanying Required Supplementary Information, such as Management’s Discussion
and Analysis, budgetary information, budgetary comparison schedules and Schedule of
Funding Progress of Defined Benefit Pension Plans as listed in the table of contents, is not a
required part of the basic financial statements but is supplementary information required by the
Governmental Accounting Standards Board. We have applied certain limited procedures,
which consisted principally of inquiries of management regarding the methods of measurement
and presentation of the Required Supplementary Information. However, we did not audit the
information and express no opinion on the Required Supplementary Information.
Our audit was conducted for the purpose of forming opinion on the financial statements that
collectively comprise the City’s basic financial statements. The accompanying Supplementary
Information is presented for purpose of additional analysis and is not a required part of the
basic financial statements. The Supplementary Information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the basic financial statements taken as a whole. The
Introductory and Statistical Sections 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.
San Diego, California
January 22, 2010
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Poway (City), we offer readers of the City’s financial statements
this narrative overview and analysis of the financial activities of the City for the fiscal year ended
June 30, 2009. It should be read in conjunction with the accompanying transmittal letter
beginning on page i and the accompanying basic financial statements. All amounts, unless
otherwise indicated, are expressed in thousands of dollars.
FINANCIAL HIGHLIGHTS
• The City’s net assets increased by 7% to $138,006 as a result of this year’s operations. • During the year, the City’s taxes, other governmental revenues and business activity revenues
exceeded expenses by $8,839. • Governmental net assets were $64,403. • The total revenues from all sources were $127,365. • The total cost of all City programs was $118,527. • The General Fund reported excess expenditures over revenues and other financing sources
(uses) of $1,925. • Actual revenues received in the General Fund were less than the final budget by $1,684 while
actual expenditures were $6,789 less than final budget before other financing sources and
uses. • At the end of the fiscal year, unreserved fund balance for the General Fund was $32,153 or
87% of total General Fund expenditures (excluding other financing uses).
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The three components of the
financial statements are: (1) Government-wide financial statements, which include the Statement
of Net Assets and the Statement of Activities. These statements provide information about the
activities of the City as a whole. (2) Fund financial statements describe how City services are
financed in the short term as well as what resources are available for future spending. Fund
financial statements also report the City’s operations in more detail than the government-wide
statements by providing information about the City’s most significant funds. (3) Notes to the
financial statements.
Reporting the City as a Whole
The Statement of Net Assets and the Statement of Activities (Government-wide)
A frequently asked question regarding the City’s financial health is whether the year’s activities
contributed positively to the overall financial well-being. The Statement of Net Assets and the
Statement of Activities report information about the City as a whole and about its activities in a
way that helps answer this question. These statements include all assets and liabilities using the
accrual basis of accounting, which is similar to the accounting used by most private-sector
companies. All of the current year’s revenues and expenses are accounted for regardless of when
cash is received or paid.
These two statements report the City’s net assets and changes thereto. Net assets, the difference
between assets and liabilities, are one way to measure the City’s financial health, or financial
position. Over time, increases or decreases in net assets are an indicator of whether the financial
health is improving or deteriorating. However, it is important to consider other nonfinancial
factors such as changes in the City’s property tax base or condition of the City’s roads to
accurately assess the overall health of the City.
4
The Statement of Net Assets and the Statement of Activities present information about the
following:
• Governmental activities - All of the City’s basic services are considered to be governmental
activities, including general government, public safety, public works, and community
services. Property taxes, sales taxes, motor vehicle license fees and franchise fees finance
most of these activities. • Proprietary activities/Business-type activities - The City charges a fee to customers to cover
all or most of the cost of the services provided. The City’s Water and Sewer systems are
reported in this category. • Component unit - The City’s governmental activities include the blending of one separate
legal entity: the Poway Redevelopment Agency. Although legally separate, this “component
unit” is important because the City is financially accountable for it.
Reporting the City’s Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds - not
the City as a whole. Some funds are required to be established by State law and by bond
covenants. However, management establishes many other funds that aid in the administration of
resources for particular purposes or to meet legal responsibilities associated with the usage of
certain taxes, grants, and other money. The City’s two kinds of funds, governmental and
proprietary, use different accounting approaches as explained below.
• Governmental funds - Most of the City’s basic services are reported in governmental funds.
Governmental funds focus on how resources flow in and out with the balances remaining at
year-end that are available for spending. These funds are reported using an accounting
method called modified accrual, which measures cash and all other financial assets that can
readily be converted to cash. The governmental fund statements provide a detailed short-
term view of the City’s general government operations and the basic services it provides.
Governmental fund information shows whether there are more or fewer financial resources
that can be spent in the near future to finance the City’s programs. We describe the
relationship (or differences) between governmental activities (reported in the Statement of
Net Assets and the Statement of Activities) and governmental funds through a reconciliation
in Note 1 in the Notes to Basic Financial Statements.
• Proprietary funds - When the City charges customers for the services it provides, these
services are generally reported in proprietary funds. Proprietary funds are reported in the
same way that all activities are reported in the Statement of Net Assets and the Statement of
Activities.
The City as Trustee
Reporting the City’s Fiduciary Responsibilities
The City is the trustee, or fiduciary, for certain amounts held on behalf of developers, property
owners, and others. These fiduciary activities are reported in separate Statements of Fiduciary
Net Assets and Changes in Fiduciary Net Assets. The City is responsible for ensuring that the
assets are used for their intended purposes. Therefore, fiduciary activities are excluded from the
City’s other financial statements because the assets cannot be used to finance operations.
5
THE CITY AS A WHOLE
Our analysis focuses on the net assets (Table 1) and changes in net assets (Table 2) of the City’s
governmental and business activities.
The City’s combined net assets for the fiscal year ended June 30, 2009, were $138,006. The City
has chosen to account for its water and sewer operations as enterprise funds, which is shown as
Business-Type Activities on Table 1. The City’s net assets for governmental activities increased
4% from $61,716 to $64,403. The following is an explanation of the governmental activity
changes between fiscal years as shown in Table 1:
Current and other assets decreased $3,276 or 1.8% principally due to decreases in
prepaid items and lease receivable. The prepaid items decreased because the City’s
insurance premium for fiscal year 2009-10 was not due until after July 1, 2009 of this
year; and the lease receivable decreased due to scheduled principal pay downs.
Capital assets decreased $3,580 (net of depreciation and disposition) as detailed in Table
4. Additions were made for construction in progress for various City projects including
the Poway Road Mixed Use project, Machinery and Equipment for the purchase of
vehicles and generators for emergency use, with deletions for construction in progress
for items moved to Business Activity, land sales, and retired vehicles, along with
depreciation.
Governmental long-term debt decreased $7,047. The decrease is primarily due to the
scheduled principal payments. (See Table 5 for additional detail.)
Assets:
Current and
other assets $ 175,442 $ 178,718 $ 37,257 $ 35,927 $ 212,699 $ 214,645
Capital assets 195,035 198,615 40,696 36,420 235,731 235,035
Total assets 370,477 377,333 77,953 72,347 448,430 449,680
Liabilities:
Long-term
debt outstanding 294,554 301,601 1,883 2,043 296,437 303,644
Other liabilities 11,520 14,016 2,467 2,853 13,987 16,869
Total liabilities 306,074 315,617 4,350 4,896 310,424 320,513
Net assets:
Invested in capital
assets, net of debt 36,714 28,805 39,128 34,658 75,842 63,463
Restricted 99,252 101,384 280 282 99,532 101,666
Unrestricted (71,563) (68,473) 34,195 32,511 (37,368) (35,962)
Total net assets $ 64,403 $ 61,716 $ 73,603 $ 67,451 $ 138,006 $ 129,167
2009 2008
TotalGovernmentalBusiness-Type
2009 2008 2009 2008
Table 1
City of Poway Net Assets
(in Thousands)
Activities Activities
6
Other liabilities decreased by a net $2.5 million. The decrease was related to the timing
of a few large payments, including payments in the previous fiscal year for the City’s
annual street slurry seal program which had caused an increase in that fiscal year’s year-
end balance. There were no unusual items.
Invested in capital assets net of debt increased $7.9 due to the amortization of debt and
additions not funded by debt.
Restricted net assets remained relatively unchanged, decreasing by $2,132, or 2.1%.
Unrestricted net assets, the part of net assets that can be used to finance day-to-day
operations without constraints established by debt covenants or other legal requirements,
decreased by $3,090, or 4.51%, primarily due to current year operations and the
continued expenditure of capital project funds.
Governmental Activities
The cost of all Governmental activities this year was $91,817 as shown on Table 2 and 2.1. Of
this cost, $11,809 was paid for by those who directly benefited from the programs, $7,936 was
subsidized by grants received from other governmental organizations for both capital and
operating activities, and $74,761 was financed through general City revenues. Overall
governmental program revenues, including intergovernmental aid and fees for services were
$19,745. Items of significance within Table 2 are:
Revenues:
Charges for services increased by 7.5% primarily due having the rate adjustments from
the City’s fee study completed in the previous fiscal year implemented for the full fiscal
year.
Grants and contributions decreased by 31.6% primarily because of reimbursements
related to the Witch Creek Fire disaster that were received in the previous fiscal year.
The General Revenue category decreased 3.7% primarily due to decreases in sales tax
and investment earnings.
Expenses:
General Government Expenses increased $4,645 or 25.0%. The increase was related to
spending on projects for which financial assistance was provided, but that were not
capitalized.
The Public Safety line increased by 1.0%. There were no significant changes in this
category.
Public Works had a 5.7% increase in expenses. This increase was primarily due to the
correction of the classification of Maintenance District expenses to the Public Works
category, offset by reduced street maintenance spending.
The Development Services department decreased by $141, or 2.6%. The decrease was
caused because of reduced staffing in the capital improvement project division.
Community Services decreased by $2,134 or 11.6%. The decrease was because of the
above mentioned correction of the Maintenance District expenses offset by an increase in
tax shift and tax increment payments.
Interest and fiscal charges decreased by 2.0%. There were no significant changes in this
category.
7
Revenues:
Program revenues:
Charges for services $ 11,809 $ 10,988 $ 25,367 $ 25,247 $ 37,176 $ 36,235
Operating grants
and contributions 5,826 6,479 5,826 6,479
Capital grants
and contributions 2,110 5,129 - - 2,110 5,129
General revenues:
Property taxes 51,191 50,669 - - 51,191 50,669
Other taxes 12,934 15,432 - - 12,934 15,432
Other 10,486 11,354 7,642 2,362 18,128 13,716
Total revenues 94,356 100,051 33,009 27,609 127,365 127,660
Expenses:
General government 23,261 18,616 23,261 18,616
Public safety 19,228 19,039 19,228 19,039
Public works 11,214 10,608 11,214 10,608
Development svcs 5,226 5,367 5,226 5,367
Community svcs 16,196 18,330 16,196 18,330
Interest and charges 16,692 17,038 16,692 17,038
Water 18,698 17,535 18,698 17,535
Sewer 8,011 7,744 8,011 7,744
Total expenses 91,817 88,998 26,709 25,279 118,526 114,277
Change in net assets
before transfers 2,539 11,053 6,300 2,330 8,839 13,383
Transfers 148 331 (148) (331) - -
Change in net assets
after transfers 2,687 11,384 6,152 1,999 8,839 13,383
Net assets - 7/1 61,716 50,332 67,451 65,452 129,167 115,784
Net assets - 6/30 $ 64,403 $ 61,716 $ 73,603 $ 67,451 $ 138,006 $ 129,167
2009 200820092008 2009 2008
Table 2
City of Poway Changes in Net Assets
(in Thousands)
Governmental Business-Type TotalActivitiesActivities
8
General government $ 23,261 $ 18,616 $ 819 $ 2,429 $ (22,442) $ (16,187)
Public safety 19,228 19,039 2,792 2,385 (16,436) (16,654)
Public works 11,214 10,607 8,943 8,842 (2,271) (1,765)
Development services 5,226 5,367 1,716 1,871 (3,510) (3,496)
Community services 16,196 18,330 5,475 7,069 (10,721) (11,261)
Interest and fiscal chgs 16,692 17,038 - - (16,692) (17,038)
Totals $ 91,817 $ 88,997 $ 19,745 $ 22,596 $ (72,072) $ (66,401)
Program
Revenues
Net Cost
of Services
Total Cost
2009
of Services
2009 2009 2008
Table 2.1
Net Cost of Governmental Activities
(in Thousands)
20082008
Fiscal Year 2009
Governmental Activities
(Graphic representation of Table 2 in percentages)
Net Cost of Governmental Activities
The City’s programs include: General Government, Public Safety, Public Works, and
Community Services. Each program’s net cost (total cost less revenues generated by the
activities) is presented on Table 2.1. The net cost shows the extent to which the City’s general
taxes support each of the City’s programs.
Sources of Revenue Program Expenses
Property
Taxes
54%
Other
Taxes
14%
Charges for
Services
13%
Investment
Income
10%
Operating
Grants
6%
Capital
Grants
2%Other
1%
Development
Services
6%Public Works
12%
Interest on
Long Term Debt
18%
Community
Services
18%
General Gov't
25%
Public Safety
21%
9
Total resources available during the year to finance governmental operations were $156,221
consisting of Net Assets at July 1, 2008, of $61,716, Program Revenues of $19,745, General
Revenues of $74,612 and $148 of Transfers. Total Governmental Activities during the year were
$91,817; thus Net Assets increased by $2,687 to $64,403. There were no unusual items that
contributed to this increase. As discussed previously, property taxes, investment earnings and
franchise taxes had increases that did contribute to the growth in Net Assets.
Business-Type Activities
Net assets of the Proprietary Funds (Business-Type activities) at June 30, 2009, as reflected in
Table 1 were $73,603. As shown in Table 2, program revenues were $25,367, while the cost of
providing all Proprietary (Business-Type) Activities this year was $26,709 resulting in a loss of
$1,342. However, the additional $7,494 of other revenues and transfers resulted in a Net Assets
increase of $6,152 or 9%.
Fiscal Year 2009
Total Cost of Services, Program Revenues & Net Cost – Business Activities (in thousands)
Water $ 18,698 $ 17,535 $ 16,715 $ 16,806 $ (1,983) $ (729)
Sewer 8,011 7,744 8,652 8,441 641 697
Totals $ 26,709 $ 25,279 $ 25,367 $ 25,247 $ (1,342) $ (32)
Total Cost Program
2009 2008
Net Cost
2009 2008 2009 2008
of Servicesof Services Revenue
($25,000)
($20,000)
($15,000)
($10,000)
($5,000)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
Fiscal Year 2009
Total Cost of Services, Program Revenues & Net Cost
Governmental Activities (in Thousands)
Total Cost of Services Program Revenues Net Cost
General Govt Public Safety Public Works Community
Services
Interest &
Fiscal
Charges
Development
Services
-$5,000
$0
$5,000
$10,000
$15,000
$20,000
Water Sewer
Total Cost of Services
Program Revenues
Net Cost
10
Major Funds Budgetary Highlights
General Fund:
The final appropriations for the City’s General Fund at year-end were $5,105 more than actual
expenditures prior to other financing uses. The largest component of the budget to actual
variance was principally in the Capital Outlay category where several projects were budgeted but
are not yet complete. The General Government category was under budget primarily due to the
implementation of a new city-wide cost allocation model, which resulted in a revised allocation
of General Government expenses across a broader range of funds. The Public Safety category’s
expenditures were less than budgeted due to lower overtime costs than expected in Fire
Suppression and an unfilled contract position in Law Enforcement Services.
Actual revenues fell short of the final budget by $1,684 (excluding other financing sources). The
major variances were in Taxes and Intergovernmental. The Taxes category fell short because of
a greater than expected decrease in sales tax. This phenomenon was not isolated to the City of
Poway, as many cities in San Diego County and across California experienced similar decreases.
The Intergovernmental category primarily was higher because of additional reimbursements
received related to the Witch Creek Fire.
During the fiscal year the City undertook quarterly budget updates instead of just its traditional
midyear budget update. During these reviews the current budgeted expenditures were reduced in
all categories, but none of the individual adjustments were significant No unusual items
contributed to the savings in the other categories, though in light of the current economy all
departments were encouraged to take a close look at all expenditure activity and achieve savings
where possible.
.
Housing Special Revenue Fund:
The significant increase in this fund balance is due to the budget variance in the Capital Outlay
category related primarily to four affordable housing projects that are expected to move forward
in fiscal year 2009-10.
City of Poway Redevelopment Agency Debt Service Fund:
Tax Increment was lower than expected due to increased property tax delinquencies. The
Agency budgeted for its share of the State’s attempted $350 million Educational Revenue
Augmentation Fund take-away, but the courts found that the taking of the funds by the State was
illegal, so no payment was required. The transfer out category was also under budget due to a
lower than expected transfer to the Housing Fund for its share of tax increment, and lower than
expected funding for administrative expenditures.
Redevelopment Area Capital Project Funds:
The significant decrease in this fund balance is because there was no new significant funding,
such as from the issuance of tax allocation bonds, while the proceeds from previous bond funds
continued to be spent.
11
Other Governmental Funds:
In this grouping of funds, except for the Storm Water Management Fund, none of the activity
was unusual in nature. Because the Storm Water Management Fund is a newer fund it incurred
higher than usual costs this year, but is expected to have reduced costs in the future and to recoup
its currently negative fund balance.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
The Capital Assets of the City are those assets that are used in performance of City functions
including infrastructure assets. Capital Assets include equipment, buildings, land, park facilities,
and roads. The Governmental Construction in Progress decreased by $3,281, primarily related to
infrastructure projects that were moved to Business Activities. Business Construction in Progress
included additions for water and sewer pipeline projects. Depreciation on Capital Assets is
recognized in the Government-Wide financial statements. (See Table 4 & Note III, C to the
financial statements)
Debt
At year-end, the City had $294,554 in Governmental-Type debt and $1,883 in Proprietary debt.
During the year no bonds were refunded so, therefore, the decrease in bond balances were due to
scheduled principal payments and premium/discount amortizations. The Loans Payable balance
increased because accrued interest related to the operating covenant with AZ Poway, LLC (dba
Mossy Nissan) was greater than the payment made under the covenant. Finally, the
Compensated Absences balance increased as employees accrued more time off for compensated
absences than was used, but again there were no unusual activities related to the increase. (See
the Notes to the Basic Financial Statements, Note 5, Long-term Debt for additional information.)
12
NEXT YEAR’S BUDGET AND ECONOMIC FACTORS
In considering the City Budget for fiscal year 2009-2010, the City Council and management
continued to be cautious because of the continued slow housing market, lower sales tax receipts
primarily related to automobile sales, and a continued concern over the State’s long-term budget
situation. General Fund revenue is expected to decrease approximately 11.7% from the fiscal
year 2008-2009 revenue budget. This decrease mainly occurred because of budgeted decreases
for Property and Sales Taxes.
General Fund expenditures are budgeted to decrease 10.3%. Many of the reductions began
during fiscal year 2008-2009 with additional decreases also done for the fiscal year 2009-10
budget. Significant items included the final incorporation of the City’s new cost allocation
program, and an evaluation of the Community Services Department that included the elimination
of the department’s director position, and having the Redevelopment Services Director take over
supervision of that department. Finally, the Development Services Department completed its
evaluation of the City’s streets maintenance program and was able to optimize the program while
leveling out the annual General Fund expenditures. The City continues to monitor the local,
state and national economic situation and while staff does not currently anticipate any necessary
significant changes to the budget, we are prepared to address those situations if they arise.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and
creditors with a general overview of the City’s finances and to show the City’s fiduciary
responsibility for the funds it receives. If you have questions about this report or need additional
financial information, contact the City’s Finance Department, at the City of Poway, 13325 Civic
Center Drive, Poway, California 92064 or online: http://www.ci.poway.ca.us
BASIC FINANCIAL STATEMENTS
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14
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
15
City of Poway
Statement of Net Assets
June 30, 2009
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments 117,816,817$ 21,161,594$ 138,978,411$
Cash and investments with fiscal agents 22,977,459 280,469 23,257,928
Receivables:
Taxes 3,216,786 - 3,216,786
Accounts 1,024,286 3,932,395 4,956,681
Interest 673,189 - 673,189
Due from other governments and agencies 2,234,400 - 2,234,400
Prepaid items 34,679 - 34,679
Inventories 81,889 1,854,170 1,936,059
Total current assets 148,059,505 27,228,628 175,288,133
Noncurrent assets:
Lease receivable 27,500,000 - 27,500,000
Notes receivable 8,299,233 - 8,299,233
Internal balances (8,987,328) 8,987,328 -
Loans to Business Park Fiduciary Fund - 1,000,000 1,000,000
Deferred charges, net 571,017 40,765 611,782
Capital assets:
Nondepreciable assets 77,822,975 7,202,689 85,025,664
Depreciable assets, net 117,211,718 33,493,622 150,705,340
Total capital assets 195,034,693 40,696,311 235,731,004
Total noncurrent assets 222,417,615 50,724,404 273,142,019
Total assets 370,477,120 77,953,032 448,430,152
Primary Government
16
City of Poway
Statement of Net Assets, Continued
June 30, 2009
Governmental Business-Type
Activities Activities Total
LIABILITIES
Current liabilities:
Accounts payable 8,902,010$ 2,407,436$ 11,309,446$
Accrued liabilities 942,182 - 942,182
Accrued interest payable 1,676,308 14,354 1,690,662
Deposits - 45,250 45,250
Compensated absences - due within one year 265,692 55,951 321,643
Long-term debt - due within one year 7,427,633 187,976 7,615,609
Total current liabilities 19,213,825 2,710,967 21,924,792
Noncurrent liabilities:
Compensated absences - due in more than one year 1,136,311 258,866 1,395,177
Long-term debt - due in more than one year 285,723,869 1,380,571 287,104,440
Total noncurrent liabilities 286,860,180 1,639,437 288,499,617
Total liabilities 306,074,005 4,350,404 310,424,409
NET ASSETS
Investments in capital assets, net of related debt 36,713,773 39,127,764 75,841,537
Restricted for:
General fund 5,561,391 - 5,561,391
Affordable housing 19,001,963 - 19,001,963
Debt service 24,949,645 280,469 25,230,114
Capital improvement projects 29,394,569 - 29,394,569
Special revenue 19,364,024 - 19,364,024
Permanent:
Expendable 320,870 - 320,870
Nonexpendable 660,000 - 660,000
Total restricted 99,252,462 280,469 99,532,931
Unrestricted (71,563,120) 34,194,395 (37,368,725)
Total net assets 64,403,115$ 73,602,628$ 138,005,743$
See accompanying Notes to Basic Financial Statements.
Primary Government
17
City of Poway
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2009
Charges Operating Capital Total
for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues
Primary government:
Governmental activities:
General government 23,261,446$ 105,084$ 630,631$ 83,042$ 818,757$
Public safety 19,227,914 2,413,197 378,415 - 2,791,612
Public works 11,213,841 4,868,530 4,066,801 8,054 8,943,385
Development services 5,226,071 1,388,448 327,759 - 1,716,207
Community services 16,195,999 3,033,466 422,438 2,019,367 5,475,271
Interest and fiscal charges 16,692,399 - - - -
Total governmental activities 91,817,670 11,808,725 5,826,044 2,110,463 19,745,232
Business-Type activities:
Water 18,697,576 16,714,571 - - 16,714,571
Sewer 8,011,470 8,651,968 - - 8,651,968
Total business-type activities 26,709,046 25,366,539 - - 25,366,539
Total primary government 118,526,716$ 37,175,264$ 5,826,044$ 2,110,463$ 45,111,771$
See accompanying Notes to Basic Financial Statements.
Program Revenues
18
City of Poway
Statement of Activities and Changes in Net Assets, Continued
For the year ended June 30, 2009
Governmental Business-Type
Functions/Programs Activities Activities Total
Primary government:
Governmental activities:
General government (22,442,689)$ -$ (22,442,689)$
Public safety (16,436,302) - (16,436,302)
Public works (2,270,456) - (2,270,456)
Development services (3,509,864) - (3,509,864)
Community services (10,720,728) - (10,720,728)
Interest and fiscal charges (16,692,399) - (16,692,399)
Total governmental activities (72,072,438) - (72,072,438)
Business-Type activities:
Water - (1,983,005) (1,983,005)
Sewer - 640,498 640,498
Total business-type activities - (1,342,507) (1,342,507)
Total primary government (72,072,438) (1,342,507) (73,414,945)
General revenues:
Taxes:
Property taxes 51,190,712 - 51,190,712
Sales taxes 10,325,455 - 10,325,455
Motor vehicle license taxes 173,673 - 173,673
Transit occupancy taxes 247,787 - 247,787
Franchise taxes 1,590,066 - 1,590,066
Other taxes 597,880 - 597,880
Total taxes 64,125,573 - 64,125,573
Investment earnings 9,879,153 1,987,778 11,866,931
Miscellaneous 607,387 933,994 1,541,381
Contributed capital - 4,720,039 4,720,039
Transfers 147,503 (147,503) -
Total general revenues and transfers 74,759,616 7,494,308 82,253,924
Change in net assets 2,687,178 6,151,801 8,838,979
Net assets - beginning of year 61,715,937 67,450,827 129,166,764
Net assets - end of year 64,403,115$ 73,602,628$ 138,005,743$
Primary Government
Changes in Net Assets
Net (Expense) Revenue and
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20
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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22
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
23
City of Poway
Balance Sheet
Governmental Funds
June 30, 2009
Low and City of Poway
Moderate Redevelopment Redevelopment
Income Housing Agency Area
Special Revenue Debt Service Capital Project
General Fund Fund Fund
ASSETS
Cash and investments 29,253,044$ 18,848,936$ 20,589,618$ 21,428,195$
Receivables:
Taxes 2,290,337 181,967 709,673 18,197
Notes 498,237 - - 7,800,996
Accounts 404,637 20,000 - 1,250
Interest 593,826 - 33,688 45,577
Lease - - 27,500,000 -
Due from other funds 668,189 - - -
Due from other governments 1,630,278 - - -
Prepaid items 34,679 - - -
Inventories, at cost 81,889 - - -
Advances to other funds 4,805,762 - - -
Restricted assets:
Cash and investments with fiscal agents - - 21,472,486 -
Total assets 40,260,878$ 19,050,903$ 70,305,465$ 29,294,215$
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable 1,569,138$ 48,940$ 5,880,273$ 720,405$
Accrued liabilities 942,182 - - -
Due to other funds - - - -
Deferred revenue 35,413 - 27,500,000 -
Advances from other funds - - 16,294,386 -
Total liabilities 2,546,733 48,940 49,674,659 720,405
Fund Balances:
Reserved 5,561,391 19,001,963 20,630,806 11,377,659
Unreserved:
Designated for:
General fund 32,152,754 - - -
Capital projects funds - - - 17,196,151
Undesignated
Special revenue funds - - - -
Total fund balances 37,714,145 19,001,963 20,630,806 28,573,810
Total liabilities and fund balances 40,260,878$ 19,050,903$ 70,305,465$ 29,294,215$
See accompanying Notes to Basic Financial Statements.
Major Funds
24
Other Total
Governmental Governmental
Funds Funds
21,577,511$ 111,697,304$
16,612 3,216,786
- 8,299,233
598,233 1,024,120
98 673,189
- 27,500,000
- 668,189
604,122 2,234,400
- 34,679
- 81,889
3,737,676 8,543,438
1,504,973 22,977,459
28,039,225$ 186,950,686$
649,445$ 8,868,201$
- 942,182
668,189 668,189
719 27,536,132
1,236,380 17,530,766
2,554,733 55,545,470
11,857,900 68,429,719
- 32,152,754
7,644,251 24,840,402
5,982,341 5,982,341
25,484,492 131,405,216
28,039,225$ 186,950,686$
25
City of Poway
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Assets
June 30, 2009
Total Fund Balances - Total Governmental Funds 131,405,216$
Amounts reported for governmental activities in the Statement of Net Assets were different because:
Capital assets used in governmental activities were not financial resources and therefore were not reported in
governmental funds.
Nondepreciable 77,822,975
Depreciable, net of accumulated depreciation 117,211,718
Total capital assets 195,034,693
Deferred charges, such as bond issuance costs from issuing debt, were expenditures in the fund financial statements but
were deferred and subject to capitalization and amortization on the Government-Wide Statement of Net Assets.571,017
Long-term liabilities were not due and payable in the current period and therefore were not reported in the governmental
funds.
Compensated absences - due within one year (265,692)
Compensated absences - due in more than one year (net of $33,447 reported in Internal Service Funds)(1,102,864)
Long-term liabilities - due within one year (7,427,633)
Long-term liabilities - due in more than one year (285,723,869)
Total long-term liabilities (294,520,058)
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported
as a liability in Governmental Funds Balance Sheet.(1,676,308)
Deferred revenues recorded in governmental fund financial statements resulting from activities in which revenues were
earned but funds were not available were recognized as revenues in the Government-Wide Financial Statements.27,536,132
Internal service funds were used by management to charge the costs of certain activities to individual funds. The assets
and liabilities of the internal service funds were included in governmental activities in the Government-Wide Statement of
Net Assets. 6,052,423
Net Assets of Governmental Activities 64,403,115$
See accompanying Notes to Basic Financial Statements.
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27
City of Poway
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2009
Low and City of Poway
Moderate Redevelopment Redevelopment
Income Housing Agency Area
Special Revenue Debt Service Capital Project
General Funds Funds Funds
REVENUES:
Taxes 24,413,717$ -$ 38,940,302$ -$
Licenses and permits 422,948 - - -
Intergovernmental 938,661 - - -
Charges for services 914,982 - - -
Fines and forfeitures 852,535 - - -
Use of money and property 2,404,236 650,896 3,896,340 1,423,482
Developer fees 3,556,061 - - -
Assessment levied - - - -
Other revenues 510,282 428,415 - 770
Total revenues 34,013,422 1,079,311 42,836,642 1,424,252
EXPENDITURES:
Current:
General government 2,325,515 599,266 - 3,808,354
Public safety 18,522,946 - - -
Public works 2,648,940 - - -
Development Services 5,279,297 - - -
Community services 5,347,626 - - -
Capital outlay 2,733,924 121,745 - 12,642,196
Debt service:
Principal - - 6,075,000 -
Interest and fiscal charges - - 15,664,912 -
Tax increment reimbursement - - 6,205,709 -
Total expenditures 36,858,248 721,011 27,945,621 16,450,550
REVENUES OVER (UNDER) EXPENDITURES (2,844,826) 358,300 14,891,021 (15,026,298)
OTHER FINANCING SOURCES (USES):
Issuance of debt - - 154,734 -
Transfers in 4,153,196 7,800,214 2,143,096 4,462,591
Transfers out (3,233,667) (1,700,800) (12,705,101) -
Total other financing sources (uses)919,529 6,099,414 (10,407,271) 4,462,591
NET CHANGE IN FUND BALANCE (1,925,297) 6,457,714 4,483,750 (10,563,707)
FUND BALANCES:
Beginning of year 39,639,442 12,544,249 16,147,056 39,137,517
End of year 37,714,145$ 19,001,963$ 20,630,806$ 28,573,810$
See accompanying Notes to Basic Financial Statements.
Major Funds
28
Other Total
Governmental Governmental
Funds Funds
2,708,627$ 66,062,646$
- 422,948
1,951,143 2,889,804
2,039,985 2,954,967
- 852,535
6,487,183 14,862,137
341,816 3,897,877
1,873,179 1,873,179
73,668 1,013,135
15,475,601 94,829,228
- 6,733,135
150,090 18,673,036
5,917,217 8,566,157
- 5,279,297
4,394,364 9,741,990
2,483,996 17,981,861
780,000 6,855,000
1,067,093 16,732,005
- 6,205,709
14,792,760 96,768,190
682,841 (1,938,962)
- 154,734
1,483,202 20,042,299
(1,758,380) (19,397,948)
(275,178) 799,085
407,663 (1,139,877)
25,076,829 132,545,093
25,484,492$ 131,405,216$
29
City of Poway
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets
For the year ended June 30, 2009
Net Change in Fund Balances - Total Governmental Funds (1,139,877)$
Amounts reported for governmental activities in the Statement of Activities were different because:
Governmental funds report capital outlay as expenditures. However, in the Government-Wide Statement of Activities and
Changes in Net Assets, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This is
the amount of capital assets recorded in the current period.5,520,556
Depreciation was reported in the Government-Wide Statement of Activities and Changes in Net Assets, but they did not
require the use of current financial resources. Therefore, depreciation and amortization expense was not reported as
expenditures in governmental funds.(6,318,110)
Loss on disposal of City's property provides current financial resources to governmental funds, but disposal of capital asset
decrease capital assets in the Government-Wide Statement of Net Assets.
Loss on sale of City's property (2,783,005)
Long-term compensated absences were reported in the Government-Wide Statement of Activities and Changes in Net Assets,
but it did not require the use of current financial resources. Therefore, long-term compensated absences were not reported as
expenditures in governmental funds. This amount represent the change in compensated absences from prior year. (57,603)
Issuance costs from issuing debt were expenditures at the fund level but were deferred and subject to capitalization and
amortization on the statement of net assets.
Amortization of bond issuance costs (23,834)
Proceeds from long-term debt provide current financial resources to governmental funds, but issuing debt increases long-term
liabilities in the Government-Wide Statement of Net Assets. Repayment of bond principal was an expenditure in
governmental funds, but the repayment reduces long-term liabilities in the Government-Wide Statement of Net Assets.
Proceeds from loans (154,734)
Repayment of contract and notes payable 122,499
Principal payment 6,855,000
Amortization on bond premium was reported in the Government-Wide Statement of Activities and Changes in Net Assets, but
it did not require the use of current financial resources. Therefore, amortization was not reported as expenditures in
governmental funds.
2003 Tax Allocation Bonds 198,188
2007 Tax Allocation Bonds 63,626
2003 Certificates of Participation 9,601
2005 Certificates of Participation 10,220
Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in Net Assets,
but they did not require the use of current financial resources. This amount represents the change in accrued interest from
prior year.39,606
Revenues in the statement of activities that did not provide current financial resources are not reported as revenues in the
funds.(739,676)
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 of the internal service funds was reported with governmental activities. 1,084,721
Change in Net Assets of Governmental Activities 2,687,178$
See accompanying Notes to Basic Financial Statements.
30
PROPRIETARY FUND
FINANCIAL STATEMENTS
31
City of Poway
Statement of Net Assets
Proprietary Funds
June 30, 2009
Governmental
Activities
Internal
Water Sewer Total Service Fund
ASSETS
Current assets:
Cash and investments 7,160,435$ 14,001,159$ 21,161,594$ 6,119,513$
Cash and investments with fiscal agents 280,469 - 280,469 -
Receivables:-
Accounts 2,373,473 1,558,922 3,932,395 166
Inventories 1,844,604 9,566 1,854,170 -
Total current assets 11,658,981 15,569,647 27,228,628 6,119,679
Noncurrent assets:
Advances to other funds 3,524,205 5,463,123 8,987,328 -
Advances to Fiduciary Fund - Business Park - 1,000,000 1,000,000 -
Deferred charges 40,765 - 40,765 -
Capital assets:
Nondepreciable 2,999,717 4,202,972 7,202,689 -
Depreciable 47,656,164 29,867,003 77,523,167 -
Less accumulated depreciation (29,159,184) (14,870,361) (44,029,545) -
Total net capital assets 21,496,697 19,199,614 40,696,311 -
Total noncurrent assets 25,061,667 25,662,737 50,724,404 -
Total assets 36,720,648 41,232,384 77,953,032 6,119,679
LIABILITIES
Current liabilities:
Accounts payable 2,184,039 223,397 2,407,436 33,809
Deposits 45,250 - 45,250 -
Accrued interest payable 14,354 - 14,354 -
Compensated absences due within one year 55,249 702 55,951 -
Long-term debt due within one year 187,976 - 187,976 -
Total current liabilities 2,486,868 224,099 2,710,967 33,809
Noncurrent liabilities:
Compensated absences 199,400 59,466 258,866 33,447
Long-term debt due in more than one year 1,380,571 - 1,380,571 -
Total noncurrent liabilities 1,579,971 59,466 1,639,437 33,447
Total liabilities 4,066,839 283,565 4,350,404 67,256
NET ASSETS
Invested in capital assets, net of related debt 19,928,150 19,199,614 39,127,764 -
Restricted for debt service 280,469 - 280,469 -
Unrestricted 12,445,190 21,749,205 34,194,395 6,052,423
Total net assets 32,653,809$ 40,948,819$ 73,602,628$ 6,052,423$
See accompanying Notes to Basic Financial Statements.
Major Funds
32
City of Poway
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the year ended June 30, 2009
Governmental
Activities
Internal
Water Sewer Total Service Fund
OPERATING REVENUES:
Charges for services 16,331,428$ 8,322,932$ 24,654,360$ 2,323,825$
Connection fees 383,143 329,036 712,179 -
Other 28,711 905,283 933,994 2,471
Total operating revenues 16,743,282 9,557,251 26,300,533 2,326,296
OPERATING EXPENSES:
Personnel services 3,412,187 776,706 4,188,893 359,537
Maintenance and operations 5,377,413 6,386,808 11,764,221 662,197
Cost of purchased water 8,709,609 - 8,709,609 -
Depreciation 1,198,367 847,956 2,046,323 -
Total operating expenses 18,697,576 8,011,470 26,709,046 1,021,734
OPERATING INCOME (LOSS)(1,954,294) 1,545,781 (408,513) 1,304,562
NONOPERATING REVENUES (EXPENSES):
Interest revenue 1,012,915 1,076,760 2,089,675 277,007
Interest expense and fiscal charges (101,897) - (101,897) -
Total nonoperating revenues (expenses)911,018 1,076,760 1,987,778 277,007
INCOME (LOSS) BEFORE CONTRIBUTED CAPITAL AND TRANSFERS (1,043,276) 2,622,541 1,579,265 1,581,569
CONTRIBUTED CAPITAL AND TRANSFERS:
Contributed capital 885,939 3,834,100 4,720,039 -
Transfers in 75,439 - 75,439 -
Transfers out (111,471) (111,471) (222,942) (496,848)
Total contributed capital and transfers 849,907 3,722,629 4,572,536 (496,848)
Change in net assets (193,369) 6,345,170 6,151,801 1,084,721
NET ASSETS:
Beginning of year 32,847,178 34,603,649 67,450,827 4,967,702
End of year 32,653,809$ 40,948,819$ 73,602,628$ 6,052,423$
See accompanying Notes to Basic Financial Statements.
Major Funds
33
City of Poway
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2009
Governmental
Activities
Internal
Water Sewer Total Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash receipts from customers 17,189,813$ 8,629,739$ 25,819,552$ 2,327,682$
Cash paid to employees for services (3,400,115) (770,702) (4,170,817) (360,183)
Cash paid to suppliers for goods or services (14,775,517) (6,580,716) (21,356,233) (736,131)
Others 315,644 1,023,826 1,339,470 -
Net cash provided (used) by operating activities (670,175) 2,302,147 1,631,972 1,231,368
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Contributed capital 885,939 3,834,100 4,720,039 -
Transfers in 75,439 - 75,439 -
Transfers out (111,471) (111,471) (222,942) (496,848)
Net cash provided (used) by noncapital financing activities 849,907 3,722,629 4,572,536 (496,848)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Net changes in capital assets (2,368,813) (3,953,965) (6,322,778) -
Principal paid on long-term debt (177,780) - (177,780) -
Payment of interest and fees (103,442) - (103,442) 277,007
Net cash provided (used) by capital and related financing activities (2,650,035) (3,953,965) (6,604,000) 277,007
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest income 1,013,268 1,076,760 2,090,028 -
Net cash provided (used) by investing activities 1,013,268 1,076,760 2,090,028 -
Net increase (decrease) in cash and investments (1,457,035) 3,147,571 1,690,536 1,011,527
CASH AND INVESTMENTS:
Beginning of year 8,897,939 10,853,588 19,751,527 5,107,986
End of year 7,440,904$ 14,001,159$ 21,442,063$ 6,119,513$
RECONCILIATION OF CASH AND INVESTMENTS
TO THE STATEMENT OF NET ASSETS
Cash and investments 7,160,435 14,001,159 21,161,594 6,119,513
Cash with investments with fiscal agents 280,469 - 280,469 -
Total cash and investments 7,440,904$ 14,001,159$ 21,442,063$ 6,119,513$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)(1,954,294)$ 1,545,781$ (408,513)$ 1,304,562$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation 1,198,367 847,956 2,046,323 -
Changes in operating assets and liabilities:
Accounts receivable 482,102 (22,229) 459,873 1,386
Inventories (512,201) 984 (511,217) -
Deferred charges 6,437 - 6,437 -
Due from other governments 6,227 12,275 18,502 -
Advances to other funds 280,706 106,268 386,974 -
Accounts payable (182,731) (194,892) (377,623) (73,934)
Deposits (6,860) - (6,860) -
Compensated absences 12,072 6,004 18,076 (646)
Total adjustments 1,284,119 756,366 2,040,485 (73,194)
Net cash provided (used) by operating activities (670,175)$ 2,302,147$ 1,631,972$ 1,231,368$
See accompanying Notes to Basic Financial Statements.
Major Funds
34
FIDUCIARY FUND
FINANCIAL STATEMENTS
Agency funds are used to account for assets held by the City as an agent for individuals, private
organizations, other governments, and/or other funds.
35
City of Poway
Statement of Fiduciary Net Assets
Fiduciary Funds
June 30, 2009
Agency
Funds
ASSETS
Cash and investments 9,104,068$
Receivables:
Taxes 138
Accounts 1,000,000
Interest 109,579
Cash and investments with fiscal agent 5,326,854
Total assets 15,540,639$
LIABILITIES
Accounts payable 167,170$
Deposits 4,134,021
Due to bondholders 10,239,448
Advances from City of Poway 1,000,000
Total liabilities 15,540,639$
See accompanying Notes to Basic Financial Statements.
36
37
NOTES TO BASIC
FINANCIAL STATEMENTS
City of Poway
Notes to Basic Financial Statements
For the year ended June 30, 2009
38
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Poway, 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. Financial Reporting Entity
The City was incorporated December 1, 1980, under the general laws of the State of California. The City
operates under a Council-Manager form of government and provides the following services: public
safety (police – through the County of San Diego, and fire), community services, engineering services,
planning services, public works, general administrative services, and capital improvements.
As required by generally accepted accounting principles in the United States, these basic financial
statements present the City and its component units, entities for which the City is considered to be
financially accountable. The City is considered to be financially accountable for an organization if the
City appoints a voting majority of that organization’s governing body and either the City is able to
impose its will on that organization or there is a potential for that organization to provide specific
financial benefits to or impose specific financial burdens on the City. The City is also considered to be
financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City).
In certain cases, other organizations are included as component units if the nature and significance of
their relationship with the City are such that their exclusion would cause the City’s financial statements
to be misleading or incomplete. Component units for which the City is considered financially
accountable are described below:
Poway Redevelopment Agency
The Poway Redevelopment Agency (Agency) was established on April 26, 1983 pursuant to the
State of California Health and Safety Code, Section 33000 entitled “Community Redevelopment
Law”. Its purpose is to eliminate blighted areas by encouraging the development of residential,
commercial, industrial, recreational and public facilities. The Agency was included within the scope
of the reporting entity of the City because its governing body is composed in its entirety of council
members of the City. Separate financial statements can be obtained from the Poway Finance
Department located at Poway City Hall.
Poway Public Financing Authority
The Poway Public Financing Authority (Authority) is a joint powers authority organized pursuant
to the State of California Government Code, Section 6500. The Authority exists under a Joint
Exercise of Power Agreement dated October 8, 1991, between the City and the Agency. Its purpose
is to assist in financing and refinancing projects for the benefit of the City and the Agency. Separate
financial statements are not prepared.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
39
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus
The accounting policies of the City conform to generally accepted accounting principles in the United
States for local governmental units. 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 by
providing 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 purpose for which they are to be spent and means by
which spending activities are controlled.
Government – Wide and Fund 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.
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, 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 and from other funds
Advances to and from other funds
Transfers in and 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, 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.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
40
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds
aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund
balances as presented in these statements to the net assets presented in the government-wide financial
statements. The City has presented all major funds that met those qualifications.
All governmental funds are accounted for on a spending or “current financial resources” measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets and current
liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in
Fund Balances present increases (revenues and other financing sources) and decreases (expenditures
and other financing uses) in fund balances. 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 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 real and personal property tax, other local taxes, franchise fees,
forfeitures and penalties, motor license fees, rents and concessions, interest revenue, and state and
federal grants and subventions. 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 from
the balance sheet 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.
The City reports the following major governmental funds:
The General Fund is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
The Low and Moderate Income Housing Special Revenue Fund is used to account for funds
restricted for low and moderate income housing financial activity.
The City of Poway Redevelopment Agency Debt Services Fund is used to account for the
accumulation of resources for, and the payment of principal, interest, and related costs of the debt.
The Redevelopment Agency Capital Projects Fund is used to account for the financial resources to
be used for the acquisitioned construction of major capital facilities (other than those financed by
proprietary funds).
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
41
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Assets, a Statement of Revenues,
Expenses and Changes in Net Assets, and a Statement of Cash Flows for all proprietary funds.
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 Change in Fund Net Assets
presents increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of
accounting, revenues are recognized in the period in which they are earned while expenses are
recognized in the period in which liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary
operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses
are those expenses that are essential to the primary operations of the fund. All other expenses are
reported as nonoperating expenses.
The City reports the following major proprietary funds:
The Water Enterprise Fund is used to account for the provision of water services to the residents of
the City. All activities necessary to provide such services are accounted for in this fund, including,
but not limited to administration, operations, maintenance, financing and related debt service, and
billing and collection.
The Sewer Enterprise Fund is used to account for the provision of sewer services to the residents of
the City. All activities necessary to provide such services are accounted for in this fund, including,
but not limited to administration, operations, maintenance, financing and related debt service, and
billing and collection.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Assets. The City’s fiduciary funds
represent agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not
involve measurement of results of operations.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
42
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is
employed as an extension of formal budgetary integration. Encumbrances outstanding at year-end are
reported as reservations of fund balances and do not constitute GAAP basis expenditures or liabilities
because the commitments will be honored during the subsequent year. The commitments will be re-
appropriated and honored in the subsequent year.
D. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and highly
liquid investments held with financial institutions, a fiscal agent, and in a pooled account with the State,
to be cash equivalents.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and
for External Investment Pools, highly liquid market investments with maturities of one year or less at time
of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is
used as fair value for those securities for which market quotations are readily available.
The City participates in an investment pool managed by the State of California titled Local Agency
Investment Fund (LAIF) which has invested a portion of the pooled 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.
In accordance with GASB Statement No. 40, Deposit and Investment Risk Disclosures (an amendment of
GASB Statement No. 3), the City adheres to certain disclosure requirements, if applicable for deposit and
investment risk are specified for the following areas:
Interest Rate Risk
Credit Risk
Overall
Custodial Credit Risk
Concentration of Credit Risk
Foreign Currency Risk
E. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the
end of the fiscal year are referred to as “due to/from other funds” (i.e., current 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 “interfund balances.”
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
43
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
F. Inventories
Inventories within the various fund types consist of materials and supplies which are valued at cost on
a first-in, first-out basis. Reported expenditures reflecting the purchase of supplies have been restated
to reflect the consumption method of recognizing inventory-related expenditures. A reservation of
fund balance has been reported in the governmental funds to show that inventories do not constitute
“available spendable resources,” even though they are a component of net current assets.
G. Land Held for Resale
Land held for resale is carried at lower of cost or market, but not greater than the net realizable value.
An amount equal to the carrying value of land is reserved in fund balance because such assets are not
available to finance current operation.
H. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, streets,
sidewalks, medians and storm drains), are reported in the applicable governmental or business-type
activities in the Government-Wide Financial Statements. City policy has set the capitalization threshold
for reporting capital assets at $5,000. Capital assets are valued at historical cost or estimated historical
cost if actual historical cost was not available. Donated assets are valued at their estimated fair market
value on the date donated.
Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Buildings 10-50 years
Buildings improvements 10-100 years
Furniture and Equipment 5-20 years
Infrastructure 20-50 years
In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34, Basic
Financial Statements and Management’s Discussion and Analysis for State and Local Government,
which requires the inclusion of infrastructure capital assets in local governments’ basic financial
statements. In accordance with GASB Statement No. 34, the City has included the value of all
infrastructure in its Basic Financial Statements.
The City defines infrastructure as the basic physical assets that allow the City to function. These assets
include streets, bridges, sidewalks, drainage systems, and lighting systems, etc. 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, landscaping and land. These
subsystems are not delineated in the basic financial statements. The appropriate operating department
maintains information regarding the subsystems.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
on construction-related debt incurred during the period of construction for business-type and
proprietary fund assets is capitalized as a cost of the constructed assets. Capital assets acquired under
capital lease are capitalized at the net present value of the total lease payments.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
44
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
H. Capital Assets, Continued
For 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, 2006. This appraisal determined the original costs, which are defined as the
actual cost to acquire new property in accordance with market prices at the time of first
construction/acquisition. Original 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, unrecovered cost method was computed using industry accepted life
expectancies for each infrastructure subsystem. The book value was then computed by deducting the
accumulated depreciation from the original cost.
Capital Assets Acquired Under Lease Purchase Contracts
The long-term principal portion of debt on non-proprietary capital assets acquired through lease
purchase contracts is accounted for in the government-wide financial statements as “capital lease
obligations.” A capital asset is recorded at the net present value of total lease payments in the
government-wide financial statements.
I. Compensated Absences
Government-Wide Financial Statements
For governmental and business-type activities, compensated absences are recorded as incurred and the
related expenses and liabilities are reported.
Fund Financial Statements
In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is
the City’s policy to liquidate any unpaid compensated absences at June 30 from future resources, rather
than currently available financial resources. In proprietary funds, compensated absences are expensed
to the various funds in the period they are earned, and such fund’s share of the unpaid liability is
recorded as a long-term liability of the fund. Vested or accumulated compensated absences are
recorded in proprietary funds as an expense and liability of those funds as the benefits accrue to
employees.
J. Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other long-term obligations are reported as liabilities in the appropriate activities.
Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payable are reported net of applicable premium or
discount. Issuance costs are reported as deferred charges.
Fund Financial Statements
The governmental fund financial statements do not present long-term debt but are shown in the
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net
Assets.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
45
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
K. Net Assets
Government-Wide Financial Statements
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, or 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.”
Fund Financial Statements
Reservations represent those portions of fund equity which are not appropriable for expenditure or
which are legally segregated for specific future use. Designated fund balances represent tentative plans
for future use of financial resources. Undesignated fund balance indicates that portion of the fund
balance which is available for appropriation in future periods.
L. Use of Restricted and 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.
M. Use of Estimates
The preparation of the basic financial statements in conformity with generally accepted accounting
principles in the United States (GAAP) requires management to make estimates and assumptions that
affect the reported amounts of certain assets and liabilities and the disclosure of contingent assets and
liabilities at the date of the basic financial statements and the related reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates. Management
believes that the estimates are reasonable.
N. Implementation of New GASB Pronouncements
The City adopted new accounting standards in order to conform to the following Governmental
Accounting Standards Board (GASB) Statements:
GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations
GASB Statement No. 52, Land and Other Real Estate Held as Investments by Endowment
GASB Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local
Governments
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
46
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
N. Implementation of New GASB Pronouncements, Continued
GASB Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in
AICPA Statements on Auditing Standards
GASB Statement No. 49 addresses accounting and financial reporting standards for pollution (including
contamination) remediation obligations, which are obligations to address the current or potential
detrimental effects of existing pollution by participating in pollution remediation activities such as site
assessments and cleanups.
GASB Statement No. 52 improves the quality of financial reporting by requiring endowments to report
their land and other real estate investments at fair value, creating consistency in reporting among
similar entities that exist to invest resources for the purpose of generating income.
GASB Statement No. 55 incorporates the hierarchy of generally accepted accounting principles (GAAP)
for state and local governments into the GASB’s authoritative literature. It is intended to make it easier
for preparers of state and local government financial statements to identify and apply the “GAAP
hierarchy,” which consists of sources of accounting principles used in the preparation of financial
statements so that they are presented in conformity with GAAP and the framework for selecting those
principles.
GASB Statement No. 56 incorporates accounting and financial reporting guidance previously only
contained in the American Institute of Certified Public Accountants (AICPA) auditing literature into the
GASB’s accounting and financial reporting literature for state and local governments. The Statement
No. 56 guidance addresses three issues from the AICPA’s literature—related party transactions, going
concern considerations, and subsequent events.
2. CASH, CASH EQUIVALENTS AND INVESTMENTS
The City maintains a cash and investment pool, which includes cash balances and authorized
investments of all funds. This pooled cash is invested by the City Treasurer to enhance earnings. The
pooled interest earned is allocated to the funds based on average month-end cash balances of the
various funds.
The following is a summary of cash and investment at June 30, 2009:
Fiduciary Funds
Governmental Business-Type Statement of
Activities Activities Net Assets Total
Cash and investments 117,816,817$ 21,161,594$ 9,104,068$ 148,082,479$
Cash and investments with fiscal agents 22,977,459 280,469 5,326,854 28,584,782
Total 140,794,276$ 21,442,063$ 14,430,922$ 176,667,261$
Statement of Net Assets
Government-Wide
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
47
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
Cash, cash equivalents, and investments consisted of the following at June 30, 2009:
Cash on hand 7,150$
Demand deposits 1,197,285
Investments 175,462,826
Total cash and investments 176,667,261$
A. Cash Deposits
The carrying amounts of the City’s demand deposits were $1,197,285 at June 30, 2009. Bank balances at
June 30, 2009, were $2,967,773 which were fully insured or collateralized with securities held by the
pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure
the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in
this manner shall have the effect of perfecting a security interest in such collateral superior to those of a
general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California
law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a
value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash
deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The
City, however, has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required to
be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled
cash and investments is allocated on an accounting period basis to the various funds based on the
period-end cash and investment balances. Interest income from cash and investments with fiscal agents
is credited directly to the related fund.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
48
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
B. Investments
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City’s investment policy, where more restrictive). The table also identifies
certain provisions of the California Government Code (or the City’s investment policy, where more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does
not address investments of debt proceeds held by bond trustee 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.
Maximum Maximum
Authorized Maximum Percentage of Investment in
Investment Type Maturity Portfolio* One Issuer
U.S. Treasury Obligation 5 years None None
U.S. Agency Securities 5 years 75%25%
Bankers' Acceptances 180 days 40%5%
Medium-Term and Corporate Notes 5 years 30%5%
Money Market Mutual Funds N/A 20%10%
Mortgage Backed Securities 5 years 20%None
Asset Back Securities 5 years 20%None
Commercial Paper 270 days 25%3%
Negotiable Certificates of Deposit 5 years 30%5%
Local Agency Investment Fund (LAIF)N/A None None
County of San Diego Investment Pool N/A None None
CalTRUST Joint Powers Authority N/A None None
* Excluding amounts held by bond trustee that are not subject to California Government Code restriction.
C. Investment Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreement,
rather than the general provisions of the California Government Code or the City’s investment policy.
The table below identifies certain provisions of these debt agreements that address interest rate risk,
credit risk, and concentration of credit risk.
Maximum Maximum
Authorized Maximum Percentage of Investment in
Investment Type Maturity Portfolio*One Issuer
Repurhase Agreements 1 year None 30%
Money Market Mutual Funds N/A 15%None
U.S. Agency Securities 5 years 75%25%
Investment Contracts 30 years None None
Local Agency Investment Fund (LAIF)N/A None None
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
49
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
D. Risk Disclosures
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 the 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.
Information about the sensitivity of the fair values of the City’s investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that shows
the distribution of the City’s investments by maturity:
12 Months 13 to 24 25 to 60 More than
Investment Type Amounts or Less Months Months 60 Months
U.S. Treasuries 3,241,046$ 3,042,140$ -$ 198,906$ -$
U.S. Agencies 19,213,682 - 9,268,561 9,945,121 -
Other Government 48,510,711 48,510,711 - - -
Asset Backed Securities 4,838,370 3,008,415 - 1,829,955 -
Mortgage Backed Securities 3,776,421 1,464,933 - 2,311,488 -
Medium-Term and Corporate Notes 21,680,310 8,254,499 4,064,769 8,317,220 1,043,822
Local Agency Investment Fund (LAIF)45,297,686 45,297,686 - - -
San Diego County Investment Pool 35,374 35,374 - - -
LOI Bond AD #2001-1 184,444 18,803 40,913 91,649 33,079
Certificates of Deposit 100,000 100,000 - - -
Held by bond trustee:
Money Market Funds 12,642,509 12,642,509 - - -
Investment Contracts 14,618,432 - - - 14,618,432
Federal Home Loan Mortgage Corporation 1,323,841 - 1,323,841 - -
175,462,826$ 122,375,070$ 14,698,084$ 22,694,339$ 15,695,333$
Remaining Maturity
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
50
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
D. Risk Disclosures, Continued
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. The following presentation 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:
Minimum
Investment Type Amounts Rating Exempt AAA/Aaa A+/A1 AA+/Aa1 A+/A2 A/A2 AA/Aa2 A/Aa3 AA/Aa3 AA/NR
U.S. Treasuries 3,241,046$ Aaa -$ 3,241,046$ -$ -$ -$ -$ -$ -$ -$ -$
U.S. Agencies 19,213,682 Aaa - 19,213,682 - - - - - - - -
Other government 48,510,711 Aaa - - - - - - - - - 48,510,711
Asset Backed Securities 4,838,370 Aaa - 3,607,180 - - - - - 1,231,190 - -
Mortgage Backed Securities 3,776,421 Aaa - 3,776,421 - - - - - - - -
Medium-Term and Corporate Notes 21,680,310 A1 - 7,100,262 2,088,292 505,759 959,008 6,310,404 1,037,839 1,665,635 984,390 1,028,718
Local Agency Investment Fund (LAIF)45,297,686 N/A 45,297,686 - - - - - - - - -
San Diego County Investment Pool 35,374 35,374 - - - - - - - - -
LOI Bond AD #2001-1 184,444 184,444 - - - - - - - - -
Certificates of Deposit 100,000 - 100,000 - - - - - - - -
Held by bond trustee:
Money Market Funds 12,642,509 12,642,509 - - - - - - - - -
Investment Contracts 14,618,432 14,618,432 - - - - - - - - -
Federal National Mortgage Corporation 1,323,841 1,323,841 - - - - - - - - -
175,462,826$ 74,102,286$ 37,038,591$ 2,088,292$ 505,759$ 959,008$ 6,310,404$ 1,037,839$ 2,896,825$ 984,390$ 49,539,429$
Concentration of Credit Risk
The City’s Policy states that not more than 20% of the portfolio shall be invested in any one entity or
any one instrument to protect the City from concentration of credit risk, with the following exceptions:
U.S. Treasury Obligations and investments pools (State of California – Local Agency Investment Fund
and California Asset Management Program). In addition, purchases of commercial paper must not
exceed 20% of the value of the portfolio at any time and single issuer holdings must not exceed 3
percent per issuer. The City is in compliance with these provisions of the Policy.
The following is a chart of City’s investment portfolio:
Investment Reported
Trustee/Custodian Type Amount
Union Bank/U.S. Bank U.S. Treasuries 3,241,046$
Union Bank/U.S. Bank U.S. Agencies 19,213,682
Union Bank/U.S. Bank Other government 48,510,711
Union Bank Corporates 21,680,310
State Treasurer Office LAIF 45,297,686
Societe Generale Investment Contract 3,544,500
FSA Capital Investment Contract 11,073,932
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
51
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
E. Investment in Local Agency Investment Funds
The City invests in the Local Agency Investment Fund (LAIF), a State of California investment pool.
LAIF determines fair value on its investment portfolio based on market quotations for those securities
where market quotations are readily available and based on amortized cost or best estimate for those
securities where market value is not readily available.
The City valued its investments in LAIF as of June 30, 2009, at fair value. The fair value is calculated by
multiplying the account balance with LAIF times a fair value factor of 1.001364207 which is determined
by LAIF. This fair value factor was determined by dividing total value by all LAIF participants’ total
cost.
The City’s investments with Local Agency Investment Funds (LAIF) at June 30, 2009, included a portion
of the pooled funds invested in Medium-Term and Short-Term Structured Notes and Asset-Backed
Securities. These investments included the following:
Structured Notes are debt securities (other than asset-backed securities) whose cash flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more
indices and/or that have embedded forwards or options.
Asset-Backed Securities the bulk of which are mortgage-backed securities, entitle their purchasers to
receive a share of the cash flows from a pool of assets such as principal and interest repayments
from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2009, the City had $45,297,686 invested in LAIF, which had invested 14.71% of the pooled
investment funds in short-term and medium-term Structured Notes and Asset-Backed Securities.
F. Investment in San Diego County Investment Pool
The City is a voluntary participant in the County Treasury Pool (County Pool) which is regulated under
the oversight of the Treasurer of the County of San Diego. The fair value of the City’s investment in the
County Pool is reported in the accompanying financial statements based upon the City’s pro-rate a
share of the fair value provided by the County Pool for the entire portfolio. The balance available for
withdrawal is based on the accounting records maintained by the Pool. Included in the County Pool’s
investment portfolio are collateralized and negotiable certificates of deposit, floating rate securities
issued by federal agencies and corporations, money market funds, repurchase agreements and
commercial paper.
At June 30, 2009, the City had $35,374 invested in the San Diego County Investment Pool.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
52
3. INTERFUND TRANSACTIONS
A. Due To and Due From Other Funds
As of June 30, 2009, balances were as follows:
General
Due to other funds Fund Total
Governmental Activities:
Non-major Governmental Funds 668,189$ 668,189$
Total 668,189$ 668,189$
Due from other funds
These balances resulted from loans to cover negative cash balances as of June 30, 2009.
B. Advances To and Advances From Other Funds
City of Poway
Redevelopment Agency Non-major Fiduciary
Debt Service Governmental Agency
Advances to other funds Fund Funds Funds Total
Governmental Activities:
General Fund 3,801,458$ 1,004,304$ -$ 4,805,762$
Non-major Governmental Funds 3,720,100 17,576 - 3,737,676
Business-Type Activities:
Water 3,524,205 - - 3,524,205
Sewer 5,248,623 214,500 1,000,000 6,463,123
Total 16,294,386$ 1,236,380$ 1,000,000$ 18,530,766$
Advances from other funds
The advances were primarily used for the following:
The City Council authorized various loans to the Redevelopment Agency totaling $16,294,386 and
to other Non-major Governmental funds totaling $1,236,380 at various interest rates. The terms of
the loans are indefinite. Accrued interest on the loans of $1,011,820 and $4,697,982 respectively, are
not reflected in the accompanying basic financial statements as payment is contingent upon the
availability of tax increment. Interest is recorded when it becomes payable from available
spendable resources.
The City’s Sewer Fund loaned to the Parkway Business Center CFD No. 88-1- Bond Deposit
Fiduciary Agency Fund $1,000,000. Interest on this loan is paid on an annual basis and the
outstanding principal balance will be paid with the final assessment in 2014-2015.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
53
3. INTERFUND TRANSACTIONS, Continued
C. Transfers To and From Other Funds
Transfers for the year ended June 30, 2009, were as follows:
Low and City of Poway
Moderate Redevelopment
Income Housing Agency Non-major Water Sewer Internal
Special Revenue Debt Service Governmental Enterprise Enterprise Service
General Fund Fund Funds Fund Fund Funds Total
General Fund 2,520,000$ -$ -$ 1,136,348$ -$ -$ 496,848$ 4,153,196$
Low and Moderate Income Housing
Special Revenue Fund - - 7,800,214 - - - - 7,800,214
City of Poway Redevelopment
Agency Debt Service Fund - 1,700,800 - 442,296 - - - 2,143,096
Redevelopment Area
Capital Projects Fund - - 4,462,591 - - - - 4,462,591
Non-major Governmental
Funds 713,667 - 442,296 104,297 111,471 111,471 - 1,483,202
Enterprise Fund
Water - - - 75,439 - - - 75,439
Total 3,233,667$ 1,700,800$ 12,705,101$ 1,758,380$ 111,471$ 111,471$ 496,848$ 20,117,738$
Transfers Out
Transfers In
Transfers are primary used for the following:
Move revenues from the fund that statute or budget requires to collect them to the fund that
statute or budget requires to expend them;
Move receipt restricted to the debt service from the funds collecting the receipts, to the debt
service fund as debt service payments become due.
More available funds to capital project funds for approved projects.
More available funds to new funds, or closed funds, at the direction of the Council.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
54
4. CAPITAL ASSETS
A. Government-Wide Financial Statements
The following is a summary of capital assets for governmental activities:
Balance Balance
July 1, 2008 Additions Deletions Reclassification June 30, 2009
Non-depreciable Assets:
Land 72,085,673$ 13,812$ (579,500)$ -$ 71,519,985$
Construction in progress 9,583,971 4,456,338 (2,183,703) (5,553,616) 6,302,990 $ $
Total non-depreciable assets 81,669,644 4,470,150 (2,763,203) (5,553,616) 77,822,975
Depreciable Assets:
Buildings 63,998,700 - - 967,394 64,966,094
Improvements other than buildings 6,309,047 - - - 6,309,047
Infrastructure 135,218,729 - (45,997) 4,486,566 139,659,298
Machinery and equipment 14,075,041 1,050,406 (347,289) 99,656 14,877,814
Total depreciable assets,
at cost 219,601,517 1,050,406 (393,286) 5,553,616 225,812,253
Less accumulated depreciation:
Buildings (21,837,152) (1,881,496) - - (23,718,648)
Improvements other than buildings (662,818) (236,574) - - (899,392)
Infrastructure (72,935,244) (3,117,391) 45,998 - (76,006,637)
Machinery and equipment (7,220,695) (1,082,649) 327,486 - (7,975,858)
Total accumulated depreciation (102,655,909) (6,318,110) 373,484 - (108,600,535)
Total depreciable assets, net 116,945,608 (5,267,704) (19,802) 5,553,616 117,211,718
Total governmental
activities 198,615,252$ (797,554)$ (2,783,005)$ -$ 195,034,693$
Governmental activities depreciation expenses for capital assets for the year ended June 30, 2009 are as
follows:
General government 1,530,072$
Public safety 935,027
Public works 3,435,509
Community services 417,502
Total depreciation expense 6,318,110$
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
55
4. CAPITAL ASSETS, Continued
A. Government-Wide Financial Statements, Continued
The following is a summary of capital assets for business-type activities:
Balance Balance
July 1, 2008 Additions Deletions June 30, 2009
Non-depreciable Assets:
Land 76,797$ -$ -$ 76,797$
Construction in progress 1,569,649 5,556,243 - 7,125,892
Total non-depreciable assets 1,646,446 5,556,243 - 7,202,689
Depreciable Assets:
Buildings 21,076,441 - - 21,076,441
Improvements other than buildings 53,112,997 423,927 - 53,536,924
Machinery and equipment 2,567,193 342,608 - 2,909,801
Total depreciable assets, at cost 76,756,631 766,535 - 77,523,166
Less accumulated depreciation:
Buildings (14,190,044) (465,739) - (14,655,783)
Improvements other than buildings (26,058,787) (1,424,440) - (27,483,227)
Machinery and equipment (1,734,390) (156,144) - (1,890,534)
Total accumulated depreciation (41,983,221) (2,046,323) - (44,029,544)
Total depreciable assets, net 34,773,410 (1,279,788) - 33,493,622
Total business-type activities 36,419,856$ 4,276,455$ -$ 40,696,311$
Business-type activities depreciation expenses for capital assets for the year ended June 30, 2009 are as
follows:
Water 1,198,367$
Sewer 847,956
Total depreciation expense 2,046,323$
B. Fund Financial Statements
The fund financial statements do not present general government capital assets but are shown in the
Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net
Assets.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
56
5. LONG-TERM DEBT
The following is a summary of long-term debt for the year ended June 30, 2009:
Balance Debt Debt Balance Due in Due in more
July 1, 2008 Issued Retired June 30, 2009 One Year than One Year
Governmental Activities:
Tax Allocation Bonds 246,402,452$ -$ (5,601,814)$ 240,800,638$ 5,813,566$ 234,987,072$
Certificates of Participation 51,602,984 - (1,534,821) 50,068,163 1,614,067 48,454,096
Contract payable 35,372 - (35,372) - - -
Notes payable 2,215,093 154,734 (87,126) 2,282,701 - 2,282,701
Compensated absences 1,345,046 311,855 (254,898) 1,402,003 265,692 1,136,311
Total governmental activities 308,350,999$ 466,589$ (7,514,031)$ 294,553,505$ 7,693,325$ 286,860,180$
Business-Type Activities:
Revenue Bonds 1,746,327$ -$ (177,780)$ 1,568,547$ 187,976$ 1,380,571$
Compensated absences 296,741 71,337 (53,261) 314,817 55,951 258,866
Total business-type activities 2,173,342$ 71,337$ (231,041)$ 1,883,364$ 243,927$ 1,639,437$
Classification
A. Governmental Activities Long-Term Debt
Tax Allocation Bonds
Tax Allocation Bonds at June 30, 2009, consisted of the following:
Amount Due Amount Due
Balance Balance Within More Than
July 1, 2008 Additions Deletions June 30, 2009 One Year One Year
2000 Tax allocation bonds 10,625,000$ -$ (1,290,000)$ 9,335,000$ 1,355,000$ 7,980,000$
2001 Tax allocation bonds 73,525,000 - (500,000) 73,025,000 550,000 72,475,000
2003 Tax allocation bonds 133,420,000 - (3,520,000) 129,900,000 3,620,000 126,280,000
Bond premium 2,727,377 - (198,188) 2,529,189 194,994 2,334,195
2007 Tax allocation bonds 24,710,000 - (30,000) 24,680,000 30,000 24,650,000
Bond premium 1,395,075 - (63,626) 1,331,449 63,572 1,267,877
Total Tax Allocation Bonds 246,402,452$ -$ (5,601,814)$ 240,800,638$ 5,813,566$ 234,987,072$
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
57
5. LONG-TERM DEBT, Continued
A. Governmental Activities Long-Term Debt, Continued
Tax Allocation Bonds, Continued
2000 Tax Allocation Bonds
In March 2000, the Agency issued the 2000 Tax Allocation Refunding Bonds in the amount of
$39,915,000. The bonds were issued on a subordinate basis to the portion of the Agency’s previously
issued $21,595,000 Paguay Redevelopment Project, Tax Allocation Refunding Bonds, Series 1990A, of
which $5,855,000 were not refunded. The $5,885,000 from the 1990A bonds were paid off in fiscal year
2005. In addition to partially refunding the 1990A Tax Allocation Bonds, these bonds were issued to
pay amounts owed under three owner participation agreements. The bonds consisted of serial bonds of
$9,940,000 maturing from 2000 to 2011 in semi-annual installments of $45,000 to $785,000 and term
bonds of $29,975,000 maturing in 2033. Interest is paid semiannually on June 15 and December 15 at
rates ranging from 3.75% to 5.75%.
Bonds maturing on or after June 11, 2011 are subject to optional redemption in whole or in part on any
interest payment date. Bonds maturing on June 15, 2033 are subject to mandatory redemption on each
interest payment date beginning June 15, 2027. The outstanding balance of the bonds at June 30, 2009
was $9,335,000.
The Agency has pledged a portion of future property tax increment revenue to repay the 2000 Tax
Allocation Refunding Bonds. The bonds required 7% of property tax increment revenue. Total
principal and interest remaining on the bond is $16,689,701 payable through 2033.
The annual requirements to amortize the bonds outstanding at June 30, 2009, are as follows:
Year Ending
June 30,Principal Interest Total
2010 1,355,000$ 492,775$ 1,847,775$
2011 1,425,000 424,987 1,849,987
2012 740,000 352,862 1,092,862
2013 - 334,363 334,363
2014 - 334,363 334,363
2015-2019 - 1,671,813 1,671,813
2010-2024 - 1,671,813 1,671,813
2025-2029 1,160,000 1,560,694 2,720,694
2030-2033 4,655,000 511,031 5,166,031
Total 9,335,000$ 7,354,701$ 16,689,701$
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
58
5. LONG-TERM DEBT, Continued
A. Governmental Activities Long-Term Debt, Continued
Tax Allocation Bonds, Continued
2001 Tax Allocation Bonds
In July 2001, the Agency issued the 2001 Tax Allocation Bonds in the amount of $76,395,000 for the
purpose of refinancing the Agency’s outstanding Paguay Redevelopment Project, Subordinate Tax
Allocation Bonds of 1999, financing certain improvements, including low and moderate income housing
improvements in the Paguay Redevelopment Project Area, funding an escrow for future capital
improvement, funding a reserve account and paying the bond issuance cost. The bonds bear interest
from 3% to 5.25%, payable semi-annually on June 15 and December 15 through 2033. Payments of the
bonds collateralized by a pledge of tax revenues to be received by the Agency. The bonds maturing on
or after June 15, 2012 are subject to redemption prior to maturity at the option of the Agency. The
outstanding balance of the bonds at June 30, 2009 was $73,025,000.
The Agency has pledged a portion of future property tax increment revenue to repay the 2001 Tax
Allocation Bonds. The bonds required 17% of property tax increment revenue. Total principal and
interest remaining on the bond is $129,543,743 payable through 2033.
The annual requirements to amortize the bonds outstanding at June 30, 2009, are as follows:
Year Ending
June 30,Principal Interest Total
2010 550,000$ 3,736,789$ 4,286,789$
2011 580,000 3,712,424 4,292,424
2012 1,360,000 3,678,455 5,038,455
2013 2,200,000 3,608,461 5,808,461
2014 2,295,000 3,507,414 5,802,414
2015-2019 11,705,000 15,735,657 27,440,657
2020-2024 13,175,000 12,541,359 25,716,359
2025-2029 23,320,000 8,002,198 31,322,198
2030-2033 17,840,000 1,995,986 19,835,986
Total 73,025,000$ 56,518,743$ 129,543,743$
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
59
5. LONG-TERM DEBT, Continued
A. Governmental Activities Long-Term Debt, Continued
Tax Allocation Bonds, Continued
2003 Tax Allocation Bonds
In October 2003, the Agency issued the 2003 Series A Tax Allocation Bonds in the amount of
$150,300,000 for the purpose of refinancing the outstanding 1993 Tax Allocation Refunding Bonds in the
amount of $94,740,000, paying approximately $10,983,000 owed under two owner participation
agreements related to the properties located in the City’s business parks, with one being paid in full,
providing financing for certain improvements in the Paguay Redevelopment Area, funding a reserve
account and paying the bond issuance costs. The bonds bear interest from 2.0% to 5.25% and payable
semi-annually on June 15 and December 15 through 2033. Payment of the bonds is collateralized by a
pledge of tax revenues to be received by the Agency. The bonds maturing on or after June 15, 2028 are
subject to redemption prior to maturity at the option of the Agency. The outstanding balance of the
bonds at June 30, 2009 was $129,900,000.
The Agency has pledged a portion of future property tax increment revenue to repay the 2003 Tax
Allocation Bonds. The bonds required 40% of property tax increment revenue. Total principal and
interest remaining on the bond is $213,185,363 payable through 2033.
The annual requirements to amortize the bonds outstanding at June 30, 2009, are as follows:
June 30,Principal Interest Total Bond Premium
2010 3,620,000$ 6,421,100$ 10,041,100$ 194,994$
2011 3,740,000 6,294,900 10,034,900 191,162
2012 4,050,000 6,155,050 10,205,050 186,915
2013 4,465,000 6,003,300 10,468,300 182,307
2014 4,695,000 5,824,950 10,519,950 176,891
2015-2019 27,590,000 25,327,575 52,917,575 769,142
2020-2024 35,620,000 17,315,863 52,935,863 525,844
2025-2029 27,545,000 7,675,875 35,220,875 233,099
2030-2033 18,575,000 2,266,750 20,841,750 68,835
Total 129,900,000$ 83,285,363$ 213,185,363$ 2,529,189$
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
60
5. LONG-TERM DEBT, Continued
A. Governmental Activities Long-Term Debt, Continued
Tax Allocation Bonds, Continued
2007 Tax Allocation Bonds
In February 2007, the Agency issued the 2007 Tax Allocation Bonds in the amount of $24,965,000 for the
purpose of refinancing a portion of the 2000 Tax Allocation Refunding Bonds, originally issued in the
principal amount of $39,915,000, of which $36,610,000 is currently outstanding (and of which
$12,450,000 will remain outstanding upon issuance of the Bonds), finance and refinance certain
improvements in the Paguay Redevelopment Project Area and paying the bond issuance cost. The
bonds bear interest from 3.5% to 4.125% and are payable semi-annually on June 15 and December 15
through 2033. Payments of the bonds collateralized by a pledge of tax revenues to be received by the
Agency. The bonds maturing on or before June 15, 2017 are not subject to call and optional redemption
prior to maturity. Bonds maturing on or after December 15, 2017 are subject to redemption prior to
maturity at the option of the Agency. The outstanding balance of the bonds at June 30, 2009 was
$24,680,000.
The Agency has pledged a portion of future property tax increment revenue to repay the 2007 Tax
Allocation Bonds. The bonds required 5% of property tax increment revenue. Total principal and
interest remaining on the bond is $50,375,915 payable through 2033.
The annual requirements to amortize the bonds outstanding at June 30, 2009, are as follows:
Year Ending
June 30,Principal Interest Total Bond Premium
2010 30,000$ 1,226,880$ 1,256,880$ 63,572$
2011 30,000 1,225,830 1,255,830 63,517
2012 30,000 1,224,780 1,254,780 63,463
2013 30,000 1,223,708 1,253,708 63,408
2014 30,000 1,222,628 1,252,628 63,352
2014-2018 180,000 6,094,920 6,274,920 315,811
2019-2023 215,000 6,055,981 6,270,981 313,793
2024-2028 8,450,000 5,605,063 14,055,063 290,430
2029-2033 15,685,000 1,816,125 17,501,125 94,103
Total 24,680,000$ 25,695,915$ 50,375,915$ 1,331,449$
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
61
5. LONG-TERM DEBT, Continued
A. Governmental Activities Long-Term Debt, Continued
Certificates of Participation
Certificates of Participation at June 30, 2009, consisted of the following:
Amount Due Amount Due
Balance Balance Within More Than
June 30, 2008 Additions Deletions June 30, 2009 One Year One Year
1995 Certificates of Participation 28,235,000$ -$ (735,000)$ 27,500,000$ 780,000$ 26,720,000$
2003 Certificates of Participation 16,000,000 - (355,000) 15,645,000 370,000 15,275,000
Bond premium 151,784 - (9,601) 142,183 9,425 132,758
2005 Certificates of Participation 7,130,000 - (425,000) 6,705,000 445,000 6,260,000
Bond premium 86,200 - (10,220) 75,980 9,642 66,338
Total certificates of participation 51,602,984$ -$ (1,534,821)$ 50,068,163$ 1,614,067$ 48,454,096$
1995 Certificates of Participation
In September 1995, the City issued the 1995 Refunding Certificates of Participation in the amount of
$31,770,000 to defease the City’s outstanding 1991 Certificates of Participation – Capital Improvement
Project – Poway Royal Mobilehome Park. The original bonds were issued to purchase the Poway Royal
Mobilehome Park. The 1995 Refunding Certificates of Participation consisted of $3,895,000 serial
certificates maturing from 1996 to 2008 in semi-annual installments of $10,000 to $360,000 and term
certificates of $6,335,000, $6,405,000 and $15,135,000 maturing in 2015, 2020, and 2028, respectively.
Interest is payable semi-annually on February 1 and August 1 at rates ranging from 3.65% to 6.15%.
Certificates maturing on or after February 1, 2006 are subject to optional prepayment in whole or in part
on any interest payment date on or after August 1, 2005. Certificates maturing on August 1, 2015, 2020,
and 2028 are subject to mandatory prepayment by lot on any interest payment date beginning February
1, 2009, 2016 and 2021, respectively. At June 30, 2009, the outstanding balance of the 1995 Refunding
Certificates of Participation was $27,500,000.
The annual debt service requirements for the 1995 Refunding Certificates of Participation outstanding at
June 30, 2009, are as follows:
Year Ending
June 30, Principal Interest Total
2010 780,000$ 1,631,388$ 2,411,388$
2011 825,000 1,584,976 2,409,976
2012 870,000 1,535,772 2,405,772
2013 930,000 1,483,778 2,413,778
2014 975,000 1,428,553 2,403,553
2015-2019 5,875,000 6,184,606 12,059,606
2020-2024 7,875,000 4,170,150 12,045,150
2025-2029 9,370,000 1,460,700 10,830,700
Total 27,500,000$ 19,479,923$ 46,979,923$
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
62
5. LONG-TERM DEBT, Continued
A. Governmental Activities Long-Term Debt, Continued
Certificate of Participation, Continued
2003 Certificates of Participation
In January 2003, the City issued 2003 Certificates of Participation in the amount of $17,655,000 for the
construction of a City office building. The 2003 Certificates of Participation consisted of $5,930,000 serial
certificates maturing from 2004 through 2011 in annual installment of $350,000 to $515,000 and term
certificates of $3,005,000, $3,830,000 and $4,890,000 maturing in 2023, 2028 and 2033, respectively.
Interest is payable semi-annually on July 1 and January 1 at rates ranging from 3.00% to 5.00%.
Certificates maturing on or after January 1, 2018 are subject to optional redemption in whole or in part,
on or after January 1, 2017. Certificates maturing on January 1, 2033 are subject to mandatory
redemption, without premium, on January 1, 2019. At June 30, 2009, the outstanding balance of the 2003
Certificates of Participation was $15,645,000.
Year Ending
June 30,Principal Interest Total Bond Premium
2010 370,000$ 759,816$ 1,129,816$ 9,425$
2011 385,000 745,016 1,130,016 9,241
2012 400,000 731,540 1,131,540 9,074
2013 410,000 716,740 1,126,740 8,890
2014 430,000 700,750 1,130,750 8,692
2015-2019 2,470,000 3,177,500 5,647,500 39,414
2020-2024 3,155,000 2,495,000 5,650,000 30,948
2025-2029 4,020,000 1,623,500 5,643,500 20,138
2030-2033 4,005,000 512,750 4,517,750 6,361
Total 15,645,000$ 11,462,612$ 27,107,612$ 142,183$
2005 Certificates of Participation
In April 2005, the City issued 2005 Refunding Certificates of Participation in the amount of $8,245,000 to
refund and defease the City’s outstanding 1995 Certificates of Participation and the 1996 Certificates of
Participation. The original 1995 Certificates of Participation were used for several projects such as the
City’s pool and Performing Arts Center, while the 1996 Certificates of Participation were used to build
the City’s Sheriff Substation. The 2005 Refunding Certificates of Participation consisted of $6,830,000
serial certificates maturing from 2005 through 2020 in annual installments of $305,000 to $610,000 and
term certificates of $1,415,000 maturing in 2026. Interest is payable semi-annually on February 1 and
August 1 at rates ranging from 3.00% to 4.50%. Certificates maturing on or after August 1, 2016 are
subject to optional redemption in whole or in part, on any date beginning August 1, 2015. Certificates
maturing on August 1, 2026 are subject to mandatory redemptions in part of August 1 of each year
beginning August 1, 2021. At June 30, 2009, the outstanding balance of the 2005 Certificates of
Participation was $6,705,000.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
63
5. LONG-TERM DEBT, Continued
A. Governmental Activities Long-Term Debt, Continued
Certificates of Participation, Continued
2005 Certificates of Participation, Continued
Year Ending
June 30, Principal Interest Total Bond Premium
2010 445,000$ 271,675$ 716,675$ 9,642$
2011 460,000 254,113 714,113 9,019
2012 480,000 233,538 713,538 8,289
2013 505,000 214,532 719,532 7,614
2014 520,000 194,626 714,626 6,908
2015-2019 2,480,000 628,703 3,108,703 22,313
2020-2024 1,060,000 291,436 1,351,436 10,344
2025-2027 755,000 52,090 807,090 1,851
Total 6,705,000$ 2,140,713$ 8,845,713$ 75,980$
Contract Payable
Contract payable at June 30, 2009, consisted of the following:
Balance Balance
June 30, 2008 Additions Deletions June 30, 2009
Pomerado Cemetery District 35,372$ -$ (35,372)$ -$
Total contract payable 35,372$ -$ (35,372)$ -$
Contract Payable – Pomerado Cemetery District
On October 23, 1984, the Agency entered into a settlement agreement with Pomerado Cemetery District.
The purpose of the agreement is to alleviate any financial burden or detriment caused to the District by
the Redevelopment Plan.
Payments by the Agency to the Pomerado Cemetery District are as follows:
For the first fiscal year in which the Agency receives tax revenues at least equal to two-hundred-fifty
dollars ($250) plus an additional twenty percent (20%) pursuant to Section 33334.2 of the Health and
Safety Code, the Agency shall pay to the District the sum of two hundred fifty dollars ($250).
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
64
5. LONG-TERM DEBT, Continued
A. Governmental Activities Long-Term Debt, Continued
Contract Payable, Continued
Contract Payable – Pomerado Cemetery District, Continued
For each fiscal year during which the Redevelopment Plan remains in effect after the fiscal year referred
to in the preceding paragraph, the Agency shall pay to the District from tax revenues an amount equal
to the amount of tax revenues paid by the Agency to the District during the fiscal year immediately
preceding the fiscal year for which the calculation is being made, multiplied by one and seven one-
hundredths (1.07).
The Agency has pledged a portion of future property tax increment revenue to repay the contract
payable. Also as part of the agreement once the Agency received cumulative tax increment equaling its
original tax increment plan cap of $408,489,000 it will begin to pass-through the Districts tax sharing
agreement percentage of .2118% instead of making the above loan payment. The agency reached the
original cap during the current fiscal year and made payment according to the pass-through calculation.
The contract payable has been paid in full as of June 30, 2009.
Notes Payable
Notes payable at June 30, 2009, consisted of the following:
Amount Due Amount Due
Balance Balance Within More Than
June 30, 2008 Additions Deletions June 30, 2009 One Year One Year
Mossy Nissan 2,215,093$ 154,734$ (87,126)$ 2,282,701$ -$ 2,282,701$
Total contract payable 2,215,094$ 154,734$ (87,126)$ 2,282,701$ -$ 2,282,701$
The Agency entered into an Owner Participation Agreement with AZ Poway LLC (dba Mossy Nissan)
that went into effect upon issuance of the certificate of completion for the Mossy Nissan automobile
dealership on July 11, 2003. The Agency purchased an operating covenant for $1,900,000 that accrues
interest at the rate of 7% per annum. Annual payment of the operating covenant is based on 50% of the
net new sales in effect until (i) the purchase price and accrued interested is paid in full, or (ii) the
fifteenth annual payment is made. The operating covenant is deemed paid in full after the fifteenth
annual payment is made, and all remaining balances, including accrued interest, are forgiven. The
balance outstanding at June 30, 2009 was $2,282,701.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
65
5. LONG-TERM DEBT, Continued
B. Business-Type Activities Long-Term Debt
Revenue Bonds
Revenue Bonds at June 30, 2009, consisted of the following:
Amount Due Amount Due
Balance Balance Within More Than
June 30, 2008 Additions Deletions June 30, 2009 One Year One Year
1995 Revenue Bonds 1,760,000$ -$ (180,000)$ 1,580,000$ 190,000$ 1,390,000$
Bond discounts (13,673) - 2,220 (11,453) (2,024) (9,429)
Total contract payable 1,746,327$ -$ (177,780)$ 1,568,547$ 187,976$ 1,380,571$
1995 Revenue Bonds
In November 1995, the Poway Public Financing Authority issued the 1995 Revenue Bonds in the amount
of $3,380,000 to provide funds to construct certain water facility improvements. The bonds consist of
$2,190,000 serial bonds maturing from 1996 to 2010 in annual installments of $105,000 to $200,000 and
$1,190,000 term bonds maturing in 2015.
Interest is payable semi-annually on May 1 and November 1 with rates ranging from 3.70% to 5.75%.
Bonds maturing on or after November 1, 2006 are subject to optional redemption prior to maturity, in
whole or in part, on any date on or after November 1, 2005. The term bonds are subject to mandatory
redemption in part on November 1, 2011 to 2015 in the amounts ranging from $215,000 to $265,000. At
June 30, 2009, the outstanding balance of the 1995 Revenue Bonds was $1,580,000.
The City has pledged a portion of future water revenue to repay the 1995 Revenue Bonds. Total
principal and interest remaining on the bond is $1,902,441 payable through 2016.
The annual requirements to amortize the bonds outstanding at June 30, 2009 are as follows:
Year Ending
June 30, Principal Interest Total Bond Discount
2010 190,000$ 81,138$ 271,138$ (2,024)$
2011 200,000 70,800 270,800 (1,823)
2012 215,000 59,538 274,538 (1,755)
2013 225,000 47,438 272,438 (1,755)
2014 235,000 20,625 255,625 (1,755)
2015-2016 515,000 42,902 557,902 (2,341)
Total 1,580,000$ 322,441$ 1,902,441$ (11,453)$
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
66
5. LONG-TERM DEBT, Continued
C. Defeasance of Long-Term Debt
In February 2007, the City refunded a portion of the 2000 Tax Allocation Refunding Bonds in the amount
of $39,915,000 with the $24,965,000 2007 Tax Allocation Refunding Bonds. The net proceeds of
$25,999,413 were used to purchase direct obligations for which the full faith and credit of the United
States are pledged. These securities were deposited in an irrevocable trust with an escrow agent to
provide for all future debt service payments of the refunded debt. As a result, a portion of these bonds
were considered defeased and removed from the City’s long-term debt. At June 30, 2009, the
outstanding balance of the non-defeased portion 2000 Tax Allocation Refunding Bonds was $9,335,000,
and the outstanding balance of the defeased portion was $24,160,000.
These bonds were refunded to reduce total debt service by $3,597,684 over the next 27 years and to
obtain an economic gain (difference between the present value of the debt service payments on the old
and new debt) of $1,866,640.
6. ASSESSMENT DISTRICT AND COMMUNITY FACILITIES DISTRICTS BONDS ISSUES
Community Facilities District Special Refunding Bonds
In November 1998, the City issued $26,090,000 in Special Refunding Bonds, Series A and B to refund the
outstanding portion of the $32,800,000 South Poway Community Facilities District No. 1 1987 Special Tax
Refunding Bonds. In April 2004, the City issued $3,775,000 in Special Tax Refunding Bonds to refund the
outstanding portion of the $26,090,000 South Poway Community Facilities District No. 1 1998 Special Tax
Refunding Bonds, Series B. In May 1998, the City issued $35,445,000 in Special Tax Refunding Bonds to
refund the outstanding portion of the $30,000,000 and $8,000,000 Community Facilities District No. 88-1
(Parkway Business Centre) Special Tax Bonds, Series 1990, respectively. The bonds are authorized pursuant
to the Mello-Roos Community Facilities Act of 1982 and are secured by and payable from the proceeds of
annual special assessment taxes levied and collected on the property within the District. The Bonds are not
general or special obligations of the City. The City is acting as agent only for the property owners in
collecting the special assessments and forwarding the collections to the fiscal agents. Neither faith and
credit nor the taxing power of the City is pledged to the payment of these bonds. At June 30, 2009, the
outstanding balances of the November 1998, April 2004 and May 1998 issuances were $3,720,000, $865,000,
and $19,840,000, respectively.
Integrated Financing Assessment District No. 96-1 Limited Obligation Improvement Bonds
In June 1996, the City issued $586,470 Integrated Financing Assessment District No. 96-1 (High Valley
Roads) Limited Obligation Improvement Bonds to finance the cost of acquisition and construction of certain
public infrastructure improvement benefiting properties within the boundaries of the assessment district.
The bonds are authorized pursuant to the Improvement Bond Act of 1915 and are secured by and payable
from the proceeds of annual special assessment taxes levied and collected on the property within the
District. The Bonds are not general or special obligations of the City. The City is acting as agent only for the
property owners in collecting the special assessments and forwarding the collections to the fiscal agents.
Neither faith and credit nor the taxing power of the City is pledged to the payment of these bonds. At June
30, 2009, the outstanding balance of the bonds was $320,000.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
67
6. ASSESSMENT DISTRICT AND COMMUNITY FACILITIES DISTRICTS BONDS ISSUES,
CONTINUED
Old Coach Water Line Assessment District No. 2001-01 Limited Obligation Improvement Bonds
In July 2001, the City issued $290,350 Old Coach Water Line Assessment District No. 2001-01 Limited
Obligation Improvement Bonds to finance the cost of acquisition and construction of certain public
infrastructure improvement benefiting properties within the boundaries of the assessment district. The
bonds are authorized pursuant to the Improvement Bond Act of 1915 and are secured by and payable from
the proceeds of annual special assessment taxes levied and collected on the property within the District. The
Bonds are not general or special obligations of the City. The City is acting as agent only for the property
owners in collecting the special assessments and forwarding the collections to the fiscal agents. Neither
faith and credit nor the taxing power of the City is pledged to the payment of these bonds. At June 30, 2009,
the outstanding balance of the bonds was $184,444.
7. RETIREMENT BENEFITS
A. California Public Employees’ Retirement Plan (PERS)
Plan Description
The City contributes to the California Public Employees’ Retirement System (PERS), an agent multiple-
employer public employee defined benefit pension plan. PERS provides retirement and disability
benefits, annual cost-of-living adjustments, 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. Benefit provisions and all other requirements are established by state statute and city
ordinance. Copies of PERS’ annual financial report may be obtained from their Executive Office located
at 400 P Street, Sacramento, California 95814.
Funding Policy
Active members are required by State statute to contribute 7% if a Miscellaneous member, and 9% if a
Safety member, of their annual covered salary. The City pays 7% employee contributions for all
Miscellaneous employees and 9% for Safety employees (Fire, Fire Management, and the Fire Chief),
which amounted to $1,327,955 for the year ended June 30, 2009. The City’s employer required
contribution rate was 23.331% for Safety employees and 11.786% for Miscellaneous employees for the
fiscal year.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
68
7. RETIREMENT BENEFITS, Continued
A. California Public Employees’ Retirement Plan (PERS), Continued
Annual Pension Cost
For 2008-2009, the City’s annual pension cost of $2,607,123 for PERS was equal to the City’s required
and actual contributions. The required contribution was determined as part of the June 30, 2006,
actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions
included (a) 7.75% investment rate of return (net of administrative expenses), (b) projected salary
increases range from 3.25% to 14.45% for miscellaneous employees and 3.25% to 14.45% for safety
employees depending on age, service, and type of employment, and (c) 3.25% per year cost-of-living
adjustments. Both (a) and (b) included an inflation component of 3%. The actuarial value of PERS
assets was determined using techniques that smooth the effects of short-term volatility in the market
value of investments over a three year period. PERS unfunded actuarial accrued liability (or surplus) is
being amortized as a level percentage of projected payroll on a closed basis. The amortization period at
June 30, 2006, was 25 years for miscellaneous employees and 17 years for safety employees for prior and
current service unfunded liability.
THREE-YEAR TREND INFORMATION FOR PERS ($ Amounts in Thousands)
Safety Miscellaneous Total
Annual Annual Annual Percentage of
Pension Cost Pension Cost Pension Cost APC Net Pension
Fiscal Year (APC)(APC)(APC) Contributed Obligation
6/30/2007 1,000$ 1,377$ 2,377$ 100%-$
6/30/2008 1,026 1,397 2,423 100%-
6/30/2009 1,119 1,488 2,607 100%-
Most Recent Actuarial Study – Schedule of Funding Progress
Overfunded
(Unfunded)
Overfunded Actuarial
Entry Age (Unfunded) Liability as
Actuarial Actual Actuarial Actuarial Percentage of
Valuation Asset Accrued Accrued Funded Covered Covered
Date Value Liability Liability Ratio Payroll Payroll
Miscellaneous 6/30/2006 47,546$ 54,224$ (6,850)$ 87.7% 12,128$ (56.48)%
Employees Group 6/30/2007 51,942 58,792 (6,850) 88.3% 12,901 (53.10)%
6/30/2008 56,126 63,279 (7,153) 88.7% 12,891 (55.49)%
Public Safety
Employees Group
($ Amounts in Thousands)
The City's safety plan becomes part of a CalPERS Risk Pool for employers with less than 100 active plan members. As part
of a cost sharing multiple-employer definied benefits plan, disclosures of the schedule of funding progress is not required.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
69
7. RETIREMENT BENEFITS, Continued
B. Public Agency Retirement Services (PARS)
Plan Description
The City sponsors the PARS Retirement Enhancement Plan. The plan provides a benefit equal to the
2.7% at 55 plan factor, less the CalPERS 2% at 55 plan factors for all years of City service and prior
CalPERS service. Sample rates are as follows:
Net Net Net
Age Factor Age Factor Age Factor
50 1.426%55 2.000%60 2.262%
51 1.522%56 2.052%61 2.314%
52 1.628%57 2.104%62 2.366%
53 1.742%58 2.156%63 2.418%
54 1.866%59 2.210%64+2.418%
Funding Policy
The City’s funding policy is to contribute the annual required contribution. The annual required
contribution equals the sum of:
Normal cost
Amortization of the unfunded actuarial accrued liability
Annual Pension Cost
For the year ended June 30, 2009, the City's annual required contribution is $1,082,561. The required
contribution was based on the July 1, 2007 actuarial valuation using the entry age normal actuarial cost
method. The actuarial assumptions included (a) 7.0% investment return (net of administrative
expenses), (b) the CalPERS 1997 – 2002 Experience Study table for Males and Females, (c) projected
annual payroll increases of 3.25% a year plus merit, and (d) cost-of-living adjustment of 2% per year.
Both (a) and (c) included an inflation component of 3.5%. The unfunded actuarial accrued liability is
being fresh started and amortization payments are increasing by 3.25% per year over 20 years, with 15
remaining at June 30, 2009.
THREE-YEAR TREND INFORMATION FOR PARS ($ Amounts in Thousands)
Annual Percentage of
Pension Cost APC Net Pension
Fiscal Year (APC) Contributed Obligation
6/30/2007 805$ 100%-$
6/30/2008 818 100%-
6/30/2009 1,083 100%-
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
70
7. RETIREMENT BENEFITS, Continued
B. Public Agency Retirement Services (PARS), Continued
Most Recent Actuarial Study – Schedule of Funding Progress
Overfunded
(Unfunded)
Overfunded Actuarial
Entry Age (Unfunded) Liability as
Actuarial Actual Actuarial Actuarial Percentage of
Valuation Asset Accrued Accrued Funded Covered Covered
Date Value Liability Liability Ratio Payroll Payroll
Miscellaneous 6/30/2004 -$ 4,821$ (4,821)$ 0.0% 11,691$ (41.24)%
Employees Group 6/30/2007 1,336 7,799 (6,463) 17.1% 13,167 (49.08)%
6/30/2009 2,409 9,755 (7,346) 24.7% 12,112 (60.65)%
($ Amounts in Thousands)
C. Defined Contribution Pension Plan
The City provides pension benefits for all of its part-time employees through a defined contribution
plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus
investment earnings. The plan is administered as part of the Public Agency Retirement System (PARS).
All part-time employees are eligible to participate from the date of employment. Federal legislation
requires contributions of at least 7.5% to a retirement plan, and City Council resolved to match the
employees’ contribution of 3.75% for employees hired prior to July 1, 1996. Employees hired after July
1, 1996 pay 7.5% of the contributions. The City’s contributions for each employee (and interest earned
by the accounts) are fully vested immediately.
For the year ended June 30, 2009, the City’s payroll covered by the plan was $745,088. The City made
employer contributions of $527 (0.0708% of current covered payroll), and employees contributed
$55,355 (7.4293% of current covered payroll).
8. REHABILITATION LOAN PROGRAM
The City has made various non-interest bearing loans to property owners for the rehabilitation of property
within the City. In accordance with the Affordable Housing Rehabilitation Loan Program, ten percent of
each loan is forgiven each year on the loan anniversary. A portion of the loans are repayable only upon the
sale of the property within ten years of the loan origination date or upon the death of the current property
owner. Due to the contingent repayment schedule of these loans, the Agency records an expenditure when
a loan is made and no receivable is included in the accompanying basic financial statements. The balance of
the loans outstanding at June 30, 2009 was $24,827.
9. TAX INCREMENT REIMBURSEMENT EXPENDITURES
The tax increment reimbursement expenditures are comprised of pass through payments to other taxing
agencies such as the County of San Diego and owner participation agreement payments to developers that
funded public improvements within the project area.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
71
10. OTHER REQUIRED DISCLOSURES
Government-Wide Financial Statements
At June 30, 2009, the unrestricted net assets had a deficit balance of $(71,563,120) for governmental activities
because long-term debt is in excess of assets owned by the City. The deficit is caused by pass through
payments and other non-capitalizable expenditures from bond proceeds.
Fund Financial Statements
At June 30, 2009, the unrestricted net assets had deficit balance of $(290,061) for Storm Water Management
Fund. This is the second year of the fund and there have been additional start-up costs that will be
recovered through future revenues.
11. RISK MANAGEMENT
The City is a member of the California Joint Powers Insurance Authority (Authority). The Authority is
composed of 122 California public entities and is organized under a joint powers agreement pursuant to
California Government Code Section 6500 et. Seq. The purpose of the Authority is to arrange and
administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and
to arrange for group-purchased insurance for property and other coverage. The Authority’s pool began
covering claims of its members in 1978. Each member government has an elected official as its
representative on the Board of Directors. The Board operates through a 9-member Executive Committee.
A. General Liabilities
Each member government pays a primary deposit to cover estimated losses for a fiscal year (claim year).
Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit
computation is then made for each open claims year. Limit: $50 million combined single limit per
occurrence.
B. Workers’ Compensation
The City also participates in the workers’ compensation pool administered by the Authority. Each
member pays a primary deposit to cover estimated losses for a fiscal year (claims year). Six months
after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is
then made for each open claims year. Limit: Statutory benefits and $10 million employers’ liability.
C. Environmental Insurance
The City also participates in the pollution legal liability and remediation legal liability insurance that is
administered by the Authority. This policy covers sudden and gradual pollution of scheduled property,
streets and storm drains owned by the City. Limit: $10 million per member, $50,000 per occurrence self-
insured retention.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
72
11. RISK MANAGEMENT, Continued
D. Property Insurance
The City participates in the all-risk property protection program of the Authority. This insurance
protection is underwritten by several insurance companies. The City’s property is currently insured
according to a schedule of covered property submitted by the City to the Authority. Total all-risk
property insurance coverage is $155,572,152. There is a $5,000 per loss deductible except for earthquake
which has a 5% deductible and flood which has a $100,000 per occurrence deductible. Premium for the
coverage are paid annually and are not subject to retroactive adjustments.
E. Fidelity Bonds
The City purchases blanket fidelity bond coverage in the amount of $1,000,000 with a $2,500 deductible.
The fidelity coverage is provided through the Authority. Premiums are paid annually and are not
subject to retroactive adjustments.
At June 30, 2009, no liability was recorded in the accompanying basic financial statements.
12. JOINT VENTURE
The City is a member of the Regional Solid Waste Association Joint Powers Authority (JPA). The JPA was
formed on September 1, 1997 by the Cities of Del Mar, Encinitas, National City, Poway, Solana Beach and
Vista to provide stable, long-term, cost effective options for all aspects of regional solid waste disposal.
Each member provides a proportionate percentage of revenue to cover all costs related to the obligations
and liabilities of the JPA when they become due and payable. In the event of dissolution of the JPA, any
money or assets in possession of the Regional Solid Waste Association after the payment of all liabilities,
costs, expenses and charges shall be distributed to the member agencies in proportion to their contributions
determined as of the time of termination. The activities of the JPA are supervised by a board consisting of
one elected member of the legislative body of each of the member agencies. The City of Escondido joined
the JPA as a special contract party for the purpose of working on Regional Household Hazardous Waste
issues. Summarized audited information of the JPA for the fiscal year ended June 30, 2009 is as follows:
Total assets 319,297$
Total liabilities 34,814$
Fund equity 284,483$
Total revenues 270,767$
Total expenses 269,383$
Net increase in fund equity 1,384$
City’s share of the JPA’s assets and liabilities are not available. Separate financial statements of the JPA are
available at the City of Poway.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
73
13. PROPERTY TAXES
Property taxes are levied on March 1 and are payable in two installments: November 1 and February 1 of
each year. Property taxes become delinquent on December 10 and April 10, for the first and second
installments, respectively. The lien date is January 1. The County of San Diego, California (County) bills
and collects property taxes and remits them to the City according to a payment schedule established by the
County.
The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can
increase the property tax rate no more than 2% per year. The City receives a share of this basic tax levy
proportionate to what it received during the years 1980-1981.
Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the
taxes are received within 60 days after the end of the fiscal year. Property taxes received after this date are
not considered available as a resource that can be used to finance the current year operations of the City
and, therefore, are not recorded as revenue until collected.
No allowance for doubtful accounts was considered necessary.
14. CONTINGENT LIABILITIES AND COMMITMENTS
A. Litigation
The City is a defendant in certain legal actions arising in the normal course of operations. The
accompanying basic financial statements reflect a liability for the probable amounts of loss associated
with these claims.
15. COMMITMENTS UNDER DEVELOPER AGREEMENTS
On April 1, 1999, the Agency entered into an Owner Participation Agreement with a developer with regard
to certain parcels of real estate located in the Project Area within the boundaries of Community Facilities
District (CFD) No. 88-1. In order to provide for the funding of certain public improvements associated with
the project, the Agency shall pay the developer on each annual payment date, an amount equal to gross
property tax increment allocated to and received by the Agency with respect to the site, less the housing set-
aside and the County and City administrative charges for the previous fiscal year ending June 30 preceding
the annual payment date.
On June 22, 1999, the Agency entered into an Owner Participation Agreement with a developer with regard
to certain parcels of real estate located in the Project Area. In order to provide for the funding of certain
public improvements associated with the project, the Agency shall pay the developer on each annual
payment date, an amount equal to gross property tax increment allocated to and received by the Agency
with respect to the site, less the housing set-aside and the County and City administrative charges for the
previous fiscal year ending June 30 preceding the annual payment date.
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
74
16. RELATED PARTY TRANSACTION
During the fiscal year 2005-06, the City issued a Housing Loan to the City Manager in the amount of
$500,000 for the home purchase within the City limit. The loan is secured by a note and deed of trust on the
property in the amount of $500,000. The term of the loan shall be for thirty years. The interest rate on the
loan is established at a fixed rate of 2.50% APR, payable bi-weekly through payroll deductions. The loan is
interest only for the first year then a level payment over the next 29 years. At June 30, 2009, the outstanding
balance of the loan was $473,898.
17. RESERVATION AND DESIGNATION OF FUND BALANCES
Low and
Moderate
Income Housing City of Poway Redevelopment Other
General Special Revenue RDA Debt Area Capital Governmental
Fund Fund Service Fund Projects Fund Fund Total
Reserved for:
Encumbrances 140,824$ 115,897$ -$ 3,576,663$ 398,675$ 4,232,059$
Prepaid items 34,679 - - - - 34,679
Inventories 81,889 - - - - 81,889
Notes receivable 498,237 - - 7,800,996 - 8,299,233
Advances to other funds 4,805,762 - - - 3,737,676 8,543,438
Debt service - - 20,630,806 - 4,318,839 24,949,645
Low and moderate income housing - 18,886,066 - - - 18,886,066
Capital projects - - - - 3,402,710 3,402,710
Total reserved 5,561,391 19,001,963 20,630,806 11,377,659 11,857,900 68,429,719
Unreserved:
Designated for:
City facilities 3,126,076 - - - - 3,126,076
State of California Economic downturn 3,133,550 - - - - 3,133,550
Special projects 941,173 - - - - 941,173
Street maintenance 4,525,479 - - - - 4,525,479
PERS rate stabilization 1,431,905 - - - - 1,431,905
Capital projects - - - 17,196,151 7,644,251 24,840,402
Miscellaneous 18,994,571 - - - - 18,994,571
Total unreserved, designated 32,152,754 - - 17,196,151 7,644,251 56,993,156
Undesignated for:
Special revenue funds - - - - 5,982,341 5,982,341
Total unreserved, undesignated - - - - 5,982,341 5,982,341
Total fund balances 37,714,145$ 19,001,963$ 20,630,806$ 28,573,810$ 25,484,492$ 131,405,216$
Major Funds
City of Poway
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
75
18. SUBSEQUENT EVENTS
State Budget Crisis
Subsequent to the financial statements date of June 30, 2009, the State of California enacted legislation to
borrow property tax payments from local governments. Property taxes borrowed by the State for fiscal
year 2009-2010 were nearly $2 billion statewide to help the State’s budget shortfall. The amount to be
borrowed from the City is $1,272,554. The deferral of these funds for 3 years would have a significant
impact on the City’s General Fund operations and the 2009-2011 Budget assumed that these monies would
not be available. Legislators and the Governor promised to allow local agencies to sell their eventual
repayment from the State to investors to cover the property tax and to pay the full cost of the sale, or
securitization. The Governor signed Senate Bill 67 on October 19, 2009 allowing the securitization to move
forward. On October 20, 2009, the City Council approved Resolution 09-065 authorizing City of Poway’s
participation in the program.
The State also enacted legislation authorizing a two-year takeaway of Redevelopment Agency funds. The
estimated impact on the Redevelopment Agency is $13,700,882 in 2009-2010 and $2,818,043 in 2010-2011.
This takeaway action is being litigated by the California Redevelopment Association and other parties with
hope that it will be considered unconstitutional as was last year’s State proposed takeaway.
In addition to the property tax borrowing and Redevelopment Agency takeaway, the State is deferring gas
tax monies during 2009-2010. Amounts owed for July through September were distributed in October, and
November through March payments are scheduled to be deferred until April. The City uses these restricted
monies for street maintenance.
Community Facilities District No. 88-1
In December 2009, the Community Facilities District No. 88-1 (CFD #88-1) issued approximately $16,600,000
in Special Tax Refunding Bonds to refund the outstanding portion of the $35,445,000 CFD #88-1 Special Tax
Refunding Bonds, Series 1998. The original bonds from 1989 and 1990 were issued to finance the acquisition
and construction of certain public improvements within the District. The bonds are authorized pursuant to
the Mello-Roos Community Facilities Act of 1982 and are secured by and payable from the proceeds of
annual special assessment taxes levied and collected on the property within the District. The bonds are not
general or special obligations of the City of Poway. The City is acting as agent only for the property owners
in collecting the special assessments and forwarding the collections to the fiscal agent. Neither the faith and
credit nor the taxing power of the City is pledged to the payment of these bonds.
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77
REQUIRED SUPPLEMENTARY
INFORMATION
City of Poway
Required Supplementary Information
For the year ended June 30, 2009
78
1. BUDGETARY INFORMATION
The City prepares its budgets on the basis of estimated expenditures and, accordingly, the budget amounts
included in the accompanying financial statements are presented on a basis consistent with generally
accepted accounting principles.
The City Manager submits a proposed budget to the City Council during early May. The City Council
holds budget hearings during May and early June. The final budget is adopted by the City County during
late June.
No budget expenditures can be disbursed without proper appropriations. Once the budget is adopted, no
additional fund appropriations can be authorized without the Council’s approval. The level of budget
control (the level on which expenditures may not legally exceed appropriations) is the individual fund
level. The City Manager can authorize budget transfers between departments without additional
appropriations.
The City holds a mid-year budget review meeting. During the meeting, all the budget expenditures are
reviewed and projections for the whole year are made. Therefore, any necessary changes are submitted for
approval by the City Council with a resolution.
Annual appropriated budgets are adopted for the general, special revenue (except for the Performing Arts
Center Trust), the permanent funds, and one debt service fund. Budgets are adopted on a basis consistent
with generally accepted accounting principles. Budgeted amounts are as originally adopted and as further
amended by the City Council.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders and
contracts) outstanding at year-end are reported as reservations of fund balances and do not constitute
expenditures or liabilities. The commitments will be reappropriated and honored in the subsequent year.
City of Poway
Required Supplementary Information, Continued
For the year ended June 30, 2009
79
1. BUDGETARY INFORMATION, Continued
The following is the budget comparison schedules for the General Fund and all major special revenue
funds.
Budget Comparison Schedule, General Fund
Original Final Actual Variance
REVENUES:
Taxes 26,662,000$ 26,662,000$ 24,413,717$ (2,248,283)$
Licenses and permits 390,720 390,720 422,948 32,228
Intergovernmental 575,030 575,030 938,661 363,631
Charges for services 1,003,270 1,003,270 914,982 (88,288)
Fines and forfeitures 700,000 700,000 852,535 152,535
Use of money and property 2,223,450 2,223,450 2,404,236 180,786
Developer fees 3,516,550 3,673,940 3,556,061 (117,879)
Other revenue 469,280 469,280 510,282 41,002
Total revenues 35,540,300 35,697,690 34,013,422 (1,684,268)
EXPENDITURES:
Current:
General government 4,568,769 4,290,719 2,325,515 1,965,204
Public safety 19,692,961 19,663,181 18,522,946 1,140,235
Public works 3,007,178 2,880,278 2,648,940 231,338
Development services 5,468,312 5,424,352 5,279,297 145,055
Community services 6,036,515 5,829,455 5,347,626 481,829
Capital outlay - 5,559,526 2,733,924 2,825,602
Total expenditures 38,773,735 43,647,511 36,858,248 6,789,263
REVENUES OVER
(UNDER) EXPENDITURES (3,233,435) (7,949,821) (2,844,826) 5,104,995
OTHER FINANCING SOURCES (USES):
Transfers in 3,055,638 5,255,638 4,153,196 (1,102,442)
Transfers out (2,389,250) (4,590,310) (3,233,667) 1,356,643
Total other financing sources (uses)666,388 665,328 919,529 254,201
Net change in fund balance (2,567,047)$ (7,284,493)$ (1,925,297) 5,359,196$
FUND BALANCES:
Beginning of year 39,639,442
End of year 37,714,145$
Budgeted Amount
City of Poway
Required Supplementary Information, Continued
For the year ended June 30, 2009
80
1. BUDGETARY INFORMATION, Continued
Budget Comparison Schedule, Low and Moderate Income Housing Special Revenue Fund
Original Final Actual Variance
REVENUES:
Interest and rental 275,510$ 275,510$ 650,896$ 375,386$
Other revenue - - 428,415 428,415
Total revenues 275,510 275,510 1,079,311 803,801
EXPENDITURES:
General government 841,476 776,705 599,266 177,439
Capital outlay 17,031,884 17,031,884 121,745 16,910,139
Total expenditures 17,873,360 17,808,589 721,011 17,087,578
REVENUES OVER
(UNDER) EXPENDITURES (17,597,850) (17,533,079) 358,300 17,891,379
OTHER FINANCING SOURCES (USES):
Transfers in 7,993,590 7,903,270 7,800,214 (103,056)
Transfers out (1,679,700) (1,679,700) (1,700,800) (21,100)
Total other financing sources (uses)6,313,890 6,223,570 6,099,414 (124,156)
Net change in fund balance (11,283,960)$ (11,309,509)$ 6,457,714 17,767,223$
FUND BALANCES:
Beginning of year 12,544,249
End of year 19,001,963$
Budgeted Amount
City of Poway
Required Supplementary Information, Continued
For the year ended June 30, 2009
81
2. DEFINED BENEFIT PENSION PLANS
A. California Public Employees’ Retirement Plan (PERS)
A schedule of funding progress for the year ended June 30, 2009 including the past three actuarial
valuations is presented below.
Overfunded
(Unfunded)
Overfunded Actuarial
Entry Age (Unfunded)Liability as
Actuarial Actual Actuarial Actuarial Percentage of
Valuation Asset Accrued Accrued Funded Covered Covered
Date Value Liability Liability Ratio Payroll Payroll
Miscellaneous 6/30/2006 47,546$ 54,224$ (6,678)$ 87.7% 12,128$ (55.06)%
Employees Group 6/30/2007 51,942 58,792 (6,850) 88.3% 12,901 (53.10)%
6/30/2008 56,126 63,279 (7,153) 88.7% 12,891 (55.49)%
Public Safety
Employees Group
($ Amounts in Thousands)
The City's safety plan becomes part of a CalPERS Risk Pool for employers with less than 100 active plan members. As part
of a cost sharing multiple-employer definied benefits plan, disclosures of the schedule of funding progress is not required.
B. Public Agency Retirement Services (PARS)
A schedule of funding progress for the year ended June 30, 2009 including the past two actuarial
valuation is presented below.
Overfunded
(Unfunded)
Overfunded Actuarial
Entry Age (Unfunded) Liability as
Actuarial Actual Actuarial Actuarial Percentage of
Valuation Asset Accrued Accrued Funded Covered Covered
Date Value Liability Liability Ratio Payroll Payroll
Miscellaneous 6/30/2004 -$ 4,821$ (4,821)$ 17.1% 11,691$ (49.08)%
Employees Group 6/30/2007 1,336 7,799 (6,463) 17.1% 13,167 (49.08)%
6/30/2009 2,409 9,755 (7,346) 24.7% 12,112 (60.65)%
($ Amounts in Thousands)
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SUPPLEMENTARY INFORMATION
83
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84
SPECIAL REVENUE FUNDS:
NON-MAJOR
GOVERNMENTAL FUNDS
Fire Protection Fund - Used to account for revenues received from the Fire Protection Special Tax. Voters
approved this special tax in June 1997. It is used to pay for a portion of the costs of fire protection within the
City of Poway.
800 MHz Regional Communication System Fund - Used to account for revenues received from the 800 MHz
Regional Communication System Special Tax. Voters approved this special tax in June 1998. It is used to
pay for the City's share of the County-wide radio backbone system, and a portion of the annual maintenance
expenses.
Community Development Block Grant Fund -Used to account for revenues received and expenditures
made for community development and housing assistance. Financing is provided under agreement with the
county whereby the City is a secondary recipient with funds made available from the U.S. Department of
Housing and Urban Development under the Housing and Community Development Acts of 1974 and 1977.
Street Improvement Fund - Used to account for revenues received and expenditures made for street
improvements. Financing is provided primarily from developer's traffic mitigation fees. City Ordinance No.
80 authorized the collection and the segregation of the funding.
Drainage Fund - Used to account for operations of the flood control and drainage division. Financing is
provided by developer's drainage fees and flood zone fees from the County. Poway Municipal Code Section
16.72 requires the segregation of the funding.
Maintenance Districts Fund - Used for lighting, landscape and maintenance. Costs of the districts are
estimated and property owners are assessed their proportionate share based on an engineer's report. The
assessments are collected via the tax rolls.
Miscellaneous and Grants Fund - Used to account for grants from various agencies used for operations and
maintenance, and to account for specific in-lieu fees from developers. Financing for grants is provided by
the State, County and Federal Government. Such grants provide for payment of all current operating costs
and may be used only for specified purposes.
Gas Tax Fund - Used to account for revenues received and expenditures made for street maintenance.
Financing is provided by the City's share of State gasoline taxes made pursuant to the California State
Constitution and authorized by the State Legislature.
Transportation Development Act Fund - Used to account for revenues received and expenditures made for
transportation development, transit and related studies. Funding is provided to the City as secondary
recipient under agreements with the county and with the San Diego Association of Governments.
85
SPECIAL REVENUE FUNDS, Continued:
NON-MAJOR
GOVERNMENTAL FUNDS
Traffic Congestion AB2928 Fund - Used to account for revenues received and expenditures made under the
State's Traffic Congestion Relief grant, AB 2928. These funds must be used for street and highway pavement
maintenance, rehabilitation and reconstruction of necessary associated facilities such as drainage and traffic
control devices.
Proposition A Fund - To account for the San Diego County special Proposition A one-half (1/2) cent
transportation sales tax which became effective July 1, 1988. All revenues of this fund must be expended for
certain transportation-related purposes.
Royal Mobilehome Park Administration Fund - Used to account for revenues received and expenditures
made in the administration of the Royal Mobilehome Park.
Senior Volunteer Patrol Fund - Used to account for funds set aside to purchase supplies and equipment.
Kumeyaay Endowment Fund - Used to account for funds that have been set aside to offer education about
the Kumeyaay Indians and eventually build a Kumeyaay Indian Interpretive Center.
Poway Valley Senior Center Endowment Fund - Used to account for money provided by the City to the
Poway Valley Senior Citizens Corporation restricted for on-going needs of the Senior Center. Interest may
be expended at the organization's direction while expenditures from principal require City Council
approval.
Poway Public Arts Center Fund - Used to account for funds set aside to further public art in Poway.
Old Poway Park Tree Fund - Used to account for money provided by a settlement restricted to adding trees
in Old Poway Park.
Poway Fine Arts Center Fund - Used to account for funds set aside for the creation of a fine arts center.
Prop 1B Transportation Bond Fund - Used to account for revenues received and expenditures made under
the State's Prop 1B Transportation Bond Fund. These funds must be used for projects that will assist in
reducing local traffic congestion and further deterioration, improving traffic flows, or increasing traffic
safety.
Bette Bendixen Fund - Used to account for money provided by private donors restricted to maintenance of
riding and hiking trails.
Poway Road Beautification Fund - Used to account for money provided by donors restricted to
beautification efforts along Poway Road.
Performing Arts Center Trust Fund - Used to account for money provided by donors restricted to
Performing Arts Center construction.
86
SPECIAL REVENUE FUNDS, Continued:
DEBT SERVICE FUNDS:
PERMANENT FUNDS:
CAPITAL PROJECTS FUNDS:
Municipal Improvement Fund - Used to account for financing and construction of major capital facilities
other than those financed by the proprietary funds. Major capital projects include construction of
government buildings, including City Hall, fire station and warehouse facilities.
Storm Water Management Fund - Used to account for revenues received and expenditures made for the
City's storm water pollution prevention program.
Fire Equipment Trust Fund - Used to account for funds that have been set-aside to purchase equipment used
by the City's Fire Department.
Used to account for accumulation of resources for the payment of interest and principal of long-term debt.
Park Improvement Fund - Used to account for the financing and construction of park facilities throughout
the City.
Mary Patricia Ross Trust Fund - Used to account for revenue and expenses provided by a private estate to
finance community park and recreation purposes. The principal must be maintained intact until 2006.
Interest income must also be used to finance such recreational purposes.
Library Fund - Used to account for a donation to the City which is to be held in perpetual trust. The income
from the principal is to be used for library supplies and service.
Regional Arterial Traffic Mitigation - Used to account for new fees required by SANDAG.
Public Art Trust Fund - Used to account for funds that have been set-aside to purchase public art for the City
of Poway.
NON-MAJOR
GOVERNMENTAL FUNDS
87
City of Poway
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2009
800 MHz
Fire Communication Gas Street
Protection System Tax Improvement Drainage
ASSETS
Cash and investments -$ 34,548$ 800,794 359,596$ 1,544,134$
Cash and investments with fiscal agents - - - - -
Receivables:
Taxes 2,418 - - - 5,137
Accounts - - - - -
Interest - 98 - - -
Due from other governments and agencies - - 69,833 - -
Advances to other funds - - - 1,642,944 2,094,732
Total assets 2,418$ 34,646$ 870,627$ 2,002,540$ 3,644,003$
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable -$ 5,211$ 304,616$ - 53,511$
Due to other funds - - - - -
Advances from other funds - - - 723,147 -
Deferred revenue - - - - -
Total liabilities - 5,211 304,616 723,147 53,511
Fund Balances:
Reserved for:
Encumbrances - - 110,992 - 36,549
Advances to other funds - - - 1,642,944 2,094,732
Debt service - - - - -
Capital projects - - - - -
Total reserved - - 110,992 1,642,944 2,131,281
Unreserved:
Designated:
Capital projects - - - - -
Total unreserved, designated - - - - -
Undesignated 2,418 29,435 455,019 (363,551) 1,459,211
Total fund balances 2,418 29,435 566,011 1,279,393 3,590,492
Total liabilities and fund balances 2,418$ 34,646$ 870,627$ 2,002,540$ 3,644,003$
Special Revenue
88
Royal
Community Transportation Mobilehome Traffic Poway
Maintenance Miscellaneous Development Development Park Congestion Bette Road
Districts Grants Block Grant Act Proposition A Administration AB 2928 Bendixen Beautification
5,797,438$ 1,900,676$ 71,367$ 639,153$ 93,813$ 3,850,776$ 99,431$ 20,679$ 10,171$
- - - - - - - - -
9,057 - - - - - - - -
- 48,437 - - - 239,247 - - -
- - - - - - - - -
- 194,582 236,678 - - - 103,029 - -
- - - - - - - - -
5,806,495$ 2,143,695$ 308,045$ 639,153$ 93,813$ 4,090,023$ 202,460$ 20,679$ 10,171$
90,839$ 43,880$ 71,367$ 4,959$ - 50,166$ - - -
- 153,060 236,678 - - - - - -
- - - - - - - - -
- 719 - - - - - - -
90,839 197,659 308,045 4,959 - 50,166 - - -
82 111,172 48,593 - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - 202,460 20,679 10,171
82 111,172 48,593 - - - 202,460 20,679 10,171
5,715,574 1,834,864 - - 93,813 - - - -
5,715,574 1,834,864 - - 93,813 - - - -
- - (48,593) 634,194 - 4,039,857 - - -
5,715,656 1,946,036 - 634,194 93,813 4,039,857 202,460 20,679 10,171
5,806,495$ 2,143,695$ 308,045$ 639,153$ 93,813$ 4,090,023$ 202,460$ 20,679$ 10,171$
(Continued)
Special Revenue
89
City of Poway
Combining Balance Sheet
Non-Major Governmental Funds, Continued
June 30, 2009
Poway Valley Poway Poway
Senior Center Old Poway Public Arts Kumeyaay Fine Arts
Endowment Park Tree Center Endowment Centers
ASSETS
Cash and investments 434,197$ 5,882$ 52,552$ 15,220$ 3,071$
Cash and investments with fiscal agents - - - - -
Receivables:
Taxes - - - - -
Accounts - - - - -
Interest - - - - -
Due from other governments and agencies - - - - -
Advances to other funds - - - - -
Total assets 434,197$ 5,882$ 52,552$ 15,220$ 3,071$
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable -$ -$ -$ -$ -$
Due to other funds - - - - -
Advances from other funds - - - - -
Deferred revenue - - - - -
Total liabilities - - - - -
Fund Balances:
Reserved for:
Encumbrances - - - - -
Advances to other funds - - - - -
Debt service - - - - -
Capital projects 434,197 5,882 52,552 15,220 3,071
Total reserved 434,197 5,882 52,552 15,220 3,071
Unreserved:
Designated:
Capital projects - - - - -
Total unreserved, designated - - - - -
Undesignated - - - - -
Total fund balances 434,197 5,882 52,552 15,220 3,071
Total liabilities and fund balances 434,197$ 5,882$ 52,552$ 15,220$ 3,071$
Special Revenue
90
Debt Service
Fund
Regional
Senior Prop1B Arterial Mary
Volunteer Transportation Storm Water Fire Equipment Public Art Traffic Patricia Debt Service
Patrol Bond Management Trust Trust Mitigation Ross Trust Library Fund
27,412$ 776,827$ -$ 8,756$ 28,273$ 80,022$ 86,680$ 894,190$ 2,813,866$
- - - - - - - - 1,504,973
- - - - - - -
- - - - - - - - -
- - 310,549 - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
27,412$ 776,827$ 310,549$ 8,756$ 28,273$ 80,022$ 86,680$ 894,190$ 4,318,839$
29$ -$ 24,867$ -$ -$ -$ -$ -$ -$
- - 278,451 - - - - - -
- - 206,005 - - - - - -
- - - - - - - - -
29 - 509,323 - - - - - -
- - 91,287 - - - - - -
- - - - - - - - -
- - - - - - - - 4,318,839
- 776,827 - - - 80,022 86,680 894,190 -
- 776,827 91,287 - - 80,022 86,680 894,190 4,318,839
- - - - - - - - -
- - - - - - - - -
27,383 - (290,061) 8,756 28,273 - - - -
27,383 776,827 (198,774) 8,756 28,273 80,022 86,680 894,190 4,318,839
27,412$ 776,827$ 310,549$ 8,756$ 28,273$ 80,022$ 86,680$ 894,190$ 4,318,839$
(Continued)
Permanent FundSpecial Revenue
91
City of Poway
Combining Balance Sheet
Non-Major Governmental Funds, Continued
June 30, 2009
Total
Other
Park Municipal Governmental
Improvement Improvement Funds
ASSETS
Cash and investments 1,124,329$ 3,658$ 21,577,511$
Cash and investments with fiscal agents - - 1,504,973
Receivables
Taxes - - 16,612
Accounts - - 598,233
Interest - - 98
Due from other governments and agencies - - 604,122
Advances to other funds - - 3,737,676
Total assets 1,124,329$ 3,658$ 28,039,225$
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable -$ -$ 649,445$
Due to other funds - - 668,189
Advances from other funds 307,228 - 1,236,380
Deferred revenue - - 719
Total liabilities 307,228 - 2,554,733
Fund Balances:
Reserved for:
Encumbrances - - 398,675
Advances to other funds - - 3,737,676
Debt service - - 4,318,839
Capital projects 817,101 3,658 3,402,710
Total reserved 817,101 3,658 11,857,900
Unreserved:
Designated:
Capital projects - - 7,644,251
Total unreserved, designated - - 7,644,251
Undesignated - - 5,982,341
Total fund balances 817,101 3,658 25,484,492
Total liabilities and fund balances 1,124,329$ 3,658$ 28,039,225$
(Concluded)
Capital Project
Fund
92
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93
City of Poway
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2009
800 MHz
Fire Communication Gas Street
Protection System Tax Improvement Drainage
REVENUES:
Taxes -$ -$ 830,816$ -$ 688,149$
Intergovernmental - - - - -
Charges for services 597,879 135,478 - - 20,056
Development fees - - - 23,785 48,030
Assessments levied - - - - -
Use of money and property - 752 19,389 15,285 369,363
Other revenues - - 1,692 - 1,934
Total revenues 597,879 136,230 851,897 39,070 1,127,532
EXPENDITURES:
Current:
Public safety - 150,090 - - -
Public works - - 610,528 - 705,341
Community services - - - - -
Capital outlay - - - 520,474 137,124
Debt service:
Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - 150,090 610,528 520,474 842,465
REVENUES OVER
(UNDER) EXPENDITURES 597,879 (13,860) 241,369 (481,404) 285,067
OTHER FINANCING SOURCES (USES):
Transfers in - - - - 104,297
Transfers out (597,453) - - - -
Total other financing sources (uses)(597,453) - - - 104,297
REVENUES AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES 426 (13,860) 241,369 (481,404) 389,364
FUND BALANCES:
Beginning of year 1,992 43,295 324,642 1,760,797 3,201,128
End of year 2,418$ 29,435$ 566,011$ 1,279,393$ 3,590,492$
Special Revenue
94
Royal
Community Transportation Mobilehome Traffic Poway
Maintenance Miscellaneous Development Development Park Congestion Bette Road
Districts Grants Block Grant Act Proposition A Administration AB 2928 Bendixen Beautification
308,852$ -$ -$ -$ 880,810$ -$ -$ -$ -$
- 462,223 217,588 5,000 - - 432,440 - -
- - - - - - - - -
- 158,331 - - - - - - -
1,873,179 - - - - - - - -
210,416 69,083 - 24,722 6,154 4,781,528 1,065 785 386
24,118 - - - 2,534 - - -
2,416,565 689,637 217,588 29,722 886,964 4,784,062 433,505 785 386
- - - - - - - - -
2,656,843 - - - 1,001,469 - - - -
- - - - - 4,394,364 - - -
41,395 420,525 217,588 59,507 - - 231,045 - -
- - - - - - - - -
- - - - - - - - -
2,698,238 420,525 217,588 59,507 1,001,469 4,394,364 231,045 - -
(281,673) 269,112 - (29,785) (114,505) 389,698 202,460 785 386
299,632 - - - - - - - -
- (100,000) - - - - - - -
299,632 (100,000) - - - - - - -
17,959 169,112 - (29,785) (114,505) 389,698 202,460 785 386
5,697,697 1,776,924 - 663,979 208,318 3,650,159 - 19,894 9,785
5,715,656$ 1,946,036$ -$ 634,194$ 93,813$ 4,039,857$ 202,460$ 20,679$ 10,171$
(Continued)
Special Revenue
95
City of Poway
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds, Continued
For the year ended June 30, 2009
Poway Valley Poway Poway
Senior Center Old Poway Public Arts Kumeyaay Fine Arts
Endowment Park Tree Center Endowment Centers
REVENUES:
Taxes -$ -$ -$ -$ -$
Intergovernmental - - - - -
Charges for services - - - - -
Developer fees - - - - -
Assessments levied - - - - -
Use of money and property 16,462 223 1,992 549 116
Other - - - - -
Total revenues 16,462 223 1,992 549 116
EXPENDITURES:
Current:
Public safety - - - - -
Public works - - - - -
Community services - - - - -
Capital outlay - - - - -
Debt service:
Principal - - - - -
Interest and fiscal charges - - - - -
Total expenditures - - - - -
REVENUES OVER
(UNDER) EXPENDITURES 16,462 223 1,992 549 116
OTHER FINANCING SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses)- - - - -
REVENUES AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES 16,462 223 1,992 549 116
FUND BALANCES:
Beginning of year 417,735 5,659 50,560 14,671 2,955
End of year 434,197$ 5,882$ 52,552$ 15,220$ 3,071$
Special Revenue
96
Debt Service
Fund
Regional
Senior Prop1B Arterial Mary
Volunteer Transportation Storm Water Fire Equipment Public Art Traffic Patricia Debt Service
Patrol Bond Management Trust Trust Mitigation Ross Trust Library Fund
-$ -$ -$ -$ -$ -$ -$ -$ -$
- 755,656 - - - 78,236 - - -
- - 1,286,572 - - - - - -
- - - - - - - - -
- - - - - - - - -
997 21,738 179 495 1,072 1,786 3,285 34,641 863,241
10,000 - 1,934 31,456 - - - - -
10,997 777,394 1,288,685 31,951 1,072 80,022 3,285 34,641 863,241
- - - - - - - - -
- - 943,036 - - - - - -
- - - - - - - - -
1,203 828,170 - 26,965 - - - - -
- - - - - - - - 780,000
- - - - - - - - 1,067,093
1,203 828,170 943,036 26,965 - - - - 1,847,093
9,794 (50,776) 345,649 4,986 1,072 80,022 3,285 34,641 (983,852)
- - - - - - - 1,079,273
- - (591,731) - - - - (26,900) (442,296)
- - (591,731) - - - - (26,900) 636,977
9,794 (50,776) (246,082) 4,986 1,072 80,022 3,285 7,741 (346,875)
17,589 827,603 47,308 3,770 27,201 - 83,395 886,449 4,665,714
27,383$ 776,827$ (198,774)$ 8,756$ 28,273$ 80,022$ 86,680$ 894,190$ 4,318,839$
(Continued)
Permanent FundSpecial Revenue
97
City of Poway
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds, Continued
For the year ended June 30, 2009
Total
Other
Park Municipal Governmental
Improvement Improvement Funds
REVENUES:
Taxes -$ -$ 2,708,627$
Intergovernmental - - 1,951,143
Charges for services - - 2,039,985
Developer fees 111,670 - 341,816
Assessments levied - - 1,873,179
Use of money and property 41,341 138 6,487,183
Other - - 73,668
Total revenues 153,011 138 15,475,601
EXPENDITURES:
Current:
Public safety - - 150,090
Public works - - 5,917,217
Community services - - 4,394,364
Capital outlay - - 2,483,996
Debt service:
Principal - - 780,000
Interest and fiscal charges - - 1,067,093
Total expenditures - - 14,792,760
REVENUES OVER
(UNDER) EXPENDITURES 153,011 138 682,841
OTHER FINANCING SOURCES (USES):
Transfers in - - 1,483,202
Transfers out - - (1,758,380)
Total other financing sources (uses)- - (275,178)
REVENUES AND OTHER
FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES 153,011 138 407,663
FUND BALANCES:
Beginning of year 664,090 3,520 25,076,829
End of year 817,101$ 3,658$ 25,484,492$
(Concluded)
Capital Project
Fund
98
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
City of Poway RDA Debt Service Fund
For the year ended June 30, 2009
Variance with
Original Final Actual Final Budget
Fund balance, July 1, 2008 16,147,056$ 16,147,056$ 16,147,056$ -$
Resources (inflows):
Tax increment 39,516,370 39,516,370 38,940,302 (576,068)
Use of money and property 3,809,590 3,809,590 3,896,340 86,750
Proceeds from bonds and loans 154,120 154,120 154,734 614
Transfers in 2,121,996 2,121,996 2,143,096 21,100
Amount available for appropriation 45,602,076 45,602,076 45,134,472 (467,604)
Charges to appropriation (outflows):
Debt service:
Principal 6,075,000 6,075,000 6,075,000 -
Interest and fiscal charges 15,617,100 15,941,100 15,664,912 276,188
Tax increment reimbursement 5,895,960 6,523,910 6,205,709 318,201
Tax shift - 2,818,040 - 2,818,040
Transfers out 14,272,896 14,173,546 12,705,101 (1,468,445)
Total charges to appropriations 41,860,956 45,531,596 40,650,722 1,943,984
Excess of resources over (under)
charges to appropriations 3,741,120 70,480 4,483,750 1,476,380
Fund balance, June 30, 2009 19,888,176$ 16,217,536$ 20,630,806$ 1,476,380$
Budgeted Amount
99
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fire Protection Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 1,992$ 1,992$ 1,992$ -$
Resources (inflows):
Charges for services 600,000 600,000 597,879 (2,121)
Amount available for appropriation 600,000 600,000 597,879 (2,121)
Charges to appropriations (outflows):
Transfers out 600,000 600,000 597,453 2,547
Total charges to appropriations 600,000 600,000 597,453 2,547
Excess of resources over (under)
charges to appropriations - - 426 426
Fund balance, June 30, 2009 1,992$ 1,992$ 2,418$ 426$
Budgeted Amounts
100
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
800 MHz Communication System Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 43,295$ 43,295$ 43,295$ -$
Resources (inflows):
Charges for services 1,500 1,500 752 (748)
Use of money and property 134,000 134,000 135,478 1,478
Amount available for appropriation 135,500 135,500 136,230 730
Charges to appropriations (outflows):
Public safety 155,810 155,810 150,090 5,720
Total charges to appropriations 155,810 155,810 150,090 5,720
Excess of resources over (under)
charges to appropriations (20,310) (20,310) (13,860) 6,450
Fund balance, June 30, 2009 22,985$ 22,985$ 29,435$ 6,450$
Budgeted Amounts
101
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Gas Tax Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 324,642$ 324,642$ 324,642$ -$
Resources (inflows):
Taxes 991,510 991,510 830,816 (160,694)
Use of money and property 17,220 17,220 19,389 2,169
Other revenue - - 1,692 1,692
Amount available for appropriation 1,008,730 1,008,730 851,897 3,861
Charges to appropriations (outflows):
Public works 1,547,969 431,499 610,528 (179,029)
Total charges to appropriations 1,547,969 431,499 610,528 (179,029)
Excess of resources over (under)
charges to appropriations (539,239) 577,231 241,369 (175,168)
Fund balance, June 30, 2009 (214,597)$ 901,873$ 566,011$ (175,168)$
Budgeted Amounts
102
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Street Improvement Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 1,760,797$ 1,760,797$ 1,760,797$ -$
Resources (inflows):
Developers fee 42,500 42,500 23,785 (18,715)
Use of money and property 19,460 19,460 15,285 (4,175)
Amount available for appropriation 61,960 61,960 39,070 (22,890)
Charges to appropriations (outflows):
Capital outlay - 520,475 520,474 1
Total charges to appropriations - 520,475 520,474 1
Excess of resources over (under)
charges to appropriations 61,960 (458,515) (481,404) (22,889)
Fund balance, June 30, 2009 1,822,757$ 1,302,282$ 1,279,393$ (22,889)$
Budgeted Amounts
103
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Drainage Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 3,201,128$ 3,201,128$ 3,201,128$ -$
Resources (inflows):
Taxes 706,250 706,250 688,149 (18,101)
Charges for services 19,440 19,440 20,056 616
Developer fees 14,130 14,130 48,030 33,900
Use of money and property 36,350 360,350 369,363 9,013
Other revenue - - 1,934 1,934
Transfers in - - 104,297 104,297
Amount available for appropriation 776,170 1,100,170 1,231,829 131,659
Charges to appropriations (outflows):
Public works 794,567 470,567 705,341 (234,774)
Capital outlay - 1,206,721 137,124 1,069,597
Total charges to appropriations 794,567 1,677,288 842,465 834,823
Excess of resources over (under)
charges to appropriations (18,397) (577,118) 389,364 966,482
Fund balance, June 30, 2009 3,182,731$ 2,624,010$ 3,590,492$ 966,482$
Budgeted Amounts
104
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Maintenance Districts Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 5,697,697$ 5,697,697$ 5,697,697$ -$
Resources (inflows):
Taxes 308,230 308,230 308,852 622
Assessment levied 1,889,200 1,889,200 1,873,179 (16,021)
Use of money and property 165,090 165,090 210,416 45,326
Other revenue - - 24,118 24,118
Transfers in 298,570 301,420 299,632 (1,788)
Amount available for appropriation 2,661,090 2,663,940 2,716,197 52,257
Charges to appropriations (outflows):
Community services 3,134,486 3,142,876 2,656,843 486,033
Capital outlay - 39,131 41,395 (2,264)
Total charges to appropriations 3,134,486 3,182,007 2,698,238 483,769
Excess of resources over (under)
charges to appropriations (473,396) (518,067) 17,959 536,026
Fund balance, June 30, 2009 5,224,301$ 5,179,630$ 5,715,656$ 536,026$
Budgeted Amounts
105
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Miscellaneous Grant Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 1,776,924$ 1,776,924$ 1,776,924$ -$
Resources (inflows):
Intergovernmental 305,600 305,600 462,223 156,623
Developer fees 85,000 85,000 158,331 73,331
Use of money and property 57,070 57,070 69,083 12,013
Other revenue 46,000 46,000 - (46,000)
Amount available for appropriation 493,670 493,670 689,637 195,967
Charges to appropriations (outflows):
Capital outlay - 1,698,749 420,525 1,278,224
Transfers out 100,000 100,000 100,000 -
Total charges to appropriations 100,000 1,798,749 520,525 1,278,224
Excess of resources over (under)
charges to appropriations 393,670 (1,305,079) 169,112 1,474,191
Fund balance, June 30, 2009 2,170,594$ 471,845$ 1,946,036$ 1,474,191$
Budgeted Amounts
106
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Community Development Block Grant Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 193,630$ 113,939$ -$ 113,939$
Resources (inflows):
Intergovernmental 193,630 193,630 217,588 23,958
Amount available for appropriation 193,630 193,630 217,588 23,958
Charges to appropriations (outflows):
Capital outlay - 318,894 217,588 101,306
Total charges to appropriations - 318,894 217,588 101,306
Excess of resources over (under)
charges to appropriations 193,630 (125,264) - 125,264
Fund balance, June 30, 2009 387,260$ (11,325)$ -$ 239,203$
Budgeted Amounts
107
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Transportation Development Act Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 663,979$ 663,979$ 663,979$ -$
Resources (inflows):
Intergovernmental 5,000 5,000 5,000 -
Use of money and property 20,660 20,660 24,722 4,062
Amount available for appropriation 25,660 25,660 29,722 4,062
Charges to appropriations (outflows):
Capital outlay - 517,468 59,507 457,961
Total charges to appropriations - 517,468 59,507 457,961
Excess of resources over (under)
charges to appropriations 25,660 (491,808) (29,785) 462,023
Fund balance, June 30, 2009 689,639$ 172,171$ 634,194$ 462,023$
Budgeted Amounts
108
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Proposition A Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 208,318$ 208,318$ 208,318$ -$
Resources (inflows):
Taxes 1,352,000 1,352,000 880,810 (471,190)
Use of money and property 20,660 20,660 6,154 (14,506)
Amount available for appropriation 1,372,660 1,372,660 886,964 (485,696)
Charges to appropriations (outflows):
Public works 1,001,470 1,001,470 1,001,469 1
Total charges to appropriations 1,001,470 1,001,470 1,001,469 1
Excess of resources over (under)
charges to appropriations 371,190 371,190 (114,505) (485,695)
Fund balance, June 30, 2009 579,508$ 579,508$ 93,813$ (485,695)$
Budgeted Amounts
109
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Royal Mobilehome Park Administration Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 3,650,159$ 3,650,159$ 3,650,159$ -$
Resources (inflows):
Use of money and property 4,789,130 4,789,130 4,781,528 (7,602)
Other revenue - - 2,534 2,534
Amount available for appropriation 4,789,130 4,789,130 4,784,062 (5,068)
Charges to appropriations (outflows):
Community services 4,881,194 4,884,385 4,394,364 490,021
Total charges to appropriations 4,881,194 4,884,385 4,394,364 490,021
Excess of resources over (under)
charges to appropriations (92,064) (95,255) 389,698 484,953
Fund balance, June 30, 2009 3,558,095$ 3,554,904$ 4,039,857$ 484,953$
Budgeted Amounts
110
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Traffic Congestion AB 2928 Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 -$ -$ -$ -$
Resources (inflows):
Intergovernmental 489,320 489,320 432,440 (56,880)
Use of money and property 8,610 8,610 1,065 (7,545)
Amount available for appropriation 497,930 497,930 433,505 (64,425)
Charges to appropriations (outflows):
Capital outlay - 450,000 231,045 218,955
Total charges to appropriations - 450,000 231,045 218,955
Excess of resources over (under)
charges to appropriations 497,930 47,930 202,460 154,530
Fund balance, June 30, 2009 497,930$ 47,930$ 202,460$ 154,530$
Budgeted Amounts
111
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Bette Bendixen Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 19,894$ 19,894$ 19,894$ -$
Resources (inflows):
Use of money and property 660 660 785 125
Amount available for appropriation 660 660 785 125
Excess of resources over (under)
charges to appropriations 660 660 785 125
Fund balance, June 30, 2009 20,554$ 20,554$ 20,679$ 125$
Budgeted Amounts
112
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Poway Road Beautification Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 9,785$ 9,785$ 9,785$ -$
Resources (inflows):
Use of money and property 330 330 386 56
Amount available for appropriation 330 330 386 56
Excess of resources over (under)
charges to appropriations 330 330 386 56
Fund balance, June 30, 2009 10,115$ 10,115$ 10,171$ 56$
Budgeted Amounts
113
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Poway Valley Senior Center Endowment Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 417,735$ 417,735$ 417,735$ -$
Resources (inflows):
Use of money and property 14,300 14,300 16,462 2,162
Amount available for appropriation 14,300 14,300 16,462 2,162
Charges to appropriations (outflows):
Capital outlay - 303,822 - 303,822
Total charges to appropriations - 303,822 - 303,822
Excess of resources over (under)
charges to appropriations 14,300 (289,522) 16,462 305,984
Fund balance, June 30, 2009 432,035$ 128,213$ 434,197$ 305,984$
Budgeted Amounts
114
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Old Poway Park Tree Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 5,659$ 5,659$ 5,659$ -$
Resources (inflows):
Use of money and property 190 190 223 33
Amount available for appropriation 190 190 223 33
Excess of resources over (under)
charges to appropriations 190 190 223 33
Fund balance, June 30, 2009 5,849$ 5,849$ 5,882$ 33$
Budgeted Amounts
115
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Poway Public Arts Center Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 50,560$ 50,560$ 50,560$ -$
Resources (inflows):
Use of money and property 2,820 2,820 1,992 (828)
Amount available for appropriation 2,820 2,820 1,992 (828)
Charges to appropriations (outflows):
Capital outlay - 20,000 - 20,000
Total charges to appropriations - 20,000 - 20,000
Total charges to appropriations - - - -
Excess of resources over (under)
charges to appropriations 2,820 (17,180) 1,992 19,172
Fund balance, June 30, 2009 53,380$ 33,380$ 52,552$ 19,172$
Budgeted Amounts
116
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Kumeyaay Endowment Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 14,671$ 14,671$ 14,671$ -$
Resources (inflows):
Use of money and property 990 990 549 (441)
Amount available for appropriation 990 990 549 (441)
Charges to appropriations (outflows):
Capital outlay - 6,963 - 6,963
Total charges to appropriations - 6,963 - 6,963
Excess of resources over (under)
charges to appropriations 990 (5,973) 549 6,522
Fund balance, June 30, 2009 15,661$ 8,698$ 15,220$ 6,522$
Budgeted Amounts
117
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Poway Fine Arts Center Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 2,955$ 2,955$ 2,955$ -$
Resources (inflows):
Use of money and property 100 100 116 16
Amount available for appropriation 100 100 116 16
Excess of resources over (under)
charges to appropriations 100 100 116 16
Fund balance, June 30, 2009 3,055$ 3,055$ 3,071$ 16$
Budgeted Amounts
118
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Senior Volunteer Patrol Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 17,589$ 17,589$ 17,589$ -$
Resources (inflows):
Use of money and property 450 450 997 547
Other revenue - - 10,000 10,000
Amount available for appropriation - - 10,997 10,997
Charges to appropriations (outflows):
Capital outlay - 16,728 1,203 15,525
Total charges to appropriations - 16,728 1,203 15,525
Excess of resources over (under)
charges to appropriations - - 9,794 (4,528)
Fund balance, June 30, 2009 17,589$ 17,589$ 27,383$ (4,528)$
Budgeted Amounts
119
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Prop 1B Transportation Bond Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 827,603$ 827,603$ 827,603$ -$
Resources (inflows):
Intergovernmental - - 755,656 755,656
Use of money and property - - 21,738 21,738
Amount available for appropriation - - 777,394 21,738
Charges to appropriations (outflows):
Capital outlay - 817,560 828,170 10,610
Total charges to appropriations - - 828,170 -
Excess of resources over (under)
charges to appropriations - - (50,776) 21,738
Fund balance, June 30, 2009 827,603$ 827,603$ 776,827$ 21,738$
Budgeted Amounts
120
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Storm Water Management Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 47,308$ 47,308$ 47,308$ -$
Resources (inflows):
Charges for services 1,299,290 1,299,290 1,286,572 (12,718)
Other - - 1,934 1,934
Amount available for appropriation 1,299,290 1,299,290 1,288,685 (10,605)
Charges to appropriations (outflows):
Public works 1,145,780 1,397,530 943,036 (454,494)
Transfers out - - 591,731 (591,731)
Total charges to appropriations - - 1,534,767 (1,046,225)
Excess of resources over (under)
charges to appropriations 1,299,290 1,299,290 (246,082) (1,056,830)
Fund balance, June 30, 2009 1,346,598$ 1,346,598$ (198,774)$ (1,056,830)$
Budgeted Amounts
121
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Fire Equipment Trust Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 3,770$ 3,770$ 3,770$ -$
Resources (inflows):
Use of money and property 990 990 495 (495)
Other revenues - - 31,456 31,456
Amount available for appropriation 990 990 31,951 30,961
Charges to appropriations (outflows):
Capital outlay - 35,595 26,965 (8,630)
Total charges to appropriations - - 26,965 (8,630)
Excess of resources over (under)
charges to appropriations 990 990 4,986 22,331
Fund balance, June 30, 2009 4,760$ 4,760$ 8,756$ 22,331$
Budgeted Amounts
122
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Public Art Trust Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 27,201$ 27,201$ 27,201$ -$
Resources (inflows):
Use of money and property - - 1,072 1,072
Transfers in - - - -
Amount available for appropriation - - 1,072 1,072
Excess of resources over (under)
charges to appropriations - - 1,072 1,072
Fund balance, June 30, 2009 27,201$ 27,201$ 28,273$ 1,072$
Budgeted Amounts
123
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Regional Arterial Traffic Mitigation Special Revenue Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 -$ -$ -$ -$
Resources (inflows):
Intergovernmental 70,000 70,000 78,236 8,236
Use of money and property - - 1,786 1,786
Amount available for appropriation 70,000 70,000 80,022 10,022
Excess of resources over (under)
charges to appropriations 70,000 70,000 80,022 10,022
Fund balance, June 30, 2009 70,000$ 70,000$ 80,022$ 10,022$
-
Budgeted Amounts
124
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Mary Patricia Ross Trust Permanent Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 83,395$ 83,395$ 83,395$ -$
Resources (inflows):
Use of money and property 2,780 2,780 3,285 505
Amount available for appropriation 2,780 2,780 3,285 505
Excess of resources over (under)
charges to appropriations 2,780 2,780 3,285 505
Fund balance, June 30, 2009 86,175$ 86,175$ 86,680$ 505$
Budgeted Amounts
125
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Library Permanent Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 886,449$ 886,449$ 886,449$ -$
Resources (inflows):
Use of money and property 30,630 30,630 34,641 4,011
Amount available for appropriation 30,630 30,630 34,641 4,011
Charges to appropriations (outflows):
Transfers out 40,860 40,860 26,900 13,960
Total charges to appropriations 40,860 40,860 26,900 13,960
Excess of resources over (under)
charges to appropriations (10,230) (10,230) 7,741 17,971
Fund balance, June 30, 2009 876,219$ 876,219$ 894,190$ 17,971$
Budgeted Amounts
126
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
City Debt Service Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 4,665,714$ 4,665,714$ 4,665,714$ -$
Resources (inflows):
Use of money and property 844,390 844,390 863,241 18,851
Transfers in 1,057,096 1,057,096 1,079,273 22,177
Amount available for appropriation 1,901,486 1,901,486 1,942,514 41,028
Charges to appropriations (outflows):
Debt service:
Principal 780,000 780,000 780,000 -
Interest and fiscal charges 1,077,980 1,077,980 1,067,093 10,887
Transfers out 442,296 442,296 442,296 -
Total charges to appropriations 2,300,276 2,300,276 2,289,389 10,887
Excess of resources over (under)
charges to appropriations (398,790) (398,790) (346,875) 51,915
Fund balance, June 30, 2009 4,266,924$ 4,266,924$ 4,318,839$ 51,915$
Budgeted Amounts
127
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Park Improvement Capital Project Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 664,090$ 664,090$ 664,090$ -$
Resources (inflows):
Development fees 54,400 54,400 111,670 57,270
Use of money and property 33,580 33,580 41,341 7,761
Amount available for appropriation 87,980 87,980 153,011 7,761
Excess of resources over (under)
charges to appropriations 87,980 87,980 153,011 7,761
Fund balance, June 30, 2009 752,070$ 752,070$ 817,101$ 7,761$
Budgeted Amounts
128
City of Poway
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
Municipal Improvement Capital Project Fund
For the year ended June 30, 2009
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2008 3,520$ 3,520$ 3,520$ -$
Resources (inflows):
Use of money and property 120 120 138 18
Amount available for appropriation 120 120 138 18
Excess of resources over (under)
charges to appropriations 120 120 138 18
Fund balance, June 30, 2009 3,640$ 3,640$ 3,658$ 18$
Budgeted Amounts
129
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130
INTERNAL SERVICE FUNDS
Vehicle Maintenance Fund -Used to account for the cost of operating a maintenance facility for automotive
equipment used by other City departments. Such costs to other departments are billed on a direct cost basis.
The Vehicle Maintenance Fund is responsible for financing replacement vehicles, as necessary.
131
City of Poway
Statement of Net Assets
Internal Service Funds - Vehicle Maintenance Fund
June 30, 2009
ASSETS
Current assets:
Cash and investments 6,119,513$
Accounts receivable 166
Total current assets 6,119,679
Total assets 6,119,679
LIABILITIES
Current liabilities:
Accounts payable 33,809
Compensated absences 33,447
Total current liabilities 67,256
Total liabilities 67,256
NET ASSETS
Unrestricted 6,052,423
Total net assets 6,052,423$
132
City of Poway
Statement of Activities and Changes in Net Assets
Internal Service Fund - Vehicle Maintenance Fund
For the year ended June 30, 2009
OPERATING REVENUES:
Charges for services 2,323,825$
Other 2,471
Total operating revenues 2,326,296
OPERATING EXPENSES:
Personnel services 359,537
Maintenance and operations 662,197
Total operating expenses 1,021,734
OPERATING INCOME (LOSS)1,304,562
NONOPERATING REVENUES:
Interest revenue 277,007
Total nonoperating revenues 277,007
INCOME (LOSS) BEFORE TRANSFERS 1,581,569
TRANSFERS:
Transfers out (496,848)
Total transfers (496,848)
Changes in net assets 1,084,721
NET ASSETS:
Beginning of year 4,967,702
End of year 6,052,423$
133
City of Poway
Statement of Cash Flows
Internal Service Fund - Vehicle Maintenance Fund
For the year ended June 30, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash receipts from users 2,327,682$
Cash payments to employees for services (360,183)
Cash payments to suppliers of goods or services (736,131)
Net cash provided (used) by operating activities 1,231,368
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers out (496,848)
Net cash provided (used) by noncapital financing activities (496,848)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 277,007
Net cash provided (used) by capital and related financing activities 277,007
Net increase in cash and cash equivalents 1,011,527
CASH AND CASH EQUIVALENTS:
Beginning of year 5,107,986
End of year 6,119,513$
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income 1,304,562$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Changes in operating assets and liabilities:
Accounts receivable 1,386
Accounts payable (73,934)
Compensated absences (646)
Total adjustments (73,194)
Net cash provided (used) by operating activities 1,231,368$
134
AGENCY FUNDS
Parkway Business Center CFD No. 88-1 Bond Deposits Fund -Used to account for debt service payments
CFD No. 88-1 Bond Deposits collected through property tax assessments remitted to fiscal agent-trustee for
payment on bonds.
High Valley Roads AD No. 96-1 Bond Deposits Fund -Used to account for debt service payments AD No. 96-
1 Bond Deposits collected through property tax assessments remitted to fiscal agent-trustee for payment on
bonds.
Old Coach Waterline AD No. 01-1 Bond Deposits Fund -Used to account for debt service payments AD No.
01-1 Bond Deposits collected through property tax assessments remitted to fiscal agent-trustee for payment
on bonds.
FIDUCIARY FUNDS
The agency funds are used to account for assets held by the City as an agent. Agency funds include the
following:
Developer Deposits Fund -Used to account for the collection and payments of development deposits from
and on behalf of the collective and individual developers.
South Poway CFD No. 1 Bond Deposits Fund -Used to account for debt service payments CFD No. 1 Bond
Deposits collected through property tax assessments remitted to fiscal agent-trustee for payment on bonds.
135
City of Poway
Combining Statement of Fiduciary Net Assets
All Agency Funds
June 30, 2009
South Parkway High Old Coach
Poway Business Valley Water
CFD No. 1 Center Road Line
Developer Bond CFD No. 88-1 AD No. 96-1 AD No. 01-1 Total
Deposits Deposits Bond Deposits Bond Deposits Bond Deposits Agency
Fund Fund Fund Fund Fund Funds
ASSETS
Cash and investments 4,285,579$ 1,499,392$ 3,206,910$ 52,580$ 59,607$ 9,104,068$
Receivables:
Taxes - - - 138 - 138
Accounts - - 1,000,000 - - 1,000,000
Interest - 26,505 83,074 - - 109,579
Cash and investments with fiscal agents - 1,597,109 3,675,986 53,759 - 5,326,854
Total assets 4,285,579$ 3,123,006$ 7,965,970$ 106,477$ 59,607$ 15,540,639$
LIABILITIES
Accounts payable 151,558$ -$ 11,377$ 4,235$ -$ 167,170$
Deposits 4,134,021 - - - - 4,134,021
Due to bondholders - 3,123,006 6,954,593 102,242 59,607 10,239,448
Advances from City of Poway - - 1,000,000 - - 1,000,000
Total liabilities 4,285,579$ 3,123,006$ 7,965,970$ 106,477$ 59,607$ 15,540,639$
136
City of Poway
Combining Statement of Changes in Assets and Liabilities
All Agency Funds
For the year ended June 30, 2009
Net Changes in
Balance Assets and Balance
July 1, 2008 Liabilities June 30, 2009
Developer Deposits Fund
Assets:
Cash and investments 3,734,151$ 551,428$ 4,285,579$
Total assets 3,734,151$ 551,428$ 4,285,579$
Liabilities:
Accounts payable 78,407$ 73,151$ 151,558$
Deposits 3,655,744 478,277 4,134,021
Total liabilities 3,734,151$ 551,428$ 4,285,579$
South Poway CFD No. 1
Bond Deposits Fund
Assets:
Cash and investments 1,377,530$ 121,862$ 1,499,392$
Taxes receivable 21,757 (21,757) -
Interest receivable 57,296 (30,791) 26,505
Cash and investments with fiscal agent 1,594,772 2,337 1,597,109
Total assets 3,051,355$ 71,651$ 3,123,006$
Liabilities:
Due to bondholders 3,051,355$ 71,651$ 3,123,006$
Total liabilities 3,051,355$ 71,651$ 3,123,006$
Parkway Business Center
CFD No. 88-1 Bond Deposits Fund
Assets:
Cash and investments 3,138,496$ 68,414$ 3,206,910$
Taxes receivable 970 (970) -
Accounts receivable 1,106,268 (106,268) 1,000,000
Interest receivable 84,163 (1,089) 83,074
Cash and investments with fiscal agent 3,678,244 (2,258) 3,675,986
Total assets 8,008,141$ (42,171)$ 7,965,970$
Liabilities:
Accounts payable 31,932$ (20,555)$ 11,377$
Due to bondholders 6,869,941 84,652 6,954,593
Advances from City of Poway 1,106,268 (106,268) 1,000,000
Total liabilities 8,008,141$ (42,171)$ 7,965,970$
(Continued)
137
City of Poway
Combining Statement of Changes in Assets and Liabilities
All Agency Funds, Continued
For the year ended June 30, 2009
Net Changes in
Balance Assets and Balance
July 1, 2008 Liabilities June 30, 2009
High Valley Roads
AD No. 96-1 Bond Deposits Fund
Assets:
Cash and investments 53,409$ (829)$ 52,580$
Taxes receivable 1,140 (1,002) 138
Interest receivable 203 (203) -
Cash and investments with fiscal agents 54,827 (1,068) 53,759
Total assets 109,579$ (3,102)$ 106,477$
Liabilities:
Accounts payable 4,235$ -$ 4,235$
Due to bondholders 105,344 (3,102) 102,242
Total liabilities 109,579$ (3,102)$ 106,477$
Old Coach Waterline
AD No. 2001-1 Bond Deposits Fund
Assets:
Cash and investments 55,591$ 4,016$ 59,607$
Taxes receivable 8 (8) -
Total assets 55,599$ 4,008$ 59,607$
Liabilities:
Due to bondholders 55,599$ 4,008$ 59,607$
Total liabilities 55,599$ 4,008$ 59,607$
All Agency Funds
Assets:
Cash and investments 8,359,177$ 744,891$ 9,104,068$
Taxes receivable 23,875 (23,737) 138
Accounts receivable 1,106,268 (106,268) 1,000,000
Interest receivable 141,662 (32,083) 109,579
Cash and investments with fiscal agents 5,327,843 (989) 5,326,854
Total assets 14,958,825$ 581,814$ 15,540,639$
Liabilities:
Accounts payable 114,574$ 52,596$ 167,170$
Deposits 3,655,744 478,277 4,134,021
Due to bondholders 10,082,239 157,209 10,239,448
Advances from City of Poway 1,106,268 (106,268) 1,000,000
Total liabilities 14,958,825$ 581,814$ 15,540,639$
(Concluded)
138
This part of the City of Poway's comprehensive annual financial report presents detailed
information as context for understanding what the information in the financial statements,
note disclosures, and required supplementary information says about the government's
overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand
how the government's financial performance and well-being have changed
over time.
Revenue Capacity
These schedules contain information to help the reader assess the government's
most significant local revenue sources.
Debt Capacity
These schedules present information to help the reader assess the affordability
of the government's current levels of outstanding debt and the government'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 government's financial activities
take place.
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the government's financial report relates
to the services the government provides and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
STATISTICAL SECTION
139
City of Poway
Net Assets by Component,
Current and Prior Three Years
(accrual basis of accounting)
Year Ended Year Ended Year Ended Year Ended
June 30, 2009 June 30, 2008 June 30, 2007 June 30, 2006
Governmental activities
Invested in capital assets, net of related debt 36,713,773$ 28,805,157$ 21,675,540$ 16,728,005$
Restricted 99,252,462 101,384,182 99,518,581 98,416,094
Unrestricted - as restated (71,563,120) (68,473,402) (70,862,504) (78,799,982)
Total governmental activities net assets 64,403,115 61,715,937 50,331,617 36,344,117
Business-type activities
Invested in capital assets, net of related debt 39,127,764 34,657,630 35,055,052 36,472,213
Restricted 280,469 281,531 283,938 283,534
Unrestricted 34,194,395 32,511,666 30,112,939 25,587,312
Total business-type activities net assets 73,602,628 67,450,827 65,451,929 62,343,059
Primary government
Invested in capital assets, net of related debt 75,841,537 63,462,787 56,730,592 53,200,218
Restricted 99,532,931 101,665,713 99,802,519 98,699,628
Unrestricted (37,368,725) (35,961,736) (40,749,565) (53,212,670)
Total primary government net assets 138,005,743 129,166,764 115,783,546 98,687,176
Note: The City began to report accrual information when it implemented GASB Statement 34 in
fiscal year 2003. The City implemented the retroactive reporting of infrastructure in fiscal year 2007.
The City is reporting its ten year history with the implentation of GASB 44 in fiscal year 2006.
140
City of Poway
Changes in Net Assets for Governmental Activities
Current and Prior Three Years
(accrual basis of accounting)
Year Ended Year Ended Year Ended Year Ended
June 30, 2009 June 30, 2008 June 30, 2007 June 30, 2006
Functional expenses:
General Government 23,261,446$ 18,616,222$ 14,559,177$ 15,689,334$
Public Safety 19,227,914 19,039,199 18,121,264 17,313,198
Public Works 11,213,841 10,607,352 9,100,534 13,023,698
Development Services 5,226,071 5,367,148 4,978,301
Community Services 16,195,999 18,329,674 16,964,745 19,510,067
Interest and fiscal charges 16,692,399 17,038,330 19,697,044 16,986,839
Total functional expenses 91,817,670 88,997,925 83,421,065 82,523,136
Program revenues:
Charges for services:
General Government 105,084 133,893 176,938 173,484
Public Safety 2,413,197 2,068,632 2,181,971 2,104,975
Public Works 4,868,530 4,327,217 4,011,644 3,512,623
Development Services 1,388,448 1,522,060 1,451,489
Community Services 3,033,466 2,935,862 2,894,396 3,908,179
Interest and fiscal charges - - - -
Operating grants and contributions 5,826,044 6,478,997 6,103,045 6,198,885
Capital grants and contributions 2,110,463 5,128,657 2,940,273 3,088,436
Total program revenues 19,745,232 22,595,318 19,759,756 18,986,582
Total governmental activities (72,072,438) (66,402,607) (63,661,309) (63,536,554)
General revenues:
Taxes:
Property taxes 51,190,712 50,669,452 48,048,249 45,725,853
Sales taxes 10,325,455 12,904,265 13,032,518 13,918,879
Motor vehicle license tax 173,673 225,353 273,727 392,240
Transient occupancy tax 247,787 206,323 202,767 190,097
Franchise taxes 1,590,066 1,497,724 1,588,677 1,399,524
Other Taxes 597,880 598,965 596,868 609,982
Total taxes 64,125,573 66,102,082 63,742,806 62,236,575
Investment earnings 9,879,153 10,639,352 10,569,205 8,508,647
Miscellaneous 607,387 714,405 3,349,606 2,894,418
Sale of capital assets - - - (11,262)
Transfers 147,503 331,088 (12,808) 460,810
Total general revenues and transfers 74,759,616 77,786,927 77,648,809 74,089,188
Change in Net Assets 2,687,178$ 11,384,320$ 13,987,500$ 10,552,634$
Note: The City began to report accrual information when it implemented GASB Statement 34 in
fiscal year 2003. The City implemented the retroactive reporting of infrastructure in fiscal year 2007.
The City is reporting its ten year history with the implentation of GASB 44 in fiscal year 2006.
141
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142
City of Poway
Changes in Net Assets for Business-Type Activities
Current and Prior Three Years
(accrual basis of accounting)
YearEnded YearEnded YearEnded YearEnded
June 30, 2009 June 30, 2008 June 30, 2007 June 30, 2006
Functional expenses:
Water 18,697,576$ 17,534,682$ 17,371,707$ 16,009,205$
Sewer 8,011,470 7,743,880 7,970,848 8,730,098
Total functional expenses 26,709,046 25,278,562 25,342,555 24,739,303
Program revenues:
Charges for services:
Water 16,714,571 16,806,379 16,637,705 15,181,771
Sewer 8,651,968 8,440,646 7,943,890 7,479,071
Captial grants and contributions - - 63,604 66,840
Total program revenues 25,366,539 25,247,025 24,645,199 22,727,682
Total business-type activities (1,342,507) (31,537) (697,356) (2,011,621)
General revenues:
Property taxes - - - 309,296
Investment earnings 1,987,778 2,283,493 3,038,852 1,157,563
Contributed capital 4,720,039 - - -
Miscellaneous 933,994 78,030 754,566 738,337
Sale of capital assets - - - -
Transfers (147,503) (331,088) 12,808 (460,810)
Total general revenues and transfers 7,494,308 2,030,435 3,806,226 1,744,386
Change in Net Assets 6,151,801$ 1,998,898$ 3,108,870$ (267,235)$
Note: The City is reporting its ten year history with the implentation of GASB 44 in fiscal year 2006.
143
City of Poway
Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
2009 2008 2007 2006 2005
General Fund
Reserved 5,561,391$ 8,478,531$ 7,538,564$ 7,389,245$ 7,885,013
Unreserved:
Designated 32,152,754 31,160,911 30,375,251 27,539,942 25,115,075
Undesignated - - - - -
Total General Fund 37,714,145$ 39,639,442$ 37,913,815$ 34,929,187$ 33,000,088
All Other Governmental Funds
Reserved 62,868,328$ 55,650,435$ 43,663,739$ 39,477,985$ 35,478,892
Unreserved:
Designated:
Special revenue funds - - - 7,760,635 8,816,961
Debt service funds - - - - -
Capital projects funds 24,840,402 32,578,654 43,037,658 - -
Undesignated:
Special revenue funds 5,982,341 4,676,562 5,278,620 6,014,938 7,795,241
Debt service funds - - - - -
Capital projects funds - - - 37,769,191 42,511,597
Total all Other Governmental Funds 93,691,071$ 92,905,651$ 91,980,017$ 91,022,749$ 94,602,691
Total Fund Balance 131,405,216$ 132,545,093$ 129,893,832$ 125,951,936$ 127,602,779
June 30,
144
2004 2003 2002 2001 2000
7,581,391 6,907,055 16,683,177 17,681,990 16,968,010
21,827,076 12,325,729 21,258,117 20,173,503 16,633,194
- 8,556,645 - - -
29,408,467 27,789,429 37,941,294 37,855,493 33,601,204
44,761,898 51,282,639 49,060,668 38,197,024 43,568,860
8,175,996 8,613,436 8,133,105 7,370,213 6,093,702
- - - - -
- - - - 198
7,804,756 6,898,403 5,207,265 4,571,924 4,735,846
- - - - -
55,342,242 44,896,736 60,711,652 13,366,748 14,054,971
116,084,892 111,691,214 123,112,690 63,505,909 68,453,577
145,493,359 139,480,643 161,053,984 101,361,402 102,054,781
June 30,
145
City of Poway
Changes In Fund Balances, Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Year Ended June 30,
2009 2008 2007 2006
Revenues
Taxes 66,062,646$ 68,817,462$ 63,810,241$ 62,042,614$
Licenses and permits 422,948 328,159 330,755 296,935
Intergovernmental 2,889,804 3,971,720 4,336,767 5,796,558
Charges for services 2,954,967 2,676,329 4,419,664 7,557,159
Fines and forfeitures 852,535 803,552 720,949 732,633
Use of money and property 14,862,137 15,516,351 16,120,443 13,459,180
Developer Fees 3,897,877 3,780,128 4,509,741 489,210
Assessment levied 1,873,179 1,892,326 1,868,567 1,845,859
Other revenues 1,013,135 2,568,693 1,389,762 1,157,139
Total revenues 94,829,228 100,354,720 97,506,889 93,377,287
Expenditures
Current:
General government 6,733,135 7,252,320 9,614,109 9,552,247
Public safety 18,673,036 18,528,701 17,897,811 16,563,059
Public works 8,566,157 8,009,622 6,556,796 11,338,373
Development services 5,279,297 5,420,200 5,028,405
Community services 9,741,990 12,593,136 11,877,425 11,884,718
Capital outlay 17,981,861 18,354,376 14,205,962 18,802,010
Debt service:
Principal 6,855,000 6,560,000 6,470,000 5,875,000
Interest and fiscal charges 16,732,005 17,077,417 17,896,630 17,101,983
Debt Issuance Costs - - - -
Tax shift - - - 1,674,851
Tax increment reimbursements 6,205,709 5,515,447 4,889,025 3,831,350
Total expenditures 96,768,190 99,311,219 94,436,163 96,623,591
Excess of revenues over (under) expenditures (1,938,962) 1,043,501 3,070,726 (3,246,304)
Other Financing Sources (Uses)
Proceeds from issuance of debt 154,734 151,285 148,273 149,563
Refunding bond activity -net - - (184,586) -
Proceeds from sale of capital assets - - - -
Transfers in (out) net 644,351 1,456,475 907,483 1,445,898
Total other financing sources 799,085 1,607,760 871,170 1,595,461
Net change in fund balance (1,139,877)$ 2,651,261$ 3,941,896$ (1,650,843)$
Debt service as a percentage of noncapital expenditures 26.9%26.2%29.1%26.4%
Note: The City implemented GASB 34 beginning with the fiscal year ended June 30, 2003. Prior to that time, interfund loans where
treated as "Other Financing Sources" and classified as "Proceeds from issuance of debt" in the fund receiving the loan.
146
Year Ended June 30,
2005 2004 2003 2002 2001 2000
55,406,112$ 47,368,683$ 43,439,827$ 39,575,352$ 35,840,942$ 31,118,687$
288,716 296,984 295,471 305,685 309,652 306,688
4,637,517 5,445,572 8,313,394 6,183,143 6,026,700 5,139,707
7,607,467 7,449,929 8,452,248 8,192,172 7,851,665 7,854,457
273,322 251,834 176,291 202,598 239,369 253,586
13,535,451 8,152,189 11,924,593 12,584,448 10,735,796 8,372,411
536,404 1,243,389 1,208,015 591,230 855,799 2,589,766
1,835,519 1,816,524 1,825,528 1,754,096 1,750,613 1,597,188
2,525,614 1,473,492 2,007,778 3,000,545 957,898 1,724,643
86,646,122 73,498,596 77,643,145 72,389,269 64,568,434 58,957,133
11,114,009 10,668,972 10,178,866 8,918,157 8,407,234 7,486,657
17,304,746 15,588,991 13,866,595 12,905,831 11,324,004 10,900,368
4,865,184 3,966,484 4,246,773 3,817,814 3,702,963 3,552,863
10,671,636 7,569,324 7,373,691 6,579,853 6,666,018 5,805,605
31,981,651 31,743,517 32,096,700 22,972,729 17,733,164 9,524,359
6,706,720 7,875,000 14,192,769 9,288,293 6,821,853 22,714,960
16,482,351 15,477,533 18,455,993 15,095,386 11,805,570 12,174,817
255,302 2,765,590 - 1,708,370 7,790 1,119,531
2,549,564 1,357,911 780,349 - - -
2,380,488 29,865,057 5,678,795 4,928,042 6,176,365 5,495,266
104,311,651 126,878,379 106,870,531 86,214,475 72,644,961 78,774,426
(17,665,529) (53,379,783) (29,227,386) (13,825,206) (8,076,527) (19,817,293)
8,499,883 156,029,702 17,856,218 80,781,467 5,975,575 43,763,276
(9,301,120) (99,094,350) - (8,005,801) - (9,681,371)
232,168 1,110,603 14,600,000 - - -
506,234 1,346,544 658,650 640,108 1,388,450 963,286
(62,835) 59,392,499 33,114,868 73,415,774 7,364,025 35,045,191
(17,728,364)$ 6,012,716$ 3,887,482$ 59,590,568$ (712,502)$ 15,227,898$
27.3%19.9%38.9%38.6%33.9%50.4%
147
City of Poway
Assessed Value of Taxable Property
Last Ten Fiscal Years
Fiscal Year Assessed Value
Ended Personal Net Taxable
June 30,Land Improvments Property Total Exemptions Value
2000 1,519,814,478 2,346,163,842 106,169,614 3,972,147,934 (131,138,106) 3,841,009,828
2001 1,717,864,538 2,606,932,440 139,125,104 4,463,922,082 (132,332,496) 4,331,589,586
2002 1,921,113,526 2,857,873,316 162,481,953 4,941,468,795 (118,250,152) 4,823,218,643
2003 2,128,867,560 3,119,821,315 200,414,378 5,449,103,253 (145,945,106) 5,303,158,147
2004 2,338,197,043 3,315,524,886 190,767,595 5,844,489,524 (171,519,517) 5,672,970,007
2005 2,611,610,220 3,535,334,922 187,042,681 6,333,987,823 (214,007,737) 6,119,980,086
2006 2,991,468,898 3,840,250,821 245,308,882 7,077,028,601 (217,368,560) 6,859,660,041
2007 3,230,084,121 4,191,380,246 278,291,264 7,699,755,631 (229,216,072) 7,470,539,559
2008 3,525,237,590 4,412,172,141 272,804,881 8,210,214,612 (229,932,712) 7,980,281,900
2009 3,647,796,486 4,472,160,193 254,000,489 8,373,957,168 (244,967,192) 8,128,989,976
In 1978 the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to
property tax collections. Proposition 13 established a property tax of 1% based upon the assessed value of the property
being taxed. Each year the assessed value of property may be increased by an "inflation factor" that may not exceed 2%.
With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point the new assessed
value is fixed at the purchase price of the property. Due to the nature of Proposition 13, over time the assessed value base
has become significantly undervalued when compared to the true market value of the property. Because the true market
value is not tied to any type of annual valuation process, there is no reliable means of determining the market value of the
parcels within the City and therefore this amount is not disclosed.
148
Source: San Diego County Assessors Office
In 1978 the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to
property tax collections. Proposition 13 established a property tax of 1% based upon the assessed value of the property
being taxed. Each year the assessed value of property may be increased by an "inflation factor" that may not exceed 2%.
With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point the new assessed
value is fixed at the purchase price of the property. Due to the nature of Proposition 13, over time the assessed value base
has become significantly undervalued when compared to the true market value of the property. Because the true market
value is not tied to any type of annual valuation process, there is no reliable means of determining the market value of the
parcels within the City and therefore this amount is not disclosed.
148
Change Estimated Total
From Tax Direct
Prior Year Revenues Tax Rate
12.94%4,831,463 0.211%
12.77%5,155,309 0.211%
11.35%5,616,359 0.211%
9.95%5,954,586 0.211%
6.97%6,399,317 0.211%
7.88%6,895,981 0.211%
12.09%7,615,898 0.211%
8.91%8,358,741 0.211%
6.82%8,939,836 0.211%
1.86%9,117,319 0.211%
149149
City of Poway
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
Overlapping Rates
Poway Educational Palomar Total 1%
Fiscal Year City Unified Revenue Community Property
Ended Direct School San Diego Augmentation College All Tax
June 30, Rate District County Fund District Other Rate
2000 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2001 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2002 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2003 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2004 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2005 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2006 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2007 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2008 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
2009 0.211% 0.389% 0.167% 0.118% 0.067% 0.047% 1.000%
Rates for Voter Approved Bond Indebtedness
Total 1% Poway Total
Fiscal Year Property Unified Property
In 1978, California voters passed Proposition 13 which resulted in dramatic tax reform as it relates to property tax. Proposition 13 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. Because
the rate is fixed at 1.00%, the rate for each taxing agency shares within the 1.00% does not change materially from year-to-year. Rates over the
one percent are for voter approved bond indebtedness
150
Fiscal Year Property Unified Property
Ended Tax City School All Tax
June 30, Rate Rate District Other Rate
2000 1.000% 0.016% 0.000% 0.010% 1.026%
2001 1.000% 0.013% 0.000% 0.009% 1.022%
2002 1.000% 0.010% 0.000% 0.009% 1.019%
2003 1.000% 0.010% 0.000% 0.007% 1.018%
2004 1.000% 0.000% 0.052% 0.007% 1.059%
2005 1.000% 0.007% 0.047% 0.006% 1.060%
2006 1.000% 0.007% 0.043% 0.023% 1.072%
2007 1.000% 0.000% 0.046% 0.022% 1.069%
2008 1.000% 0.000% 0.045% 0.032% 1.077%
2009 1.000% 0.000% 0.047% 0.035% 1.082%
Source: San Diego County Assessors Office
In 1978, California voters passed Proposition 13 which resulted in dramatic tax reform as it relates to property tax. Proposition 13 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. Because
the rate is fixed at 1.00%, the rate for each taxing agency shares within the 1.00% does not change materially from year-to-year. Rates over the
one percent are for voter approved bond indebtedness
150
City of Poway
Principal Secured Property Tax Payers
Current Year and Nine Years Ago
2009 2000
Taxable % of Total Taxable % of Total
Assessed City Assessed Assessed City Assessed
Secured Value Rank Secured Value Secured Value Rank Secured Value
Sorento West Properties $88,745,482 1 1.06%-$ -
PDP Pomerado LLC 69,558,551 2 0.83%- -
Slough Poway 66,779,944 3 0.80%- -
Prudential Insurance Co.39,714,613 4 0.47%- -
Sysco Food Services 35,374,370 5 0.42%32,360,553 1 0.81%
Costco Wholesale Corporation 35,326,203 6 0.42%- -
Government Employees Insurance Company 35,299,468 7 0.42%- -
Fairfield Township LLC 33,686,003 8 0.40%- -
Poway Crossings Investors LLC 31,275,000 9 0.37%- -
Poway Tech Center Investors LLC 27,030,000 10 0.32%- -
Regency Centers LP - -23,043,746 2 0.58%
Burnham Pacific Properties Inc.- -19,300,000 3 0.49%
First American Title Insurance Co.- -15,420,772 4 0.39%
Pomerado Leasing LP - -14,583,816 5 0.37%
Braemar Properties LP - -13,876,994 6 0.35%
Countryside Apartments LLC - -12,927,723 7 0.33%
Tech Business Center LLC - -12,782,944 8 0.32%
Health Care Property Investors - -12,390,416 9 0.31%
VAT Partners - -12,316,982 10 0.31%
462,789,634$ 5.53%169,003,946$ 4.25%
Source: San Diego County Assessors Office
151
City of Poway
Assessed Value of Taxable Property
Redevelopment Tax Increment Property Tax
Last Ten Fiscal Years
Fiscal Year Assessed Value
Ended Personal Base Year
June 30, Land Improvments Property Total Exemptions Values
2000 643,337,814 1,052,147,828 63,156,922 1,758,642,564 (18,560,142) (186,287,869)
2001 756,883,325 1,224,291,373 96,599,318 2,077,774,016 (18,937,627) (186,287,869)
2002 874,897,982 1,373,748,814 116,806,955 2,365,453,751 (14,732,381) (186,287,869)
2003 984,697,076 1,545,545,528 167,042,477 2,697,285,081 (26,741,073) (186,287,869)
2004 1,069,060,617 1,644,074,499 157,368,510 2,870,503,626 (40,683,262) (186,287,869)
2005 1,190,799,171 1,756,732,835 145,512,135 3,093,044,141 (51,334,639) (186,287,869)
2006 1,366,315,823 1,923,849,526 205,148,011 3,495,313,360 (54,732,751) (186,287,869)
2007 1,455,401,981 2,087,221,327 219,066,696 3,761,690,004 (61,891,980) (186,287,869)
2008 1,590,220,327 2,198,461,319 212,387,349 4,001,068,995 (66,618,692) (186,287,869)
2009 1,666,217,121 2,208,050,046 191,508,808 4,065,775,975 (66,638,280) (186,287,869)
In 1978 the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to
property tax collections. Proposition 13 established a property tax of 1% based upon the assessed value of the property
being taxed. Each year the assessed value of property may be increased by an "inflation factor" that may not exceed 2%.
With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point the new assessed
value is fixed at the purchase price of the property. Due to the nature of Proposition 13, over time the assessed value base
has become significantly undervalued when compared to the true market value of the property. Because the true market
value is not tied to any type of annual valuation process, there is no reliable means of determining the market value of the
parcels within the City and therefore this amount is not disclosed.
152
Source: San Diego County Assessors Office
In 1978 the voters of the State of California passed Proposition 13 which resulted in dramatic tax reform as it relates to
property tax collections. Proposition 13 established a property tax of 1% based upon the assessed value of the property
being taxed. Each year the assessed value of property may be increased by an "inflation factor" that may not exceed 2%.
With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point the new assessed
value is fixed at the purchase price of the property. Due to the nature of Proposition 13, over time the assessed value base
has become significantly undervalued when compared to the true market value of the property. Because the true market
value is not tied to any type of annual valuation process, there is no reliable means of determining the market value of the
parcels within the City and therefore this amount is not disclosed.
152
Change Estimated Total
Net Taxable From Tax Direct
Value Prior Year Revenues Tax Rate
1,553,794,553 21.28%15,887,358 1.022%
1,872,548,520 20.51%19,213,050 1.026%
2,164,433,501 15.59%22,171,626 1.024%
2,484,256,139 14.78%25,377,236 1.022%
2,643,532,495 6.41%26,732,816 1.011%
2,855,421,633 8.02%29,031,365 1.017%
3,254,292,740 13.97%33,064,572 1.016%
3,513,510,155 7.97%35,445,525 1.009%
3,748,162,434 6.68%37,854,271 1.010%
3,812,849,826 1.73%38,500,704 1.010%
153153
City of Poway
Redevelopment Property Tax Levies and Collections
Last Ten Fiscal Years
Within The Year of Levy Collections
Fiscal Year Current Current Percent From Prior
Ended Secured Secured of Levy Years'Total
June 30,Tax Levy Collected Collected Levies Collections
2000 15,942,224 15,616,458 97.96%298,192 15,914,649
2001 19,154,296 18,918,099 98.77%347,741 19,265,840
2002 22,075,411 21,850,407 98.98%370,732 22,221,139
2003 25,285,115 25,033,065 99.00%383,654 25,416,719
2004 26,637,504 26,397,127 99.10%419,490 26,816,617
2005 28,914,339 28,583,331 98.86%387,359 28,970,690
2006 32,938,833 32,397,596 98.36%494,520 32,892,116
2007 35,319,838 34,426,834 97.47%629,698 35,056,532
2008 37,650,893 36,657,780 97.36%930,938 37,588,718
2009 38,031,377 37,099,651 97.55%1,465,939 38,565,590
Source: San Diego County Assessors Office
154
City of Poway
General Property Tax Levies and Collections
Last Ten Fiscal Years
Within The Year of Levy Collections
Fiscal Year Current Current Percent From Prior
Ended Secured Secured of Levy Years'Total
June 30,Tax Levy Collected Collected Levies Collections
2000 13,317,472 13,122,841 98.54%269,313 13,392,154
2001 13,683,327 13,541,508 98.96%208,718 13,750,226
2002 14,105,425 13,958,405 98.96%173,832 14,132,237
2003 14,461,370 14,250,473 98.54%213,119 14,463,592
2004 14,539,338 14,432,902 99.27%250,896 14,683,798
2005 15,074,377 14,925,461 99.01%124,804 15,050,265
2006 15,924,752 15,669,141 98.39%153,982 15,823,123
2007 16,494,681 16,171,714 98.04%269,763 16,441,477
2008 17,034,013 16,641,698 97.70%329,517 16,971,215
2009 17,295,459 16,805,480 97.17%378,562 17,184,041
Source: San Diego County Assessors Office
155
City of Poway
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Fiscal Year Tax Certificates
Ended Allocation of Capital Loan General
June 30, Bonds Participation Leases Payable Obligation
2000 150,715,000$ 54,095,000$ 289,249$ 42,944$ 2,810,000$
2001 148,375,000 53,075,000 245,775 42,206 2,390,000
2002 214,455,000 51,915,000 199,638 41,416 1,955,000
2003 211,895,000 58,740,000 150,674 40,572 1,500,000
2004 260,910,000 57,410,000 98,711 1,939,667 1,025,000
2005 256,350,000 55,395,000 43,565 2,120,310 525,000
2006 251,675,000 54,195,000 - 2,169,647 -
2007 247,395,000 52,810,000 - 2,201,788 -
2008 242,280,000 51,365,000 - 2,250,467 -
2009 236,940,000 49,850,000 - 2,282,702 -
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Source: City of Poway Finance Department
156
Business-type
Activities
Total Percentage
Revenue Capital Contract Primary of Personal Per
Bonds Leases Payable Government Income Capita
2,930,000$ 120,926$ 5,407$ 211,008,526$ 13.05%4,281$
2,805,000 102,751 5,407 207,041,139 12.45%4,218
2,675,000 83,462 5,407 271,329,923 15.74%5,464
2,540,000 62,993 5,407 274,934,646 15.49%5,517
2,400,000 41,268 5,407 323,830,053 16.85%6,396
2,250,000 18,213 5,407 316,707,495 15.64%6,250
2,095,000 - - 310,134,647 14.77%6,136
1,930,000 - - 304,336,788 13.80%5,987
1,760,000 - - 297,655,467 12.87%5,825
1,580,000 - - 290,652,702 12.49%5,685
157
City of Poway
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Outstanding
General
Bonded Debt
Fiscal Year Tax Percent of
Ended Allocation Assessed Per
June 30, Bonds Value (a) Capita
2000 150,715,000 3.79%3,058
2001 148,375,000 3.32%3,023
2002 214,455,000 4.34%4,319
2003 211,895,000 3.89%4,252
2004 260,910,000 4.46%5,153
2005 256,350,000 4.05%5,059
2006 251,675,000 3.56%4,980
2007 247,395,000 3.21%4,867
2008 242,280,000 2.95%4,741
2009 236,940,000 2.83%4,634
Notes:
Details regarding the city's outstanding debt can be found in the notes to the financial statements.
(a) Assessed value has been used because the actual value of taxable property is not readily
available in California.
Source: City of Poway Finance Department
158
City of Poway
Direct and Overlapping Debt
As of June 30, 2009
2008-09 Assessed Valuation:8,207,420,042$
Redevelopment Incremental Valuation:3,812,849,826
Adjusted Assessed valuation:4,394,570,216$
Estimated Share
Debt %of Overlapping
OVERLAPPING TAX AND ASSESSMENT DEBT:Outstanding Applicable (a)Debt
Metropolitan Water District 293,425,000$ 0.236%692,483$
Poway Unified School District Facilities Improvement Dist No. 2002-1 179,316,320 26.550% 47,609,279
Poway Unified School District Facilities Improvement Dist No. 2007-1 73,998,934 25.789% 19,083,585
Palomar Community College District 151,750,000 5.411%8,211,193
Escondido Union High School District 32,432,978 0.101%32,757
San Pasqual Union High School District 1,016,351 2.639%26,822
Palomar Pomerado Hospital District 418,568,319 8.249% 34,527,701
South Poway Community Facilities District No. 1 4,585,000 100.000%4,585,000
City of Poway Community Facilities District No. 88-1 19,840,000 100.000% 19,840,000
Poway Unified School District Community Improvement Dist No. 1 49,480,000 0.391%193,467
City of Poway 1915 Act Bonds 504,444 100.000%504,444
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 1,224,917,346$ 135,306,731$
OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations 462,405,000$ 1.230% 5,687,582$
San Diego County Pension Obligations 986,677,916 1.230% 12,136,138
San Diego County Superintendent of Schools General Fund Obligations 16,395,000 1.230% 201,659
Palomar Community College District Certificates of Participation 7,300,000 5.411% 395,003
Escondido Union High School District Certificates of Participation 9,870,000 0.101% 9,969
Poway Unified School District Certificates of Participation 127,465,490 15.118% 19,270,233
City of Poway Certificates of Participation 49,850,000 100.000% 49,850,000
TOTAL OVERLAPPING GENERAL FUND DEBT 1,659,963,406$ 87,550,584$
TOTAL OVERLAPPING DEBT 2,884,880,752$ 222,857,315$ (b)
Ratio to 2008-09 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.65%
Ratios to Adjusted Assessed Valuation:
Combined Direct Debt ($49,850,000)1.13%
Combined Total Debt 5.07%
State School Building Aid Repayable as of 6/30/09:-$
Notes:
(a) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(b) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds
and non-bonded capital lease obligations.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses
of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire
debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every
taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Source: California Municipal Statistics, Inc.
159
City of Poway
Legal Debt Margin Information
Last Ten Fiscal Years
2009 2008 2007 2006
Assessed valuation 4,394,570,216$ 4,310,588,610$ 4,035,420,029$ 3,683,578,609$
Conversion percentage 25%25%25%25%
Adjusted assessed valuation 1,098,642,554 1,077,647,153 1,008,855,007 920,894,652
Debt limit percentage 15%15%15%15%
Debt limit 164,796,383 161,647,073 151,328,251 138,134,198
Total net debt applicable to limit:
General obligation bonds - - - -
Legal debt margin 0.00%0.00%0.00%0.00%
The Government Code of the State of California provides for a legal debt limit of
15% of gross assessed valuation. However, this provision was enacted when
assessed valuation was based upon 25% of market value. Effective with the 1981-82
fiscal year, each parcel is now assessed at 100% of market value (as of the most
recent change in ownership for that parcel). The computations shown above reflect
a conversion of assessed valuation data for each fiscal year from the current full
valuation perspective to the 25% level that was in effect at the time that the legal
debt margin was enacted by the State of California for local governments located
within the state.
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Source:
City of Poway Finance Department
San Diego County Assessors Office
FISCAL YEAR
160
2005 2004 2003 2002 2001 2000
3,341,441,046$ 3,106,118,400$ 2,894,214,986$ 2,734,305,211$ 2,514,417,338$ 2,360,664,203$
25%25%25%25%25%25%
835,360,262 776,529,600 723,553,747 683,576,303 628,604,335 590,166,051
15%15%15%15%15%15%
125,304,039 116,479,440 108,533,062 102,536,445 94,290,650 88,524,908
243,728 491,401 466,036 790,018 1,095,502 1,426,255
0.19%0.42%0.43%0.77%1.16%1.61%
FISCAL YEAR
161
City of Poway
Pledged Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Fiscal Year Debt Service
Ended Tax
June 30,Increment Principal Interest Total Coverage
2000 17,276,653$ 1,535,000$ 7,061,325$ 8,596,325$ 2.01
2001 20,881,799 2,340,000 8,334,392 10,674,392 1.96
2002 23,503,772 2,370,000 11,418,952 13,788,952 1.70
2003 26,247,819 2,560,000 11,571,940 14,131,940 1.86
2004 27,665,286 6,545,000 10,953,444 17,498,444 1.58
2005 30,428,470 4,560,000 13,740,175 18,300,175 1.66
2006 34,109,857 4,675,000 12,781,669 17,456,669 1.95
2007 36,011,865 5,085,000 12,328,271 17,413,271 2.07
2008 38,256,892 5,115,000 12,299,556 17,414,556 2.20
2009 38,940,302 5,340,000 12,068,451 17,408,451 2.24
Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements.
Source: City of Poway Finance Department
162
City of Poway
Demographic and Economic Statistics
Last Ten Calendar Years
Per
Capita
Calendar Personal Personal Labor Unemployment
Year Population Income Income Force Rate
2000 49,287 1,616,761,461$ 32,803$ 25,000 2.4%
2001 49,082 1,663,192,652 33,886 25,600 2.4%
2002 49,658 1,724,076,102 34,719 26,200 3.0%
2003 49,833 1,775,051,460 35,620 26,400 3.2%
2004 50,632 1,922,243,880 37,965 26,900 2.8%
2005 50,675 2,025,072,272 39,962 27,300 2.5%
2006 50,542 2,099,739,722 41,544 27,400 2.4%
2007 50,830 2,205,041,864 43,381 28,000 2.7%
2008 51,103 2,311,989,158 45,242 28,600 3.5%
2009 51,126 2,327,370,503 45,522 28,100 6.1%
Source:
Population - State of California Department of Finance
Personal Income - State of California Department of Finance
Employment Information - State of California Employment Development Department
163163
City of Poway
Principal Employers
Current Year and Three Years Prior
2009 2006
Percent of Percent of
Number of Total Number of Total
Employer Employees Rank Employment Employees Rank Employment
Geico Direct 1,500 1 5.34%1,800 1 6.57%
Poway Unified School District 1,462 2 5.20%758 5 2.77%
Pomerado Hospital 743 3 2.64%750 6 2.74%
Cohu Inc.650 4 2.31%
Sysco Food Services of SD 456 5 1.62%500 8 1.82%
Digirad Corporation 434 6 1.54%375 10 1.37%
First American Credco 416 7 1.48%935 4 3.41%
Walmart 340 8 1.21%
City of Poway 310 9 1.10%
Mitchell Repair Information Company 265 10 0.94%
HNR Framing 1,200 2 4.38%
Delta Design, Inc.1,000 3 3.65%
Disguise, Inc 600 7 2.19%
Cor-O-Van 400 9 1.46%
Total 6,576 23.40%8,318 30.36%
Total City Labor Force 28,100 27,400
Source:
City of Poway Economic Development Division-by employer
State of California Employment Development Department-total employment
Note:
Information on Principal Employers from nine years back is not available so
information from the year 2006 will be used for the comparison until 2016.
164
City of Poway
Full-time-Equivalent City Employees by Function
Last Six Fiscal Years
Function 2009 2008 2007 2006 2005 2004
General government 40.00 37.00 38.00 38.00 40.00 40.00
Public Safety (a)54.00 57.00 57.00 57.00 58.00 56.00
Public works 83.00 92.00 90.00 90.00 84.00 80.00
Redevelopment Services 9.00 9.00 10.00 10.00 11.00 11.00
Community Services 20.00 28.00 29.00 28.00 28.00 27.00
Development Services 29.00 36.00 37.00 37.00 36.00 35.00
235.00 259.00 261.00 260.00 257.00 249.00
Notes:
Amounts shown are the number of positions approved in each operating budget for the fiscal year.
(a) Law enforcement services are provided through contract with the County of San Diego Sheriff.
The City is reporting its ten year history starting with the implentation of GASB 44 in fiscal year 2006,
and in this instance was able to add an additional two years.
Source: City of Poway Human Resources Division
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City of Poway
Operating Indicators
Current and Prior Three Years
Function 2009 2008 2007 2006
General government:
Business registrations issued 942 1,240 1,071 792
Vendor payments processed 8,936 10,230 10,562 10,782
Public Safety:
Arrests made 1,015 1,052 981 1,898
Fire emergency responses 3,711 3,907 3,460 3,602
Safety Inspections 2,104 4,827 4,024 3,196
Development Services:
Building permits issued (1)1,157 1,441 2,740 3,048
Building inspections 7,417 9,280 11,264 11,163
Culture and recreation:
Performing arts center attendance 68,993 74,420 64,728 67,004
Library-number of volumes in collection 124,977 124,977 124,977 120,628
Library-number of volumes borrowed 562,865 545,279 492,501 390,974
Athletic field permts issued 144 140 124 214
Highways and streets:
Roads resurfaced in square feet 600,000 600,000 200,000 16,000
Roads slurry sealed in square feet 4,980,000 5,000,000 5,000,000 5,000,000
Pot holes repaired/work orders (2)147 46 36 35
Water:
Residential water customers 12,458 12,588 12,556 12,530
Commercial water customers 514 510 514 511
Average daily consumption (million/gallons)11.61 12.82 13.83 13.37
Sewer:
Residential sewer customers 11,191 11,175 11,180 11,322
Commercial sewer customers 770 771 755 532
Average daily treatment (million/gallons)3.43 3.24 3.25 3.42
Source:
City of Poway Operating Departments
The City is reporting its ten year history starting with the implentation of GASB 44 in fiscal year 2006.
(1) In Fiscal Year 2007-08 the Development Services Department changed the method used to
count the number of permits issued which led to the large decrease from the previous year.
(2) In Fiscal Year 2008-09 the Public Works Department began reporting pot holes fixed rather than
pot holes work orders.
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City of Poway
Capital Assets Statistics
Current and Prior Three Years
Function 2009 2008 2007 2006
Public Safety:
Number of fire stations 3 3 3 3
Number of sheriff stations 1 1 1 1
Public works:
Total number of streetlights 3,045 3,026 2,889 2,874
Signal controlled intersections 55 55 55 53
Health and welfare
Senior center facilities 1 1 1 1
Culture and recreation
Number of Libraries 1 1 1 1
Number of Performing Arts Centers 1 1 1 1
Number of Parks 18 18 18 18
Acres of developed parks 568 568 568 568
Number of reserves/preserves 2 2 2 2
Acres of reserves/preserves 2,400 2,400 2,400 2,400
Miles of trails 82 82 82 82
Highways and streets
Miles of roadway 152 152 152 152
Water
Miles of water lines 253 253 253 253
Water storage capacity (billon/gallons)1.11 1.11 1.11 1.11
Sewer
Miles of sewer lines 175 175 175 175
Miles of storm sewers 64 64 64 64
Source:
City of Poway Operating Departments
The City is reporting its ten year history starting with the implentation of GASB 44 in fiscal year 2006.
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